The Role of Digital Technology in Money Management on The Performance and Productivity of Bank Indonesia's Human Resources

Abstract

The Indonesian banking industry currently faces various challenges, not only from competition among banks but also from the digitalization of banking. The implementation of digital technology in the banking sector will undoubtedly boost performance. The better the use of technology within a company, the higher employee performance, significantly impacting productivity. This research is an explanatory research with a quantitative approach. The population in this study were 526 frontline employees of Bank Indonesia. The sample of this study was 130 frontline employees of Bank Indonesia, calculated using the Hair formula. The data collection technique used a questionnaire. In this study, the data analysis used the SEM-PLS method with SmartPLS (Partial Least Square) software. The results of the study show that: 1) The application of digital technology has a positive and significant effect on HR performance, meaning that the higher the digital technology, the HR performance can increase because the work process becomes more efficient, effective, and accurate. 2) The application of digital technology has a positive and significant effect on HR productivity, meaning that the higher the digital technology, the higher the HR productivity, 3) HR performance has a positive and significant effect on HR productivity. This means that the better the performance of human resources (HR), the HR productivity will also increase, resulting in higher, more efficient, and more effective performance in achieving company goals. 4) HR performance can mediate the positive and significant effect of the application of digital technology on HR productivity, meaning that the higher the application of digital technology, the better the HR performance, and then the higher the HR productivity.