Customer Relationship Management (CRM) in the Banking Sector of Pakistan: Problems and Challenges

Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped banks to understand the customers' current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et al., 2002). Even though most of the banks in the developing countries such as: Pakistan, India etc. have realised the importance of CRM and implemented its applications, but the initial investigations of the current research have shown that quite a number of CRM goals does not produce required results and even worse, in some cases users say that CRM has damaged customer relationships. Therefore, this paper is based on highlighting the problems and challenges in the banking sector of Pakistan using CRM. Also, some of the major problems in the banking sector of Pakistan are identified using the qualitative interviews from different bank employees and customers and their findings are presented in this paper.