Impacts of Covid-19 Pandemic on Turkish Banking Sector Employment

Abstract

A considerable transformation in employment is evident as a result of the Covid-19 crisis. Business operations in multiple sectors have turned to flexible, remote, and hybrid working models during the pandemic period. This change is expected to confront a world economy that is experiencing a huge wave of unemployment. It is assumed that the banking sector will be one of the most affected industries across the globe. Banking is one of the sectors that have largely applied flexible and remote working models during the pandemic. The principal advantages of the banking sector include its ATMs and call centers, as well as online and mobile banking services; defined as non-branch alternative distribution channels. Intensified use of non-branch channels during the pandemic period compelled the transformation of the employment structure of the sector. In Turkey, banking represents one of the sectors with the highest investment in technology and human resources. During the pandemic, the sector enabled customers to perform banking transactions without visiting a branch by using alternative distribution channels. This study aims to analyze how this use of non-branch alternative channels affected the employment structure of the banking sector in Turkey during the pandemic. Findings show that the usage density of alternative distribution channels has increased.