Customer Relationship Management in Banking Sector

According to the changing of the general conditions the German banks are forced to break new ground in order to assert their position: The market became much more lucent for customer because of new media.

The consequences are an increasing pressure of competition and demanding cus-tomer. Therefore a binding and long-term customer relationship seems to be neces-sary for many banks to react to the changed conditions and to guarantee the continu-ity. A majority of German credit institutions tried to implement concepts of Customer Relationship Management (CRM). In some cases the afford - to turn the customer re-lationship into the road to success - were unsatisfying and unsuccessful.

In this paper I want to show, how CRM works, how CRM can be implemented in banks and what problems can result from the implementation.

In the first chapter I describe the current situation of German banks. After a brief overview about CRM in general we analyze the previous attempts of CRM implemen-tation. Two examples - Dresdner Bank and Deutsche Leasing, a member of the "Sparkassen - Finanzgruppe" - follow. At the end I identify the problems of the im-plementation of CRM at the banks.