Strategic adaptation and dynamic capability in the digital banking sector: a case study of SeaBank's financial performance 2021-2022

Abstract

Background: SeaBank has undergone significant transformation since its acquisition of Bank BKE, aiming to become a leader in the competitive digital banking industry. The company’s success is attributed to its implementation of dynamic capabilities, driven by external factors such as consumer behavior, industry environment, and collaborative ecosystems. This study seeks to explore how these dynamic capabilities have influenced SeaBank's financial performance during the period of 2021–2022. Methods: This research employs a qualitative approach, utilizing in-depth interviews with key stakeholders from SeaBank, including the Head of HRBP and the Director of Strategy. Additionally, secondary data from SeaBank’s annual reports (2021–2022) are analyzed to understand the bank's strategic initiatives and performance outcomes. Relevant literature on dynamic capabilities and organizational culture is used to contextualize the findings. Findings: The study reveals that SeaBank’s dynamic capabilities, particularly in identifying consumer opportunities, adapting to industry shifts, and leveraging collaborative ecosystems, were essential in maintaining a healthy financial performance. The company’s internal enabling factors, such as reward systems and a youthful, innovative corporate culture, further supported its ability to execute effective strategies in the digital banking sector. Conclusion: SeaBank’s dynamic capabilities have positioned it as a leading player in the digital banking industry. However, as external conditions evolve, the bank must continuously reassess its strategies and resource allocations to remain competitive. SeaBank’s ability to adapt to new consumer behaviors and industry trends will be crucial for sustaining its market position. Novelty/Originality of This Study: This study provides a comprehensive analysis of how dynamic capabilities, particularly in the context of a rapidly evolving digital banking environment, contribute to financial success. It highlights SeaBank’s unique approach to leveraging internal cultural shifts and external collaborative ecosystems, offering new insights into strategic adaptation in the digital banking sector.