Adoption and Adaptation of Agile Project Management in the Georgian Banking Sector: Challenges and Insights

Abstract

Research purpose. The current paper analyzes the application and adaptation of Agile Project Management (APM) frameworks in Georgian banks' product development activities, namely at TBC Bank and Bank of Georgia. The purpose of this study is to explore the application of three agile frameworks: Scrum, Kanban, and ScrumBan, and evaluate the benefits of applying agile in operations, flexibility of work, digital transformation, and innovations focused on customers. Furthermore, the current paper highlights some of the challenges in adopting agile frameworks.

Design / Methodology / Approach. The qualitative research with a deductive approach was used for this research. Primary data were collected through 10 semi-structured interviews with Product Owners, Scrum Masters, and software developers from two leading Georgian banks. Secondary data were collected from organizational reports, publications about the Georgian banking sector, and academic works on Agile Project Management and digital transformation. In addition, the case study design allowed conducting in-depth analysis of agile practices in Georgian commercial banks.

Originality / Value / Practical implications. The results of this research suggest high usage of agile frameworks in the Georgian banking sector and customization of such frameworks by companies according to their needs. ScrumBan proved to be the dominant framework, providing both flexibility and a structured process flow. Moreover, this research found that agile practices increase collaboration among team members, increase autonomy, and enable better product development due to improved integration of customer feedback. However, a few challenges are still faced in the process of implementing agile frameworks. These challenges include regulatory issues, long and complicated decision-making processes, and difficulties of coordinating teams that operate with and without agile frameworks. The results show that the introduction of customer feedback procedures and iterative product deliveries help to increase customer satisfaction. This study adds value to the existing literature on Agile Project Management since there are very few studies devoted to the topic. It provides practical information for managers who consider the implementation of such frameworks in their operations. The findings can serve as a source of inspiration for financial institution's decision-makers and stakeholders to develop more effective project management strategies (Hoeseb, & Tanner, 2020).