CRM is top priority for banks

European banks will invest heavily in customer relationship management tech to combat increasing competition in 2007, according to analyst house Financial Insights.

Banks will focus on CRM projects more than established cost-cutting IT measures in order to retain existing customers and acquire new ones, it predicts.

This would include analytics technology to allow banks to target customers more effectively with services they will be interested in through tailored marketing campaigns.

European research manager, Rachel Hunt, who carried out the study, told silicon.com the harmonisation of European banking - with initiatives such as MiFID and Sepa - will mean customers may be tempted elsewhere in the search for better services. Banks will therefore have to respond to remain competitive.

silicon.com Financial Services

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In the research report - entitled Strategic Initiatives for European Banking Top 10 - customer-centric projects move up to third place, just below security and fraud management, and regulatory compliance.

The top 10 looks at initiatives banks will focus on in the coming year.