Paper Title
The Importance of Digitisation in Driving Innovation in the Banking Sector in South Africa

Abstract
Personalising banking products and client experiences, and thereby meeting clients’ needs, are what will determine the future of banking in South Africa. Banking institutions are experiencing sustained pressure to constantly review and update their service offerings. Product innovation is a priority.Traditional banks (ABSA, FNB, Standard Bank, Nedbank and Capitec) are under threat from the so-called non-traditional banks (Discovery, Investec and Bidvest). Increasing competition has led to discernible change in consumer expectations and behaviour patterns. The term “traditional banks” refers to long-established institutions, as opposed to the more recently established banks. These newcomers are implementing innovative strategies that are effectively challenging the nature of traditional institutions. Capitec’s noteworthy 2001 debut in the South African market offered a swifter and simpler means of processing new accounts, a rapid turnaround response time to loan applications and, significantly, more cost-effective banking charges. Following these innovations, customers predictably moved away in droves from the traditional banking sector, thereby forcing these institutions to revise their banking models as a matter of haste. The study focuses on the insights gained from local and international research and the critical reception of this literature. The various roles of technology, demographics, customer expectations, regulatory requirements and new banking entrants are investigated to gain an understanding of precisely how the banking industry is being shaped today. Keywords - Banking products, traditional banks, product innovation, digitisation, centredness