The effectiveness of technological advancements on project execution in the South African financial services sector

Abstract

Background: The digital age is filled with emerging digital technologies that are evolving at a rapid pace. The wide scope of digital technologies streams such as ‘artificial intelligence’ (AI), ‘automation’, ‘big data’, ‘cloud computing' and the ‘Internet of Things’ (IoT) have created opportunities and challenges to all involved in banking to embrace digital transformation.

Objectives: The purpose of this study is to explore the effectiveness of technological advancements on project execution in the South African financial services sector. The main emphasis for banks to remain relevant and gain a competitive advantage in this digital age, they would need to transform digitally by adopting appropriate emerging technologies and transition their backend processes and operations. The study further explores the mitigation of the problem statements through a management consulting start-up as a possible solution.

Method: The research method was in the form of a quantitative research design, which involved 267 online surveys with banking professionals working within IT such as Chief Digital Officers, Head of Departments, and Project teams. The literature review indicated that digital transformation was reshaping the structure of the banking sector, and the role of IT project execution in the digital age. This has emphasised the need for banking professionals to stay abreast with the fourth industrial revolution developments and trends, and to prepare for imminent changes as the digital age requires new skills and competencies.

Results: The findings from this study indicated that the issues pertaining to digital transformation are multifaceted and go beyond the incumbents in the financial services banking sector as they affect companies operating in other industries across SA. The findings from this study are expected to contribute to the extant literature in the field of digital transformation and competencies required by banking professionals.

Conclusion: The fourth industrial revolution has introduced significant new technologies in all areas of business, and the banking sector is no different. The emergence of technologies has impacted the way projects need to be executed, in terms of speed, efficiencies and processes. All of this requires new mindsets with advanced skills which need to be quickly attained and practiced at the highest levels to make the most of the technologies