Defining the value proposition for a digital bank in South Africa

Abstract

South Africa is on the cusp of embracing digital banking in 2018. This research aims to define customer value from digital banking offerings making use of the Value Proposition Canvas for future reference of other digital banks wishing to enter into a South African market. The purpose of this study is to define a value proposition for a digital bank within South Africa. The significant golden thread that should be taken from the following research article is that there is potential in South Africa for a successful digital bank and the following will explain what exactly customers require from a digital bank. The significance of this research is limited to the South African market to assist banks in redefining their digital offerings as well as to gain customer insights with regards to expectations of a digital bank. There is very limited academic research relating to digital banks and their customer value propositions currently in South Africa. The methodology used was quantitative research through the means of an online survey that was sent out to the random respective population sample via email. This yielded the major finding of perspective customers prefer to switch from their bank provided value derived in the form of cost, convenience and efficiency was provided by the digital bank. In conclusion, it was found that further research into the field of value generation in terms of low cost, efficient service and added convenience should be explored. Keywords Digital Bank, Value Proposition Model, South Africa