Digital Transformation and Its Effect on Cost Efficiency in Retail Banking Services: An Empirical Study

Abstract

This study investigates the effects of efforts to digitally transform on cost effectiveness in banking services for retail customers. As the banking industry embraces digital technology, understanding the link between these efforts and operating expenses becomes crucial for sustaining a competitive edge. A descriptive study approach was used to obtain data from a sample of workers at various retail banks via structured questionnaires. The data, which were analysed using ANOVA, show a substantial association between technological change efforts and financial efficiency, implying that improvements in technological capacity lead to better operational performance. To maximise the advantages of digital transformation, banks should engage in staff training, implement a staged integration of technological advances, and cultivate an innovative culture.