The evolution of customer relationship management in the Maltese banking industry

Abstract

The following study investigates the evolution of Customer Relationship Management (CRM) in the Maltese banking industry. It seeks to identify how banks used to construct CRM practices in the 'Past' (before year 2000) and compares this to the 'Present' situation (from year 2000 until now). This dissertation investigates the way CRM should be implemented in the future in order to be more beneficial for banks. This study will demonstrate how technology was and will always be the main instigator for the adoption of a CRM approach by banks. Therefore it is about the creation of several services resulting from advancement in technology leading to better customer satisfaction. The author investigates the concepts of data mining and data warehousing in order to create a clear picture of how this has changed the way CRM is implemented. This study hence seeks to identify the various advantages and drawbacks that these concepts have brought to the banking industry. Research-In order to distinguish between the different time periods, a study of the retail banks in Malta is carried out. This is also useful for comparing different CRM approaches of different banks and also in order to understand how CRM has changed over the years. Conclusions- The author concluded that CRM in the Maltese Banking industry has been improved over the years mainly due to advances in technology and the concept of data mining that has been the result of such advances. Although CRM has been improved, it has to continue improving in the future in order to keep pace with the highly competitive environment.