The Impact of Business Intelligence on Customer Relationship Management in the Banking Sector: A Financial Analysis

Abstract

This research investigates the dynamic interplay between Business Intelligence (BI) and Customer Relationship Management (CRM) in the banking sector, specifically focusing on comprehensive financial analysis. Motivated by the growing significance of data-driven decision-making and evolving CRM strategies in ensuring customer loyalty and profitability, the study employs a mixed-methods approach. Combining quantitative financial analysis with qualitative insights, it assesses the nuanced impacts of BI on CRM. The methodology includes a systematic literature review, establishing a foundation for BI and CRM concepts in banking. Case studies and interviews with industry stakeholders examine BI implementation and CRM practices. Quantitative analysis, based on financial data from select banks, evaluates the influence of BI on key performance indicators related to customer engagement and financial outcomes. Key findings emphasize BI's instrumental role in enhancing CRM capabilities, leading to streamlined customer interactions, personalized services, and improved satisfaction. Financial analysis reveals positive correlations between effective BI-CRM integration and key metrics, including customer lifetime value and overall profitability. Challenges such as data security and organizational resistance are identified as critical implementation factors. In conclusion, the study underscores BI's transformative impact on reshaping CRM practices in banking, emphasizing the symbiotic relationship between data-driven intelligence and customer-centric strategies. The findings provide valuable insights for institutions optimizing BI and CRM initiatives, emphasizing the need for a holistic approach aligning technological advancements with organizational readiness. This research contributes to the discourse on the banking sector's digital transformation, serving as a foundation for future investigations into the evolving landscape of customer-centric financial services.