In the constant endeavour to combat competitive pressure and show differentiation and hence higher

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profits, banks are tuning up their focus around customers like never before, says a recent study.

According to a technology survey conducted by Confederation of Indian Industry (CII) and PricewaterCoopers, banks are redefining their focus from product lines to comprehensive single view of customers.

“Customer-centric me-

asures ranked at the top with all the respondents ranking it as the most important measure to combat competitiveness. New products and functionalities followed as the second most important strategy for gaining extra competitive edge, while internal efficiencies and inorganic growth were considered less impacting,” says the report.

To attain the goal, banks are looking at customer data integration solutions and are linking business processes to provide continuity and consistency to customer experience.

Nearly 80 per cent of the respondents believed that new customer acquisition is more challenging but deepening relationships with existing customers adds more value. Share of wallet has become increasingly important as it enables maximisation of profitability and increased customer lifetime value.

The survey was conducted among a sample of 24 banks comprising various asset categories, foreign, domestic (private and public) and cooperative sectors.

While the focus seems to be customer centricity, present systems are not fully capable to attain the goals, said NK Subramaniyam, executive director, operations and technology, Saksoft.

Most of the IT systems in use are incapable of gauging the total relationship value of customers. For example, a single customer doing internet banking, as well as credit card purchases, is still considered as two different customers as far as the IT system is concerned. The rewards are different for the two transactions.

“One of the biggest marketing challenges faced today is not only reaching out to new customers but also keeping the existing customer base intact. Systems should integrate customer information across products, contact channels and purchase behaviour, thereby enhancing interaction and lifetime value,” he added.