Examining Digitalization's Potential and Difficulties for the Bank and Its Staff
Transforming information from a
physical to a digital format is known as digitalization. further utilizing
digital technology to transform and enhance daily life, business, and
government operations.
As a
banker, I have observed that the banking industry in Sri Lanka is taking new
steps toward digitalization. Accordingly, every bank has focused on the concept
of “banking at Hand”. As a result, today, just a few taps on your phone can
handle most of your financial needs. Also, most of the banks follow their
digital platforms to make their day-to-day banking operations more convenient.
As an example, Commercial Bank of Ceylon introduced “Com Bank Digital”.
These platforms support a wide range of banking services, such as account
opening, deposits, real-time payments, and bill payments, without involving
banking staff. On the other hand, this has changed the traditional duties of
banking employees.
Customers can now access a variety of banking services via digital channels at any time and from any location, completely redefining traditional banking interactions. With the ease of managing accounts, performing transactions, and having information at their fingertips, online and mobile banking services have become commonplace (Valeriu S,. Silvia Z., n.d.).
Discussion
In my
observation, some bank employees are quickly adapting to digitalization, while
others are not. Furthermore, employees who are unwilling to deviate from
tradition are not ready to embrace online banking. However, due to the
advantages of digital banking solutions, every commercial bank in Sri Lanka is
now more inclined towards it.
In the present day, a significant challenge is faced by enterprises from a variety of industries as they transition to a digital business. The banking industry is significantly impacted by the digital transformation, as the necessity to adjust strategies, processes, and IT is driven by consumers' expectations. By and large, investigations into the digitalization of the banking sector have concentrated on either the strategic, internal, or consumer perspectives (Schmidt J., Drews P., Schirmer I., 2017).
advancements in technology, say the
banking industry is always affected by digitalization in both positive and
negative ways. However, banks must occasionally adapt to these technological
advancements in order to thrive in the face of intense competition. adoption of
cutting-edge technology including digitalized payment and deposit systems,
blockchain, artificial intelligence, cyber security, etc. aids in business
process management and promotes business growth (Jeyalakshmi
P R., Lakshmi Rani A S.,2019).
Benefits of Digital Banking to the Bank
1. Reducing operational and
administrative costs
2. Enhance the speed and accuracy of
banking operations
3. Revenue growth via digital
banking annual charges
4. Better customer retention
Above all, banking leaders should take the necessary actions to involve all employees in this concept.
How can do?
· Clear
Communication – Explain the concept using meetings, emails, and other
internal communication systems.
· Training and
Workshops – Organize training sessions related to digitalization
· Recognition
and Incentives – Give rewards to those who are actively engaged with
the concept.
Disadvantages
* Employees' effort is reduced by digitalization, which leads to
employment losses.
* Banks will be increasingly
susceptible to cyber-attacks.
.
CONCLUTIONS
Digitalization
is reshaping the banking sector by streamlining routine processes and enhancing
overall efficiency. At the same time, it calls for employees to acquire new
digital competencies. Instead of replacing human workers, technology supports
them, enabling a focus on more complex tasks and improving customer
interactions. The success of modern banking relies on the effective
collaboration between technology and skilled banking professionals.
References
Jeyalakshmi, P.R. and Lakshmi Rani, A.S. (2019)
Management Insight, 30 June. Available at: https://journals.smsvaranasi.com/index.php/managementinsight/article/view/357
(Accessed: 13 October 2025).
Schmidt, J., Drews, P. and Schirmer, I. (2017)
AMCIS 2017 Proceedings, 17 May. Available at: https://aisel.aisnet.org/amcis2017/StrategicIT/Presentations/27/
(Accessed: 13 October 2025).
Valeriu, S. and Silvia, Z. (no date) [PDF].
Available at: https://ibn.idsi.md/sites/default/files/imag_file/p-247-250_4.pdf
(Accessed: 10 October 2025).
Jeyalakshmi, P.R. and Lakshmi Rani, A.S. (2019)
Management Insight, 30 June. Available at: https://journals.smsvaranasi.com/index.php/managementinsight/article/view/357
(Accessed: 13 October 2025).
Schmidt, J., Drews, P. and Schirmer, I. (2017)
AMCIS 2017 Proceedings, 17 May. Available at: https://aisel.aisnet.org/amcis2017/StrategicIT/Presentations/27/
(Accessed: 13 October 2025).
Valeriu, S. and Silvia, Z. (no date) [PDF].
Available at: https://ibn.idsi.md/sites/default/files/imag_file/p-247-250_4.pdf
(Accessed: 10 October 2025).
Digital transformation has opened up new opportunities for bank employees, data analysis, cybersecurity, and digital advisory roles are now in demand. Instead of job loss, we might actually see job evolution. As a same carrier person, I Experienced Digitalization very best...when using digital platforms so easy to complete our day-to-day work immediately.
ReplyDeleteYes I agree with you. Digitalization is best. But there is a hidden story behind it.
DeleteInteresting blog! I agree that digitalization enhances efficiency and customer service while requiring employees to learn new skills. Recognition and incentives are important to motivate staff.
ReplyDeleteInteresting. It highlights how digital tools can change job roles and why staff need training to keep up with the new banking environment.
ReplyDeleteI have seen, there are many problems bank employees face due to digitalization,
ReplyDeleteSome jobs are lost due to automation (e.g., cashiers and clerks) & Opportunities may be fewer in certain branches or regions.
This blog provides a clear, relevant, and balanced discussion on the opportunities and challenges of digitalization in the Sri Lankan banking sector. It effectively integrates personal observation, industry examples, and academic references to create a credible and practical analysis. The focus on both organizational and employee perspectives makes the discussion engaging and grounded in reality.
ReplyDeleteI like how you emphasized the staff perspective. Digitalization often focuses on customer convenience, but the human element behind the scenes is equally important. Perhaps digital tools could be designed not just to replace tasks but to enhance employees’ capabilities and create new opportunities within the bank.
ReplyDeleteThis article provides a useful analysis of digitalization in the banking industry of Sri Lanka, accurately identifying it as a two-pronged shift that increases productivity while altering conventional job roles. By emphasizing that effective adoption depends on clear communication, focused training, and incentives to overcome employee resistance to change, it offers insightful HR information.
ReplyDeleteThis is a thoughtful analysis of both the opportunities and challenges that digitalization presents for banks and their staff. I appreciate how you balance the discussion between efficiency gains, improved customer service, and data-driven decision-making, alongside the potential difficulties such as technological adaptation, staff training, and resistance to change. In the Sri Lankan banking context, where digital transformation is accelerating, your blog highlights the importance of preparing employees to embrace new systems while ensuring that operational risks are managed effectively. This perspective provides a practical and realistic view of how digitalization can reshape banking operations and workforce dynamics.
ReplyDeleteAs someone working in hospitality, I see many parallels between digitalization in banking and the changes in our own industry. Just like banks, hotels are adopting digital platforms for reservations, check-ins, and even guest services. These tools make operations faster and more convenient, but they also reshape the role of staff. In both sectors, the real challenge is not the technology itself, but how people adapt to it. Guests and customers may enjoy the ease of digital services, but they still value the human touch—the reassurance, empathy, and problem-solving that only staff can provide. For me, the lesson is clear: digitalization should not be seen as replacing people, but as freeing them to focus on what matters most—building trust, creating memorable experiences, and handling complex needs. Whether in a bank or a hotel, success comes when technology and human service work hand in hand. That balance is what sustains customer loyalty and staff dignity in the long run
ReplyDeleteBanking and hospitality brands that digitalize and streamline on online platforms can deliver greater efficiency, but the challenge is in humanizing these experiences for people. Despite a preference for convenience, customers still desire the human touch to build trust, demonstrate empathy and resolve issues. Technology isn’t a substitute for staff—it’s an enabler to liberate them from low-value tasks to concentrate on delivering meaningful, individualized experiences. And it’s only when digital and human service combine forces to breed loyalty and preserve the dignity of staff that real success is achieved.
Delete