Banking Antecedents of Human Resource Quality for Digital Transformation in Banking: Evidence from Vietnam

Abstract

Digital transformation is reshaping commercial banks’ operating models, customer interfaces, risk-management systems, and competency requirements. Technology investment alone, however, does not ensure successful transformation; banks also require employees who possess the knowledge, applied skills, health, psychological resources, and professional conduct needed to use digital systems effectively. This study examines seven antecedent dimensions of human resource quality in Vietnamese commercial banks: knowledge, professional skills, behavioral skills, cognitive skills, work attitude and professional conduct, physical capacity and health status, and mental and social well-being. Survey data from 603 employees across 13 commercial banks were analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS 4. The measurement model demonstrates strong indicator reliability, internal consistency, convergent validity, and discriminant validity. The model explains 75.9% of the variance in overall human resource quality. Knowledge shows the strongest positive association (β = 0.304, p < 0.001), followed by work attitude and professional conduct (β = 0.179, p < 0.001), professional skills (β = 0.158, p < 0.001), physical capacity and health status (β = 0.141, p < 0.001), mental and social well-being (β = 0.114, p = 0.002), and behavioral skills (β = 0.103, p = 0.003). Cognitive skills do not exhibit a statistically significant direct association (β = 0.044, p = 0.189). The findings indicate that a high-quality digital banking workforce depends on an integrated combination of technical, professional, behavioral, health, and attitudinal resources rather than technology-related skills alone.