Transformation in enhancing financial inclusion and the mediating role of performance efficiency: An applied study on commercial banks’ strategy

This study aimed to explore the impact of digital transformation on enhancing financial inclusion in Jordanian commercial banks, focusing on the role of performance efficiency as a mediator in this relationship. The study employed a descriptive-analytical approach, distributing a questionnaire to 200 employees from 13 banks, and analyzing the data using SPSS v. 26 and SmartPLS software. The results showed a positive relationship between the dimensions of digital transformation (digital strategy, digital technologies, and digital skills) and both financial inclusion and performance efficiency. This can be attributed to digital transformation enhancing performance efficiency by reducing human errors, speeding up processing and auditing, improving collaboration, and enhancing communication between employees and clients, thereby contributing to increased financial inclusion. Additionally, the results indicated that performance efficiency plays a partial mediating role in the relationship between digital transformation and financial inclusion, as digital transformation enhances performance efficiency by minimizing human errors and accelerating procedures, which contributes to greater financial inclusion. In light of these findings, the study recommends that commercial banks in Jordan focus on developing digital transformation strategies, updating technological infrastructure, and providing appropriate training for employees to foster a culture of innovation.