IMPACT OF DIGITALIZATION ON EMPLOYMENT OF PERSONNEL IN BANKING SECTOR: A CASE STUDY OF INDIA

Digitalization is the process of moving to a digital business by converting data into digital format for providing more revenue and value producing opportunities. And for this reason, implementation of digitalization has become the center of importance for the banking sector and also by embracing it, banks can provide better customer services. But it is observed by many researchers that in case of banking sector, use of artificial intelligence effectively increase the unemployment rate. So, present study seeks to find out this fact using Indian scheduled Commercial banking data. For this first employees' contribution to banks' operational profitability in case of Indian scheduled Commercial banks is estimated, by running general regression analysis using Ordinary Least Square method. After that, it is discussed which type of employee is threatened more compare to other type of employees in banking sector due to extensive use of digitalization, considering officers, clerks and sub- staffs of banking sector and employees of which type of scheduled Commercial bank are threatened most are also discussed. From the analysis, it is seen that nowadays although officers, clerks both have positive contribution to banks' operational profitability, and where contribution of clerks is more than officers, but it is found that nowadays only the number of officers is increased and number of clerks is decreased as because profit making institution banks have seen that due to use of digitalization with less number of clerks, clerks' contribution to banks' profitability can be increased. So, there is no need of so much of clerks in banks. It is also seen that nowadays number of sub- staffs is also decreased because they have negative contribution to banks' operational profitability that means they become unnecessary for banks due to use of digitalization and if their number is not reduced bank will have to bear unproductive cost. So, use of digitalization in Indian banking sector affects the employment of personnel in banking sector