Cover
Volume 7, Special Issue 4 (2026)

Published: August 25, 2026

Pages: 151-161

Research Article

The impact of digital transformation on the financial performance of the banking sector in Iraq for the period 2020–2025

Saleh M. Abd Ali 1 Zuhair A. Yaqoub 2 Manaf A. Hashem 3
1Accounts Manager, Shatt Al-Arab Directorate of Education, Basra, Iraq
2Director, Shatt Al-Arab Directorate of Education, Basra, Iraq
3Director of the Financial Affairs Department, General Directorate of Education of Basra Governorate, Basra, Iraq
History
  • Received: June 13, 2026
  • Available Online: August 25, 2026
DOI

https://doi.org/10.56967/ejfb2026926

Abstract

This study aimed to measure the impact of digital transformation on the financial performance of the Iraqi banking sector during the period (2020–2025). To achieve the objectives of the study, the descriptive-analytical approach was adopted through the analysis of financial data obtained from a sample of Iraqi banks under investigation. In parallel, a quantitative approach was employed using a questionnaire administered to a sample of (777) respondents. The results revealed a statistically significant statistically significant association between digital transformation variables, represented by digital services, artificial intelligence, and technological platforms, and financial performance indicators, namely Return on Assets (ROA) and Return on Equity (ROE). The findings also indicated that digital transformation contributes effectively to reducing operating costs and enhancing the operational efficiency of the surveyed banks. Based on these findings, the study proposed a set of recommendations focusing on the necessity of strengthening digital infrastructure, intensifying specialized training programs for human resources, and developing cybersecurity frameworks to ensure the sustainability of financial performance within the rapidly evolving digital environment.

Keywords

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