The Adoption of Big Data Analysis to Maintain Competitive Advantage in South African Banking

Abstract

This study investigated how South African banking institutions adopted Big Data analytics to maintain a competitive advantage in an increasingly data-driven environment. Through 20 semi-structured interviews with senior professionals, including Chief Data Officers, Data Scientists, and Risk Managers, this research explored the role of data quality, governance practices, and skills development in the strategic implementation of Big Data initiatives. Findings revealed that larger banks had integrated Big Data into core operations using advanced technologies like Hadoop and machine learning, resulting in improved customer segmentation, fraud detection, and operational efficiency. However, significant barriers persisted, particularly data inconsistencies, fragmented systems, and a shortage of specialized skills in data science, engineering, and visualization. Smaller banks reported slower adoption due to limited resources and organizational resistance to change. The study affirmed existing literature on the importance of data governance and human capital (Barney, 1991; Davenport & Patil, 2012) but also extended it by highlighting how South African regulatory and infrastructural contexts influence Big Data readiness. The research contributes context-specific recommendations, such as enhancing data governance frameworks, developing talent pipelines, and building data-driven organizational cultures, to support sustainable digital transformation in South African banking.