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Journal ArticleDOI

The Impact of Digital Transformation on Personnel Number in the Banking Sector

03 Feb 2023-Advances in wireless technologies and telecommunication book series (Advances in wireless technologies and telecommunication book series)-pp 171-180
TL;DR: In this paper , the authors examined the changes that may occur in the number of personnel as a result of the digitalization process in the banking sector and determined the decreasing effect of digitalization on the increasing number of digital services.
Abstract: Digital transformation affects the banking sector as it does every sector and enables significant innovations and changes in the banking and finance market. In this sense, it aims to ensure that banking transactions can be carried out quickly, securely, and at less cost, and to achieve the highest level of satisfaction in customer service. New solutions should continue to be developed to enable customers to benefit from digital banking products in the fastest way possible. There are also negative effects of digitalization. When evaluated within the framework of the banking sector, the increasing number of digital services and the number of customers using these services may lead to a decrease in the number of bank personnel. In the study, quantile regression was applied for the period of 2010.Q1-2020.Q4. This study examines the changes that may occur in the number of personnel as a result of the digitalization process in the banking sector and determines the decreasing effect of digitalization on the number of personnel.
References
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MonographDOI
01 Jan 2005

2,686 citations

Journal ArticleDOI
04 Aug 2015
TL;DR: An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm.
Abstract: In recent years, firms in almost all industries have conducted a number of initiatives to explore new digital technologies and to exploit their benefits. This frequently involves transformations of key business operations and affects products and processes, as well as organizational structures and management concepts. Companies need to establish management practices to govern these complex transformations. An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm. The exploitation and integration of digital technologies often affect large parts of companies and even go beyond their borders, by impacting products, business processes, sales channels, and supply chains. Potential benefits of digitization are manifold and include increases in sales or productivity, innovations in value creation, as well as novel forms of interaction with customers, among others. As a result, entire business models can be reshaped or replaced (Downes and Nunes 2013). Owing to this wide scope and the far-reaching consequences, digital transformation strategies seek to coordinate and prioritize the many independent threads of digital transformation. To account for their company-spanning characteristics, digital transformation strategies cut across other business strategies and should be aligned with them (Fig. 1). While there are various concepts of IT strategies (Teubner 2013), these mostly define the current and the future operational activities, the necessary application systems and infrastructures, and the adequate organizational and financial framework for providing IT to carry out business operations within a company. Hence, IT strategies usually focus on the management of the IT infrastructure within a firm, with rather limited impact on driving innovations in business development. To some degree, this restricts the product-centric and customer-centric opportunities that arise from new digital technologies, which often cross firms’ borders. Further, IT strategies present systemcentric road maps to the future uses of technologies in a firm, but they do not necessarily account for the transformation of products, processes, and structural aspects that go along with the integration of technologies. Digital transformation strategies take on a different perspective and pursue different goals. Coming from a business-centric perspective, these strategies focus on the transformation of products, processes, and organizational aspects owing to new technologies. Their scope is more broadly designed and explicitly includes digital activities at the interface with or fully on the side of customers, such as Accepted after one revision by Prof. Dr. Sinz.

1,258 citations

Journal ArticleDOI
Saul J. Berman1
TL;DR: In this paper, the authors find that engaging with customers at every point where value is created is what differentiates a customer-centered business from one that simply targets customers well, and that customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.
Abstract: Purpose – According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.Design/methodology/approach – The paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.Findings – The paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.Practical implications – Companies focused on fully reshaping the operating model optimize ...

635 citations

Journal ArticleDOI
TL;DR: Questioning the disruptive talk associated with digital transformation, it is suggested that the institutional perspective is a prolific lens to study digital innovation and transformation and that existing institutional arrangements are pivotal arbiters in deciding whether and how novel arrangements gain acceptance.

572 citations

Journal ArticleDOI
TL;DR: The Digital Finance Cube as mentioned in this paper is a conceptual basis for reviewing the current state of research in digital finance that deals with these novel and innovative business functions, and it gives an outlook on potential future research directions.
Abstract: Since decades, the financial industry has experienced a continuous evolution in service delivery due to digitalization. This evolution is characterized by expanded connectivity and enhanced speed of information processing both at the customer interface and in back-office processes. Recently, there has been a shift in the focus of digitalization from improving the delivery of traditional tasks to introducing fundamentally new business opportunities and models for financial service companies. Digital Finance encompasses a magnitude of new financial products, financial businesses, finance-related software, and novel forms of customer communication and interaction—delivered by FinTech companies and innovative financial service providers. Against this backdrop, the research on finance and information systems has started to analyze these changes and the impact of digital progress on the financial sector. Therefore, this article reviews the current state of research in Digital Finance that deals with these novel and innovative business functions. Moreover, it gives an outlook on potential future research directions. As a conceptual basis for reviewing this field, the Digital Finance Cube, which embraces three key dimensions of Digital Finance and FinTech, i.e., the respective business functions, the technologies and technological concepts applied as well as the institutions concerned, is introduced. This conceptualization supports researchers and practitioners when orientating in the field of Digital Finance, allows for the arrangement of academic research relatively to each other, and enables for the revelation of the gaps in research.

558 citations

Trending Questions (3)
How has digital transformation impacted the customer service experience in the banking industry?

Digital transformation aims to achieve the highest level of satisfaction in customer service in the banking sector by enabling quick, secure, and cost-effective banking transactions.

How digitalization affects banks?

Digitalization affects banks by enabling quick, secure, and cost-effective banking transactions, improving customer service satisfaction. However, it may lead to a decrease in the number of bank personnel due to the increasing number of digital services and customers using them.

How technology impact workforce in banking and finance?

The paper states that digitalization in the banking sector may lead to a decrease in the number of bank personnel, indicating a negative impact of technology on the workforce.