EFFECTS OF AUTOMATED SYSTEMS ON EMPLOYEES’ EXPERIENCE IN TIER-2 DEPOSIT MONEY BANKS, LAGOS STATE, NIGERIA

Abstract

The rapid adoption of automated systems in Nigeria's banking sector, accelerated by the Central Bank of Nigeria's cashless policy and fintech competition, has generated contradictory outcomes for employees. While automation promises operational efficiency, industry evidence indicates rising technostress, job insecurity, and high turnover among bank employees, particularly in Tier-2 Deposit Money Banks (DMBs). Despite controlling 38% of industry assets and employing over 18,000 staff in Lagos State, Tier-2 DMBs remain disproportionately underrepresented in empirical literature. This study examined the effects of automated systems on employees' experience in Tier-2 Deposit Money Banks in Lagos State, Nigeria. Specifically, it disaggregated automated systems into four dimensions; technological infrastructure, process automation, process efficiency, and task completion rate; and assessed their effects on employee engagement, mental well-being, and employee retention. Anchored on the Job Demands-Resources Theory, Sociotechnical Systems Theory, and the Technology Acceptance Model, the study adopted a quantitative, cross-sectional, explanatory survey design. A structured questionnaire was administered to employees drawn from five Tier-2 DMBs; Ecobank Plc, First City Monument Bank Plc, Sterling Bank Plc, Stanbic IBTC Bank Plc, and Wema Bank Plc; operating across Island and Mainland branches in Lagos State. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings revealed that automated systems have significant positive effects on employees' experience, with technological infrastructure, process automation, process efficiency, and task completion rate collectively enhancing employee engagement, mental well-being, and retention when implemented within a supportive organisational context. The study concluded that successful automation requires a balanced approach integrating technological innovation with employee-centred management practices. Recommendations include continuous investment in reliable technological infrastructure, comprehensive reskilling programmes, and the development of human-centric automation policies.