Investigating the impact of digital transformation on operational performance and efficiency: A case study of a selected specialised financial institution

Abstract

This research explored the impact of digital transformation on operational performance and efficiency of a selected specialized financial institution in Namibia. A financial institution that engages in innovative insurance cover and investment solutions was used in this study. The study focused on customer satisfaction, employee performance, operational performance and efficiency of the organization in the implementation of digital migration strategies of the selected financial institution. This study adopted a case study research design; whereby qualitative data was gathered using in-depth interviews. This approach was adopted while considering the sample under study and the methods that were used to collect and analyze the data. The research participants were selected using the purposive sampling method, this was so because it allowed the researcher to select the most relevant participants for the study's objectives, which in turn leads to a more focused data collection, richer with in-depth insights. The employees selected were employed in the cash allocation, head of refunds and new projects, team leader of new business, the head of new business, and the senior continuous improvement manager (head of digital). The study revealed that digital migration significantly increases efficiency and processing of clients’ policies payments. Additionally, it increases employee performance by increasing daily payment processes. Furthermore, the study determined that automation improved employee efficiency, in most departments except the new business department due to system errors, resistance to change, adaptation of automation and the fear of job loss. By streamlining procedures and cutting costs, digital transformation significantly increases operational efficiency. Therefore, the study emphasizes how digital innovation and transformation are significantly changing the competitive landscape of Namibia's insurance sector and calls for cooperation between technology companies and financial institutions as well as regulatory support to smooth its implementation and adoption. Given these findings, the researcher suggests that financial institutions embrace digitalization in order to increase and maximize operational efficiency and achieve sustainable financial expansion, and that financial institutions particularly insurance regulators encourage the adoption of digital transformations strategies as a competitive edge with the necessary change management strategies to benefit both the employees, financial institutions and its customers.