A digital transformation framework for South African financial service providers
South African Financial Service Providers (FSPs) are characterised by turbulences and uncertainties that continuously affect business operations. Many writers summarize the current era of business as “adapt” or “die” era for many businesses, notably financial service providers. The way FSP operate has changed dramatically; there is now a new economy on the rise known as digital economy which requires Financial Service Providers to re-look at how they operate as a business. Financial Service Providers have to leverage on new technologies in order to remain relevant in the current times of banking. The majority of South African Financial Service Providers are investing in digital transformation. However, digital transformation phenomenon is not well understood, especially in the context of South African Financial Service Providers. The extant literature is limited to digital strategies and digital business models, providing a limited overview of a detailed and complete digital transformation for FSP ecosystem. Moreover, such literature, to date, has not linked digital transformation to business processes within Financial Service Providers. Hence, this thesis argues that digital transformation challenges and issues observed in South African Financial Service Providers could be alleviated by a sound digital transformation framework that is sensitive to the local context. The goal of this study was to conceptualize a framework that shows how South African Financial Service Providers could do digital transformation. The study used IT capability model, Resource dependency theory and the Technological, organizational and environmental theory as lenses to deeply understand what and how South African Financial Service Providers experience the digital transformation. The interpretive paradigm was followed in the study, with an inductive research approach and a case study research strategy employed for the study. Semi-structured interviews, observation and document reviews were data collection methods used. Hybrid thematic analysis and content analysis were the methods used to analyse the data collected. Study findings suggest that digital transformation is either enabled or inhibited by existing IT capabilities and resource dependencies. The thesis argues and concludes that IT capabilities and resource dependencies ought to manifest cognizant of the Financial services provider’s technological, organizational and environmental contexts. The framework conceptualised unpacks the theoretical, practical, and contextual contributions of this thesis.