CRM in investment banking and
Genevieve Findlay, Peter Mathias, Paris de L’Etraz and Merlin Stone
In this chapter, we discuss just a few of the considerations involved in implementing CRM
in investment banking or financial markets. Although nearly all of the rest of this book
focuses on retail financial services, we thought it appropriate to cover briefly some aspects
of a research programme focusing on investment banking and financial markets CRM that
was being undertaken at IBM at the time of writing this book.
In the past few years, insurers and retail banks have made most of the running in CRM.
Increased competition and shrinking margins have forced them to deploy CRM strategies
and technologies in order to respond to the needs of shareholders and clients. More
recently, investment banks have begun to realize the intrinsic value of CRM. The principles
of CRM hold true for this sector. Just because investment banking is a business-to-business
application does not take away the fact that recognition of the client is still key for CRM
success. However, most of CRM in investment banking is still work in progress. It is a
missed opportunity since it offers banks a chance to rethink their fundamental approach to
client management, to redesign their coverage strategies and to use technology to bring this
Better client management is no longer optional. In nearly all business-to-business
markets in which clients are as large as, or as in this case, often much larger than their
suppliers, the latter must respond quickly to pressures from their clients to improve client
management processes and systems. Banks can no longer rely on an information advantage
over clients. Clients are better informed than ever and are hence more discriminating.
Awareness of the full spectrum of what can be offered (and at what price) leads to increased
needs and more stringent demands but lower brand loyalty. To keep their clients, banks
need to manage relationships with them better, for mutual advan