DIGITAL TRANSFORMATION IN HR AND ITS INFLUENCE ON CUSTOMER ENGAGEMENT STRATEGIES IN THE INDIAN BANKING SECTOR

Abstract

Every industry is facing the strategic imperative of digital transformation. The banking sector is no exception, as customer expectations, competition, and technical innovation evolve at an unprecedented pace (Rogers, 2016; Schwab, 2017). This research investigates the critical role of Digital Transformation in HR and its direct influence on Customer Engagement Strategies within Indian banks. Recent Indian research suggests that "the transition from traditional to digital HRM is a critical determinant of organizational agility and workforce readiness" (Sharma & Malviya, 2020). Building on the frameworks of Ulrich (2015) and Cappelli (2017), this study examines how HR digitalization—through e-recruitment, HR analytics, and AI-driven training—impacts customer-centric outcomes such as service quality, satisfaction, and loyalty.

Primary data was gathered from 200 participants, including bank clients and employees from both public and private banks in India. Utilizing SPSS for statistical analysis (regression, reliability testing, ANOVA, and correlation), the findings reveal a robust correlation between HR digital transformation and customer engagement success. This aligns with observations in the Indian banking sector where AI-powered internal support and data-driven staffing have made "customer service more personal and effective" (PwC India, 2023). According to Kotler et al. (2021), service delivery and customer trust are significantly enhanced when the workforce is digitally empowered. The study concludes that internal HR digitization is a foundational component of the digital banking ecosystem, serving as a primary driver for improved external customer experiences.