The employee perspective within digital transformation: A case study in a South African bank

Abstract

The banking sector in South Africa has long been dominated by the four traditional banks that compete against each other. The Fourth Industrial Revolution has caused the emergence of advanced technologies in the market of new entrants with digital business models. This has not only intensified the competition but also threatened the existence of traditional banks. However, traditional banks have responded by investing heavily in digital transformation initiatives to defend their long-dominated territory. In addition, rapid technological changes, regulatory demands, and changing customer behaviour and expectations are among the external drivers forcing the banking sector to embark on a digital transformation journey. However, the internal challenge facing traditional banks that impedes their successful implementation of digital transformation is legacy (people, process, technology). These systems necessitate a methodical approach to change management, workplace or culture conducive to learning and effective adaptation strategies that consider all key impacted stakeholders. The problem statement of this study explored if the financial institutions embarking on a digital transformation process place greater focus on the new technologies and less attention on those employees who will interact with the new technology in their daily work duties. To address these gaps, the study aimed to understand and explore employee viewpoints, concerns and experiences that could help financial institutions, particularly the banking sector, to better navigate the complexities of digital transformation and maximise the benefits of technological innovation. The qualitative research method used semi-structured interviews to collect data from twelve participants who worked ‘on the ground’ or in lower-level positions. They interact with digital tools daily and are from four teams in the Financial Crime Risk Management (FCRM) operations department of one of the South African traditional banks. Thematic analysis was used to identify and organise recurring iii patterns and themes that emerged from the data, offering insights into the perspectives and real-world experiences of the employees. The key findings of this study supported the literature that digital transformation is a complex and continuous process that must be viewed beyond the technological changes or upgrades but does not eliminate the human element in the process. The findings further revealed a range of emotions to digital transformation including the negative and positive feelings and the importance of maintaining and sustaining feedback platforms. Adopting the Fourth Industrial Revolution technologies has significantly streamlined operational processes with several opportunities for employees, such as empowerment and personal growth, skills development and career advancement, organisational culture and learning, and competitive advantages. However, the findings also revealed challenges employees faced during the digital transformation process, such as workload management, productivity, targets and deadlines, time constraints, skills development, and technical issues post-implementation. The research study findings further revealed that the bank follows a top-down approach as a change management practice and highlights the consequences to employees. In addition, it was found that most employees are dissatisfied with how leadership communicates digital transformation initiatives and together with the challenges, the results of low engagement were highlighted. The study concluded that employees’ perspectives can play a significant role in the successful implementation of digital transformation. It can improve their confidence and trust in new technologies, resulting in them feeling involved and contributing to the process of the alignment of expectations and organisational goals, a smooth adoption, transitioning and lowering resistance to change.