A company-wide Customer Relationship Management application gives investment banks an unrivaled view of clients.

Key ingredients of an ideal CRM Application

Building pan-Investment Bank CRM systems needs to take two important dimensions into account. The following table captures the area, key tasks, and priorities associated and likely outcome of the target system.

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These two important dimensions need to be supported by functions such as central matching. Such a system should be able to match the client and client’s interest to the focused business proposition. Further, the system should be able to centrally store the trade and transaction data, contact reports and touch point analysis to dynamically generate client satisfaction indices.

Though segmentation of client category can help, it is the ability to develop a granular view at an  individual level that differentiates. Synchronizing all relevant data points from various source systems can help in developing a consolidated view on customer activities as well as customer specific profitability. It further needs to channel the information in the pipeline, maintain action, and plan for the qualified opportunities. It also needs to record the outcome of opportunities. The following figure details a few additional important tasks which need to be conceptualized in the process of building a robust application to address customer-centric information needs of an IB manager.

Fundamentally, applications/systems built should help in understanding revenue calculation and attribution the activities to the respective business units. It should be able to provide meaningful information on cost of service calculations and client contribution to the profitability of the business units at segment as well as individual levels. The application should enable customer ranking and rank the customers profiles based on various defined criteria.

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A single unified view of the customer

In a single and unified view, the application should allow the user to view status of the accesses requested, view effectiveness of the service provided and enable the user to identify low efficiency of service. A pan IB CRM system needs to support these key functions in addition to a host of other common features. It needs to take into account where the data needs to be mastered and how a golden copy is produced, and how know your customer (KYC) information is managed.

Thus, building a unified CRM, requires additional effort in managing the data better, building flexible and robust architectures and improving the capability to update across distributed databases with a governed mechanism of control. Though moving every CRM application within an enterprise is a herculean task to conceptualize and implement, building seamless low-latency interface between various CRM applications is the way forward. In a nutshell, any pan-IB system should enable the process of targeting the right clients with right propositions in a timely manner, through the channels which are most effective. At the end, a CRM system, should fulfil its most basic and critical purpose, that of enabling a single view of customers for focused cross selling of products and services.

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