KMS Design Intervention in Banking Industry
Introduction
Banking institutions are under significant competition and pressures emanating from the market. Due to these reasons, banking organizations may experience credit reduction growth to private sectors, poor investments, high-interest rates, and inadequate management of risks. However, banking businesses would lose meaning without customers. Ensuring good relationship with clients contributes to the developments of any particular organization. Business systems that invest in customer knowledge concerning services that they offer stand a chance for future innovation. Surviving institutions retain valuable and accurate information from the profiles of their individual clients. These may include needs, demands, and wants of the specific customers who may contribute to an environmental understanding of the banking institution about macro-environmental trends in the changing environment. The knowledge in business is related to production, management, and service and innovation not only scientific and social knowledge. In most cases, the knowledge comes from employees, and this makes the entity develop strategies to come up with organizational knowledge by taking an advantage of the knowledge of the workers. This would mean that in the future, banking organizations would be creating a significant experience that would contribute to the values of the organization and achieve competition advantage.
Banking systems are in constant fear that the decline in the global economy may bring greater risks. To emerge in from these harsh economic conditions these institutions are gaining and retaining potential customers who are in the financial age through creative innovations and ideas that benefit both the banking organization and its clients. Technological advancements in these new ideas contribute significantly to the performance and strategies of these particular trading systems.
This enables the team to achieve better performance, better decision-making, and improvement of customer relationship management, enhance its value, and create more businesses and services such as mobile and e-banking services. Banking institutions taking their services online has been widely accepted by many customers as a convenient and reliable banking service. The banks ‘digital strategy' that has been in use since the inception of the e-banking platform comprised of an enhanced number of banking services that its esteemed customers could access via the digital channels with the banking categorizing the types of transactions that the customers could perform over the internet and mobile phones. In fact, the process has been underway to ensure that comes up with the interactive digital television to enhance its market options and activities as a strategic option to move into the unforeseeable future full of advanced technology.
The future promises better quality services and products from the banking organizations. With knowledge management, products being newly enhanced and more knowledge-based, ideas can be transformed into products that are innovative and much faster services. Banks are not left out in this process and are on the verge of improving their products and services to gain and attract more customers. About this movement, cloud banking would be proposed for investment as most of the transactions are done over the internet. This would present a good start for banking institutions that would wish for a future full of technological empowerment. Therefore, this paper describes Cloud Banking System design as a development in banking systems that should be implemented through Knowledge Management System's tools and principles to improve banking services.
Statement of Problem
With the emergence of online banking over the past years, a large number of financial transactions are being done on the individual banks website. To access the banking facility of the financial institution, the customer would be required to register with the banking system for the service where a password and other verification credentials of the client would be needed for the activity. The banking system would also be required to store the customer's profile in their database to create a customer relationship and enhance communication with the customer. Constantly, the banking facility sends copies of bank statements and other documents that the customers may download or print at their premises to create an interpersonal relationship with the customer. This means massive data is being sent and processed over the internet during these transactions and stored as in the cases of the institution's database.
Cloud banking can contribute to more benefits to the banking systems. Also, the clients growing used of the cloud area positive development that enhances the cloud's benefit. It is has been established that the cloud can play a significant role in the future strategies of the banking system. Moreover, a partnership with the cloud to create a more secure environment when it comes to issues with data and privacy security including legal differences across national boundaries is a clear image of possibilities that the future offers to cloud banking. The financial institutions should not only implement cloud banking for just storage but also for the transmission of different kinds of information and banking materials. Since control of the bank is now in the hands of the customers, the institutions should adopt this system for the reliability of the customers. The customers' demands over the years have become more sophisticated, and they are more concerned with convenience and control over their banking services.
Illustration 1: Benefits of Cloud Banking
Cloud Banking System
Banking institutions spend a lot of capital in technological advancements and are always curious about new technological trends in the modern world. There have been many failures when banks try to invest in new financial platforms and customized solutions, a problem that has been majorly contributed by technology becoming too costly. However, banking institutions are still on the look for better solutions to manage the needs of their customers as well as gain the competitive advantage in the economy. Cloud computing is a way that has been foreseen to deliver software in the future and can promote business models, operations and Information Technology in the banking system. Processing and analysis of consumer trends will be made easier by implementation of cloud banking creating value in the long term and provide knowledge in decision making through KM.
However, changes in the organization would be made with the implementation of the cloud banking system. Individuals with the ability, skills, and technical knowledge would be required to monitor the cloud banking system of the particular financial institution for security purposes. This would add for investment in more advanced technological trends available to assist in the change of the organizational operations. As much as the advanced equipment would be costly, the long-term benefits would be promising. However, to reduce these costs, the organization can utilize knowledge management effectively with appropriate application and access of better knowledge and increase the response speed.
Using cloud computing on banking services would have a positive influence on the demographics of a banking institution. Banks can be able to develop a flexible and energetic banking environment that can respond to business needs in a short time possible using the cloud. Even though security concerns are a threat to banking systems concerning cloud data, this can be prevented by building a better application model. Cloud computing will cut costs. Financial institutions will not be required to invest heavily in the appropriate software and human resource. It will only require them to update the infrastructure of the IT the cloud's modular. They would only pay for the software that they may need.
Service to customers is the biggest thing that organizations consider. This should be one of the biggest reason why banks should adopt this system. Cloud would be able to serve customers quicker as the software is easier to launch and deploy within the banking infrastructure. This would reduce any delays during system upgrade maintaining normalcy in operations. The customers are also able to access the banking system from any location on any device. Also, demands during peak will be significantly boosted since computing power can be boosted in the cloud system.
The IT costs of operation will also be substantially increased. This means that there would be a benefit in the financial sector. Cloud banking system technological flexibility and scalability would also enable the banking system to respond to shift in market conditions. This means that the banking institution would be able to expand or reduce their system according to the market conditions and demands of the customers too. The bargaining advantage is that the bank will be able to respond significantly quickly to changes in the economy and have the competitive advantage when it separates itself from others in the financial space. Also, the most important thing that the banks wish to achieve in their operations is establishing their relationship with the clients. Cloud banking improves this relationship further. The taking the advantage of big data analytics that the cloud offers, banking institutions would be able to use the information stored in the cloud for decision making, improve the system and as a source of new insights. Therefore, they would be able to customize and better their services.
The system would also draw individual clients closer to each other. Payment transactions between buyers and sellers would be made easier. Currently, methods used to process payments are not efficient since they use different technology, but cloud banking would bring together buyers and sellers. Availability and reliability of the banking system to its customers globally would be a clear indication of the benefits that the system would achieve. Customers would be able to perform their transactions swiftly and establish a close relationship with their banking institutions. However, cost cutting in the organization's operational activities would be a significant achievement. The system would ensure a smooth operation between the entity and the customers and direct the firm over economic changes as well as provide solutions. By applying the appropriate knowledge management, cloud-banking will significantly contribute to the business's goals.
Bibliography
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