Why is a Private CRM So Critical?
What is a "Private CRM?"
By "Private CRM" we mean a Client Relationship Management system which remains totally under your control, held on your own computers.
Many CRM systems now on offer (whether for the finance industry or otherwise) are supplied as on-line systems, or SaaS (Software as a Service). Lately, many vendors, especially Microsoft, are referring to this as "cloud computing". While this all sounds very hi-tech there's a catch - there are some very real risks involved.
The concept is that you have little or no software installed on your own computer (except your internet browser) but you access the program located on someone else's computer, somewhere "out there" in the cloud.
Sounds great - but, with a CRM system, it's not the software program you have to worry about. The question is, where is your data?
Where are your client details, file notes, loan details, financial reports, commission details and all the rest of your records?
The Problems with On-line
On-line services make for a fantastic, connected world. Have you checked out your address, or the place where you were born, with Google Earth? When was the last time you researched a health issue on the internet?
The internet is a fantastic place to learn about any subject in the world! But it's not the place to store all your business records!
Here are some of the more obvious risks with an on-line CRM system:
Your data is now available to third-parties - whether they be outright criminals or just unhappy employees of a third-party IT company wanting to make some quick money by selling your database.
If your confidential Client information gets in the wrong hands, what would be your liability under the Privacy Act?
You can be cut off at any time. If you have a dispute with the supplier (such as your aggregator or a third-party vendor) they can switch you off in the blink of an eye. It does happen!
Even if you had notice of this, they often do not have data export functions so you cannot take your data with you.
There is the question of ownership - what does the software licence say about it? Have you read it? And even if you can rightfully argue that the data is yours, it could take weeks or months to prove. What would happen to your business during that time?
You keep paying for access and can never - that's NEVER - own the software.
You can't attach your Client's documents - like letters or emails - to the file, so your record-keeping is fragmented.
Generally, there is no independent method to check your commissions, if you are using an aggregator's system, since your records and their records are the same. There's no-one to "check the checker". This alone could cost you several hundred dollars a month.
So, Does On-line Make Sense?
On balance, how can it? All the risks are one-sided - on you, the broker or franchise operator.
LoanLinx was designed, and is still owned, by small business-owners just like most broking firms. We wouldn't risk putting our database out of our control and we don't expect you to do so, either!
LoanLinx stays on your computers and yet can still be accessed by you from anywhere in the world. It can also be easily backed up, encrypted and off site, automatically.
All the benefits and none of the risks!
Whether or not you decide to use LoanLinx, we urge you to consider the long-term future of your business in light of the above.
