Emerging Technologies as a Mediating Factor Between Causes of Cyberfraud and Cyberfraud Perpetration in the South African Banking Industry

This study examines the impact of legal framework on cyberfraud perpetration in the South African banking industry. The banking institution in South Africa is faced with the increasing rate of cyberfraud perpetration, which affects the performance of the banks, customer satisfaction, profitability, as well as banking reputation. This study combines the explanatory research approach, systematic literature review, and quantitative survey to investigate the impact of legal framework on cyberfraud perpetration in the South African banking industry. Initially, a total of 1579 literature were gathered from institution’s report and academic database using search engines. However, the application of the inclusion criteria screened the literature to 50. Furthermore, a quantitative survey involving the use of a structured questionnaire and expert sampling of key organisational staff saddled with the responsibility of cyberfraud mitigation was conducted across the 17 licensed banks in South Africa, and the outcome was analysed in the Statistical Package for Social Sciences (SPSS) 2022 environment. The outcome of the review indicated the presence of legal frameworks, yet with an increasing rate of cyberfraud perpetration. Both the outcome of the review and survey criticised the non-stringent nature of the cyber laws and the non-implementation of some of its provisions.

Development of a policy and regulatory framework for mitigating cyberfraud in the South African banking industry

The use of the Balanced Scorecard as a strategic management tool to mitigate cyberfraud in the South African banking industry

PurposeThe purpose of this study is to assess the impact of cyberfraud in the South African banks with the aim to provide recommendations to effectively mitigate it.Design/methodology/approachThe study uses a qualitative approach involving the use of structured questionnaires. The questionnaires were made available to the staff of 17 licensed banks in South Africa who deal with management, operation, administration and banking services. Two hypotheses were formulated and non-parametric statistical analyses involving the use of Chi-square test, Fischer’s Exact test and Spearman’s correlation were carried out. The two hypotheses formulated were tested to draw a conclusion.FindingsThe results obtained indicate that the impact of cyberfraud in the South African banking industry is highly significant and has affected the reputation of some of the banks. This calls for the need to review the diverse ways of curbing cyberfraud to lessen their impact and that of associated fraud risks on the banking operation.Practical implicationsThis study provides an analysis on the relationship cyberfraud occurrences and the reputation of South African banks. The implementation of the recommendations may reinforce the existing security measures in the fight against cyberfraud.Originality/valueThe novelty of this study lies in the fact that the assessment of the impact of cyberfraud on the banking industry in South Africa has not been sufficiently highlighted by the existing literature.

The purpose of this study is to explore the level of information security among South African banks with the aim of determining the level of their resilience to cyberattacks and intrusions. The study employs a mixed approach that involves both quantitative and qualitative analyses of the responses obtained from a structured questionnaire used as the survey instrument. The questionnaire was distributed to some selected members of staff of the 17 licensed banks in South Africa saddled with the responsibilities of operation, customer service, management, and administration. In addition, non-parametric statistical analyses such as Fischer’s Exact and Chi-square tests, as well as Spearman’s correlation, were carried out. The outcome of this study indicated that the effectiveness of information security on customers’ service in the South African banking industry is assumed to be high. South African banks are deploying different anti-fraud technologies to strengthen the level of information security; however, there are still substantial cases of cyberfraud and unauthorised intrusions. The findings also indicate that the integration of forensic accounting and management control systems may promote information security in the banking industry. This study provided an insight into the impact of information security framework development to reduce systems’ vulnerability and intrusions.

PurposeThe purpose of this study is to examine the level of effectiveness of the anti-fraud technologies employed by the South African banking industry for cyberfraud mitigation.Design/methodology/approachThis research employed a qualitative research design involving a purposive sampling method. Primary data was collected from the key organisational staff across the 17 licensed commercial banks in South Africa via the use of structured questionnaires. In particular, these were experts involved in combating fraud and taking managerial decisions regarding the use of anti-fraud technologies for cyberfraud mitigation. Non-parametric statistical analyses were carried out from the responses obtained.FindingsThe results obtained indicated that the combination of internal and external anti-fraud technologies such as filtering software, firewalls, encryption, continuous auditing, discovery sampling, virus protection, financial ratios, digital analysis and data mining may have a positive effect on cyberfraud mitigation. These technologies are employed mostly to ensure effective internal control systems capable of minimising cyberfraud. In addition, the anti-fraud technologies employed in the South African banking industry may also be effective in the mitigation of cyberfraud, although significant cases of cyberattacks were reported by the respondents.Practical implicationsThe study recommends investment in more digital and emerging technologies and the development of human capacities to effectively deploy them in the combat against cybercrime.Originality/valueThe novelty of this study lies in the identification of the type of anti-fraud technologies/software employed by the South African banking industry and their level of effectiveness or success rate.

Orientation: The impact and growth rates of Facebook and other forms of social media have made it imperative for all businesses to ensure they have social media strategies in place.Research purpose: The purpose of this study was to measure the influence of social media service quality on client loyalty in the South African banking industry.Motivation for the study: There are limited studies conducted in developing countries such as South Africa that focused specifically on the social media service quality and client loyalty in the banking industry.Research design, approach and method: The study used a quantitative approach and a descriptive research design to test the proposed hypotheses. An online survey on Facebook was used to collect the data from a sample of 377 respondents who had interacted with the five major banks in South Africa on the said platform. A snowball sampling technique was used to identify the appropriate respondents. The data was analysed with Structural Equation Modelling (SEM) to assess the model fit.Main findings: Findings of the research study proved that the social media system’s availability, fulfilment and privacy have a significant influence on the overall service quality of social media, which leads to client loyalty in the South African banking industry.Practical/managerial implications: The study recommended that managers and marketers should constantly evaluate, monitor and improve the overall service quality of social media offered to their clients, as it leads to a corresponding increase in client loyalty in the South African banking industry.Contribution/value-add: The study provided empirical evidence, which contributed to the body of business and marketing knowledge in a South African banking context.

The Islamic banking industry is a niche market within the South African banking industry. Information is needed on the profile of customers and their level of awareness concerning activities at Islamic banks. Thus, the objectives of this study are to identify the banking engagements and level of CSR awareness among customers of Islamic banks in South Africa. The study used non-probability sampling to collect data via a questionnaire from 163 respondents throughout South Africa, which was analysed using descriptive statistics. The results indicate that respondents sought out Islamic banking for themselves; they also had a long-standing relationship with the Islamic bank and mainly used saving, current, and investment accounts. The findings also showed that respondents needed to be made aware of the CSR activities undertaken by the Islamic banks, and they could have engaged in CSR activities more regularly. Thus, those in management at Islamic banks are encouraged to engage in proactively making their Sharia-compliant offerings and CSR activities visible.

Integrated thinking and connectivity have recently attracted particular attention in sustainability reporting. A firm’s reporting on its Environmental, Social, and Governance (ESG) practices should be connected to the other business functions to optimize the ESG information provided through integrated reports. Academic research on the connectivity between ESG information and other business functions is limited. Hence, the main aim of this study is to analyze and characterize the reporting connectivity between the Sustainable Development Goals (SDGs) and other business functions of South African retail banks. This is done using a thematic content analysis of the integrated reports of each bank in the sample from 2016 to 2023. The sample consists of the top five retail banks in South Africa that are listed on the Johannesburg Stock Exchange (JSE). Specifically, the researchers determine the number of occurrences where the SDGs are linked to other business functions through an iterative process. Furthermore, several Analysis of Variance (ANOVA) models are implemented to identify which content elements have the strongest connectivity to the SDGs as well as to identify which elements have the strongest linkage to the various content elements. The results show that SDGs are primarily linked to stakeholders, the business model, and performance. Furthermore, it was found that this sample of South African banks most prominently links these business functions to SDG 8, which aligns with the banks’ purpose of furthering economic development.

PurposeThe purpose of this study is to analyse cyberfraud in the South African banking industry using a multiple regression approach and develop a predictive model for the estimation and prediction of financial losses due to cyberfraud.Design/methodology/approachTo mitigate the occurrence of cyberfraud, this study uses the multiple regression approach to correlate the relationship between financial loss and cyberfraud activities. The cyberfraud activities in South Africa are classified into three, namely, digital banking application, online and mobile banking fraud. Secondary data that captures the rate of cyberfraud occurrences within these three major categories with their resulting financial losses were used for the multiple regression analysis that was carried out in the Statistical Package for Social Science (SPSS, 2022 environment).FindingsThe results obtained indicate that the South African financial institutions still incur significant financial losses due to cyberfraud perpetration. The two main independent variables used to estimate the magnitude of financial loss in the South Africa’s banking industry are online (internet) banking fraud (X2) and mobile banking fraud (X3). Furthermore, a multiple regression model equation was developed for the prediction of financial loss as a function of the two independent variables (X2 and X3).Practical implicationsThis study adds to the literature on cyberfraud mitigation. The findings may promote the combat against cyberfraud in the South Africa’s financial institutions. It may also assist South Africa’s financial institutions to predict the financial loss that financial institutions can incur over time. It is recommended that South Africa’s financial institutions pay attention to these two key variables and mitigate any associated risks as they are crucial in determining their profitability.Originality/valueExisting literature indicated significant financial losses to cyberfraud perpetration without establishing any relationship between the magnitude of losses incurred and the prevalent forms of cyberfraud. Thus, the novelty of this study lies in the analysis of cyberfraud in the South African banking industry using a multiple regression approach to link financial losses to the perpetration of the prevalent forms of cyberfraud. It also develops a predictive model for the estimation and projection of financial losses.

A strong internal marketing strategy can be critical to achieving and sustaining a competitive advantage as well as driving organisational change and enhanced organisational performance. This study sought to determine the influence of internal marketing mix elements on the satisfaction levels of recently employed graduates (GradDPs) within the retail banking industry in South Africa. The study also identified links between the satisfaction of GradDPs and their affective commitment in this context. A census approach to generating data was applied in the study by using a person-administered and an electronic survey method. Regression analysis was used to test the relationships proposed in the study. The results indicated that internal marketing significantly influences GradDP employee satisfaction within retail banks in South Africa and that a positive relationship exists between GradDP employee satisfaction and their affective commitment. The study results allowed for recommendations that retail banks provide training and support programmes to assist managers in developing a more participative style of leading. Such programmes would assist leaders in consulting employees more often and ensuring that they have sufficient autonomy when executing their work. It would also help leaders to create a safer GradDP employee environment that fosters openness, risk-taking and idea generation.

Market Structure and Competition in the South African Banking Sector

Orientation: Workplace incivility holds consequences for both individuals and organisations. Managers are becoming increasingly aware of this phenomenon. Currently, there is no workplace incivility scale validated for use within the South African context. Research purpose: To investigate the reliability and validity of the adapted workplace incivility scale by Leiter and colleagues for use within South Africa. Motivation for the study: As it is currently difficult to measure workplace incivility within the South African context because of the lack of a valid and reliable scale, it is necessary to validate such a scale.Research design, approach and method: A cross-sectional research approach was used for the study. Convenience sampling (N = 345) was used within the South African banking industry. Specifically, the factor structure, convergent validity, discriminant validity and predictive validity were investigated in order to establish the overall validity of the scale. Main findings: The results confirmed that the scale showed a three-factor structure as bestfitting with acceptable reliability coefficients. Furthermore, discriminant validity could be shown between workplace incivility and workplace bullying, that is, supporting that these two constructs are not the same phenomenon. In terms of relationships, colleague incivility did not significantly predict any of the outcome variables and instigated incivility only being a negative predictor of job satisfaction and a borderline statistically significant negative predictor of work engagement. However, supervisor incivility predicted all the outcomes negatively. Practical/Managerial implications: Based on the results, workplace incivility should be addressed because of the harmful effects it can have, not only on employees but also on organisations. It is therefore necessary for managers to create awareness of workplace incivility in order to ensure that it does not integrate within the organisational culture and affect individual and organisational performance. Contribution/Value-add: The study contributes to the limited research available in South Africa regarding workplace incivility by providing a scale that is valid and reliable.

Adoption of automation has become the norm in the South African banking industry, owing to competition. Conventional banking institutions are uncertain of the possible adverse effects of integrating automation into banking processes to serve more customers with fewer resources. This study sought to investigate and model the extent to which the integration of automation could be the exogenous factor of the nine endogenous factors identified in this study. The five most prominent banking institutions in South Africa, were used as a case study. The study used a quantitative approach, and 223 bank employees were selected to contribute to the questionnaire survey, and the primary data were analysed using the structural equation modelling (SEM) technique to test the proposed hypotheses. The secondary information was extracted from the banks’ annual integrated reports and fact sheets to generate additional insights into the primary data findings. The findings revealed that service delivery automation is a significant and direct predictor of productivity, efficiency, flexibility, operations costs, and the generation of new job opportunities (positive effects). Similarly, the adoption of bank automation was found to be significantly related to the generation of job losses, the changing nature of work, unbalanced demand for required skills, and inequality in wages of employees, which are described as adverse effects.

The study sought to investigate the relationship between corporate governance and service quality in the South African banking industry. To achieve the study aims, a mixed methods approach was used, which included a set of questionnaires distributed to Capitec Bank clients and employees. Client data was collected and analysed using descriptive sampling techniques (SPSS) and employee data was collected and analysed using NVIVO software. Questionnaires were distributed to 30 Capitec Bank employees and 384 clients at three Capitec Bank locations in the Durban area (Westwood Mall, Overport City Shopping Centre and The Pavilion Shopping Centre). The researcher distributed a face-to-face, paper-based data collection tool personally to the participants. Respondents were chosen via non-probability sampling. The problem of the study emanated from the seriousness of the challenges confronting banks, since a number of scandals and crises have occurred in the history of corporate governance, causing substantial damage. To tackle these issues and find solutions to address them, excellent corporate governance must be established; hence, improving corporate governance may have a positive impact on service quality, leading to increased customer satisfaction and loyalty. The issue has been resolved. The study's findings show that there are sufficient and effective laws and rules that support strong corporate governance practices; the bank is effectively controlled; and it has ethical policies and procedures. Furthermore, the bank has internal programs in place to improve the level of service it provides to its customers. This means that Capitec Bank's successful involvement in corporate governance to enhance standards of service quality may have an impact on customer happiness and loyalty. Based on the findings of the study, recommendations have been made to close the gaps and, finally, improve service quality so that the bank may achieve customer satisfaction and, as a result, higher productivity. It was recommended that internal programs be enhanced to increase service quality. This will result in happier clients and better compliance with corporate governance norms. It was also recommended that bank management work towards improving appropriate corporate governance procedures to maintain customer satisfaction; a lack of these procedures may have a negative effect on customer satisfaction. In Chapter Five, the final chapter of this thesis, a number of conclusions and recommendations are presented based on the findings.