Maintaining Financial Service Sector Relevance and Sustainability

in a Digitally Transforming Business Ecosystem

FEATURED PAPER

By Dr Tanya Keller, Prof Dr Pieter Steyn, and Prof Dr Brane Semolič

South Africa and Slovenia

Abstract

The COVID-19 pandemic has catalysed a significant shift within the Financial Services Sector (FSS), highlighting the need for rapid digital transformation to ensure immediate and long-term sustainability. This study delves into the strategic recalibration of FSS organisations, focusing on adopting digital technologies as a pathway to future success. Key Enabling Technologies (KETs) emerge as critical drivers of innovation, reshaping competitive dynamics within the sector. The research underscores the pivotal role of Dynamic Capabilities (DCs) in fostering organisational agility and resilience, proposing strategic recommendations centred on the development of robust digital infrastructures, the support for remote work, and the cultivation of a collaborative, customer-centric culture. The findings affirm that a comprehensive digital transformation strategy rooted in dynamic capability development is essential for FSS organisations to thrive in the post-pandemic era.

Keywords: Financial Services Sector, digital transformation, organisational sustainability, Key Enabling Technologies, Dynamic Capabilities, customer-centricity, collaboration.

Introduction                       

The 2008 financial crisis, now well in the past, left an indelible mark on the global banking industry. While recovery has largely taken place, the swift onset of the COVID-19 pandemic has underscored the fragility of that recovery, plunging the world into the most severe global recession since World War II (World Bank, 2020). The pandemic disrupted billions of lives and challenged the global economy, exposing the urgent need for the Financial Services Sector (FSS) to accelerate digital transformation. As Jim Marous highlighted in 2018, storm clouds were gathering again on the horizon, warning of the technological and operational challenges that would soon emerge (Marous, 2018). The sudden shift to digital engagement and remote work has forced organisations to rethink their strategies, with a clear emphasis on agility, resilience, and the integration of digital and physical operations (Rippert, 2021).

The COVID-19 pandemic has not only accelerated the adoption of Fourth Industrial Revolution (4IR) technologies but has also emphasised the need for Dynamic Capabilities (DCs) within organisations to navigate this new landscape. The future of the FSS will be shaped by the ability of its leaders to anticipate changes, foster a culture of continuous innovation, and seamlessly blend virtual and physical environments (BDO USA, 2019). This study explores the strategic imperatives necessary for successful digital transformation within the FSS, emphasising the critical role of dynamic capabilities in maintaining competitiveness and fostering an agile, collaborative organisational culture in a post-pandemic world.

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How to cite this paper: Keller, T., Steyn, P., and Semolič, B. (2024). Maintaining Financial Services Sector Relevance and Sustainability in a Digitally Transforming Business Ecosystem; PM World Journal, Vol. XIII, Issue X, October/November. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/11/pmwj146-OctNov2024-Keller-Steyn-Semolic-Maintaining-Financial-Service-Sector-Relevance.pdf

About the Authors

Dr Tanya Keller

South Africa

Dr. Tanya Keller is a seasoned strategic executive with a strong record of accomplishment of driving transformative change and achieving significant growth across various industries. She is highly skilled in leading global portfolios of strategic and organisational transformation and governance, risk, and compliance. Dr. Keller’s expertise extends to exploring innovative business models, regulatory challenges, and the pivotal role of high-performance teams in navigating this evolving landscape. She holds the degrees: Bachelor of Business Administration (BBA), Postgraduate Diploma (PGDIPPM), Master’s (MCom), and Doctor of Philosophy (PhD) in Commerce and Administration from Cranefield College. Driven by a passion for leadership and inspiring others to reach their full potential, she continues to achieve remarkable success in her field.

Prof Dr Pieter Steyn

South Africa

Dr Pieter Steyn is Founder and Principal of Cranefield College, a South African Council on Higher Education / Department of Education accredited and registered Private Higher Education Institution. Cranefield offers an Advanced Certificate, Advanced Diploma, Batchelor of Business Administration degree, Postgraduate Diploma, Master’s degree (MCom), and PhD. He holds the degrees BSc (Eng), MBA and Doctor of Commerce, and is a registered Professional Engineer.

He was formerly professor in the Department of Management, University of South Africa and Pretoria University Business School. He founded the Production Management Institute of South Africa, and in 1979 pioneered Project Management as a university subject at the post-graduate level at the University of South Africa. Prof Steyn also taught at the Chung-Shan Institute of Science and Technology in Taiwan as a guest lecturer.

He founded consulting engineering firm Steyn and Van Rensburg (SVR). Projects by SVR include First National Bank Head Office (Bank City), Standard Bank Head Office, Mandela Square Shopping Centre (all in Johannesburg), as also, Game City- and The Wheel Shopping Centres (in Durban). He, inter alia, chaired the Commission of Enquiry into the Swaziland Civil Service; and acted as Programme Manager for the Strategic Transformation of the Gauteng Government’s Welfare Department and Corporate Core.

Prof Steyn is a contributing author of the “International Handbook of Production and Operations Management,” (Cassell, London, 1989, ed. Ray Wild) and is the author of many articles and papers on leadership and management. He is a member of the Association of Business Leadership, Industrial Engineering Institute, Engineering Association of South Africa, and Project Management South Africa (PMSA); and a former member of the Research Management Board of IPMA. He serves on the Editorial Board of the PM World Journal. Moreover, he is the owner of the Aan’t Vette Wine Estate and De Doornkraal Vinotel (4-star hotel) in Riversdale, Western Cape.

Prof Steyn can be contacted at cranefield1@cranefield.ac.za. For information about Cranefield College, visit www.cranefield.ac.za.

To view other works by Prof Steyn, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/dr-pieter-steyn/

Prof Dr Brane Semolič

Founder and Head of LENS Living Lab
Celje, Slovenia

Brane Semolič studied mechanical engineering, engineering economics, and informatics; he holds a scientific master’s degree and doctorate in business informatics. His focus of professional interest is industrial and system engineering, innovation and technology management, virtual organizations and systems, project and knowledge management. He has 40 years of working experiences in different industries (industrial engineering, IT, chemicals, household appliances, government, and education), as an expert, researcher, manager, entrepreneur, counselor to the Slovenian government and professor.  He operates as head of the open research and innovation organization LENS Living Lab. LENS Living Lab is an international industry-driven virtual living laboratory. He is acting as initiator and coordinator of various research and innovation collaboration platforms, programs and projects for the needs of different industries (ICT, robotics, laser additive manufacturing, logistics, education). He was co-founder and the first director of the TCS – Toolmakers Cluster of Slovenia (EU automotive industry suppliers). Since 2004 he is serving as the president of the TCS council of experts. Besides this, he is operating as a part-time professor at the Cranefield College.

He was head of project and information systems laboratory at the Faculty of Mechanical Engineering, Head of the Project & Technology Management Institute at the Faculty of Logistics, University of Maribor and professor of project and technology management at the graduate and postgraduate level. He acted as a trainer at the International »European Project Manager« post-graduated program, organized jointly by the University of Bremen.

He was the co-founder and president of the Project Management Association of Slovenia (ZPM), vice president of IPMA (International Project Management Association), chairman of the IPMA Research Management Board (2005-2012), and technical vice-chairman of ICEC (International Cost Engineering Council).  He actively participated in the development of the IPMA 4-level project managers’ certification program. He introduced and was the first director of the IPMA certification program in Slovenia. He has been serving as the assessor in this certification program since 1997. He performed as assessor in the IPMA International PM Excellence Award Program in China, India, and Slovenia.

Brane is a registered assessor for the accreditation of education programs and education organizations by the EU-Slovenian Quality Assurance Agency for Higher Education.  He was a Member of Strategic Advisory Board of European Competitiveness and Innovation, as well as the president of the Slovenian Chamber of Business Services. Brane received the award as ICEC Distinguished International Fellow in 2008. He received the »Silver Sign« for his achievements in research, education, and collaboration with the industry from the University of Maribor in 2015.

Professor Semolič is also an academic advisor for the PM World Journal.  He can be contacted at brane.semolic@3-lab.eu.   Additional information about the LENS Living Lab can be found at http://www.3-lab.eu/ .

To view other works by Prof Semolic, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/brane-semolic/