Driving simplified multiple values of banking to varied stakeholders using digital technologies in a South African bank.

Abstract

South African banks face significant challenges in implementing digitalisation as a core strategy for delivering banking products and services to diverse stakeholders in a digital environment. This study adopted Strauss and Corbin’s (1990) version of grounded theory to develop a substantive grounded theory on the implementation of digitalisation as a strategy in a selected South African bank, based on the lived experiences of senior managers. Twenty-five senior managers with direct experience of the bank’s transition from traditional to digital banking were selected using purposive and theoretical sampling. Data were collected through 32 in-depth semi-structured interviews that captured critical incidents explaining the factors and processes of the transition, and were analysed using open, axial, and selective coding. The study developed a five-stage substantive grounded theory labelled “the digital wave of driving multiple values of banking services to varied stakeholders using digital technologies in a South African bank.” This theory illustrates an ambidextrous “digical” approach as the bank adopted a sensitive digital-first strategy for engagement while deliberately maintaining strong face-to-face client centricity. This ensured clients with unique difficulties or those unwilling to transact digitally were not left behind. In the first stage, the bank focused on identifying digital-enabling opportunities. In the second stage, employees and managers enacted internal and external value by enhancing performance through digital technologies, realigning HR activities, and empowering employees with improved integrated processes. The third stage involved managing a complex mix of positive and negative digital consequences for clients, employees, and banking and nonbanking partners. The fourth stage addressed transforming key challenges, such as employee and client resistance, streamlining organisational architecture for efficiency, and realigning supplier strategies with emerging digital needs. The overall consequence in the final stage was simplified yet had multiple values for varied stakeholders. Overall, the bank reaped the benefits of the “digital” approach, combining digital customer engagement with personal, consultative branch support, particularly for lower-end mass-market customers. The new substantive grounded theory of “digical banking” advocates this ambidextrous, integrative model. The theory provides practical guidance for bank leadership, managers, employees, and HR practitioners in navigating digital transformation and building ambidextrous leadership and digital capabilities.