Caselet $/$ Scenario

During the past $5-10$ years, the international banking industry has experienced several changes. One of the largest trends is that of moving to a digital platform. During the COVID$-19$ pandemic, this feature was welcomed by many, however it did pose challenges to those clients who lacked access to internet facilities, high data costs as well as being illiterate.

One of the latest additions to the competitive banking industry environment is Digitally Forward $($Pty$)$ Ltd$.$ On $1$ March $2022,$ Thabo Khumalo was appointed as the new CEO and by $15$ December $2022,$ Digitally Forward $($Pty$)$ Ltd had signed up three million customers. Thabo joined Digitally Forward $($Pty$)$ Ltd$,$ and his experience includes working in the financial services and retail industries. He was responsible for leading a large life insurance company successfully through the COVID$-19$ pandemic and despite paying out a record number of claims, managed to release annual financial statements which pleasantly surprised even the most pessimistic of shareholders.

One of the advantages of digital banking includes no physical branches, but once again relying on Android banking applications, internet banking and various partnerships and strategic relationships with retail stores. The need for physical branches was eliminated and this reduced operating costs. Another opportunity was that millions of potentially unbanked clients could now access banking services. Furthermore, Digitally Forward $($Pty$)$ Ltd committed to an impressive 'less than five minutes' dedicated time period to open an account, with an accompanying advertising campaign comparing the opening of a new bank account to being less time than making yourself a cup of coffee.

Digitally Forward $($Pty$)$ Ltd uses the latest technology in the form of artificial intelligence $($Al$)$ to enhance speed and security features when clients use this core$-$banking facility. Latest features include algorithms to create recommendations based on a user's browsing history. Upselling is the name of the game and Digitally Forward $($Pty$)$ Ltd wants to be known as the preferred provider to its existing clients.

Question

$1$

Several technology trends, such as $Al,$ are responsible for an increase in ethical issues. List and discuss five $(5)$ trends and support your answer with evidence from the case study, as well as one research article from an accredited academic journal on this topic.

$(15)$

$5$ trends $3$ marks each for application from the case study. Listing trends without application will receive no marks.