Examining the leadership approaches adopted by Fintech management when implementing organizational change prompted by digital transformation

Abstract

The object of this research is the role of leadership in the Fintech business during change which is prompted by digital transformation. The financial sector is going through fundamental changes because of the emergence of new digital technologies. The digital transformation in the financial sector is largely being driven by Fintech. As leadership plays a fundamental role in managing change, it is essential to understand their role and whether the traditional leadership styles are still relevant in the digital era. Interviews were used to collect data from ten participants who are managers responsible for change in a Fintech firm under study. The study adopted purposive sampling to identify managers with relevant experience in change management and digital transformation. The findings of the study indicate that managers are still using the old or traditional management approach and leadership style to manage change in the digital era. In addition, the firm’s leadership understands the importance of including organizational members in the planning and implementation of change. In addition, buy-in was found to be essential as leaders acknowledged its significance. It was also indicated that some of the roles in the traditional leadership style are still relevant in the digital era as they are blended with the digital leadership style. The leadership of the Fintech understudy are recommended to embrace the new digital leadership style which requires them to understand the demands of the digital era to survive and be successful in the contemporary business environment. Moreover, the firm is recommended to examine digital leadership, which is a new concept of leadership in the digital era. Current literature suggests that this new leadership concept is effective when an organization is implementing digital transformation. Digital leaders are expected to have networking intelligence as an essential element that enables them to build networks.