Considering the trends in the market, innovations and technology-based developments in Pakistani banks, it is essential to know what impacts on employee performance in the banking sector. Hence, this paper suggests three factors: corporate social responsibility, public service motivation, and digital competencies and examines how they influence employee performance. It also investigates whether psychological empowerment can intervene. This paper concentrates on Pakistani banks such as MCB, HBL, UBL, NBP, Bank Alfalah and Meezan Bank. The online questionnaire was designed to collect data from 300 employees of the given banks. The collected data was analysed using structural equation modelling (SEM) technique. The results revealed that all the factors positively impacted psychological empowerment and employee performance. Similarly, psychological empowerment positively impacted employee performance as well as played a positive mediating role between corporate social responsibility, public service motivation, digital competencies and employee performance. The implications of this study are not just limited to the Pakistani banking sector, but are also global, for organizations in general, in terms of how employee performance can contribute to an organization’s growth within this competitive environment.