Exploring the performance of shared-value banking at Discovery Bank: a leadership perspective
The concept of shared value was born out of a determined effort to find methods for the corporate sector and society to grow while being sustainable. Often, banks are criticised for focusing on maximising shareholder value while not addressing societal issues or creating value for society. However, corporate shared value in banking is beginning to be embraced in the financial banking sector. Discovery Bank is a new-to-market entrant in the South African banking sector that has implemented shared-value banking to distinguish itself from competitors and create value for society. There are limited studies that explore the performance of shared-value banking in South Africa and whether implementation is viable or provides a competitive advantage. This study aimed to explore the performance of shared-value banking based on the perceptions of Discovery Bank leaders using a qualitative study methodology. The population in this study comprised 300 employees of Discovery Bank that were involved in the implementation of Discovery Bank since 2019. The target population of this research inquiry was 30 leaders of Discovery Bank. From the target population, 8 participants were chosen as the appropriate sample size to obtain the necessary data to address research objectives through interviews. Computer-assisted qualitative data analysis software, NVivo version 1.5.2 (946), was used to analyse the data. Study findings were used to draw up recommendations to Discovery Bank South Africa management regarding improvement areas to meet performance objectives. The findings of the study revealed the following: Discovery Bank has created its shared-value banking model that deviates from the academic framework, it has created a new market of highly desirable clients who exhibit healthy financial behaviours and enhancing client engagement through client communication may yield greater success. Limitations and areas of future research was addressed in this study.
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