THE INFLUENCE OF TECHNOLOGICAL INNOVATION ON THE PERFORMANCE OF COMMERCIAL BANKS IN SOUTH SUDAN

The commercial banking sector in South Sudan faces significant challenges, including political instability, economic uncertainty, high inflation (exceeding 60% in 2020), and inadequate infrastructure, which collectively limit financial access and trust. In 2020, less than 20% of adults had bank accounts, highlighting a considerable gap in financial inclusion. While existing research extensively focuses on developed economies, there remains a critical gap in understanding how strategic factors, particularly technological innovation, influence banking performance in challenging environments like South Sudan. This study aimed to examine the influence of key strategic implementation drivers on the performance of commercial banks in South Sudan, with a specific objective to establish the impact of technological innovation. Utilizing an explanatory research design, the study analyzed variables without manipulation, targeting all 30 licensed commercial banks in South Sudan. Data was collected through structured questionnaires, which underwent validity and reliability tests prior to deployment. Findings were summarized using descriptive statistics, and relationships were assessed using binary logistic regression via SPSS version 25, with results presented in tables and charts. The study confirmed that technological innovation is a major driver of bank performance, significantly enhancing operations through digital banking, mobile banking, and automated systems. However, challenges persist, including system reliability, regulatory constraints, and employee training gaps. Based on these findings, it is recommended that regulators and policymakers develop frameworks that promote technological innovation, ensure system reliability and cybersecurity, and address employee training needs, while bank executives enhance digital banking infrastructure for sustainable financial growth. Keywords: Technological Innovation, performance, Commercial Banks in South Sudan