The Impact of Knowledge Management in the Banking Industry: A Systematic Literature Review

The banking industry is experiencing unprecedented transformation due to rising employee turnover, increasing regulatory pressures, and intense competition from fintech companies offering personalized digital services.In this knowledge-intensive and low-margin environment, effective Knowledge Management (KM) is critical for maintaining a competitive edge.Despite its importance, the relationships between KM processes, performance outcomes, and mediating variables remain underexplored.This study conducts a Systematic Literature Review (SLR) of peer-reviewed journal articles to investigate how KM influences both organizational performance (OP) and employee performance within the banking sector.The review reveals that effective KM processes enhance efficiency, foster innovation, mitigate risks, and empower employees to make informed decisions, thereby strengthening both organizational and employee performance.Importantly, KM not only directly impacts performance but also operates as a mediator between organizational components (e.g., agility, culture) and performance outcomes.The study identifies key mediators such as organizational learning, innovation, human resource strategies, digital financial integration, and new financial technologies (e.g., AI, smart contracts) that significantly shape the relationship between KM and OP.The findings underscore the strategic necessity of aligning KM practices with leadership and human resource strategies to create knowledge-sharing cultures.Incentivized engagement mechanisms can foster trust and collaboration, enhancing knowledge accessibility and application.Ultimately, KM emerges as a vital driver of sustainable competitive advantage and strategic growth in the banking sector.Future research should investigate the synergistic combinations of mediating variables that most effectively amplify KM's impact on performance outcomes.