"Decoding Digital Transformation In Banking: From Insight to Impact through A Panel Study of Tunisian Banks with PCA and Logistic Regression"

This study explores the factors influencing the adoption of digital technologies in the Tunisian banking sector. Using a structured survey completed by 122 senior banking professionals from ten major banks, the research examines five key areas: external influences, benefits, attitudes, organizational capacity, and technology diffusion. Statistical methods, including Principal Component Analysis and logistic regression, were applied to identify the main drivers of digital adoption. The results show that none of the analyzed factors significantly explain the adoption of digital technologies in Tunisian banks. This contrasts with findings in more digitally advanced countries and highlights specific challenges such as the widespread use of cash, low banking access, limited digital literacy, and trust issues. Although the COVID-19 pandemic has boosted digital finance adoption, Tunisia’s banking sector remains in an early stage of digital transformation. The study concludes that banks need to strengthen digital skills, invest in emerging technologies like biometrics and artificial intelligence, and improve cybersecurity to unlock the full potential of digital banking. These insights offer guidance for policymakers and practitioners aiming to accelerate digital innovation in developing economies.