Identifying the key decisional aspects for multifocal financial service providers in South Africa

Abstract

In South Africa during the last decade, the topic of Financial Service Providers (FSPs) has received significant attention from practitioners and associations, but limited academic literature exists on the topic. In 2012 an industry survey was done that highlighted the key barriers to the growth of FSPs. A similar research study was conducted in 2016 that focused on risks for FSPs that confirmed the findings of the 2012 survey. Since then, no other academic studies that focussed on multifocal FSPs within South Africa were found. A literature review based on the structure of a systematic literature review was conducted in 2020, followed by several informal interviews providing the necessary context to phrase the main research question of this study: What are the aspects that need to be considered for the strategic future of multifocal FSPs in South Africa? Answering the main research question, a mixed methods research methodology was used, applying convenience sampling to conduct two cycles of data-gathering. Using the initial decision aspects identified during a literature review, the first data-gathering cycle used four diverse FSPs via expert interviews, to extract decision aspects, producing extended decision aspects. The second cycle of data-gathering used a survey of nine independent financial advisors to validate whether the extended decision aspects identified from the interviews, as well as business and academic literature, are relevant to industry, producing refined decision aspects. As part of the second data-gathering cycle, the 2012 survey questions were replicated to provide context for the survey participants and their financial services and operating context. Demonstrating the practical use of the decision aspects, the study extracts relevant decision aspects to indicate how the aspects could be used to guide decisionmaking for the four FSPs interviewed during the first data-gathering cycle. The main contribution of this dissertation is to present a comprehensive list of decision aspects that will be useful to multifocal FSPs in guiding their enterprise re-design initiatives. A secondary contribution is to demonstrate how the decision aspects can be used to guide the four FSPs, during future strategic decision-making. The study concludes with future research opportunities identified from the findings.