New factors inducing changes in the retail banking customer relationship management (CRM) and their exploration by the FinTech industry

• Published in: Foundations of management Vol. 8; no. 1; pp. 69 - 78
• Main Author: Kotarba, Marcin
• Format: Journal Article
• Language: English
• Published: Warsaw De Gruyter 2016; De Gruyter Open; De Gruyter Poland; Sciendo
• Subjects: Advisors; Automation; Bank technology; Banking industry; banking regulation; Business models; Central banks; client behavior; customer journey; Customer relationship management; financial institution strategy; Financial institutions; Financial services; FinTech; omni-channel; process management; Process planning; Regulation of financial institutions; Retail banking; social empowerment; Studies; Technological change; technological progress
• DOI: 10.1515/fman-2016-0006
• ISSN: 2300-5661; 2080-7279

Growing levels of regulation force financial institutions to change their business models toward lower risk levels, higher capital adequacy, service quality, and more stable revenue pools. In parallel with the regulatory changes, the banks are subject to pressure from accelerated technology development and social changes. These two factors influence the behavior of customers and induce changes in the customer relationship management (CRM). Taking the example of retail banking, the factors and their impacts are explained. Additionally, a view on the FinTech industry is presented, highlighting areas where traditional financial institutions are losing market share to technology-savvy and socially oriented new ventures with exceptional CRM capabilities. The conclusion contains proposed strategic actions that need to be undertaken in order to prepare the financial services industry for managing customer relationships in the increasingly technosocial environment.