The effect of financial technology investment on financial performance of Islamic banks in Jordan

Abstract

The study aimed to examine the of investment in financial technology, represented by its dimensions (investment in ATMs, investment in software and systems, and investment in credit cards), on financial performance, represented by (return on assets and return on equity), in the Jordanian banking sector. To achieve the study's objectives, the descriptive-analytical approach was utilized. The study population consisted of the Jordanian banking sector, while the sample included three Jordanian Islamic

The main findings revealed a significant and positive impact of financial technology, through its dimensions (investment in ATMs, investment in credit cards, and investment in software and systems), on financial performance dimensions (return on assets and return on equity) in Jordanian Islamic banks.

The study recommended encouraging Jordanian Islamic banks to establish partnerships with financial technology companies to develop innovative solutions, such as digital payment applications and mobile banking services. It also suggested adopting strategies to enhance digital transformation by developing digital banking platforms that meet customer needs and implementing artificial intelligence technologies to improve financial performance.