Customer Relationship Management in Bahrain Investment Banking Arena Essay

The deponeing industry has underg matchless broad(a)(a)spread changes at bottom the operating environment and this involves globalization of marketplaces and proficient improvements. These two component parts start out influenced and encouraged advanced practices within the banking industry that has helpd to enhance its operable might. The introduction of ATMs and e-banking facilities ar almost of the major(ip) milest peerlesss in the banking industry that collapse revolutionized line operations.The global markets get hold of intensified the belligerent environment of the banking industry that has created the need for change magnitude efficiency in operations and change magnitude guest satisfaction. customers atomic number 18 the lifeblood of every presidency and the banking line of credit too depends on the evolvement and retention of consumers for its profitability. Customer whollyiance vigilance cast of characterss a vital aspect of transmission line strategy driving the companys market shares and market leadership position.Customer relationship influencement (CRM) has been defined as a business strategy that is a fusion of a series of functions, skills, processes, and technologies which together whollyow companies to more profitably manage (acquire and retain) customers as tangible assets (Shanmu squanderundaram, 200898). It is viewed as an synergistic process that creates a balance surrounded by corporate impersonals and customer satisfaction to weigh the profitability of the business.Acquisition and retention of customers is one of the vital requirements of business and the authorization of strategies dictated towards this goal de endpointines the success of business enterprises. The other(a)(prenominal) few twelvemonths pee-pee witnessed growth application of CRM in retail banking and enthronisation banking sectors. The keystone objective behind such initiatives is to ensure the pitch of superior c ustomer re information and to fulfil the necessitate of consumers. such practices are effective in alter organizations to meet the involve of the consumers and provide ameliorate go in comparison to other players in the industry. Competitive advantage and business gains are set by a proactive approach that focuses on consumer needs and expectations, provision of consistently senior high property service, looking into consumer public lavatory and an effective decipher up service to ensure consumer loyalty. A vital aspect of investiture banking and any other fiscal serve is the ever-changing consumer mindsets.Owing to the abundance of information easy admission chargeible over the Inter fire the consumers at once are more knowledgeable of the wide range of choices and alternatives functional to them. The consumers are supply with more knowledge related to the banking options available and hence their banking decisions are guided by their well- look fored study. Thi s fact holds true for all sparing sectors and business operations but forms a critical aspect of banking industries since it caters to a various(a) segment of consumers. In nearly all business to business markets in which nodes are as large as, or as in this case, often much big than their supp double-dealingrs, the latter must respond pronto to pressures from their clients to improve client management processes and systems (Foss & Stone, 2002 211).CRM in investing funds banking sector The short stipulation objective of the market department is to acquire customers while the long term objective translates to retaining the old customers by effective customer relationship management (CRM) strategies. Reaching and acquiring a youthful customer is one thing, keeping the relationship healthy and pixilated over a long period of clock time of time is the mark of the true marketing professional tincted with long term health of the organization (Dolak, 2009). The increasing warring market makes it difficult to retain customers over a long-term period of time owing to the constant influx of youthful and substitute alternatives invading the shelf spaces at the local retail shop. This makes the task of CRM more and more challenging and organizations adopt various strategies to entice old customers back.Retention strategies often wage measures such as consumer behaviour research and product surveys that enable the organizations to assess the needs and expectations of the consumer and enable them to serve better. Customers always hold dear the personal touch that results in mental synthesis strong relationships. The net today provides legion(predicate) effective communication channels that are universe used to keep the customer happy. Web based customer relationship management has effectively integrated all modes of communication web, email, chat, video, voice to serve and monetary backing the customers to enhance the total customer experience.I nvestment banking differs from other forms of banking in the role a few major clients play on the banks performance and productiveness (Foss & Stone, 2002). This form of banking rumps a fixed client segment that drives the sales of investment funds products and serve. The efficiency of the banking sector is determined by the types of products and services sold to customers in response to their investment needs and expectations. Customization of products and services are the key to deriving client satisfaction.Identification of the client segment is a vital factor in targeting and reach outing out to the craved client population and this process is driven by market research. The changing demographics and cold competitive pressures from global industry players consume however made a epoch-making force on the business strategies of investment banks worldwide. The gainsays faced by investment bankers lie in reaching out to target consumers and providing them with increased ease of banking services that serve to retain clients over a longer period of time.Moreover, the increasing demands of consumers and growing expectations have driven the banking sector to adopt engineering based ripe applications for meeting consumer needs and expectations. Online banking services and mobile banking applications are approximately of the innovative means that are being used by investment bankers to reach out to their target consumers. Such applications have served to improve banking services and efficiencies in resolve customer queries and needs promptly through the click of the mouse button.The anytime and anywhere access to banking services have defined fresh cut downs in serving consumers. Online customization is one reclaimable customer relationship management strategy follow by e-business to add cherish and improve sales of their products and services apply the Internet (Khosla et al. , 2003). Investment banking in Bahrain The banking sector in Bahrain is on e of the key sectors influencing stinting growth and development in the region. The region of the financial services and banking sector is mo only to the oil and natural gas industry in the province.The country has experience an economic boom and an upward trend in economic growth and development over the past few decades on account of globalisation influences and opening of look at channels. The banking sector has likewise opened to transnational corporations establishing their operations in the country to ten-strike the growing number of high net worth individuals in the country. Despite the globalisation of banking operations and increased de-regulation of the financial services sector in the area the country continues to have a significant wangle and supervision over the regulatory environment.The telephone exchange slang of Bahrain continues to be monitor and hold up the banking environment in the country. The modernisation of banking services and strategicalal ap proaches made by investment bankers in other parts of the populace have not produced much impact in this region owing to the constraints apply by the existing heathenish influence. The retail banking scenario in Bahrain is to a considerable purpose driven by the culture of the country. The cultural impacts are materialised in the buttoned-down approach of consumers towards banking and investment.Various research studies have concluded that while the region is an emergent market for applied science applications and innovative practices, user attitudes have limited the scope of technology based business models in the banking sector. The conservative market environment and user attitudes towards the CRM strategies adopted by investment bankers in Bahrain forms the central point of the research study. The research study will analyse the various perspectives convolute in CRM approach by investment bankers through the study of Unicorn Investment posit in Bahrain. The bank was founded in the year 2004 and has its headquarters in Bahrain.It is an Islamic financial services group that has an international heading in various locations such as Malaysia, Turkey, Saudi Arabia and United States. The bank soon has six distinctive business service categories that include asset management and real estate, capital markets, corporate finance, private equity, strategic mergers and acquisitions and treasury. Among the various services offered by the bank the key approach is to deliver the customers with a comprehensive range of investment solutions that are customised to meet client needs and expectations.Unicorns integrated product offering and financial engineering skills are closely intertwined with a strong capacity to distribute the Banks products and services to a broad client base crossways the GCC region, the wider midsection East region, Southeast Asia, the USA and the europium (Unicorn, 2010). The target customers of the bank include high net worth indiv iduals, business enterprises, financial institutions, corporations, and government agencies and departments. The products offered by the bank are Shariah compliant and conforms to the international financial practices (Unicorn, 2010).Issues and challenges only major banks have invested heavily in technology and infrastructure over the move 5 and 10 years in this area, but hardly any of them have been successful in actually getting it effective (Infosys, 2009). The failure of CRM initiatives within the investment banking sector have provided a new ground for research into increasing the effectiveness of CRM applications. There are many strategic implications related to the application of CRM within investment banking sector.This involves the adaptation of normal banking processes and systems to integrate with innovative use of technology based applications and automated query processing systems that require high-octane management and handling of issues. Such issues have-to doe with to the efficient use of CRM systems to meet practicable goals and integrating the different banking functions to provide a structured application that can be used easily by consumers. peace of mind of use and convenience are some of the key parameters involved in the development of CRM based banking system.A key challenge facing these areas involves the security measure and privacy issues that form a major source of concern for consumers using the technology based applications. engineering based business models and CRM strategies enable investment bankers to provide the customers with efficiency in delivery of services, access to relevant information, product expound and ease of transactions. Mobile banking and e-banking facilitates the customers of investment banking to a host of facilities that range from product question access updated rates of interest and market values of the investment products chosen and conducts investment transactions online.Investment portfolios can also be accessed and manipulated according to user convenience from the comforts of their home or office. However, far-flung usage of such systems has been restricted on account of user reservations related to security issues and privacy of vital user data and information. Mobile banking and online transactions raise security and privacy concerns among most of the consumers (Barati & Mohammadi, 2009). The transfer of huffy financial and personal information across mobile networks is found to be the blush reason behind the psychological barriers created among potence mobile banking customers (Laukkanen, 2007).