5 Benefits of Using CRM in Financial Services

It’s a fact that financial services companies are maybe the most reluctant businesses when it comes to changes in the way they work and it is understandable up to a point, as they have to do with money and we all know that the money makes the world go round! But, since the business software and especially the cloud ones, appeared in the enterprise market more and more financial companies has started using specific tools either for managing and organizing reasons or in order to extract reports and analytics through several Business Intelligence functionalities regarding not only the financial data but also employees' productivity measurements. What was really impressive was the dominance of the CRM Project Management tools in this kind of companies. As Nancy Butler quotes “Client relationship management in financial services is imperative to the long term success of the business “, so below there are five main reasons to totally agree with her!

Activity history

Each action that was made from any of the employees can be linked to the customer’s record and is visible to everyone. Thus, with just a glance, anyone who wants to contact a certain client is able to view its current status, along with all the contact background e.g. meetings, phone calls, emails etc. Jeremy Office and Jonathan Hundman both agree that this contact history feature is one of the most important features that a good CRM for financial services should have. Boris Castillo underlines the importance of the activity history to limit the liability of the company, as a “conscientious employee can note the date, time and setting of conversation details with the client, so they can show the client just how and why any position changes in their account took place and can serve to bolster the advisor’s explanation to the client or, if necessary, to an objective third party”. This documentation could also help according to Jeffrey Camp, President and CEO of Cinium Financial Services and OxBonding.com, and David Waring to “identify what went wrong when a team did not meet its goals or on the contrary what was the secret of success for the winning team”.

Targeted Marketing

Apart from the activity history, personal information like their hobbies or goals, birthdays, wedding anniversaries can also be stored for each client, as they can be really helpful in knowing them  and building a deeper connection. “That’s what this business is really about, creating deep meaningful relationships with clients while helping them achieve their goals”, Jeremy Office quotes. Nancy Butler on the other hand “adds one more way to categorize the services provided to each client and that is based on how profitable they are”.

Prospects and Leads Management

Josh Lindenmuth believes that “the number one benefit of CRM utilization is managing prospective clients and leads through call campaigns, direct emails and performance assessment of prospective initiatives”, whereas Steven Mintz uses “all the data stored in their CRM (demographic data, transactions or behaviors) in order to target specific products to people who are more likely to purchase”.

Reminders and Automations

 It’s all about good timing and Steven Mintz seems to know that well, as he uses their CRM to “ easily automate tasks, mining data in real-time to identify relevant triggers and serve up the right offer to the right customer at the right time”. Boris Castillo also uses their CRM to set alarms and reminders for calls and meeting “with enough advance time to ensure that the client doesn’t feel neglected”.


Charles Dzama doesn’t worry anymore about if the tasks are completed or not, as he can check them any time he wants, no matter where he is and takes the appropriate actions. Apart from tasks, a CRM makes you feel more secure as employees don’t take all their contact data with them when leaving, so it is less likely to lose clients’ information according to David Waring . But what happens if you do not want some employees to have access to certain client’s data? Most CRMs offer a reasonable amount of control over access to the data and that is really helpful according to Jonathan Hurdman.

It’s certain that there are much more reasons to start using CRM tools for your financial services company, but it’s quite clear that if you want to have a successful future for your financial company, sooner or later a CRM tool should be on your To-Do list.

Last modified onThursday, 09 July 2015 11:17
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