The Impact of Digital Transformation on Staffing Strategy in Banking Sector: A Case Study of Egypt

Purpose: The Egyptian banking sector adopts an expansion strategy in the field of digital transformation to face the competition resulting from the entry of ICT companies, the repercussions of the Corona virus and the spread of financial technology companies in the banking services market. This trend offers multiple benefits to banks and customers, including ease of conducting transactions, reducing operating expenses, and meeting the needs of customers who prefer banking transactions via the Internet and smart phones, On the other hand, it introduces wide changes to the size and quality of banking jobs in the future, and threatens the disappearance of some of them ,therefore this study analyses empirical evidence of the impact of the digital transformation on staffing strategy in the Egyptian banking sector. Design/Methodology/Approach: This study depends on the analysis of secondary data obtained from the reports of the Central Bank of Egypt on the indicators of digital transformation and the number and quality of banking staffs during the period from 2016- 2021, using the analysis of correlation and regression coefficients. Findings: The results of the study indicate that there is no negative impact of digital transformation on new staffing operations in the short term, because the rate of bank penetration into the banking services market is still low and therefore Egyptian banks are expanding their traditional branch network alongside digital banking services channels. This transformation has also created a new type of job that keeps pace with banking digitalization, while in the long term digital transformation threatens the disappearance of some jobs to be replaced by artificial intelligence, internet banking, mobile banking and electronic wallets. Originality/Value: The novelty of this study is to examine the relationship between digital transformation indictors and the size and quality of staffing in the Egyptian banking sector. Practical Implications: The importance of this study is to provide recommendations to the HR management in Egyptian banks to deal proactively to deal with the potential impacts of digital transformation in the banking sector. Limitations/implications: There are limitations to the results of this study represented in the insufficiency of the study period, and there are many factors affecting the size and quality of employees in the banking sector other than digital transformation. In addition, the study relied on the method of quantitative analysis of the study variables. Hence further studies can be carried out with different methodologies such as surveys, case studies and qualitative analysis methods