Key points and Salesforce in use for financial institutions
· Coordination of CRM and existing systems in banking systems
For a bank, a CRM system is the second most important and largest system after a bank’s accounting system, and it requires coordination with a wide range of existing systems.
For example, in the sales process, the process breaks down from “identifying needs” to “sales activities” to “contracts”. Among these, the most upstream “requirement discovery” is the CRM system. The current system needs to be connected and used in the next step, “sales activities”.
In addition, it is a large system with a wide range of users and use cases, for example being used every day by all bank employees at “branches,” and that it needs to be connected to many systems.
· Expansion of collaboration partners required for CRM
Importance of strengthening CRM functionality
In recent years, the number of partners for CRM systems has increased.
This is due to the fact that a wide range of work with business partners has evolved with deregulation, together with business matching and management consulting.
In addition, as a regional platform, we are required to provide services to the end users of our business partners and play a role in helping them grow.
As the scope expands in this way, CRM, which collects and manages customer information, is becoming more important.
Attention and prospects for Salesforce
Many of Japan’s financial systems are carefully designed to accommodate the specific characteristics of each financial institution. While this can be said to be a good point, there are issues with its ability to keep up with recent changes in the business environment (lead time and costs to add functions). Therefore, Salesforce is gaining attention.
· Issues that stand in the way of CRM system innovation
For a CRM system to be effective, agreeing on a sales strategy is more important than choosing a tool.
Reforming a CRM system is a difficult task no matter who undertakes it, and there are other hurdles to overcome as well as agreeing sales strategies internally. In advancing the project, there are issues such as the involvement of a wide range of departments, the need to follow the system up to the current level, interfaces with related systems, and cost issues.
・ Suitable for Standard
Figure 1: Ideal and actual solution to “Fit for Standard”
Standard Compliant means changing the business to match the standard functions of the system, rather than developing systems or changing functions to meet the business content. Vendors including Salesforce consider Fit to Standard ideal, and consider aligning their operations with global best practices. Although it is suitable, in fact, there are aspects that only end up being beautiful.
There are not many cases where a new CRM is introduced. With this in mind, I’m sure many people would like to create a system that reproduces or surpasses what has been done with the current excellent system.
The ideal of Fit to Standard is “high maintainability, cost reduction, and the ability to keep up with the evolution of Salesforce by minimizing customization”, but if the current system is well developed, the native Salesforce functionality is insufficient Walls like boundaries of speech restrictions and governors will stand in your way.
Furthermore, despite the ideal “By sharing unified data among all employees, the use of information will be promoted and a sophisticated customer experience will be achieved,” in reality, there are barriers such as investment costs and system collaboration different. Yes.
There is no silver bullet to solve these issues, but what is important is to keep the ideal in mind, adjust opinions, and move forward with a goal in mind and agreement. Sharing the core pillars, we provide support by leveraging our knowledge of “visualization of standard implementation and customization ratios,” “incorporating and coordinating peripheral solutions,” “providing parts for basic functions of financial institutions,” and “Track record of collaboration with existing major systems.” I believe that NTT Data has value in being able to do this.
What are the key benefits of implementing CRM systems in financial institutions?
Interview Between Time.news Editor and CRM Expert: Exploring the Transformation of CRM in Financial Institutions
Time.news Editor: Welcome to our special segment, where we unravel the latest trends in financial technology. Today, we have with us Dr. Kimura, a leading expert in CRM systems, particularly in their application within financial institutions. Thank you for joining us, Dr. Kimura.
Dr. Kimura: Thank you for having me. It’s a pleasure to discuss this significant area.
Editor: Let’s dive right in. Financial institutions often cite CRM as the second most crucial system after accounting. Can you elaborate on the importance of CRM in banking operations and how it integrates with existing systems?
Dr. Kimura: Absolutely. CRMs are vital because they manage the relationship between the bank and its customers. In a typical sales process, for example, the CRM identifies customer needs, aids in sales activities, and facilitates contract management. This means the CRM must seamlessly connect with other systems for effective tracking and management, which is a complex but necessary coordination.
Editor: It sounds like a significant operational undertaking. With the expansion of partnership networks in financial services, how has the role of CRM systems evolved?
Dr. Kimura: Great question! In recent years, due to deregulation and an increase in collaborative efforts, CRM systems have had to adapt. Now, they serve a wider range of business partners while also helping these partners thrive. This shift emphasizes the critical need for CRMs to not only store customer data but also enable collaborative business processes, making their functionality even more essential.
Editor: Salesforce has become popular among financial institutions in Japan, where systems are often tailored to specific institutional needs. Why do you think Salesforce is gaining traction?
Dr. Kimura: Many traditional systems are designed meticulously but can struggle to keep pace with the rapidly evolving business landscape—think of lead times and costs involved in adding new functions. Salesforce offers a more agile solution that can swiftly adapt to changes, which is particularly appealing. It allows financial institutions to be responsive to the demands of their customers while maintaining compliance.
Editor: Despite all this potential, you mentioned some hurdles to CRM innovation. What are the main obstacles finance organizations face?
Dr. Kimura: The first challenge is aligning on a sales strategy—without a clear internal agreement on goals and methods, the CRM reforms struggle to gain traction. There’s also the complexity of involving multiple departments and designing interfaces that communicate effectively with existing systems. Lastly, the financial aspect cannot be ignored; cost management is crucial for any technology project.
Editor: It sounds like a multifaceted challenge. You also referenced the concept of “Fit for Standard.” Could you elaborate on that?
Dr. Kimura: Certainly! The “Fit for Standard” approach means that organizations adjust their business processes to align with the system’s standard functionalities, rather than customizing the system to fit their unique processes. This is seen as ideal because it reduces complexity and enhances compatibility. Vendors like Salesforce advocate for this model, promoting a standard procedure that can be applied across various institutions.
Editor: Given all these insights, what do you see as the future prospects for CRM systems in the financial sector?
Dr. Kimura: The future looks promising. As technology continues to evolve, so too will the capabilities of CRM systems. We’ll see a stronger focus on customer experience, enhanced data analytics, and deeper integrations with emerging technologies like AI and machine learning. Financial institutions that embrace these changes will likely prosper in terms of customer retention and overall growth.
Editor: Thank you, Dr. Kimura! This has been a fascinating discussion about the ever-evolving role of CRM in the financial industry. We appreciate your insights.
Dr. Kimura: Thank you for having me. It was a pleasure to share these thoughts with you.
Editor: And thank you to our audience for tuning in. Stay with us for more discussions on the latest trends shaping the financial landscape.