Role of Employee Training and Financial Efficiency in Financial Improvement: A Role of Digital Finance

Abstract

The objective of this study was to examine the impact of staff training and financial efficiency on financial progress, with the utilisation of digital finance as a mediator inside the Pakistani banking sector in Punjab. A quantitative methodology was utilised, involving the distribution of a survey questionnaire to a sample of 250 bank workers. The data analysis utilised structural equation modelling (SEM) to evaluate the proposed correlations. The results unveiled a notable and favourable correlation between employee training and financial enhancement. Likewise, there was a clear and direct correlation between financial efficiency and financial improvement. Moreover, digital finance played a role in partially mediating the connection between employee training and financial enhancement. This suggests that better employee training promotes increased financial effectiveness, ultimately resulting in financial improvement. To summarise, the key variables that contribute to financial improvement in banks in Punjab, Pakistan, are employee training and financial efficiency. Moreover, digital finance acted as an intermediary mechanism, emphasising its capacity to enhance the beneficial impacts of staff training on financial performance. These findings support the idea of allocating more resources to employee training programmes and further incorporating digital financial technologies into the Pakistani banking sector to enhance financial progress.