Technology supported CRM in Indian Banks : From Customers’ Perspective

Abstract

Financial Institutions across the globe are investing large amount of money in ICT (Information and Computing Technology) in general and e-CRM (Electronic based Customer Relationship Management) in particular. Indian banks are no exception to this trend. After passing through the ACID test of global meltdown during 2007-2009, banks have become more cautious about the returns on investments (ROI) in technology.

Most of the banks in India have already switched over to core banking solution (CBS) and the rest are on the way due to the norms of Reserve Bank of India (RBI) to shift all the banks on CBS before 2011. With extensive support from Information Technology, banks are expecting sustainable relationship with customers.

Surprisingly, according to the survey by Database Group, 65% of the banks are not getting the expected results from IT-based customer relationship management (IT-CRM).

The researcher tried to understand the customers’ perspective about use of IT-enabled CRM in Indian banks and benefits of the same to the customers and bankers. Survey of customers’ satisfaction was conducted administered through questionnaire (5-point Likert scale). The analysis of the results was done using SPSS.

Findings reveal that there is relation between customer satisfaction and use of IT-enables  services to customers.