CRM CRM Technology & Data Management

Question 1

What is the primary purpose of a Customer Relationship Management (CRM) software platform in financial services?

Accepted Answer

To centralize client data, track interactions, and manage the full client lifecycle in one system

Answer

To replace human relationship managers

Answer

To automate all investment decisions

Answer

To process back-office transactions only

Question 2

In a CRM data strategy, 'data hygiene' refers to:

Accepted Answer

The practice of regularly cleaning, updating, and deduplicating client records to maintain accuracy

Answer

Encrypting all client files

Answer

Deleting outdated client accounts

Answer

Backing up the CRM database weekly

Question 3

Which type of CRM analytics is used to predict future client behavior based on historical data?

Accepted Answer

Predictive analytics

Answer

Descriptive analytics

Answer

Prescriptive analytics

Answer

Diagnostic analytics

Question 4

Under the U.S. Gramm-Leach-Bliley Act (GLBA), financial institutions must protect client data by:

Accepted Answer

Implementing a comprehensive information security program and notifying clients of privacy practices

Answer

Sharing it freely with affiliated companies

Answer

Storing it indefinitely with no deletion requirements

Answer

Only protecting data of clients with over $1 million in assets

Question 5

A CRM system's 'pipeline management' feature helps relationship managers by:

Accepted Answer

Tracking the status of prospective and existing client opportunities through each stage of the sales or service process

Answer

Processing loan applications automatically

Answer

Managing the firm's investment portfolio

Answer

Scheduling all client meetings automatically

Question 6

What does CRM 'integration' with core banking systems primarily enable?

Accepted Answer

Real-time access to client account balances, transactions, and product holdings within the CRM interface

Answer

Replacing the need for core banking systems

Answer

Automating all compliance checks

Answer

Eliminating the need for manual data entry by staff