Abstract
Extensive literature exists on the topic of digitalisation in the banking industry. Nevertheless, there is a limited amount of research available on the impact of digitalisation in the banking industry and its correlation with youth unemployment in South Africa. This research project aimed to investigate the impact of digitalisation on the banking sector in South Africa, specifically focusing on its effects on the already existing challenges of youth unemployment, particularly among youth bank tellers. The research inquiry utilised the qualitative research methodology and employed the qualitative case study research design, incorporating the triangulation method to ensure the validity and reliability of the findings. In addition, the research study aimed to accomplish the research objectives by conducting two case studies on South African banks, which were given pseudonyms such as traditional bank and new entrant digital bank. Moreover, the research study included eight youth bank tellers from two South African banks, selected through purposive sampling. Data was obtained using both conventional (face-to-face) and virtual interviews. The research study's findings demonstrated that the implementation of digital technology in the banking industry in South Africa intensifies the pre-existing difficulties of youth unemployment, particularly for young bank tellers. The digitalisation of banks has impacted the conventional responsibilities of young bank tellers, as their repetitious manual activities are now being automated. Conversely, the decision to shut down physical bank branches and replace them with service centres and kiosks results in decreased employment, displacements, and layoffs of personnel. Consequently, young bank tellers actively participated in the reskilling and upskilling programmes introduced by the banks. They also engaged in self-directed efforts to acquire new skills and become proficient in several areas to combat the negative effects of deskilling caused by digitalisation. This concept is further elucidated by the Human Capital Theory, which promotes the need to enhance the abilities of employees who have obsolete knowledge. The notion of Technological Unemployment elucidates the decline in employment resulting from the implementation of robotic labour, which displaces human labour. It has been demonstrated that the implementation of digital technology in the banking industry in South Africa worsens the preexisting issues of unemployment among young people, particularly for young bank tellers.