The Impact of Automation on Employee Productivity in the Banking Sector

Technological advancement has impacted business operation in virtually all industries. In particular, the operation and business models of financial institutions have undergone serious disruption due to technology. The automation of banking has impacted banks positively by saving time and elevating employee workload. The influence of automation on workload has enabled banks to reduce errors and frauds which contributes to productivity. Berger (2003) has argued that the impact of automation on employee productivity cannot be ignored given the importance of superior customer service delivery and efficient automated processes. Thus, this study explores the impact of automation on employee productivity in the banking sector and how it contributes to profitability. A designed semi-structured interviews were employed to gather realistic perceptions of the impact of automation from bank employees in different positions. It is projected that automation due to ATM, internet banking, and mobile banking has a positive impact on employee productivity. However, automation could limit the utilization of skills of employees, which could translate to wastage of resources to some extent.