How API data integrations will transform CRM in British banks by 2025
In 2024, British banks, ranging from major players to mid-tier institutions and FinTech disruptors, have notably increased their investments in CRM software.
According to FullCircl, the banking CRM software market has witnessed considerable growth, escalating from $13.13bn in 2023 to an estimated $15.40bn in 2024. With a robust compound annual growth rate of 17.3%, projections suggest that investments in banking CRM could reach up to $29.39bn by 2028.
This significant growth in CRM investment is primarily driven by two main factors: the escalating demand for automated customer insights and the growing need to enhance customer service.
CRMs like Salesforce, Microsoft Dynamics, and HubSpot are increasingly vital within the banking technology stack, enabling banks to store and process vast data volumes. These platforms offer advanced reporting and campaign tools, significantly boosting sales and marketing efficiency and transforming customer service landscapes. However, as customer environments become more dynamic, banks are pivoting towards integrating third-party data into their CRMs to enrich these static environments, thus supporting more strategic and informed decision-making.
The drive to deliver superior customer service is becoming increasingly crucial to banking profitability. This focus is propelled by the need to enhance trust and reliability, improve efficiency, reduce acquisition and service costs, and deliver personalized interactions at scale. CRM environments, augmented with real-time data from leading third-party integrations like FullCircl, are quickly becoming foundational to banking success, enabling enhanced prospecting, better sales and marketing interactions, personalized service delivery, maintained customer satisfaction, cohesive lifecycle experiences, and even predictions of future customer needs.
Securing new growth opportunities remains a challenge, yet with access to advanced data, banks can more accurately analyze their total addressable markets, identify untapped areas, and efficiently segment prospects. This enables the development of more customized sales and marketing strategies.
The integration of sophisticated data analytics and AI in CRM platforms allows banks to gain deeper insights into customer behaviors, helping make quicker, more informed decisions. This proactive approach ensures banks can strategize effectively, maximizing impact and value.
Real-time data refreshes enable banks to engage with customers more effectively, providing timely support and personalized product recommendations. Additionally, integrating advanced intelligence into CRM workflows helps automate routine tasks, freeing sales and marketing teams to focus on more complex customer interactions.
CRMs play a critical role in ensuring regulatory compliance, including KYC and AML standards, and adhering to new regulations like the Consumer Duty. Furthermore, CRM systems help banks track and meet ESG objectives, aligning products and services with both their own and their customers’ ESG concerns and risk thresholds.
