One of the biggest shifts we’re witnessing in the Banking, Financial Services, and Insurance (BFSI) sector, is the new way bankers are forging long-term connections with their customers. Earlier, relationship managers were seen as mere product sellers or account handlers, catching up with the customer, selling them relevant products or solving queries when the customers reached out.
But today, the very definition of a Relationship Manager (RM) has changed. The RM of the new age is a trusted financial advisor who is well-informed and adept at managing a customer’s financial portfolio. And what is making this radical change possible? Technology.
As Indian banks invest in technology and contribute to its advancement, our RMs find a plethora of tools at their disposal. Think Artificial Intelligence, predictive analytics and advanced Customer Relationship Management systems, that equip an RM to be a trusted financial partner to their customers.
Technology, tools and apps are no longer futuristic ideas, they are seamlessly integrated into day-to-day operations and enable RMs to go beyond their call of duty to give the customer the very best service, giving their financial growth top priority. Yet, the real competitive advantage emerges when these technological tools amplify, not replace humans.
From Data To Hyper-Customisation
Gone are the days of generic financial plans and broad solutions. Hyper-personalisation is the need of the hour, and anything else is unacceptable. Today’s customers expect the bank to understand their long-term goals, personal standing, and offer relevant, genuine advice. It’s here that data-driven insights become game changers. By understanding behavioural, transactional and demographic data, RMs can go beyond surface-level advice and recommendations to deliver relevant, highly personalised financial solutions. Be it identifying an investment opportunity or suggesting loan restructuring during income fluctuations.
AI-powered analytics platforms now provide a 360-degree view of customers, enabling RMs to engage with precision. But the key lies in analysis. While algorithms can identify behaviour patterns, make predictions, and create long-term financial plans, only an RM will understand the personal standing, and cultural context of a customer and will be able to make the data relevant and beneficial to a customer.
Digital Fluency Meets Human Empathy
Digital fluency is the need of the hour. And so is human connection. An RM that lacks either of these skills will find it difficult to survive in such an advanced landscape. The most trusted RMs are those who can navigate CRM dashboards and predictive models in one moment, and in the next, have an empathetic conversation with a customer facing a major financial decision.
Diversity of skill sets is becoming the hallmark of high-performing RMs. While digital fluency ensures growth and impact, human empathy fosters trust, both essential for long-term client relationships.
Predictive Tools and Proactive Connection
Previously, RMs would step in when customers complained of a problem. This reactive approach to client management is changing, thanks to CRM systems, AI models and predictive analytics. These advanced tools track behaviour, keep a note of timelines and trends, and allow RMs to anticipate customer needs before they are voiced. For example, algorithms can predict when a customer is likely to require refinancing, flag dormant accounts for re-engagement or identify early signs of portfolio risk.
This shift from reactive to proactive client engagement is redefining customer experience. Instead of responding to service requests, RMs are able to predict financial needs, increasing trust and forging a strong bond. This proactive engagement also positions relationship managers as strategic financial advisors rather than just product sellers.
Goal-Oriented Consulting
Technology is changing how RMs build connections with their customers. And as the approach changes, so must the measurement of success. Unlike the past, where the success of an RM was measured by the volume of the products sold, today the emphasis lies on outcomes. Today, the main question to ask when measuring success is: Did the client achieve their financial goals? Was their portfolio aligned with their risk profile and aspirations?
This change in measurement approach has motivated RMs to build deeper loyalty. Managers are more focused on helping their customers with genuine advice rather than mindlessly selling products. This small change has also fueled more sound financial decisions by customers and stronger portfolios. In the long run, these changes will significantly impact the growth of every individual and, in turn, the country at large.
Upskilling and Reskilling At Every Step Of The Way
With customers demanding hyper-personalisation, technology advancing at breakneck speed, new products, and new strategies emerging every hour, change is the only constant. Our RMs must adapt to these changes. Upskilling and reskilling to be relevant today, tomorrow and even 10 years down the line, is the only way an RM can achieve continued success. Acquiring new skills is no longer optional, it’s a critical business priority. RMs must continuously learn to interpret complex data sets, master emerging tools and adapt their advisory style to a more informed, tech-savvy customer base.
Banks that invest in upskilling & reskilling with a focus on digital fluency, financial planning, soft skills and behaviour science, will reap big dividends in customer retention, brand trust and revenue growth. In fact, the human-tech synergy works best when both elements are at their peak.
Staying Ahead
The future of relationship management in the Indian BFSI sector is not going to be fully automated, neither will it be purely human. The system will only thrive with a human-tech synergy. As technology mines data, RMs will bring empathy and contextual intelligence. RMs who understand this early on and practice this diligently will change the game and set new benchmarks. In today’s world, we can’t work in isolation. If we want to achieve success, collaboration is the only way forward.
(By Dr Soumyadip Roy, Associate Professor & In-Charge Director at Manipal Academy of BFSI)
