Implementing Kaizen in the banking sector: Enhancing organizational structures and processes

This study examines the impact of digital transformation on the banking sector, with a particular focus on the future of physical bank branches, customer preferences, and process improvement approaches. The main objective of the research is to explore how bank branches are evolving in response to the rise of digital channels and to analyze the role of continuous improvement philosophies such as Kaizen in this transformation. The findings reveal that while the majority of individuals aged 18–34 prefer mobile banking, physical branches remain significant for more complex services such as loan applications and account management. The results indicate that full digitalization in banking is not likely in the short term, and instead, hybrid models combining digital and physical channels are gaining prominence. A significant portion of respondents predicted that future bank branches will function as specialized centers offering consultancy-based services. This transformation aligns with the concept of phygital banking, which merges physical presence with digital capabilities. Furthermore, the findings demonstrate that the Kaizen approach is applicable in banking processes, particularly in improving customer experience, enhancing service quality, and encouraging employee involvement. This thesis provides a contemporary perspective on the future of bank branches and proposes a holistic approach that emphasizes both technological adaptation and continuous human-centered development in the context of digital transformation.