Lloyds Bank to Spend $24 Million on CRM

Lloyds TSB Group PLC has said it will spend $24 million on a customer relationship management (CRM) system designed to integrate customer information from all aspects of its operations.

The retail bank - one of the four largest banks in the U.K., but no relation to insurer Lloyd's of London - said it will use Cupertino, Calif.-based Chordiant Software Inc. to develop a system that can connect its worldwide branches, call centers, wireless banking and Internet-only bank Evolvebank.com.

"We're transforming to become a much more customer-centric organization," said Igor Andonov, the bank's information technology director, in a presentation last Tuesday.

Bank spokeswoman Helen Thompson said the bank used New York-based Andersen Consulting to evaluate a number of CRM software providers, which will let the bank deliver personalized service to 16 million customers.

The first phase of the project will begin in the first quarter of next year.

CRM "is probably the single-biggest focus for all banks in the U.S. - and, I'm sure, around the world - because they see it as their major growth imperative," said George Barto, an analyst at Gartner Group Inc. in Stamford, Conn.

Rolling out a CRM service can be difficult, however, because of the many platforms and legacy systems most companies have built up over the years, said Paul Jamieson, an analyst at Lincoln, Mass.-based Gomez Advisors Inc.

That's why banks often go with a third-party vendor such as Chordiant, said Barto.

Copyright © 2000 IDG Communications, Inc.

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