Always sorry to hear these type of tales but I, unfortunately, hear them all too often. I wrote a while back in one of my White Papers that there almost seems to be a direct correlation, somewhat paradoxically, between the adoption of CRM technologies by Banks in the late 90s, early Noughties, and a subsequent decline in service. This could also of course be aligned to an increase in customer expectation of 'better' service. To support the first point though it's not CRM and associated technologies that have proven to be the problem, rather the application and rationale for their use.

Many Banks saw CRM as an opportunity to move customers onto 'lower cost to serve' channels to increase margins and improve profitable operations. Much of this however was done at the expense of traditional face to face operations through a decline in the number of branches and the subsequent downgrading of the role of the branch as a customer experience hub. There was also a shift of decision making power away from branches to a more centralised model, all of these things effectively distancing the bank from their Customers.

Many Banks of course realise these things now but the ramifications of these actions, the distance between banks and their customers, the loss of trust and confidence in the system, the emergence of alternative FS providers, all makes for very challenging times ahead for the traditional banking model.

Always sorry to hear these type of tales but I, unfortunately, hear them all too often. I wrote a while back in one of my White Papers that there almost seems to be a direct correlation, somewhat paradoxically, between the adoption of CRM technologies by Banks in the late 90s, early Noughties, and a subsequent decline in service. This could also of course be aligned to an increase in customer expectation of ‘better’ service. To support the first point though it’s not CRM and associated technologies that have proven to be the problem, rather the application and rationale for their use.

Many Banks saw CRM as an opportunity to move customers onto ‘lower cost to serve’ channels to increase margins and improve profitable operations. Much of this however was done at the expense of traditional face to face operations through a decline in the number of branches and the subsequent downgrading of the role of the branch as a customer experience hub. There was also a shift of decision making power away from branches to a more centralised model, all of these things effectively distancing the bank from their Customers.

Many Banks of course realise these things now but the ramifications of these actions, the distance between banks and their customers, the loss of trust and confidence in the system, the emergence of alternative FS providers, all makes for very challenging times ahead for the traditional banking model.

Unfortunately it seems that there's a viable business model for banks in cutting services, losing the 10% of customers who are willing to move and living off the other 90. I suspect that will no longer be the case in ten years time.

Unfortunately it seems that there’s a viable business model for banks in cutting services, losing the 10% of customers who are willing to move and living off the other 90. I suspect that will no longer be the case in ten years time.