In the banking business, the advent of digital transformation has brought about significant changes in operational processes and staff responsibilities, hence introducing a range of potential advantages and obstacles. The primary objective of this research is to examine the effects of digital transformation on employee engagement within the banking industry. Specifically, the study aims to explore the roles of technology improvements in shaping job satisfaction, work stress levels, creativity levels, and overall employee well-being. Based on a sample size of 400 participants from both public and private banks in India, this study combined purposive sampling and descriptive analysis to assess employee viewpoints on several facets of digital transformation. The results indicate a notable influence on the stability of the group, the effectiveness of communication, and the alleviation of stress. The research also underscores the inherent duality of digital tools, which have the potential to augment both job happiness and creativity, while also requiring a reconfiguration of conventional employment responsibilities. The aforementioned findings highlight the significance of incorporating technology alongside a human-centered methodology in order to optimise the advantages of digital transformation.