Impact of Digital Training and Development on Capacity building: A study of employees in Financial Service Industry in Chennai district

The rapid digital transformation of the financial services sector has redefined employee learning and skill development, with technology-driven methods increasingly central to capacity building. This study examines the influence of four key Digital Training and Development practices—E-Learning, Mobile Learning, Digital Skill Enhancement, and Virtual Simulation—on employees in Chennai’s banking, insurance, and investment management sectors. It also investigates gender-based differences in perception and capacity-building outcomes. Using a cross-sectional, mixed-methods approach, primary data were collected from 180 employees through a structured questionnaire and analysed using descriptive statistics, t-tests, correlation, and multiple regression. Results reveal an overall positive perception of digital training, with E-Learning and Mobile Learning emerging as the most impactful predictors of capacity building. Digital Skill Enhancement showed moderate influence, while Virtual Simulation recorded the lowest effectiveness, indicating scope for improvement. Gender analysis indicated that male employees reported higher perception levels and capacity-building benefits than female employees, highlighting a perceptual gap. Statistical analysis confirmed a strong positive correlation between digital training practices and capacity building, with regression results showing that these practices collectively explain 73% of the variance. The findings underscore the need to strengthen high-impact methods, improve underperforming areas, and design inclusive strategies to maximise workforce adaptability in a digitally-driven financial landscape.