Measuring and Analyzing the Impact of Digital Transformation Technology on the Performance of the Banking Sector: A Benchmark Study of Private Iraqi Banks (2015 - 2023)

This research aims to determine the impact of digital transformation technology on the performance of the banking sector, for banks operating in the Iraqi environment and listed on the stock market. The panel data method was also used, which combines cross sections and time series. In our research, the impact of digital transformation technology on the performance of the banking sector was based on annual data that included 6 private Iraqi banks listed on the Iraq Stock Exchange from 2015 to 2023. The study found that the banks in the research sample witnessed fluctuations in digital transformation technology and the performance of the banking sector during the research period. Moreover, a significant inverse effect was observed between digital transformation technology and the capital adequacy ratio. This means that the more the digital transformation technology increases, the capital adequacy ratio decreases, hence proving the first hypothesis. Additionally, a significant positive effect was observed between digital transformation technology and the banking liquidity ratio. This means that the more digital transformation technology increases, the greater the percentage of banking liquidity, and the second hypothesis of the research has been proven. An insignificant inverse effect between digital transformation technology and return on assets has been observed. This means that the greater the digital transformation technology, the lower the return on assets. The third hypothesis has not been proven.