What is the financial CRM system?

05/20/2019 11:11


At one time, we recorded customer data with paper and pen.

Today, we use big data to outline customer portraits, artificial intelligence to predict customer behavior, and automated technology to improve customer experience.

In the new era, more and more brokerages are transforming toward digitalization. The financial CRM system is a necessary tool for the digital transformation of brokerage companies.

What is the financial CRM system?

Financial CRM, also known as brokerage CRM, is a CRM system tailored to the financial institution's business processes.

Financial institutions, mainly securities/futures/foreign exchange brokers, asset management companies, etc. Due to the particularity of the industry, financial institutions need CRM systems that are more comprehensive, complex, and fit business processes.

Three unique characteristics of the financial CRM system

1.  Online task dealing back office

Have you ever opened a securities/futures/foreign exchange account?

Here’s a story.

Amy is a retail investor. In 2015 she came up with the idea of opening a stock trading account. After searching and learning on Baidu, she found that it is very troublesome to open an account because she needs to go to the broker’s office and the commission is very high.

Online account opening is very convenient and simple. You just fill in the information, upload the certificate, pass the video verification, then it’s all done. The commission is also cheaper than the offline account opening.

Finally, Amy chose to open an account online.

Retail forex is a global market. Traders may come from all over the world. Customers' operations, such as account opening, deposit, transaction, withdrawal, etc., are basically done online.

Brokers need a “back-office system” to handle related business to achieve an efficient workflow. This is an important module of financial CRM’s 【task processing】.

2.  Unique multi-layer IB rebate system

There are two main ways to acquire customers in the retail forex market: direct mode and IB mode.

In the Chinese market, the IB model is very popular.

According to incomplete statistics, there are about 100,000+ IB agents in the Chinese market, from individual IBs with only a dozen customers to large IBs with hundreds of employees.

These large and small IBs constitute a large and complex multi-level IB structure.

Different levels of IBs correspond to different rebate rules. Brokers need a financial CRM system to achieve automatic rebates.

Commission calculation and rebate are necessary features of financial CRM solutions.

3.   Integrated management of customer data and account data

Financial institutions need to have a comprehensive understanding of the customer, which is what we call KYC (know-your-customer). It needs an understanding of the customer's basic information, risk preferences, trading habits, etc.

The trading characteristics of the retail foreign exchange market require that the customer data management must include the corresponding account transaction records, but most CRM systems can only store customer's basic data.

The financial CRM system can unify the customer's personal data, account information, transaction records, sales follow-up records and other data in a module, which is convenient for brokers to easily and comprehensively understand customers, establish 360° customer portraits and analyze customer behavior.

After analyzing customer data and transaction records in detail, brokers may find:

  • Joe is a high-frequency trader who can bring more commissions to brokers and needs to be well maintained.
  • Dyson trades at a low frequency with large volume. Brokers need to pay attention to whether he will bring liquidity risk or not.
  • The opening and closing time of each trading of Dido is very close. Is there any suspicion of “malicious billing”?

The combination of BACK OFFICE, IB PORTAL, and customer integrated management, form the most suitable financial CRM for brokerages.


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