The Effect of Digitalization on Work Stress and Job Satisfaction in Banking

Abstract

The rapid digitalization of the banking sector has revolutionized operations, significantly improving customer service, operational efficiency, and overall competitiveness. Through the integration of technologies such as artificial intelligence, mobile banking apps, and automation, banks have streamlined processes and reduced the reliance on manual tasks, leading to improved productivity. However, while digital transformation has its benefits, it has also introduced new challenges, particularly concerning the well-being of employees. The increased reliance on digital tools and automation has created heightened expectations, leading to stressors such as heavier workloads, constant learning demands, and job insecurity as automation replaces certain roles. This study explores how digitalization affects work-related stress and job satisfaction among banking employees by conducting both qualitative and quantitative research. By analyzing existing literature on digital transformation’s impact on the workforce, as well as collecting primary data through interviews and surveys, the study identifies key stress factors including the pressure to adapt to new technologies and the fear of job displacement. The findings suggest that while digitalization offers operational efficiency and reduces repetitive tasks, it also increases psychological pressure on employees. To mitigate these negative effects, the study recommends the adoption of effective stress management strategies, such as comprehensive digital training programs, mental health initiatives, and creating a supportive work environment. Ensuring employee well-being is crucial to maintaining job satisfaction and long-term organizational success.