OPINION: Uncovering the benefits of adopting CRM in financial services

Hideki Hashimura

CRM/CX Strategist & CMO

redk CRM Solutions

Hideki Hashimura, CMO at redk, explores the biggest challenges in CRM for financial brands.

The UK has seen a surge in the adoption of CRM software in recent years, with many businesses recognising the value of having a comprehensive customer relationship management system in place.

The global market for finance CRM software was valued at a whopping $9.5 billion in 2021 and is expected to continue to grow in the coming years.

Whether you’re looking to develop customer relationships or gain better insights into their behaviour – CRM technology could make a huge difference to your team of financial advisors.

In this article, we’ll take a closer look at the challenges the financial services industry currently faces and how CRM software can improve matters.

What is customer relationship management?

Before we get into the detail of CRM, let’s take it back to basics. Customer relationship management (CRM) is all about understanding your customers and their needs. For the UK financial services industry, CRM can be a powerful tool for attracting new customers across all touchpoints and re-engaging with existing customers to improve loyalty.

It helps financial service providers manage customer interactions, supercharge the sales pipeline, improve contact management, deliver tailored data-led solutions, and much more.

What challenges is the financial sector currently facing?

Customer experience has been a challenge in the financial sector for many years.

Financial services organisations have traditionally been focused on regulatory compliance, cost-cutting, and risk management, with customer experience taking a backseat. This approach has created an environment where customers feel disconnected, overwhelmed, and dissatisfied.

Let’s take a closer look at why the financial industry is struggling with the customer experience:

Lack of personalisation

One of the major customer experience challenges in the financial services sector is the lack of personalisation throughout different sales processes. Financial services are often seen as impersonal and transactional, with customers feeling like they are just another number.

Organisations must focus on building meaningful relationships with their customers by providing personalised products and services that meet their needs.

Slow digital transformation

Many financial service companies are still stuck in the past, relying on outdated processes and technology that make it difficult for customers to interact with them. To stay competitive, financial services must modernise their systems and invest in technologies that make it easier for customers to access their services. New CRM systems could do just the trick!

The trust gap

Finally, the financial services sector faces a major trust gap. Customers often feel that their data is not secure or that their money is not safe with a certain financial institution. To address this issue, businesses must invest in measures to protect their customers’ data and ensure their money is secure.

The right CRM software could help to resolve some of these challenges and build a bridge between the UK financial services sector and its customers.

The benefits of financial CRM software

Implementing customer relationship management technology is the most efficient way for financial businesses to improve their customer experience.

Automated customer service

Automating customer service functions can help financial services firms provide more consistent and efficient customer service by reducing the burden on staff and improving customer satisfaction.

This could be an AI chatbot that can resolve common customer problems without the help of your sales team. Or, it could be automating processes, like filing customer information, so sales teams can find data quickly and efficiently while dealing with customer queries.

Customer segmentation

CRM technology helps financial services firms segment customers into different groups based on their behaviour and preferences.

You can then create targeted campaigns and offers tailored to specific customer groups. For example, some customers may be interested in wealth management, while others are more concerned with debt advice. This way, your customers will only receive marketing campaigns relevant to their circumstances – whether it’s age, location, or financial situation.

CRM technology helps businesses to communicate with these customer segments individually, tailoring marketing content to their interests and needs.


By leveraging data from customer profiles, financial services firms can provide personalised services and communications to each individual customer.

This helps close the trust gap many financial services struggle with and hopefully build long-lasting customer loyalty.

Data analysis

CRM technology provides valuable insights into customer data, enabling financial services firms to improve their understanding of customer needs and preferences throughout the sales process. This information can then be used to tailor products and services to meet customer expectations.

Automated marketing

Automated marketing ties together all the other benefits we have discussed. It allows you to utilise customer segments, data analysis, personalisation, and improved customer service – without lifting a finger. Automated marketing keeps everything consistent, ensuring messages are sent out at the right time and to the right customers. This can help to increase conversions, generate more leads and improve customer retention.

Improve customer experience with CRM

It’s clear that customer experience is key for financial services firms to remain competitive and successful. With the right investments in personalisation, digital transformation, and improved trust, firms can create a better customer experience that meets customer expectations.

Using CRM technology can provide a firm with the necessary tools to improve its digital capabilities, allowing them to build meaningful relationships with its customers, gain deeper insights into customer behaviour, and increase efficiency.

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