Common Knowledge Management Challenges In the Banking Sector

March 18, 2022
Knowledge Management In the Banking Sector
Despite frequent musings on their imminent demise, banks and their services are essential to global economies. It’s true that branch-based banking is declining, with thousands of branches closing every year, including over 2,900 in 2021 alone. But that doesn’t mean banking itself is dying.

Most banking executives now believe that new technologies, including cloud and AI, will play significant roles in the industry moving forward. And a vast majority of them say that unlocking technology’s value will determine which banks survive and thrive in the years ahead.

Knowledge Management in the Banking Industry

Knowledge management built for banking allows financial services organizations to store and organize knowledge more efficiently. Bank managers and employees can collaborate better while staying aligned on short and long-term initiatives. And by integrating customer knowledge management into the process, banks gain greater insights into their customers and their preferences, making it easier to develop and launch new products and services.

Knowledge Management Challenges in Banking

Many of the challenges banks face in their knowledge management programs, such as increased competition and rising consumer expectations, are similar to what other industries face. However, because the banking industry has lagged in digital transformation, it still must find ways to overcome traditional barriers like:

  1. Long wait times. One of the most prevalent complaints with customer service in the banking industry is how long people need to wait to get the information they need. When customer service agents can’t find that information quickly, customers—including those on hold in the call queue—become frustrated. Since customer satisfaction and profits are directly tied to knowledge and speed, banks risk losing those disappointed customers.
  2. Security breaches. Security Magazine recently reported that data breaches in the first half of 2021 numbered 1,700 and exposed 18.8 billion records. Security risks are a top priority for banking customers, particularly given the sensitive nature of the information being compromised. Knowledge management software designed for banking applications gives agents and other staff a united view of security protocols and best practices to help mitigate breach risks.
  3. Lack of customer-facing information. Just under 70% of surveyed consumers say they prefer self-service options over speaking to customer service representatives. Banks that still haven’t implemented a self-service knowledge management option can substantially damage their customer relationships.
  4. Delays in information availability. Banking is a highly regulated industry that’s greatly influenced by government policies. Employees who aren’t up-to-date with regulatory changes face the risk of sharing incorrect information with customers, putting the bank at risk, especially in today’s uncertain and sometimes volatile environment.

Implementating knowledge management strategies like knowledge sharing can help banks meet these and other daily challenges the industry faces. Financial risks are minimized, and sensitive information is protected. And as customers are given the options they demand, banks retain their competitive edge.

The Benefits of Knowledge Management in Banking

A knowledge management system helps banks maintain information consistency across multiple channels while supporting customer demand and driving exceptional customer and employee experiences. Here’s a deeper look at specific ways knowledge management benefits the banking sector.

Delivers Consistent Information

The information your bank’s customers receive should be consistent no matter where they access it, including in a branch, online, or via a live customer support agent. A centralized knowledge management system ensures all team members can access the same information and provide accurate, standardized answers to customers.

Enhances Customer Satisfaction

When a customer has a question or concern, they have a right to expect timely and accurate answers. When you equip employees with the tools they need, they’re able to search for the information they need to provide comprehensive solutions to client issues quickly. The result is an improved customer experience.

Creates Consistent Digital and Live Brand Experiences

We live in a digital world where banking customers expect the same options they have in other industries. Mobile banking and AI-powered chatbots now work hand-in-hand with in-person interactions. A well-designed knowledge management system ensures your customers receive a unified experience, no matter how they interact with your bank.

Ensures Regulatory Compliance

New banking laws and regulations and updates to existing ones are regularly introduced—and they can have a significant effect on your bank’s policies and procedures. A banking knowledge management system ensures all employees are current on regulatory changes updates and they understand how any changes might impact your bank and its customers.

Provides Holistic Customer Insights and Views of Market Research

Customer insights are essential to the banking industry’s current and future development and marketing strategies. They provide invaluable assistance for financial institutions to better under their customer’s collective behaviors and individual needs. They also make it easier for banks to improve product and services offerings and brand messaging. A knowledge management platform centralizes all gathered data, makes it searchable, and gives internal stakeholders access to the information they need to make more informed decisions.

Keeps Information Secure

American Banker magazine recently asked if banks can convince their customers that their data is safe. Sadly, less than half of consumers (about 43%) say they have faith in their bank to protect their data privacy. A knowledge management system provides robust security features that keep your customers’ data safe and lets them be confident their personal information is protected.

Selecting A Banking Knowledge Management System

A centralized knowledge management platform equalizes knowledge across banking departments and entire organizations. Banks that want to preserve their competitive edge while meeting their customers’ evolving needs should seriously consider how a knowledge management system can enhance their organization’s operations.

KMS Lighthouse’ proprietary knowledge management software provides real-time access to accurate and consistent knowledge to employees, agents, and customers, improving both the customer and employee experience.

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