Modernization of Customer Relationship Management Industry

INTRODUCTION

There is a probability of huge increase in employment opportunities. A number of web-sites are coming up on insurance, a few financial magazines exclusively devoted to insurance and also a few training institutes being set up hurriedly. In the insurance sector various new tools are coming to facilitate the business. E-CRM, E-insurance leading a new way for the development of this sector it leads to increase in the employment opportunity in future. Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples. The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer. It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities. It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years.

introduction costs of technology and organizational transformation. In addition, more resources are needed for leveraging customer value, which is an important goal of CRM activities. Researchers blame CRM failure on the use of the wrong CRM strategy and imperfect organizational transformation. Then is there any right CRM guidance to correct these problems. Now days business institutions worldwide are undergoing fundamental shifts in how they operate and interact with their “customers”: employees, alumni, donors, faculty members, and staff members. Kotler and Fox (1995) state that “the best organization in the world will be ineffective if the focus on ‘customers’ is lost. First and foremost is the treatment of individual employees, alumni, parents, friends, and each other (internal customers). Every contact counts!” During the mid-1980s and the late 1990s, many colleges and universities began restructuring and reengineering their operating processes to cut costs and become more efficient while responding to increased competition. Yet these organizations also realized that building the in-house technology necessary to achieve these goals was expensive, difficult, and time-consuming. As a result, many turned to enterprise resource planning (ERP) applications. These applications helped them automate and optimize their internal business processes—in areas such as finance, grants management, student information, enrollment, inventory management, and human resources and freed them from some of the minutia found in day to- day operations.

INFORMATION TECHNOLOGY (IT) IN BANKING

In the five decades since independence, banking in India has evolved through four distinct phases. During Fourth phase, also called as Reform Phase, Recommendations of the Narasimham Committee (1991) paved the way for the reform phase in the banking. Important initiatives with regard to the reform of the banking system were taken in this phase, entry of new banks resulted in a shift in the ways of banking in India. The growing competition, growing expectations led to increased awareness amongst banks on the role and importance of technology in banking. With arrival of foreign and private banks with superior technology pushed Indian banks to fallow the latest technology to meet the growing competition and retain their customer base. Now Indian banking industry is in the mid of IT revolution.

EVOLUTION OF TECHNOLOGY IN INDIAN BANKING

The computerization and subsequent development in history of Indian banks can be traced back to 1966 when Indian Bankers Association (IBA) along with exchange banks association signed first wage settlement with the unions, which accounted for the use of IBM or ICT accounting machines for inter-branch reconciliation etc. A committee on computerization and mechanizations was appointed by RBI in 1983 under chairmanship of Dr. C. Rangrajan recommended that computerization and installation of Advanced Ledger Posting Machines (ALPM) at branch, regional and head offices of banks will bring around a new era in banking. Narsimhan Committee in 1991 paved way for reform phase in banking. Saraf Committee was constituted by RBI in 1994 that recommended the use of Electronic Fund Transfer System (EFT), introduction of electronic clearing services and extension of Magnetic Ink Character Recognition (MICR) beyond metropolitan cities and branches.

IMPACT OF ON LINE BANKING

It has been observed that customers who adopt online banking are typically more profitable to the bank, stay with the bank longer and use more products strengthening the bank customer relationship. Information Technology and Internet banking has bridged the information gap, which was interestingly because of human involvement. A Banks can make the information of products and services available on their site, which is, an advantageous proposition. Prospective customer can gather all the information from the website and thus if he comes to the branch with queries it will be very specific and will take less time of employee. A Customer can visit these websites and can compare the services offered by a bank with that of another. A Customer can get all the information, by saving money and time. A The trend thus emerging out is that of virtual corporate system where the human role is minimized to maximum effect.

APPLICATIONS

(i) CRM

(ii) E-Insurance

(iii) Various tools of IT

REFERENCES