6 Ways Banks Can Benefit from Digitalized Client Lifecycle Programs
Greg Watson, Fenergo’s Global Head of Sales, recently spoke with Finextra about successfully digitizing the client lifecycle for efficiency and client experience.
With a background in banking, I know as well as anyone that client lifecycle management processes are not where they should be. As frustrating to the clients as they are to the institutions, there’s plenty of room to improve CLM for the benefit of everyone involved.
Sub-Optimal Client Lifecycle Management Processes
No matter which institution we’re talking about, we see similar situations across the banking industry. With a manual, fragmented and expensive client lifecycle process, the bank is unhappy, and the client experience is negative; nobody is winning. Delays in time to revenue are common and it’s not unusual to see the bank struggling with compliance. It’s clear that most banks we’ve talked to are on the way to achieving their CLM vision, but no-one is there yet. Some are at the beginning of their journey, others are more advanced but so far, nobody has successfully achieved a satisfactory client lifecycle management process. Moving to a digitalized CLM program can help banks achieve that sooner.
6 Ways Digitalizing a Bank’s CLM Program Helps
Digitalizing the Client Lifecycle Management program can bring many and varied benefits for an organization:
- Savings in the total cost of ownership thanks to the reduction in fragmentation.
- Significant reductions in compliance costs.
- A noticeable improvement in client service and satisfaction levels.
- Material reductions in the improvement on time to revenue.
- Savings on operational overheads.
- Headcount reduction benefits.
Three Pieces of Advice for Banks Considering Investing in CLM
- Spend time upfront building a strategy. What purpose will CLM serve in your institution, how will it complement your broader organization?
- Analyze your current state. Invest in understanding what shape your data is in and what your processes and policies look like. You can then harmonize your data and develop a target operating model that supports your strategy.
- Nominate a product owner. The person who owns the system ensures the bridge between the sponsor’s vision and the people working on the ground, prioritizing decisions as you implement common standards. Until the CLM is stable and an automatic part of the business, the product owner nurtures and protects the CLM process, helping it successfully embed throughout the organization.