Design Thinking, Strategy and Innovation in African Financial Sector: a Case Study of Letshego Holdings Limited in Africa

Abstract

The current competition landscape of the financial sector both globally and locally in Africa has significantly changed through changes in the external environment like 4th industrial revolution technology driven changes, increased customer expectations, convergence of industries and entrance of different players into the financial service offerings like Telco companies, financial technology companies offering mobile financial services, social platforms like Google and WhatsApp innovating to offer financial transfer services using the social platforms. The competitive strategies that a firm in this sector is constantly disrupted and changing to align the firms to sustained growth and hence firms need to identify and use different approach to remain competitive and sustain revenue. This research was conducted through a case study and primary data collection through interviews with management of Letshego Holdings Limited in quest of establishing the relationship of Design Thinking, Strategy and Innovation in Financial Sector. The study revalidated the challenges facing financial sector in regards to current and future innovation and explored how Design Thinking approach can be used to enhance building of innovation capabilities of a firm and address the inhibitors of innovation to ensure firms adopt competitive strategies that sustain their growth. The study established that a customer centered approach on identifying the services to offer and customer needs to meet (Design Thinking approach), innovative capabilities to self-disrupt by differentiating their offerings and services and explore untapped markets/segments using blue ocean strategies will build sustained organization strategies.