HR Tech Adoption in Digital Banking: Implications for Workforce Development and Financial Sector Growth in Emerging Economies

Abstract

The digitalization of the banking industry has also changed the manner in which human resource management is being performed particularly in the emerging economies in which digital banking has increased by more than 60 percent over the last decade. In the given research, the researcher considers how the introduction of the HR technology in online banks has the potential to affect the workforce development and the development of the financial sector with the help of the quantitative research design grounded in the Research Onion framework. The structured survey of approximately 200 employees and managers working in digital banking companies was used to collect primary data. The results indicate that a sixth of the respondents (62 percent) reported high HR technology adoption levels and 25 percent of the respondents reported moderate levels of technology adoption. In terms of workforce outcomes, 68 percent of the respondents said that the number of employees who had digital skills, adaptability and their learning effectiveness increased significantly and 22 percent said it increased moderately. Organizational performance indicators indicate that 64 percent of the respondents indicated that productivity and efficiency of services have improved and can be noticed after the introduction of HR technology. Furthermore, 60 percent of them indicated that the workforce development based on HR technologies positively influenced the degree of innovation and the development of the financial industry. Despite these benefits, the majority of the respondents (41% of the participants) reported resistance to change as one of the primary challenges, and the most common one was the skill gaps (33%). The study concludes that the statistically and practically significant role of adoption of HR technology in the workforce capacity increase and the sustainable development of the financial sector in the economies of the developing countries under the condition of the digital transformation undertakings constant training, ethical governance, and strategic HR planning is possible.

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