Q&A: Microsoft’s U.S. financial services leader Tracy Issel discusses how Microsoft and its partners are working to provide new technologies for the ultra-competitive banking industry to attract, retain and extend customer relationships.

Banks are getting squeezed on all sides by consolidation, regulation, lower margins and fierce competition. Couple that with the rise of consumerism – or the push by consumers for better overall experiences and services – and it’s understandable why banks are so concerned over customer attraction, retention and extension.

Today, at one of the leading forums for the financial services industry, the BAI Retail Delivery Conference & Expo, Microsoft’s U.S. Financial Services Group is showcasing a number of new technologies to help banks differentiate – and ultimately win over new customers, retain long-standing ones and extend relationships to achieve a greater share of wallet. To learn more, PressPass spoke with Tracy Issel, general manager, U.S. Financial Services Group at Microsoft.

PressPass: What are the three biggest challenges facing banks today?

Issel: Unlike in years past, where growing market share was a priority, banks today are primarily concerned with attracting new customers, retaining existing ones and extending those relationships to achieve a greater share of wallet. Differentiation, then, becomes critical in a commoditized market in which many customers view one bank as indistinguishable from another. As consumers get quality service and superior experiences from other institutions – such as making travel plans online or booking dinner reservations – they expect the same personalized, high-quality service from their financial institutions.

That’s why it’s so important that banks differentiate from competitors and provide the superior service that customers expect. Failure to meet expectations can result in a customer opening an account across the street. Thankfully, technology can be a tool to create this differentiation for the industry. Technology can help banks find new value in existing systems, explore new market opportunities and realize measurable returns on their investments. Microsoft’s software, in particular, is well positioned to help banks achieve this differentiation in the market – whether it’s attracting customers by creating a dazzling online banking interface with Microsoft Silverlight or retaining customers by providing a complete, 360-degree view of their accounts with Microsoft Dynamics CRM. Continue At Source

Send via e-mail | Submit to Digg | Add to Live Favorites