Business Intelligence and Financial Performance: Investigating the Mediating Role of Operational Efficiency in the Banking Sector

This study examines the impact of Business Intelligence (BI) on financial performance, with a specific focus on the mediating role of operational efficiency within Jordanian commercial banks. Utilizing a sample of 260 questionnaire responses collected from banking professionals, the study employs partial least squares structural equation modeling (PLS-SEM) using SmartPLS4 to analyze the hypothesized relationships. The findings reveal that BI significantly enhances both financial performance and operational efficiency by optimizing financial processes and supporting more effective decision-making. Furthermore, operational efficiency exerts a strong positive influence on financial performance, indicating that improved internal processes directly contribute to better financial outcomes. Mediation analysis confirms that operational efficiency serves as a critical intermediary in the BI and financial performance relationship, suggesting that banks realize the greatest financial value from BI through its ability to streamline operations. The study provides robust empirical evidence highlighting the strategic importance of BI implementation in the banking sector. Based on these insights, it is recommended that banks invest in advanced BI technologies, emphasizing process automation, resource optimization, and cost-reduction strategies to fully leverage the benefits of BI in enhancing operational and financial performance.