The Effect of Digital Transformation on HR Roles and Competencies in Nigerian Financial Services Institutions

This study examines the effect of ongoing digital transformation on the roles, competencies, and structural positioning of HR professionals in Nigerian financial services institutions, including commercial banks, insurance companies, and investment firms. Digital transformation is fundamentally reshaping the scope of HRM, automating transactional functions and creating demand for new analytical, technological, and change management competencies among HR practitioners. The study employs a descriptive survey design, with 120 HR managers and HR business partners from 25 financial institutions in Lagos, Abuja, and Kano selected through stratified sampling. A validated HR Competency Assessment Framework adapted from the SHRM Competency Model provides the primary instrument. The Technology-Organisation-Environment Framework and HR Transformation Theory jointly provide the theoretical orientation. Findings reveal that HR roles in the most digitally advanced institutions have already shifted substantially toward strategic advisory, data interpretation, and change facilitation functions, with transactional HR activities increasingly automated. However, the majority of sampled HR professionals report significant self-assessed competency gaps in data analytics, digital HR tools, and technology-change leadership. The study also finds a strong correlation between CEO digital vision and the pace of HR function digitalisation. Recommendations include mandatory digital literacy training for HR professionals, the establishment of HR analytics units, and the redesign of HR operating models to reflect digital delivery expectations. Keywords: Digital Transformation, HR Competencies, Financial Services, HRM Roles, Nigeria.