Despite a refined and more granular segmentation, higher campaign automation and centralised campaign management, most banks in the region still rely heavily on untargeted and unsolicited marketing.
The majority of banks in emerging markets still operate in silos along their business lines, with inter-departmental cooperation and information sharing extremely limited. Sales and service integration has come a long way from the beginning of Customer Relationship Management (CRM) in the 1990s. Starting from contact management and customer service, more and more features were added over time.
Best practice banks in the region, such as those in Hong Kong, Singapore and Australia, have realised integrated sales and services structures as well as implemented and executed multi-channel capabilities and real time dynamic offers.
Figure 1. Evolution of customer relationship management
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Several Malaysian banks have entered a relatively advanced state of analytical capabilities, having deployed behavioural analysis and data models such as propensity to buy, predictive models, profitability models and churn analysis. These banks currently focus on the integration of channels and business lines. The development goes to a more centralised management of customer data, striving for a single view of the customer. Core banking integration is not there yet, but will be the next reasonable step for best practice banks. With the latest series of IT upgrades, campaign automation and monitoring is a major issue in Malaysian banks. However, several interviewees stated that processes often remain dependent on manual intervention. Personalisation of marketing, services and products for the mass…
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