Financial Innovation and Advancing Information Technology Values in Indian Banks

Abstract

In the wake of the financial crisis, banks around the world have to adapt to a different and rapidly changing business environment. Ongoing shifts in customer behavior and advances in technology are changing not only what customer’s expectation from the banks, but also how banks and non-bank competitors deliver financial services. Taking on board the lessons of crisis, banks need to ensure that they are accessing revenue pools that offer long term growth. As the customers adopt new technologies and behaviors, and as banks and non banks alike leverage new technologies, channels and business models to capture more of their customers’ business, banks need to find new ways to deliver their services and connect with customers. Effective CRM initiatives utilize advances in technology to analyze available customer data in order to improve marketing and customer satisfaction. Customer Interaction Management (CIM) seeks to leverage the benefits of multi-channel involvement with the customer, to offer proactive assistance benefiting both the customer and the organization. The use of technology, new business models to extend relationships with customers and effective relationship management strategies in place that incorporate not only staff culture and training, but also the underlying systems to support these interactions has become utmost important in service delivery process.