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In the Post liberalization the banking industry was adopting push strategy in selling their products and the importance is not given in serving the customers. But in progressive liberalization, the Narashima committee has implemented sea-changes in the banking reform in 1991.

With sustained pressure on their interest spread, banks have been increasingly foraying into a host of diversified activities so as to safeguard their bottom.

Banking Industry revolves around three basic features being:

1. Intangibility: Unlike a product which can be seen and benefits derived accordingly, the banking industry thrives practically on the quality of the services rendered. The experience of the customer determines the growth of the business.

2. Variability: The present day customer is impatient and is highly demanding and dos not compromise on the quality of the service rendered, as he expects that high cost equals high quality and vice versa.

3. Satisfiers: Unlike the manufacturing industry that wholly depends on the tangibility and extrinsic factors, the service industry is totally dependent on the intrinsic and extrinsic factors, which have a close earring on the core benefits.

It is obvious from these features that the customer is the fulcrum for the banking industry and any initiative adopted for its growth is to be aimed at, for and through the customer. And the banks to be competitive it build up a strong CRM by convergence model in the financial industry and financial liberalization.

CRM about a business strategy , which drives changes in the banking and work processes, enabled by information technology. Banking institution must initially develop a strategy to understand and anticipate the need of the current and potential customer base.

Benefits of Using CRM in Banking Industry

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E. Jeevitha,
Faculty,
Department of Management Studies and research,
Tamilnadu College of Engineering, Coimbatore.