The Digital Technology and the Threat of Downsizing into Indonesia‘s Banking Industry Performance

Abstract

Downsizing refers to the permanent reduction of a company’s workforce and is generally associated with corporate reorganization in the response of the dynamic environment. In this era digital economy, the speed, flexibility and innovation becomes more important. As more and more manual financial transactions become automated, the size of the workforce reduced. The banking industries apply the computing system to business processes to increase efficiency, reduce process errors, enhance productivity and delight the customers. This study contributes to our understanding that even the digital technology will reduce the number of employees in the banking industry, but the customers still need some close relationships and interactions in doing their financial transaction. The bank’s performance is mostly influenced by the bank image and the ability to create edge value to the customers.