Banking

Banking


In today's world, knowledge is one of the most important and significant factors in achieving success in competitive markets. Therefore, modern business organizations consider knowledge as their strategically valuable asset. Knowledge, like any other asset, requires wise management based on effective and efficient procedures and practices. This can also be extended to financial institutions, especially those in the banking industry. These institutions rely mainly on the interpretation and organization of data to create the knowledge necessary to manage their activities.
The findings show that KM's application in banks started in 1996 in the World Bank, then in developed countries, and then in different parts of developing countries. Knowledge management in the banking sector is defined as how a banking institution identifies, discovers, and collects the knowledge it needs and uses it to support and improve its overall performance. Success in this process indicates the success of the institution in the entire banking industry.

Creating a competitive advantage in the banking system

In general, creating a competitive advantage is one of the best methods that any organization should use to maintain its stability in a highly competitive market environment. Creating a competitive advantage means providing what others cannot offer.
Creating a competitive advantage in the world of banking faces obstacles and challenges, some of which are mentioned below:
• Lack of development of employees' abilities and skills and negligence despite its unique importance in today's competitive markets;
• Complexities related to administrative development and lack of appropriate measures to empower employees;
• Lack of universally accepted theories and models;
• Weaknesses in maintaining information security in knowledge management systems;
• Unwillingness to learn from past mistakes among bank employees and managers;
• Tendency to traditional approaches in most banks;

Banking

Implementing knowledge management in banks and financial institutions

The trend towards knowledge management in the banking sector is primarily based on transferring large amounts of information from different sources. Knowledge management is the central pillar of strategic management in the modern banking sector. Knowledge management, in practice, facilitates the transfer of data and information across the enterprise.
Besides, knowledge management simplifies the process of collecting, classifying, reviewing, and presenting information in a way that is easy to use, understand, and share, even for the average person. Organizing information in these steps makes the decision-making process based on that information very efficient.

Banking

Requirements for implementing knowledge management in the banking sector

• Fostering an organizational culture to flexibly and transparently exchange information among employees from all organizational levels
• Attention to technology infrastructure due to the high dependence of knowledge management systems on them
• High ability of employees to use technology
• Holding training workshops for employees by banks
• Obstacles and challenges in implementing knowledge management in the banking sector
• Difficulty in determining the correct ways to convert tacit knowledge of individuals into explicit knowledge and its sharing in the whole institution or Different bank 
• limitations of managers (time, resources, etc.)
• Managers overemphasize administrative activities and neglect the importance of knowledge sharing and management

Banking

Investigating the implementation of knowledge management in Jeddah banks in Saudi Arabia

According to a 2019 study of several banks in Jeddah, the challenges of implementing knowledge management in the banking sector in Jeddah (Saudi Arabia) are positively related to achieving and improving competitive advantage. The results also show that the quality of services in banking and innovation is achieved by using knowledge management to create a competitive advantage. Acceptance of the concept of knowledge management has a positive effect on customer satisfaction, while its implementation is directly related to quality in implementation. Also, these results show that competitive advantage depends on better implementation of knowledge management.

Banking



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