Implications of technological unemployment in financial services in South Africa

Abstract

The study was conducted to understand how technological unemployment is affecting financial services companies in South Africa. Technology investment is seen as creating and building competitive capabilities for companies and Countries, however with further investment in technology it may result in displacement of workers through automation of jobs. Considering the high unemployment, South Africa should be understanding the impacts of technology investment and developing responsive strategies to improve the unemployment problem. The research is grounded on technological unemployment theory which is the displacement of workers as result of technology advancement. The study included a review of skills development strategies which have been identified by various studies as key response to reducing the displacement of workers. It also included a review of how technology is changing company business models with the implementation of artificial intelligence and blockchain technologies in the financial services sector. The data collection followed qualitative research approach where interviews were conducted with Senior Leaders in the industry to understand their strategies and outlook on the future both unemployment and technology advancement.