Banking Digitization and Its Impact on Financial Strength Indicators: An Analytical Study in a Sample of Arab Countries
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Abstract
The research aims to measure the impact of banking digitization on financial strength indicators to test the research problem, which includes: Is there an impact relationship of banking digitization on the financial strength indicators of the banking sectors in the Arab countries of the research sample. And also are their differences in the impact of banking digitization on the financial strength indicators of the banking sectors in the Arab countries? The research sample, for a group of Arab countries (Iraq, Jordan, Kuwait, Bahrain, Saudi Arabia, UAE, Qatar, Oman, Egypt, Morocco for the time period 2011-2021). According to recent developments and the transition to banking digitization that contributed to providing the best banking services and strengthening Indicators of financial strength by testing the impact of banking digitization, (Qi Card X1, electronic payment X2, phone banking services X3, number of Internet users Fixed Effects Model and Random Effects Model. The research concluded that there is a significant positive impact of banking digitization on financial strength indicators, and that banking digitization is considered the most important modern trend towards developing the Arab banking sectors and developing the financial system.
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