An investigation into the strategic challenges facing digital banking channels in South Africa, a customer centric approach

Abstract

Electronic banking (hereafter referred to as digital banking), has not been fully embraced by local South Africans, in comparison to larger more established banking industries of the world. Despite the research literature available on e-commerce, much is still unknown about digital banking drivers in developing countries such as South Africa. In particular how clients feel about this form of banking and what the strategic challenges that require resolution for local consumers and banks to both benefit from this symbiotic relationship.

Arguably, digital channels are the future of banking globally as the autocatalytic nature of the internet and mobile devices continue to fuel digital transformation. In order for local banks to leverage this area of technological evolution, customer perceptions about this service platform, particularly the areas that were targeted for this investigation need to be prudently considered from a customer perspective for future corrective measures that need to be undertaken and ultimately solve for customer satisfaction.

Many South Africans have been early adopters of digital banking services, however many are still wary of this form of banking. A “magic pill” for implementation was not sought after, but rather a learning approach to embrace the opinions and perceptions of consumers.