Electronic customer relationship management in online banking

Abstract: In online banking face to face interaction between bank and customer is not
seen. This create huge service gap for banks how to serve and maintain
customer relations in online environment. The aim of this thesis is to
investigate how banks use “Electronic Customer Relationship Management”
tool to maintain their customer relations by using the Internet and what
benefits are derived by using this E-CRM tool and how successfully this
tool is implemented in a bank. A qualitative study was conducted comprising
two cases of banks one from Sweden and second from Denmark to get inside of
E-CRM practices. The findings indicate that banks use E-CRM mostly for mass
customization, customer profiling, self service, one to one interaction and
automatic locks in flow of financial data like security prices which
ultimately results in reduced cost of operation and increased customer
loyalty and more profits. Similarly staff training and customer feedback is
considered as backbone for successful implementation of E-CRM strategy.