Digital transformation in banking: The HR perspective on managing change and cultivating digital talent

Abstract

Digital transformation in the banking industry has become imperative for staying competitive in today's fast-paced technological landscape. This review explores the human resources (HR) perspective on managing change and cultivating digital talent within the banking sector. In the era of digital disruption, banks are redefining their business models and processes to embrace the advantages of emerging technologies. The focus is not only on implementing advanced digital solutions but also on reshaping the workforce to navigate this transformative journey successfully. The role of HR in this context is pivotal, as it involves orchestrating organizational change, fostering a culture of innovation, and nurturing a pool of digital-savvy talents. Managing change is a critical aspect of digital transformation, and HR professionals play a key role in ensuring a smooth transition. This involves creating awareness, fostering a change-ready mindset, and aligning employees with the strategic objectives of digital initiatives. HR teams are instrumental in designing and implementing training programs to upskill existing staff, enabling them to adapt to the evolving digital landscape. Cultivating digital talent is another essential aspect that demands the attention of HR departments in banking institutions. Identifying, attracting, and retaining individuals with the right skill sets is crucial for building a workforce capable of driving digital innovation. HR strategies should focus on developing a talent pipeline that aligns with the organization's digital goals, encompassing not only technical expertise but also fostering a mindset of continuous learning and adaptability. This review sheds light on the HR perspective in the digital transformation journey of the banking industry. It emphasizes the importance of managing change effectively and cultivating a workforce equipped with the digital skills necessary to propel the sector into the future of finance.