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How Capital Markets CRM Mitigates Risk

by | Mar 22, 2021

CRM is certainly not brain surgery, but it does play a critical role in empowering businesses to thrive by capitalizing on revenue-generating opportunities despite diminishing resources. And just as there are specialists across the myriad of practices within the medical field, a specialist CRM needs to be built for the intricacies of the increasingly complex functions of capital markets.

Information risk

As the flow of data continues to swell and employees come and go, information risk is a real and growing concern. Systems must be able to handle high volumes of large, disparate data sets, and intelligence must be tracked and monitored. Information sharing within and across teams drives collaboration but the ability to restrict access as needed is essential for maintaining client confidentiality and respecting ethical walls. And when relationship managers change roles, the system will be relied on for client relationship continuity and retention. 

This is a big – in fact, impossible – ask for the average, workaday CRM. But it is necessary for avoiding the risk of information leakage and its consequences, from compliance repercussions to reputational damage and unhappy clients and lost business. Capital markets CRM, in contrast, provides the security and compliance support to prevent this.

Regulatory risk

As financial markets and technology evolve, so must regulation. The advent of MiFID II highlighted just how complex, time-consuming and expensive compliance can be and completely changed the way research is consumed. The cost of non-compliance, however, can result in hefty fines. Capital markets CRM can automate many of the actions required to remain compliant, enabling the business to focus on revenue growth and retention.

Revenue risk

Without access to relevant, real-time information on their clients, coverage teams will miss opportunities to cross-sell, offer value-added services and drive revenue for the firm. It will also be difficult to quantify the value of interactions with only a standard CRM in place. In a recent Tier1 webinar, almost half the respondents in an audience poll said that 40% or less of their fees could be measured and directly attributed to the interactions they provide – capital markets CRM can address this.

So when the stakes are so high, why risk putting your revenue-generating potential into a standard CRM solution when only capital markets CRM is up to the job?

Contact us to learn more about Tier1’s client relationship management and workflow solutions for capital markets and investment banking, or to request a Tier1 demo.

Risk Management with CRM

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