How can enterprises adopt sustainable cyclical models?

This paper explores how the Old Mutual Bank debt collection systems can adopt sustainable cyclical models. The literature on sustainable cyclical models in banking, particularly in the context of the Old Mutual Bank, reveals a growing recognition of the imperative to integrate sustainability into banking practices. The foundational work by (Palmieri & Geretto, 2023) highlights the necessity for South African banks to embrace sustainable development as a core component of their competitive advantage. (Palmieri & Geretto, 2023) posits that the banking sector must reevaluate its approach to stakeholder value in light of sustainability issues, especially following the failures of several small to medium-sized banks that inadequately addressed these challenges. Building on this premise, (Stavropoulou et al., 2023) explore the dynamics of sustainability transitions within the South African retail banking sector, providing a comparative framework that can inform practices at Old Mutual Bank. Their research introduces a novel conceptual approach integrating multiple frameworks to analyse the intersections between banking regimes and sustainable practices. This dual analysis reveals critical points of constraint that, when addressed, can transform into opportunities for innovation and sustainability- (Hindarsah, 2024). Firstly,(Napolitano, 2024) argues that adopting sustainable cyclical models requires rethinking value chains by incorporating elements of waste minimisation, resource reutilisation, and end-of-life management for products and services. For Old Mutual Bank, this involves leveraging digital transformation to improve efficiency, such as digital documentation and e-banking solutions, reducing the need for paper-based transactions and lowering operational carbon footprints. Additionally, (Adeniran et al., 2024) concur that banks can implement predictive analytics and artificial intelligence (AI) to enhance debt collection processes, as these technologies can proactively manage asset recovery, reducing economic “waste” through improved financial performance. In conclusion, Old Mutual Bank’s transition to a sustainable, cyclical model can serve as a blueprint for financial institutions aiming to integrate circular economy principles. Through technological advancements, strategic partnerships, and eco-conscious operations, the bank can align with evolving sustainability goals, reducing environmental impact and contributing positively to South Africa’s socio-economic landscape. This transformation aligns with the company’s values, positioning Old Mutual Bank as a leader in sustainable finance.