Top Benefits of Knowledge Management in the Banking Industry
Financial knowledge management systems reduce financial risk, house sensitive information, and guide customers to their best options. They also minimize operational inefficiency and streamline internal communications, providing banks a competitive advantage.
Banking Knowledge Management
The banking industry relies heavily on documentation to function and a good financial knowledge management system helps them meet strategic goals like trust, transparency, version control, and permissioning. Today, many banking institutions are also relying on knowledge-based systems to drive their digital transformations.
Significant knowledge management challenges faced by the banking industry include:
- Long contact center queues
- Higher handle and hold times
- Security breaches
- Ineffective self-service
- Incorrect information delivery
A banking knowledge management system maintains consistency of information across multiple channels, supports customer demand for self-service, and drives exceptional customer and employee experiences.
Benefits of Knowledge Management in the Banking Industry
No other industry faces quite the same margin, competitive, technological, and customer expectation challenges as banking does. Profits and customer satisfaction depend on knowledge and speed, and customers often switch banks when their current one disappoints them.
At any given time, banks have a hundred or more offers available to their customers. To ensure public trust and regulatory compliance, they must gather and share accurate information while complying with federal and state (and sometimes international) regulations. Proper financial knowledge management system implementation provides important benefits above and beyond effective customer service.
Drive Operational Efficiencies
The ability to identify, collect, and distribute knowledge when needed is a key factor in a bank’s success. When knowledge is partnered with technology, it yields powerful outcomes and helps banks:
- Identify gaps in training and speed up the process of getting agents the tools and knowledge they need to best serve their customers.
- Reduce training costs by replacing some or all classroom training with online learning through a centralized knowledge base.
- Ensure employees feel confident about their own readiness.
- Improve productivity by providing agents with the right information at the right time.
- Use analytics to identify top performers.
- Increase overall satisfaction in customer and agent experiences.
Transform Customer Experience and Earn Profits
Knowledge management provides customers with 24/7 access to the information they need. It offers hyper-individualized experiences that deliver instant gratification across multiple channels and on various devices. Here are just some ways knowledge management improves the customer experience and helps banks increase profits.
- Provides agents and other employees with up-to-the-minute information on product and service features, benefits, and comparisons, all through a central repository.
- Uses multimedia content such as animations, infographics, and audio to help customers help themselves.
- Measures, communicates, and tracks customer service goals.
- Ensure bank customers receive consistent information at every branch.
- Provides user-friendly self-service tools to help customers find the best rates, services, products, or other offerings.
- Helps banks launch products and services faster by increasing the delivery speed of communications.
Development of Top Talent
Knowledge management plays a vital role in a bank’s talent strategy. It helps them attract and retain top talent and makes employee development a faster, smoother, and more satisfying experience. A knowledge-based system can also help your bank:
- Provide personalized onboarding materials for new hires to use in self-training.
- Leverage organizational wisdom to identify top performers.
- Provide solid progression plans for key talent.
Accelerating Product and Services Launch Times
With knowledge management, banks can shorten the time it takes to improve existing or launch new products and services. Accelerating the time to market directly affects revenue, as it keeps you ahead of the competition and increases your market share. You can use data gathered in your database to also:
- Update financial or regulatory or data in seconds.
- Train employees in cross and up-selling.
- Provide instantaneous knowledge to the point of sale.
- Motivate sales team members to deliver results faster.
Increase Sales Effectiveness
Knowledge management helps dissolve knowledge silos and encourages collaboration. It breaks down the walls between sales, marketing, and customer service and improves the customer experience. It also makes it possible to:
- Deliver point of sale level learning without using physical training methods.
- Communicate tedious and challenging concepts through use cases.
- Use multimedia presentations to promote improved customer interactions.
- Give your sales team split-second information, which helps them engage with customers more easily.
Manage Risk and Regulatory Compliance
Knowledge that’s unique to a bank’s processes, risk tolerances, and regulatory environment needs to be stored securely and made accessible to the right people when necessary. A financial knowledge management system helps you:
- Monitor high-stake areas.
- Meet compliance levels across all sectors.
- Move beyond state and federal compliance to compliant workforce behavior.
- Implement compliance changes and updates speedily.
- Enhance management reporting.
- Improve employee engagement with the help of knowledge-sharing tools.
Choosing A Banking Knowledge Management System
Banks will always, or at least for the foreseeable future, rely on their employees’ ability to make good decisions and meet customer needs more efficiently. Knowledge management ensures agents have the information they need to do just that.
Selecting a financial knowledge management solution for your bank doesn’t need to be a complicated and drawn-out process. KMS Lighthouse is an AI-driven solution that provides the fast, reliable, and accurate assistance your customers demand and the analytics your financial institution needs to continually improve the customer experience and maintain its competitive position.