The evolution of bank branches and employment dynamics in the digitalization era: A comparative study of Serbia, Montenegro and Bosnia and Herzegovina

This study examines the impact of digitalization on the banking sector in Serbia, Bosnia and Herzegovina, and Montenegro, focusing on bank branch reduction and its implications for employment dynamics. Our analysis reveals a significant decline in bank branches across these countries, with Serbia experiencing a 6.88% reduction, Bosnia and Herzegovina 21.03%, and Montenegro 11.76%, reflecting a global trend towards digital banking. Correspondingly, employment changes in the banking sector ranged from -2.4% in Serbia to -9.4% in Montenegro. These transformations, largely attributed to evolving customer preferences and operational efficiency, indicate a profound shift in the banking landscape. The study further explores how digitalization influences customer engagement and satisfaction, uncovering that 75-85% of banking transactions are now conducted digitally across the countries. These insights provide a comprehensive understanding of the impact of the digitalization era on bank branches and employment, offering valuable information for stakeholders navigating this evolving landscape.