Benefits of Using Salesforce CRM For Fintech Companies

The fintech industry is growing rapidly and changing investing and lending. Rapid growth, however, comes with challenges. Regulatory compliance presents a significant challenge, as does the imperative of data security. Furthermore, the industry grapples with the dual tasks of retaining existing customers while continuously innovating to stay competitive. These factors collectively temper the pace of growth in the fintech sector.

Do you also struggle with the same challenges? If so, then you’re not alone.

According to Reuters, one-third of firms say that regulatory compliance is one of the top challenges. 56% of fintech companies are treated by data security concerns according to PWC. Also, the customer retention rate for fintech companies stands at 37%. (Source: Surveysparrow).

How can you overcome these challenges? Salesforce, the world’s leading cloud-based CRM is emerging as one of the best CRM for fintech companies.

Here, we’ll look at Salesforce CRM’s benefits for fintech companies. It will allow you to decide if Salesforce CRM is right for you.

Benefits of Salesforce CRM for Fintech companies

The benefits of Salesforce CRM in the banking sector are many. Check them out here:

1. Personalized Customer Experience

Personalization is the need of the hour in almost every sector, and fintech is no exception.

Personalization is not only about customization, it’s about understanding each customer’s needs, delivering relevant solutions, and building mutually beneficial lasting relationships.

According to McKinsey & Company, fintech companies offering personalized experiences witness a 15% surge in revenue.

A personalized experience has endless benefits. One solution to deliver a personalized experience to customers is Salesforce CRM.

Fintech CRM software like Salesforce could help fintech companies in the following ways to deliver personalized experiences;

• 360-degree view of the customers: Salesforce acts as a single source of truth for all the customer information. It unifies customers’ information from a variety of sources including social media, transactions, interactions, and more. This enables fintech companies to understand customer needs, preferences, behavior, and financial goals. 
• Enabling omnichannel engagement:  Salesforce enables fintech companies to connect with customers across the channel they prefer with personalized experience. 
• Personalized Financial Engagement: This solution from Salesforce enables fintech organizations to use AI, real-time data, and CRM to manage customer information. With this information, generative AI can deliver personalized experiences at scale like sending personalized experiences and recommending the next best action.  
• Customer segmentation: Salesforce can also be used to segment customers based on the common attributes between them like demographics, transaction history, risk tolerance, and more. This segmentation allows for targeted marketing campaigns tailored to specific customer groups.
• Lifecycle management: Salesforce helps manage the entire customer lifecycle, from acquisition to retention. By understanding where each customer is in their journey, fintech companies can provide tailored, relevant experiences. 

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2. Smart Risk Management

Salesforce CRM could help fintech companies to confidently navigate risk and compliance. From reducing loan defaults and streamlining collections and recovery processes, the benefits of Salesforce for fintech are many. Let’s have a look at them;

a. Risk assessment and analytics

The rising number of loan defaults is a major hit on the revenue of the fintech companies. It is estimated that one out of five loans (about 21.66%) is never repaid, according to the Kaggle notebook.

Salesforce has powerful analytics and data solutions. Fintech companies can leverage these tools to assess the risk profiles of borrowers. By analyzing historical data, credit scores, and transaction patterns, they can identify potential default risks early.

CRM Analytics is the perfect example of such a tool that can assess the risk profile of a specific borrower, and help you make better lending decisions.

b. Automated collections

Salesforce allows for automated collections workflows. When a borrower misses a payment or exhibits concerning behavior, the system can trigger personalized reminders, notifications, and follow-ups. This proactive approach helps prevent defaults and improves recovery rates.

With a tool like Salesforce Orchestrator, you can create workflows that will coordinate across different collections, billing, and more. These workflows can also trigger reminders, notifications, and personalized recommendations based on the borrower’s profile.

c. Predictive modeling

Salesforce’s predictive analytics can forecast loan default probabilities. By considering various factors (e.g., repayment history, economic indicators), fintech companies can allocate resources effectively.

You can also read here how implementing Salesforce for small businesses is beneficial.

3. A Catalyst of Automation and Efficiency

On average, finance sector employees spend three hours a day performing manual repetitive tasks. Companies using Salesforce CRM could automate these repetitive tasks, thus saving employees time and effort. Here is how Salesforce CRM can automate and boost efficiency for fintech companies;

• Salesforce Automation simplifies complex workflows by automating repetitive tasks. For example, the sales team can use the Salesforce CRM to generate quotes, lead management, and track customer interactions. 
• Salesforce also provides AI-powered insights and recommendations to help customers prioritize important tasks and make smarter decisions. 
• Another benefit of CRM in the banking sector is that it ensures accurate and consistent prices for complicated. With the help of Salesforce CPQ, the quoting process can be automated, allowing the sales team to attract more customers and close deals faster.
• Salesforce Automation Everywhere Bundle can be used to accelerate end-to-end workflow orchestration.

4. Boost Lead Conversion Rates

Salesforce for fintech organizations can significantly boost lead conversion rates. Here is how Salesforce can supercharge your lead conversion rates;

• In the competitive fintech industry every lead matters, but only some leads have equal value. Salesforce helps you score and prioritize the leads. Therefore, the sales team can focus on high-potential leads that have higher chances of conversions. 
• Salesforce gives you a 360-degree view of the leads. By consolidating lead information from all the sources, the sales team can tailor their approaches to boost the chances of conversion. 
• Automating manual tasks like manual lead entry, and follow-ups sets the workforce free to work on other important tasks.
• Salesforce has real-time data and analytics functionality. Understand lead behavior, preferences, and pain points. Use insights to tailor your messaging and increase conversion rates.

5. Embedded Finance

Embedded finance has breathed new life into the finance world. It refers to the practice of offering financial services with non-financial products. For example, a fintech company can collaborate with a ride-hailing app to offer micro-loans to the drivers of the application.

Here is how the best CRM for fintech could help in embedded finance;

• Salesforce is a low-code platform that enables fintech companies to build and launch embedded solutions with ease.  It offers security, compliance, scalability, and integration features for your solutions
• Salesforce Financial Services Cloud allows you to manage your customer relationships, data, and workflows with this cloud-based CRM solution. It helps you optimize customer engagement and retention, as well as cross-selling and upselling opportunities. 
• Salesforce Mulesoft allows you to connect your embedded finance solutions with various data sources, applications, and devices using this API-led integration platform. It allows you to transform, orchestrate, and govern your data, as well as create reusable APIs and microservices. 
• Salesforce Einstein can help you enhance your embedded finance solutions with artificial intelligence using this platform. It provides predictive analytics, natural language processing, computer vision, and voice recognition capabilities. It also helps you personalize, recommend, and automate your solutions.

6. Organize and Access your Data with Salesforce CRM

Fintech companies have to deal with a lot of the information, but it can be difficult to find and use the information you would like. Information can be unstructured and spread over distinctive sources. You would like it. a way to collate and display your information in a basic and helpful way.

Salesforce CRM helps you do that. Data from different sources is gathered and visualized on a dashboard in an easy-to-understand format. You’ll be able to. effectively organize, sort, and analyze your information with some clicks. You’ll moreover get bits of knowledge and recommendations from Salesforce CRM to progress your operations.

Let’s say you want to know how many customers used your embedded finance solution last month. With Salesforce CRM, you can see the number of transactions, revenues, and customer satisfaction rates for your embedded finance platform. You can also see which customers are likely to use your solution again and which ones need more support. Your marketing and customer service strategies can be tailored based on this information.

You can use Salesforce CRM to manage and access your data with ease and efficiency. It helps you make better decisions and grow your fintech company.

7. Salesforce CRM’s Robust Security Shield for Fintech Data

In the world of financial technology, where customer data is crucial, ensuring its safety and security is a critical concern.

In the face of an escalating threat landscape marked by cyber crimes and fraud, Salesforce CRM stands out for financial firms striving to strengthen their protection against data theft.

The integration of Salesforce CRM introduces a robust framework equipped with a comprehensive suite of security features. This not only mitigates the risk of unauthorized access and data breaches but also establishes a secure environment that promotes high brand recall and, crucially, customer trust.

The platform’s dedication to data security extends beyond a mere protective layer; it represents an investment in preserving the positive brand reputation of financial institutions. Salesforce CRM functions as a proactive guardian, implementing measures to defend against emerging security threats and ensuring a consistently secure data environment. The reduced risk of data theft is a direct outcome of this integration, offering financial companies peace of mind in handling sensitive customer information.

Moreover, Salesforce CRM institutes secure processes for the handling of customer data, adhering to heightened security standards that align with industry best practices. This not only meets the regulatory demands of the financial sector but also instills increased confidence among customers.

As financial firms navigate the complex landscape of embedded finance, the adoption of Salesforce CRM emerges not only as a strategic business decision but as a commitment to the unwavering protection and secure management of customer data.

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8. Easy Accessibility

In an era dominated by the internet’s omnipresence and the proliferation of smart gadgets, the world is now at your fingertips.

Integrating the Salesforce CRM platform into your systems opens a gateway to unparalleled accessibility for employees. Whether they find themselves on the opposite side of the globe or utilizing any internet-connected device, the platform empowers them to effortlessly access crucial data.

A standout feature lies in the ability to make calls directly through the platform, streamlining communication processes, and facilitating efficient note-taking during calls. Furthermore, the flexibility extends to offline scenarios, allowing users to access essential data even when connectivity is momentarily lost. Embrace the benefits of Salesforce CRM, where connectivity knows no bounds, transforming the way businesses operate in our interconnected world.

Final Take

Salesforce CRM is a powerful and versatile tool for fintech companies. It helps them manage their data, customers, and workflows with ease and efficiency. It also enables them to offer embedded finance solutions that are seamless, convenient, and innovative. With Salesforce CRM, fintech companies can create new revenue streams, enhance customer loyalty, and drive financial inclusion and innovation. Salesforce CRM is the ultimate solution for fintech companies that want to grow and succeed in the embedded finance era.

Looking for a partner to help you adopt the Salesforce CRM for your fintech company? You can use Cyntexa’s Salesforce Consulting Services to leverage the Salesforce CRM customized to your business needs.

Let’s schedule an obligation-free consultation session with us, to discuss your requirements, and find out how we can help you.

AUTHOR

Vishwajeet Srivastava

Salesforce Data Cloud, AI Products, ServiceNow, Product Engineering

Co-founder and CTO at Cyntexa also known as “VJ”. With 10+ years of experience and 22+ Salesforce certifications, he’s a seasoned expert in Salesforce Data Cloud & AI Products, Product Engineering, AWS, Google Cloud Platform, ServiceNow, and Managed Services. Known for blending strategic thinking with hands-on expertise, VJ is passionate about building scalable solutions that drive innovation, operational efficiency, and enterprise-wide transformation.