Adopting Knowledge Discovery in Databases for Customer Relationship Management in Egyptian Public Banks A. Khedr and J. N. Kok Leiden University, Leiden Institute of Advanced Computer Science P.O. Box 9512, 2300 RA Leiden, The Netherlands Email: khedr@liacs.nl Abstract, We propose a framework for studying the effect of KDD on CRM in the Egyptian banking sector. We believe that the KDD process and applications may perform a significant role in Egyptian banks to improve CRM, in pai'ticular for customer retention. Our believe is supported by the results of the field survey at the largest Egyptian bank. Keywortis. Adopting new technology. Knowledge Discovery in Databases (KDD), Customer Relationship Management (CRM), and banking sector. 1 Introduction Innovative technology is defined as any new developmental technology in organizations [1]. It can involve creating or reengineering products or services to meet the new market demand, introducing new technologies to improve productivity, developing or applying new marketing techniques to expand the sales opportunities, and incorporate the new forms of management systems and techniques to improve the operational efficiency [2]. As a result of the continuous increase of the business needs, the amount of data in database systems is growing fast. Since the cost of data storage is decreasing continuously, users tend to store all available information in the databases, to retain information that might be useful in the future, even if it is not of a direct value [3]. In the banking sector, the increasing competition, the deregulation, and the adoption of new technologies, have contributed to the growth of customer's power. Customers may switch the banks on a whim. To win the new customers and retain the existing ones, banks may adopt the Knowledge Discovery in Databases (KDD) for analyzing the customers' behaviors and the needs. In the banking sector of Western Europe and the United States, KDD has been widely adopted. In this paper, we propose a framework for studying the effect of adopting KDD in the banking sector in Egypt. We present the results of the field survey, which support our belief in the validity of our proposal. The outline of this paper is as follows. Please use the following formatwhen citing this chapter: Kliedr, A., Kok, J.N., 2006, in IFIP International Federation for Information Processing, Volume 218, Professional Practice in Artificial Intelligence, eds. J. Debenham, (Boston: Springer), pp. 201-208.