Banks in Asia have yet to unlock information technology's full potential for tracking customer profiles, a study by a US consulting firm said in a report yesterday.
Customer relation management (CRM) techniques use information technology to monitor needs and develop services for particular groups of clientele, a Peppers & Rogers report said.
Its five-country study cited the relative novelty of CRM methods in the region, with many Asians unaware of how to benefit.
For affluent consumer banking markets such as Singapore, where consumers are given a wide range of choices, the study said employing CRM techniques will eventually become important for banks to serve customers better and retain their loyalty.
Extending earlier research carried out in the US, the P&R report found the loyalty of the average Asian customer is less affected by the usage of CRM techniques than in the US.
Tim Tyler, chairman of P&R's Asia's practice, cited "the effect of culture."
Asian societies are more communal in nature than the West, placing a premium on building good relationships, Tyler told the Straits Times.
Asian customers have a tendency to consolidate most of their business needs with one major service provider once they develop a relationship of trust with a bank, he said.
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