Factors affecting the digital transformation of a traditional South African bank: The influence of Generation Z

Abstract

The purpose of the qualitative research was to determine which constructs from the UTAUT 2 framework could be applied by a traditional South African bank during its digital transformation journey to attract Generation Z to use its mobile payments application. A qualitative approach was utilised to interview 15 participants employed at Bank X. Utilising ATLAS.ti an inductive approach was used to thematically analyse the data gathered during the interviews. The research findings indicate that performance expectancy, social networks and price value play significant roles towards positively influencing the adoption of digital payments. While ease of use does not drive behavioural intention, it could have an influence on performance expectancy. Insufficient cybersecurity measures could become a barrier, affecting the trust that Generation Z may have in the service provider and the mobile payment application. Competitive pricing paired with compelling rewards may serve as a powerful motivator, to influence Generation Z to change banks. The findings suggest that to attract Generation Z, Bank X must focus on creating convenient mobile payment applications that offer a seamless user experience through digital onboarding. To earn the trust of Generation Z, Bank X should provide transparent cybersecurity measures. In addition, the solutions must be cost-effective and include personalised rewards. Furthermore, the bank should focus on digital marketing initiatives that will appeal to Generation Z. This research paper provides recommendations for financial institutions embarking on its digital transformation journey or those already in the development phase for digital payment solutions. These insights can help attract and retain Generation Z to be loyal customers who can influence the current and future generations to bank with a traditional bank.