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Dr. Annett Tischendorf

Study Author,

A.T. Kearney

Press & Media

Anita Bunk
Head of Communications

For Retail Banks, Strengthening Advisory Services Means Greater Success in the Wake of Financial Crisis

Improving the quality of client advice is an effective means to stem the collapse of revenues in retail banking, according to a study by A.T. Kearney. Private banks could be a model for new thinking in customer relationship management.

Immenstaad (Germany), 04/27/2010 -

As revealed in a recently published study by A.T. Kearney, "Retail Banking in Times of Crisis," retail banks’ private banking business will continue to feel the repercussions of the financial crisis even as it abates. In some cases, revenue declined by as much as 45 percent in 2009. The outlook for this year is estimated at 15 to 25 percent below 2008 levels. Major reasons include private clients' continuing concerns about the future and the loss of investor confidence. The experts at A.T. Kearney recommend improving advisory services to address this decline in revenues, building on what is seen as private banking’s most important asset. "Typically, each bank advisor has less than one hour a year for one consulting appointment with each client," according to Dr. Annett Tischendorf of A.T. Kearney, who was one of the study's authors. "If banks use this time well and effectively, they can increase revenues by up to 20 percent." A prerequisite for that, however, is a convenient customer relationship management (CRM) system for client advisors.

Bosch Software Innovations’ experience shows that private banks recognized relatively early that flagging investor confidence could only be restored by improving the quality of advice provided to them. "It depends dramatically on a precise assessment of portfolio quality, both with regard to current and potential clients. The time this saves gives the advisor more discretionary leeway. With our process-oriented CRM solution, we can help banks successfully concentrate on advising clients," reports Thomas Schmid, member of the management at Bosch Software Innovations GmbH.

Process-Oriented CRM Solutions

Many banks have already implemented CRM software but most are not able to map the entire customer lifecycle and serve only to support more targeted customer approaches. The revenue potential of recent graduates, for example, is not recognized in a timely manner, if at all. Some private banks are positive examples in this regard, however, as they have put CRM solutions to work that seamlessly support the entire client life cycle in one system. From prospects to long-term client relationships, from purchased addresses to inactive clients, all client information is actively integrated and leveraged. These banks understand that CRM is not merely a tool for contact and relationship management but more than that, an operational and decidedly process-oriented system that uses electronic workflows to support all bank-related processes.

The CRM Solution from Bosch Software Innovations empowers banks to manage their client relationships and all downstream operational business processes. In contrast to the typical CRM system, the Bosch Software Innovations CRM provides the consistent process orientation that is critical to successful client advisory services. Active client management gives the client advisor active information, such as identifying recent graduates in order to fully realize the revenue potential that otherwise remains hidden.