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This study aimed to identify the impact of digital transformation on Islamic banks operating in Jordan by using the descriptive analytical method. Primary data were obtained through a questionnaire and distributed to the study sample, which consisted of 68 employees of 4 Islamic banks operating in Jordan. The structural equation model was used in the process of testing the study hypotheses. We obtained a number of results, the most important of which is the presence of a statistically significant effect at the significance level (α ≤ 0.05) of digital transformation in Islamic banks operating in Jordan in relation to operational efficiency and competitive advantage. We recommend that Islamic banks need to develop a strategy for digital transformation aimed at innovation and competition, without prejudice to the controls of Islamic finance. There is a need to focus on managing the risks associated with digital transformation, as well as treating the risks associated with modern technologies, especially those that threaten Islamic banks and financial stability.
Shehadeh et al. (Tue,) studied this question.