Effects of Digital Banking on Employees’ Perception of Their Job Security in Commercial Banking Industry

Abstract

Digital banking reduces the demand for some job positions in commercial banks. Therefore, this research examines the effects of digital banking on employees’ perception of their job security in commercial banking industry and their preparation for the impacts. The data are from self-administered questionnaires, which are collected from 402 bank employees in 70 commercial bank branches in Chiang Mai. The ordered probit model is used to identify individual and job characteristics determining employees’ job security in commercial banking industry. The results show a high perceived job security of employees in the commercial banking industry of Thailand. In particular, the majority of the respondents are confident that they will be able to maintain their current career path with steady income growth with the current employers. A job position with a higher risk is teller and other positions with routine tasks. Both knowledge and skills, such as English, teamwork and digital skills, can significantly improve job and income security. The results indicate that Thailand’s commercial banks can adjust their employment structure from technological disruption quite successfully and the employees feel secure with their current jobs.