Management Information System 2006, Spring

Shinhan Bank’s CRM

Seong Yun MoPark Ji YongOh Chang Hyup

MIS Term Project #1

IME 20071253IME 20080891 IME 20090934

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Contents

1. Shinhan Bank

2. Importance of Customer for Bank

3. What is CRM?

4. History of Shinhan Bank’s CRM

5. Shinhan Bank’s CRM(1) SRM(2) CROSS(3) G-CRM(4) Reorganization of CRM

6. Performance of SRMS

7. Conclusion

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1. Shinhan Bank

High AssetsQualityEfficiency

High Standards ofCustomer Service

1982: Shinhan Bank began operation

1989: It was listed on the Korea Exchange

It has 864 branches over 10752 employees

CustomerSatisfaction

Shinhan Bank has a reputation as one of the most progressive commercial banks

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2. Importance of Customer for Bank

Financial Product

Intangibility

Inseparability

IndividualMarketingSystem

Lack of SpecialIdentity

GeographicalDispersion

Growth must Be Balanced

With Risk

Customer is important factor for Bank

(Source: Arthur Median)

Customer isImportant

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3. What is CRM?

A business strategy which relate to techniques and methods for attracting and retaining customers with three components

Managing valuable customer in a long-term view

Create a Database

Analysis

Customer Selection

Customer Targeting

Relationship Marketing

Privacy Issues

Metrics

CRM Framework

CRM

People

Process

Technology

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4. History of Shinhan Bank’s CRM

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

SRMS (CRM)

– Shinhan Relationship

Management System

G-CRM

– Geographic Information

System + CRM

CROSS(Integrated group CRM)

- Customer Relationship

Optimization System for

Shinhan group

-EDW

Building up CROSS

2001 2002 2005 2008 2010

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5. Shinhan Bank’s CRM(1) SRMS

SRMS – Shinhan Relationship Management System

S R M S

Catching Symptom of Customer Secession

Scheduling for Salespeople

Customized Portfolio

(Source: 성공적인 CRM 추진전략과 구축 방안에 관한 연구 )

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS

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5. Shinhan Bank’s CRM(1) SRMS

Back-end Office System Middle Office System Front Office System

Data Collecting and Auditing

MiningDB

AnalysisCRM Mart

CRMDB

InternalData

ExternalData

VisualizedAnswer tool

Visualized Campaign Evaluating tool

Visualized Campaign Design tool

Data MiningSystem

OLAPSystem

CampaignManagement

System

Call Center

Branch

Internet Banking& E-mail

CD / ATM

TM DMI

Customers

CustomerInformation

CampaignInformation

SamplingTransformationTransmission

(Source: 금융업계 사례연구 , 신한은행 , Teradata)

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS

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5. Shinhan Bank’s CRM (2) CROSS

Shinhan Bank

Shinhan Stock

Shinhan Card

Jeju Bank

Shinhan Gruop

Integrated campaign

Integrated Process

Inte-grated

Call-cen-ter

Business Office

(Source: 금융지주 모델에서의 그룹 CRM 전략과 운용 , 신한은행 )

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS

CROSS – Customer Relationship Optimization System for Shinhan group

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5. Shinhan Bank’s CRM (2) CROSS

(Source: 금융지주 모델에서의 그룹 CRM 전략과 운용 , 신한은행 )

Shinhan Bank DW

Shin-han

Bank DW

Shinhan Stock DW

Shin-han Card DW

Shinhan Group DW(EDW)

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS

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Strategic Marketing with regionalism

Discovering a Potential Customer

Optimization of Channel Strategy

Man to Man Support Service for Customer

5. Shinhan Bank’s CRM (3) G-CRM

G-CRM – Fusion of GIS and CRM

Expected effectiveness of G-CRM

Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS

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Introduction of SRMS

Building up G-CRM

Reorganization of CRM

Building up CROSS5. Shinhan Bank’s CRM

(4) Reorganization of CRM

Event Based Customer Management(EBCM)

Sales opportunities management

System for recommendation of optimal prod-uct

Reorganization of integrated customer man-agement

CRM monitoring system

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6. Performance of CRM

Staff can focus their original task

Target marketing is available

United customer managing is available

Result of Shinhan’s CRM

United performance of evaluation is available

Establishing strategy in customer’s view is available

(Source: 성공적인 CRM 추진전략과 구축 방안에 관한 연구 )

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6. Performance of CRM

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Operating Income 799 -103 -690 170 608 1920 2937 1906 1233 2256

-750.00

-250.00

250.00

750.00

1,250.00

1,750.00

2,250.00

2,750.00

3,250.00

Operating Income

Bil

lio

n W

on

StartingCRM

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6. Performance of CRM

By Korea Consumer Forum, Grand prize in bank sector for the 7th year straight

By Korea Standard Association, Ser-vice Quality Index 1st for the 8th year straight

By Korea Management Association, Most admired company in bank sec-tor for the 8th year straight

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7. Conclusion

Shinhan’s SIS gives Shinhan strategic advan-tage!

G-CRM

SRMSCROSS

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Reference

• 성공적인 CRM 추진전략과 구축 방안에 관한 연구 – 금융산업을 중심으로 ,

김종순 , 2003

• 금융업계 사례연구 , 신한은행 , Teradata, 서춘석 , 2002

• CRM 주요 성공 전략과 신한금융지주 GDW/CRM Project, 신한은행 , 이인규

• 금융지주 모델에서의 그룹 CRM 전략과 운용 , 신한은행 , 백홍근

• Framework for CRM, Harvard Business Review

• Shinhan Bank Site http://www.shinhanbank.com

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Q & A