The Challenges And Issues Of Digitalization In Banking Industry: From The Perspectives Of Employees And Customers

Abstract

Technological advances have revolutionized the way banks perform their financial transactions with emphasis on 'Digital Banking'. Like in any emerging technology, there are issues/ challenges exist in adopting or using of digital banking services. ln this context, this study has identified certain issues/ challenges pertaining to both customers and employees and investigate the level of challenges among them and the relationships among the challenges due to digitalization in banking industry. To achieve the study objectives, data were collected from 105 bank employees and 100 customers of the selected banks by using questionnaires. The collected data were analyzed using univariate, cross-tabulation. and bivariate analysis. The findings of the study revealed that some of the challenges are at elevated levels and some are at moderate levels for both parties and the degree of the challenges varies depending on their personal characteristics of the respondents. And also, state bank employees and customers are highly facing the challenges compared to private sector banks' customers and employees. Furthermore, some of the challenges have strong positive relationships with another challenge and, one challenge leads to create another challenge. The findings of the study are expected to help both the researchers and practitioners. This study adds knowledge for existing literature to fill the research gaps exist in the related topic. In addition, results of the current study can provide practical implications for banks' top managers to know about what extent the challenges are seen among customers and employees to take corrective actions.