Globalization, technology, deregulation and intensive competition are changing the pattern of the financial services industry in terms of market geography, product offerings and distribution channels. The success of a financial services primarily depends on how effectively customers' orders are recorded and carried out. The article focuses on the changing pattern of financial services industry and outlines the way in which solutions like Customer Relationship Management (CRM) can help financial organizations to acquire new customers and retain them, and in the process, increase profitability and market share.

It is often said that companies with the best people win. While this may be true, it is certainly true that the companies with the best customers win. How to win, grow and retain those loyal high value customers which make all the difference between a market leader and the other players in a category is so crucial to the success of any business, that every manager must at least know the fundamentals of customer management.

Customer Relationship Man agement (CRM) is definitely not only a technology solution but an important strategic business and process issue. The CRM approach includes all the business processes which an organisation employs to identify, select, acquire and retain customers. Organizations must integrate all the processes and technology that support and coordinate customer interactions. Successful organizations always keep the customers at the centre-stage. According to Peter Drucker, "customer is profitable only from the second year." This explains that to earn real profit, retention is a must. In the first year, the organization spends more money to attract customers through promotion and research activities.

The changing landscape of the financial sector is posing new challenges to the organizations. There is a sea change in the way the businesses were carried out earlier. People these days prefer an Automated Teller Machine (ATM), a kiosk or a website to personally visiting a bank or an insurance company. The development of technology has empowered customers with multiple options to interact with the company and also to check their stock portfolio or compare insurance rates online.

Customers' expectations from the companies have increased substantially. With the availability of increasing array of financial products and services, customers are expecting more offerings, greater value, ease of access and personalized service.

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