banking industry has reduced structural barriers of competition in domestic markets by abolishing interest rates ceilings on deposits and lending by financial intermediaries in the world. Iran also has not been exceptional in this case. According to the government’s policy, the interest rate is going down by 9%. earlier it used to be 22% presently these are: 15%. the introduction of technology-based solutions like CRM has differentiated companies from their customers’ point of view. CRM is a strategy where banks to build and manage long-term relationships with their customers. Researchers have shown that CRM implementation can provide better customer service, as well as improvement and management of customer expectations and loyalty (cho et al., 2001; reichheld, 1996; reichheld& sassar, 1990; romano, 2001; winer, 2001). in this paper we explained the CRM philosophy and it’s role in banking system, and have proposed a model of E-CRM for Iran’s banking sector by taking into consideration their competitive environment.

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