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Abstract:
The main aim of this research paper to provide a theoretical framework on critical success factors for CRM implementation in the Iranian banking sector. Iran has one of the largest and most representative Islamic banking systems in the world. The banking system is a changing environment and CRM can be an optimal solution for managing change. Generally, banks are interested in increasing their competitiveness, performance and profitability, but also to minimize their costs by implementing CRM practices.
Keywords: Islamic banking; banking customer; customer relationship management (CRM); conventional banking; Sharia laws; global economy; sustainable development.
1.Introduction
The role of the banking system is essential in the context of the global economy. The banking sector in Iran exhibits various structural vulnerabilities, which may affect the decision-making process on foreign loans and international portfolio investments. Iran is part of the global economy, and a functional banking sector is an essential condition for achieving proper implementation of sustainable development goals. Moayedi and Aminfard (2012) suggested that the financial system in Iran is highly bankbased but relative to international criteria, Iran has an underdeveloped and weak financial system, especially regarding its stock market. The banking system in Iran has experienced significant changes due to political, economic and military tensions. The competitiveness in the Iranian banking sector is also influenced by the unpredictability of global economic conditions. Tash and Abdi (2013) stated that the financial system in Iran is characterized by two main aspects. The first one is that banks have a specific legal structure and the second aspect highlights the fact that non-bank financial institutions focus on trust, companies, foundations and fiduciary services. Perwangsa (2016) argued that specific cultural issues are very important in developing a respective CRM for banks.
After the revolution of Iran in 1979, all banks of Iran were governmental, but in 1997 based on article 144 of the Constitution, some industries had to be transferred to private companies. Therefore, from the currently 28 banks in Iran, eight are governmental, while the rest of those are private. Hence, the environment is very competitive. After transferring governmental banks to private banks, they provide very suitable services. That is why many governmental banks lost their customers. This research helps decision makers of governmental banks to make better...