The Impact of Digital Transformation on Reducing the Costs of Banking Services in Jordanian Islamic Banks

The study aims to identify the actuality of digital transformation, its future tendencies, and the benefits associated with it in banking services, which are provided by Jordanian Islamic banks. In addition to identifying the impact of the Jordanian Islamic banks’ use of digital transformation technology on cost reduction. Through analyzing a questionnaire, the study concluded that the tendency of Islamic banks toward digital transformation has helped them to reduce the costs of banking services, and this will give them a competitive advantage over the rest of the banks within the banking sector. The digital transformation in the Islamic banking industry would work to develop services, products, and digital financial services, and this means a prosperous future for Islamic banks. Also, it recommended that Islamic banks submit the digital transformation strategy to the supervision of the Sharia Supervisory Board, given the significant role it plays in mitigating or preventing negative effects and Sharia risks on the performance of digital banking operations. Besides, the need to work on developing banking awareness among customers to get acquainted with electronic channels on the one hand, and to spread the electronic banking culture on the other hand.