Evaluating digital solutions in a retail and business bank: a South African case study

Abstract

This study aimed to investigate evaluation and success factors to consider for the investment in digital solutions within a retail and business bank by way of a case study of a South African bank. Banking institutions are challenged by rapid technological changes and, hence, depend on digital solutions for competitiveness.

Digital solutions are complex and multi-dimensional creating challenges for ascertaining success. The study provides insight into factors which banking institutions can consider to evaluate investments in digital solutions and corresponding success measures. The study used a qualitative method and the analysis was based on a thematic approach. Banking institutions look further than just traditional investment evaluation methods. Their approach take into account the strategic alignment of the initiative to the organisational strategy, financial considerations and non-financial considerations. These include arbitrary factors such as customer take-up rates, conversion rates and the ability to grow new markets and create new products. The findings highlighted a need for business to be able to research ideas for success measures. Success measures are significantly impacted by project success, and the findings presented factors that impact projects success and failures. There is a need for an alternative approach within the bank to evaluate investments in digital solutions and increase the probability of success for respective investments.