The influence of digitalisation on the changing nature of employment within the South African banking sector workforce
Date
2020
Authors
Naidoo, Therusha
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Abstract
Digitalisation, and the acceleration of technological innovations, is evolving at an unprecedented pace, and is resulting in the disruption of many industries across the world. The growing impact that digitalisation is having on existing skills and jobs is a cause for concern as this will potentially result in job displacement and a skills and talent shortage.
This research aims to better comprehend the influence of digitalisation on employment within the South African banking sector workforce to ensure that banks are ready for this impact. This will enable banks to act by designing and implementing informed plans of action for their employees as they drive towards a greater degree of digitalisation in their businesses, minimise potential job losses, and create new jobs. This research therefore seeks to investigate and understand the following research questions:
• How has digitalisation affected employment in the financial services sector, specifically banking? • How has digitalisation changed the nature of jobs in banking? • What type of new jobs have been created as a result of digitalisation? • What can banks do differently when digitising as it relates to employees?
To answer these research questions, a qualitative research methodology was applied with a single case study being utilised. The case study was conducted on one of the big five major banks in South Africa on which the study was conducted. The primary data was collected via semi-structured interviews with 15 respondents (executives and senior managers) who have experience in the organisation and/or exposure to how digitalisation has influenced the changing nature of employment across the various levels of employment within the banking sector.
The key findings of this research are that:
• Digitalisation has resulted in a decrease in the demand for routine, mundane, clerical, and administrative jobs, and an increase in the demand for highlyskilled and more service jobs that need to be fulfilled by individuals who are highly-skilled. • The three key drivers that have impacted the changing nature of jobs in banking as a result of digitalisation have been identified as: o Prudent and robust cost management, improving business efficiencies, and growing revenues and profits. o The clients’ influence on the changing nature of employment in banks. o The growing importance of the role of data in a bank’s digitalisation journey. • The new jobs that have been created as a result of digitalisation have been identified. • The key focus areas for banks as they digitise have been identified as: o Change management. o The need to upskill, re-skill, and/or re-purpose employees so that they remain relevant as new skill sets and expertise are required, and to ensure the future readiness of employees as digitalisation becomes more embedded in the organisation. o Increasing support by banks for growing entrepreneurs through the creation of an entrepreneur ecosystem.
This research recommends that in order for banks to manage the impact of digitalisation on banking, they need to:
• Identify jobs at risk of no longer existing, and implement ways to re-skill, upskill, and/or re-purpose individuals in these jobs so that they can be transitioned into highly-skilled jobs or jobs that are becoming more in demand as a result of digitalisation. • Upskill, re-skill and/or re-purpose employees to ensure that they have the skills to cope in the digital world. This can be done through a variety of initiatives such as learnerships, academies, mentorships, and partnering with Fintechs. • Establish entrepreneurship support systems to decrease the dependency on formal employment.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Master of Management in the field of Digital Business to the Faculty of Commerce, Law and Management, Business School and School of Governance, University of the Witwatersrand, Johannesburg, 2020
Keywords
UCTD, Banking, Digital transformation, Digitisation, Employment, South Africa