How FinTech Companies Can Harness CRM Systems for Optimal Results

In the fiercely competitive FinTech landscape, companies must seize every opportunity to outpace their competitors. Recognizing this, FinTech firms are rapidly adopting a wide range of channels and services, such as mobile apps, social media, websites, and email communications, in hopes of effectively engaging with their customers and fostering loyalty. 

However, the multitude of communication methods and the vast volume of valuable data to be collected present challenges. This is where CRM systems come into play, integrating with these channels to serve as a potent tool for driving growth and enhancing customer experiences. 

So, what constitutes an effective CRM? A proficient CRM system should help narrate the customer relationship story, extending well beyond mere sales. It should also include integrated marketing tools and a customer service module. With modern CRM solutions that facilitate the use of analytical mechanisms, fintechs can benefit from insights on ways of working with the customer. By recording interactions, CRM can suggest effective offers and other activities that build and strengthen the relationship with customers. A great CRM should integrate multiple data sources, and participate not only in the interaction of initiating business, but also offer support for existing customers. Think of your CRM as your well-informed advisor, working alongside sales teams and acting as a customer ambassador. 

By fully exploiting CRM systems, FinTech companies can trace every aspect of the customer journey in one location and use that data to shape the services they offer, bolster transactional processes, or execute more efficient and effective marketing campaigns in well-chosen channels. Consequently, FinTechs can unlock a plethora of benefits, including intricate customer analytics, automated marketing, enhanced security, and low-code possibilities. 

So, how can FinTechs looking to stay ahead harness CRM systems to their maximum potential? And, what are the outcomes? 

In-Depth Analytics  

Analytics form the core of every successful FinTech venture. However, not all are deciphering and extracting the value in the vast amounts of data they can access and collect. To aid this, CRM systems provide advanced analytical capabilities, enabling FinTechs to garner valuable insights into customer behavior, market trends, and business performance. 

By integrating CRM data with external sources (e.g., social media or transaction histories), FinTech firms can construct comprehensive customer profiles and devise more targeted strategies. This data-driven approach facilitates more personalized recommendations, risk assessments, and optimized financial planning, ultimately driving customer satisfaction and retention. 

Robust Security 

Security is crucial in the highly regulated FinTech industry, where safeguarding sensitive customer information is a top priority. CRM systems that offer robust security features, including encryption, user access controls, and data backup mechanisms, can enhance a company’s security. 

The most significant feature of CRM is an advanced data access management system. It utilizes encryption techniques to secure data during storage and transmission, preventing unauthorized parties from accessing sensitive information. It also allows organizations to establish detailed access controls, sharing only the data required for individual roles. 

A critical element related to CRM is the system architecture, which aims to protect customer data. Sensitive information should be collected in a central back-office system, typically CRM, and made available to front-office systems, on request, in the required data scope. Front-office systems are obviously more vulnerable than back-office systems, which is why architecture, such as CRM, allows for better protection against data leakage. CRM should ensure high security standards and can help to improve overall security. 

AI Assistant in CRM: A Catalyst for Sales 

AI assistants in CRM systems, like Microsoft's Viva Sales, automate routine tasks, allowing sales teams to focus on strategic activities. By providing real-time insights based on customer data, they enable salespersons to personalize their approach, enhancing customer satisfaction. 

In the FinTech sector, these AI assistants analyze complex financial data to provide personalized advice, helping salespersons offer relevant products or services. Thus, AI assistants in CRM systems are a necessity for sales teams aiming to stay competitive in the evolving FinTech landscape. 

Moreover, AI assistants are transforming the way sales teams prioritize and manage leads. By analyzing various data points, these assistants can score leads based on their likelihood to convert, enabling salespersons to focus their efforts on the most promising prospects. This intelligent lead management, coupled with the ability to provide real-time coaching and feedback, makes AI assistants an invaluable tool for sales teams striving for efficiency and effectiveness in the competitive FinTech industry. 

Scalability and Growth 

The beauty of CRM systems lies in the flexibility and scalability they provide, allowing FinTech companies to expand and scale back their operations as needed. For FinTechs at the start of their journey, this can be a significant advantage. 

With CRM, businesses can easily accommodate growth by integrating new functionalities and managing increased customer volumes. And as a company grows, so do their teams. CRM systems that enable effective communication across these teams and across different locations foster a cohesive and scalable structure internally. Therefore, CRM systems can support companies with a flexible foundation for scalable growth. 

In conclusion, CRM systems can be transformative for FinTech companies, empowering them to reach new heights. By fully harnessing these capabilities above, FinTechs can streamline processes, improve customer experience, increase operational efficiencies and ensure flexibility for growth. In the competitive FinTech landscape, embracing CRM technology is no longer a luxury, but a necessity for companies looking to stay ahead and thrive. 

For Fintechs looking to maximize the potential of their CRM systems, it’s important to reevaluate current systems and consult external IT specialists that can support with the appropriate CRM strategy based on business aims. Importantly, you’re not alone and tech specialists like myself are here to help and advise on how you can get the most out of CRM. 

This article is based on the original post by Ambroży Rybicki, CEO and co-founder of ARP Ideas, on Finextra.