What is Financial CRM? A Complete Guide

Financial CRM (customer relationship management) is a type of software that helps businesses improve their interactions with customers, simplify lead management, and deliver personalized services that exceed expectations. By providing a centralized view of customer data, a CRM platform helps banks, credit unions, insurance companies, wealth and asset management firms, and more understand their clients. With that knowledge, financial institutions build the right products and solutions at the right time.

For example, Financial Services Cloud software contains all the important information about a customer, client, or policyholder, including their contact details, transaction history, and engagement in various channels. All of that data makes it easier to improve lead management, marketing, sales, customer service, and reporting. Plus, many CRM platforms are powered by artificial intelligence, helping employees in finance automate their daily tasks.

Table of contents:

• What is financial CRM?
• Who can use financial CRM?
• Benefits of financial CRM
• Key features of financial CRM
• Choosing the right financial services CRM: Step-by-step
• Salesforce Financial Services Cloud
• Financial CRM FAQ

Many employees benefit from using financial services CRM, including:

1. Financial advisors and wealth managers: These professionals use CRM software to manage client profiles, which include financial goals, investment history, and risk tolerance. This information helps advisors and managers deliver personalized advice and manage portfolios effectively.
2. Bank officers: A CRM system is crucial for managing customer relationships across various products and services. The system tracks every interaction, which helps bank officers identify opportunities for upselling loans, credit cards, or investment solutions. It also improves customer service in banking.
3. Insurance agents: Agents manage their client base throughout the entire policy lifecycle, and CRM systems help support that goal. Insurance technology tracks policy renewals, allows agents to manage claims, and reveals opportunities for cross-selling or upselling other insurance products.
4. Customer service representatives: With a CRM system, service representatives resolve customer complaints faster and enhance the overall customer experience. Plus, CRM software documents all customer interactions, which is crucial for maintaining service quality and compliance.

Implementing financial CRM unlocks a world of benefits for financial services institutions and their clients. Here are the key advantages:

With financial CRM, no potential client slips through the cracks. By tracking customer interactions and identifying upsell opportunities, businesses can improve their sales strategies and boost revenue.

For example, imagine that a bank uses a financial services CRM platform to monitor customer activities and preferences. The CRM system notices that a customer often makes international transactions and is paying high fees for these services. Using this information, the bank's CRM automatically flags this customer for a potential upsell to a premium account that offers lower fees on international transactions along with additional benefits like higher withdrawal limits and free international wire transfers.

Centralized customer data means that financial advisors get to deliver experiences that resonate with clients' unique needs. It's a tailored approach that builds strong relationships and customer satisfaction. For example, a CRM for financial advisors can track significant events in a client's life. The software can alert advisors when a client is approaching retirement age, and the advisor can offer to adjust older retirement plans based on new situations.

CRM platforms create seamless collaboration between team members, ensuring that all relevant information is shared and accessible. Consider a situation where multiple departments such as sales, customer service, and compliance need to work together on client accounts. The CRM system acts as a repository for all data, so when a customer support agent updates a client's contact information, the sales and compliance teams immediately have the right details.

CRM systems protect sensitive customer data by employing the right security measures. The system is equipped with advanced security features such as data encryption, multi-factor authentication (MFA), and regular security audits. These features help safeguard client data from unauthorized access and potential breaches, building better trust with clients.

Financial CRM solutions provide real-time insights into sales performance, enabling managers to identify areas for improvement and optimize accordingly. Imagine that a financial services company uses a CRM to track all sales activities, from initial client contact to closed deals. The CRM system collects data on various metrics, such as lead conversion rates, average deal size, and sales cycle length. Managers can access this data through intuitive dashboards and pinpoint areas where sales processes can be improved.

With cloud-based CRM, financial professionals can access customer information and manage tasks from any device. This means they can stay on top of their work while on the go, whether it be through their laptop, tablet, or smartphone. For example, having customer data available on any device would help insurance claims adjusters in the field better handle cases. This level of accessibility allows for a more efficient and productive workflow, as well as the ability to provide quick responses and updates to clients.

Get familiar with these core features to fully benefit from financial services CRM.

• Customer service for financial services: Use service portals and chatbots to support customers quickly. This feature is particularly useful for handling inquiries and requests related to financial transactions, account management, and other services offered by a financial institution.
• AI for banking, insurance, and wealth institutions: Automate processes for sales, marketing, service, and data security. Use automated appointment scheduling, reminders, upsell opportunities, fraud detection, chatbots, and more.
• Contact management: Centralize all client information, making it easily accessible to stakeholders within the organization. Maintain detailed profiles of each client, including personal information, communication history, financial transactions, preferences, and more.
• Digital client onboarding: Skip manual data entry and use digital workflows to onboard new clients. Clients sign applications, disclosures, and consent forms with a secure digital signature.
• Analytics and reporting: Turn raw data into viable insights to get a deep understanding of business performance, client behavior, and market trends. Create reports based on performance, forecasting, trends, and more.
• Financial services personalization: Use customer data to personalize experiences in financial planning and provide unique advice for each client in banking, insurance, and wealth advisory scenarios.
• Sales intelligence: Get deep insights into sales patterns, the sales funnel, team, productivity, sales performance, and deal forecasting in financial services.

To select the right financial CRM, carefully consider all business needs and goals. Here's a step-by-step guide to help you make an informed decision:

1. Identify specific business needs: Clearly define your business goals and requirements. Consider factors such as the size of your organization, customer base, and industry-specific needs.
2. Evaluate scalability and customization options: Choose a solution that can scale with your business growth. Make sure the platform offers customization options to tailor the system to your unique processes and workflows.
3. Consider a user-friendly interface: Choose a solution with an intuitive, user-friendly interface. Ease of use is crucial for maximizing user adoption and driving successful implementation.

Salesforce Financial Services Cloud is a powerful CRM platform designed specifically for the needs of the financial services industry, including sectors such as banking, insurance, and wealth management. This platform stands out by offering tailored solutions that address the unique challenges and requirements of financial experts.

For leaders in these sectors, Salesforce Financial Services Cloud provides tools for deepening client relationships, improving productivity through automation, and achieving compliance with industry regulations. It also has analytics and customized reporting capabilities, helping banks, insurance agencies, and wealth and asset management firms make better decisions.

By adopting this specialized CRM solution, financial services leaders can ensure they not only meet but exceed client expectations.