Banking CRM Software Market Research, 2031
The global banking crm software market was valued at $9.5 billion in 2021, and is projected to reach $39.2 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.
The customer relationship management idea refers to the inclination of the banking industry to create and preserve long-term connections with clients to benefit both consumers and banks. With the use of this idea, a bank can recognize, categorize, interact with, and establish lasting connections with each individual client. In order to increase revenues, banks must identify consumers and tailor their offerings to suit their demands in the current business climate.
Banking CRM software enhances the quality of data, assists the business in developing a sustainable marketing model to meet the demands that have increased the need for banking CRM software. In addition, increase in adoption of banking CRM software for improving the efficiency of the business is benefiting the growth of banking CRM software market. This factor notably promotes the growth of banking CRM software market.
However, the possibility of losing crucial customer data and the expensive initial cost of software are the issues that are limiting the industry expansion. On the contrary, opportunity to access unexplored markets and the availability of trained professionals are expected to create lucrative opportunities for the market in upcoming years. Moreover, rise in developments & initiatives toward CRM for investment banking is anticipated to provide a potential growth opportunity for the market.
The report focuses on growth prospects, restraints, and trends of the banking CRM software market forecast. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the banking CRM software market outlook.
The banking crm software market is segmented into Offering, Deployment Mode and Application.
The banking CRM software market is segmented into offering, deployment mode, application, and region. By offering, the market is differentiated into solution and services. Depending on deployment mode, it is fragmented into on-premises and cloud. Depending on application, it is segmented into customer service, customer experience management, CRM analytics, marketing automation, social medial monitoring, and others. Region wise, the market is analysed across North America, Europe, Asia-Pacific, and LAMEA.
By Deployment Mode
Cloud segment is expected to witness the highest CAGR of 18.8% from 2022 to 2031.
By deployment mode, the on-premises segment acquired a major banking CRM software market size in 2021. The growth of this segment is attributed to high data transmission speed and security of on-premises deployment. Further, many banks are remaining on-premises owing to worries about information security and privacy in the cloud since analytics frequently deals with high-value information, which is advantageous for the market.
By region, the North America dominated the banking CRM software market share in 2021. The rising demand for banking customer relationship management (CRM) software to enhance customer experience is one of the prime factors affecting the growth of the market in the region.
The key players operating in the global banking CRM software market include Salesforce, Inc., SugarCRM Inc., Microsoft, Oracle, LeadSquared, Pegasystems Inc., Claritysoft, Zoho Corporation Pvt. Ltd., HubSpot, Inc., and KAPTURE. These players have adopted various strategies to increase their market penetration and strengthen their position in the banking CRM software industry.
Country Specific Statistics & Information
Increase in new CRM software and adoption of the advance technologies are some of the trends flourishing the banking CRM software market growth. For instance, in April 2020, Temenos, a banking software provider launched Software-as-a-Service (SaaS) propositions using innovative explainable artificial intelligence (XAI) and cloud technology to help the banking industry tackle the coronavirus pandemic and effectively manage consumer relationships in the market. Moreover, with rise in digital banking activities, Temenos enables banks to fulfill customer needs for digital engagement.
Furthermore, introduction of new and innovative products in the market by key players is expected to boost the growth of baking CRM software market during the forecast period. For instance, in November 2021, Nasdaq-listed Freshworks, software developer for businesses of all sizes, has launched a customer relationship management (CRM) platform for start-ups named Freshstack that can cater to various needs like customer support, sales and marketing teams. The product bundle launched would help startups to personalize marketing to generate pipeline, deliver effortless omnichannel service and grow faster, at an affordable price point that's easy to deploy and manage.
COVID-19 pandemic has a significant impact on the banking CRM software industry, owing to increase in usage and adoption of online & digitalized platforms for the customer service operations globally. Banking CRM software are experiencing massive growth as various businesses and banking industry are increasingly relying on the software to execute their customer insight operations. Moreover, the need for more dynamic and remote access to corporate customer records and systems by people who primarily need to access customer data regularly, correct information to make choices and manage financial affairs has risen as a result of remote working. This, in turn, has become one of the major growth factors for the banking CRM software market during the global health crisis.
Top Impacting Factors
High Demand for Banking CRM to Enhance Customer Experience
Banking customer relationship management (CRM) is a way for the banking industry to provide better and more reliable support for its customers and clients. By investing time and capital into creating a firmer foundation for the relationship between banks and their customers, banks can improve their experience. Furthermore, customer relationship management provides clients with quality service and improves their customer experience. All the data that is collected with the help of CRM is incredibly helpful for banks, as they have a vision of their clients’ needs and requirements. In addition, there has been a spike in CRM for investment banking among the investors owing to its advantages. Therefore, this factor is responsible for driving the banking CRM software market’s growth.
In addition, to improve customer experience with better service, various market players are adopting different key strategies to drive their revenue growth opportunities that propel the banking CRM software market’s growth. For instance, in April 2021, HubSpot, the customer relationship management (CRM) platform for scaling companies, expanded its suite of tools with the launch of Operations Hub. With Operations Hub, users can unify customer data in a connected CRM platform, automate a host of time-consuming tasks, and maintain a clean database with ease.
High Bank Productivity and Profitability
Banks that use CRM have seen higher staff productivity and increased sales, both of which help the bank's bottom line. Having quick access to customer data helps bankers work more efficiently and provide better customer service. Furthermore, the leads management and targeted marketing features of CRM save time and increase the possibility of converting leads and upselling and cross-selling services to customers. These increased sales provide the bank with more revenue from application fees, account fees, commissions, and loan interest. Moreover, CRM in banking help cut costs by minimizing repetitive administrative tasks, and streamlining proposals, with a few clicks. Therefore, these are the factors propelling the growth of the banking CRM software market.
Better Segmentation and Customer Retention
CRM software in banking assists in segmenting customers based on various parameters such as demographics, age, income, and others. Better segmentation helps banks to develop a personalized strategy for each consumer. Furthermore, this help banks learn about their customers’ behavior, such as their repeat rate, level of satisfaction, investment schemes they are interested in, and others.
In addition, a customer retention system is an essential aspect of customer relationships. With customers opting for online banking solutions as opposed to in-person experiences, strategizing a way to foster long-term relationships can be difficult for many organizations. A banking CRM can be used to proactively deliver personalized services. Since it enables banks to record customer notes and personal information. Therefore, the use of CRM in banking can boost customer retention rates, and drive the growth of the banking CRM software market.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the banking CRM software market analysis from 2021 to 2031 to identify the prevailing banking CRM software market share.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the banking CRM software market size segmentation assists to determine the prevailing banking CRM software market opportunity.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global banking CRM software market trends, key players, market segments, application areas, and market growth strategies.
Banking CRM Software Market Report Highlights
Market Size By 2031
USD 39.2 billion
CAGR of 15.7%
2021 - 2031
By Deployment Mode
Key Market Players
Claritysoft Technologies, SugarCRM Inc., Zoho Corporation Pvt. Ltd., KAPTURE, Microsoft, Salesforce, Inc., Oracle, Pegasystems Inc., HubSpot, Inc., LeadSquared
The market for banking CRM software is witnessing a rise, owing to increased demand for automated customer insights software, growth in internet of things (IoT) & cloud-based service use, and increase in acceptance of these technologies. In addition, the benefits of the software including quick customer onboarding procedures, high accuracy, lower operating costs, and increased efficiency are anticipated to drive the market in the future. In addition, organizations can now use fewer human resources owing to the most recent CRM software. This has resulted in more effective use of capital and better management of the existing resources.
The COVID-19 outbreak has had a significant impact on the banking CRM software market and has accelerated the usage & adoption owing to the trend of remote working globally. Moreover, during this global health crisis, the adoption of banking CRM software technology increased among large & small retailers. This promoted the demand for banking CRM software, thereby accelerating revenue growth.
The banking CRM software market is fragmented with the presence of regional vendors such as Salesforce, Inc., SugarCRM Inc., Microsoft, Oracle, LeadSquared, Pegasystems Inc., Claritysoft, Zoho Corporation Pvt. Ltd., HubSpot, Inc., and KAPTURE. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in awareness & demand for banking CRM software across the globe, major players are collaborating their product portfolio to provide differentiated and innovative products.