MS ECONOMICS

POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

THE IMPACT OF TECHNOLOGICAL ADOPTION

ON EMPLOYMENT AND HOUSEHOLD INCOMES
IN THE FINANCIAL SERVICES SECTOR OF THE
NATIONAL CAPITAL REGION.

By: Jonald A. Almazar

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

OVERVIEW

• Background • Analysis

• Research Objectives • Results

• Research Problems • Discussion

• Literature Review • Conclusion

• Methodology

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Background
• Technological advancements have significantly transformed the
landscape of industries worldwide. Technologies such as artificial
intelligence (AI), blockchain, automation, and digital platform.
• Financial services sector in the NCR plays a pivotal role in the region’s

economic growth, employing a substantial share of the urban workforce

and contributing to household income stability.
• This study seeks to fill that gap by analyzing how technological adoption

influences employment patterns and household incomes in the NCR.

• It will explore whether technology contributes to job creation or job

losses, changes in income levels, and how different segments of the

workforce are affected.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Background
• Rapid adoption of AI, automation, and digital banking in financial

services
• Changes in job roles, tasks, and required skills
• Need to assess effects on employment structure and household income
• Digital platforms, AI, and automation are key technologies studied
• Findings: Routine jobs displaced, digital roles created
• Resulted in income growth for some, stagnation for others
• Recommends targeted reskilling and inclusive policies
• Study focused on the National Capital Region (NCR), Philippines

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Research Objectives
The primary objective of this study is to analyze the impact of technological
adoption on employment and household incomes within the financial services
sector of the National Capital Region (NCR).
Specific Objectives:
1) To examine how technological adoption has influenced the structure and
composition of employment in the NCR’s financial services sector.
2) To identify the extent to which technological advancements have led to job
displacement or job creation within the sector.
3) To assess the impact of these changes on the income levels of households
dependent on employment in the financial services sector.
4) To explore the differential effects of technology on various occupational groups
and skill levels.
5) To provide policy recommendations that support inclusive economic growth
and workforce adaptability in the context of increasing automation and
digitization.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Research Questions

This study seeks to address the following research questions:

1) How has technological adoption altered employment patterns in the financial

services sector in the National Capital Region?

2) To what extent has automation and digitization resulted in job displacement or

creation?

3) What are the effects of these employment changes on household income

levels?

4) Which categories of workers (e.g., by skill level, role, or tenure) are most
affected by technological change?

5) What strategies can be implemented by policymakers and institutions to

mitigate negative impacts and maximize benefits of technological adoption?
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Review of Related Literature

Literature • Global Trends: AI, RPA, and blockchain transform finance

Review operations (Arner et al., 2016)

• Employment Impacts: Routine jobs decline; demand

rises for digital and analytical roles (Autor et al., 2015; ILO,
2021)
• Philippine Context: Digital disruption threatens service

sector jobs; reskilling essential (Aldaba et al., 2019)

• Income Effects: Divergent income trends—tech-
augmented roles prosper, others stagnate (Acemoglu &
Restrepo, 2018)
• Skill Gaps: Reskilling and access to digital training vary

by socioeconomic status (Brynjolfsson & McAfee, 2014;

PIDS, 2020)

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Significance of the Study

Significance of • The findings of this research will offer valuable

the Study insights for various stakeholders. For government

policymakers, the study will provide data-driven
evidence that can inform labor market
interventions, reskilling initiatives, and digital
economy policies. For financial institutions, the
research will help anticipate workforce needs,
assess the socioeconomic consequences of
automation, and design more inclusive transition
plans. Academic institutions and training centers
may use the findings to update curricula and
develop programs that align with the evolving
demands of the financial services sector.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Research Design
Methodology • Mixed-methods (Quantitative

+ Qualitative)
Data Collection
• Sample Size: For the quantitative survey:

Approximately 150–200 respondents from

various financial institutions.
• For the qualitative interviews: 10–15 key

informants.
• Tools: SPSS, NVivo
• Locale: Financial institutions in NCR
• Instruments: Online survey (Google Forms),

semi-structured interviews

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

DATA Analysis
Quantitative Data Analysis
• Descriptive statistics (frequency, mean) to summarize trends.
Inferential statistics (e.g., regression analysis) will be used to identify
correlations between technological adoption and changes in employment
and income. The Software was used are SPSS or Stata.
Qualitative Data Analysis
• Data from interviews will be transcribed and analyzed using thematic

analysis to identify recurring themes and patterns. Coding will be done

manually or using NVivo or similar qualitative data analysis software.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Results
The data gathered through survey questionnaires and key informant interviews.
The quantitative findings highlight patterns in employment and income changes,
while the qualitative data provide insights into the lived experiences of
employees amid technological changes in the financial services sector in the
National Capital Region (NCR).
Analysis 1
Analysis 2
Technological Tools Used Key Findings - Employment

• Digital Banking Platforms: 80% frequent use • 60% had to learn new tools
• 45% experienced job role changes
• CRM Systems: 65% frequent use
• 28% witnessed job displacement
• AI Chatbots: 48% frequent use
• 35% felt less job secure; 30% more secure
• Robotic Process Automation (RPA): 40% frequent
• New demand for analytics, compliance, digital
use
roles
• Low use of RPA and AI reflects adoption gaps

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Analysis 3 Analysis 4

Income & Household Perceptions of Technological Impact

• 35%: Very positive
• 35% experienced income increase
• 32%: Somewhat positive
• 40% reported household income improvement
• 20%: Negative or no impact
• 60% supported 2-3 family members
• Common concerns: displacement, stress, lack
• ₱15,001–₱50,000 = most common income range
of training
• Higher incomes tied to upskilling and digital roles
• Top solutions: Gov't programs (70%), private

training (55%), stronger labor protections

(40%)

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Qualitative Insights

• Positive Themes: Easier tasks, promotions,

upskilling
• Negative Themes: Insecurity, limited training,

role loss
• Mixed Views: Rapid change causes stress,

adaptation needed
• Tech seen as both opportunity and threat

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Conclusion
• Technological adoption is both

disruptive and transformative

• It changes roles, income levels, and job

security
• A digital divide exists in training access
• Inclusive strategies are key to reducing

negative impacts

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Recommendation
For Financial Institutions

1.Invest in Inclusive Upskilling Programs

⚬ Design training programs that are accessible to all levels of staff, including administrative and

outsourced employees.
⚬ Incorporate modules on AI, cybersecurity, data analytics, and digital finance operations.

2.Implement Workforce Transition Plans

⚬ Adopt strategies to minimize job displacement by providing pathways for role migration and continuous

learning.
3.Promote a Culture of Lifelong Learning
⚬ Encourage employees to continually upgrade their digital skills through incentives, certifications, and

partnerships with online learning platforms.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Recommendation
For Policymakers and Government Agencies

1.Develop Digital Skills Frameworks

⚬ Align public education and training systems with the evolving needs of digital finance.
⚬ Offer subsidies or scholarships for reskilling programs in collaboration with industry.

2.Strengthen Labor Protections for Displaced Workers

⚬ Create safety nets and retraining initiatives for employees displaced due to automation.

3.Monitor Employment Trends in Tech-Driven Sectors

⚬ Regularly collect and publish labor market data to assess the impact of technology on employment

and income inequality.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

Recommendation
For Academic and Research Institutions
1.Conduct Longitudinal Studies
⚬ Track the long-term effects of digital transformation on workers’ career trajectories and household well-being.

2.Develop Sector-Specific Curricula

⚬ Align university and training center curricula with the real-world demands of fintech and digital banking.

Suggestions for Further Research

• Expand the study to include other service sectors like business process outsourcing (BPO), logistics, or healthcare to

examine how digitalization affects different industries.

• Conduct gender-based analysis to explore how technology adoption may differently impact men and women in the

financial sector.
• Investigate the psychological or social implications of role transitions due to technological changes.

SUBJECT: ECONSTATS
 MS ECONOMICS
POLYTECHNIC UNIVERSITY OF
THE PHILIPPINES

THANK YOU
For your attention

SUBJECT: ECONSTATS