Banks are investors, but they also sell services. And individual bankers are paid commission on the services they sell. When it comes to long-term investing, clients may work with several different advisors along the way. So who gets the commissions?
We worked with a bank whose policy was that the referring individual, the one that actually helped the client open the investment account, and the referring branch would get credit for one year's worth of additional deposits. After that, whoever upsold or cross-sold services to that client would be compensated.
Imagine the old days before CRM (Customer Relationship Management) software. Keeping track of all that information, crosschecking incoming contributions with referral dates would have been tedious. A full-featured CRM system is invaluable for automating banking processes and avoiding manual entry errors.
Adding additional automation and customized workflows based on each bank's policies and procedures can save even more time and contribute to greater accuracy.
Here are three examples of how
1) Using Crowe CRM for Banking, we arranged for automated reports to be generated within the bank's CRM system. The reports document any accounts opened in the current month and the previous month. This information lets the bank know which accounts are new, which branch and representative opened them, and who to credit with the commission.
2) Then we set up a rule to automatically flag customer accounts referred within the past year and then to remove the flag when the time was up. Further contributions are checked against the flagged accounts. This automation makes it easy for the representative or the branch to receive credit for additional investments and track this income against their annual goals.
3) Our third example is an automated email alert that notifies representatives when their referrals are due to expire. They'll get a message such as, "Your referral will expire in x days" or "Your referral is about to drop out of the system for lack of notes. You have x days to update the record." Without the reminder, busy bankers could easily forget to update records. They may not realize how long it has been since they made the referral, and they need to close the deal and get credit before the time is up. The automated emails can also motivate them to contact customers with further offers.
A CRM system is great. But a flexible CRM system with the automation and workflow capabilities that work best for your business is a game-changer.
Crowe CRM for Banking
By Crowe, a Microsoft Dynamics 365 Gold Partner