author(s)
Huda Hadi Hasan

abstract
This research aims to assess the impact of modern technologies on bank performance by identifying the nature of digital transformation and analyzing the financial performance indicators of commercial banks operating in Baghdad Governorate, as well as the relationship between them. Understanding the effects of digital transformation on financial performance in developing economies like Iraq is crucial. The banking sector is a cornerstone of economic activity, capital flow, and investment, and therefore must keep pace with the rapid and dynamic development of this sector. This research employs a quantitative approach using the SPSS statistical software, collecting data from 16 out of 24 commercial banks in Baghdad during the period 2020-2024. The dimensions of digital transformation, such as digital banking services, mobile banking adoption, online transaction volume, and digital investment, were analyzed against key financial performance indicators: return on assets (ROA), return on equity (ROE), and net interest margin (NIM). The research hypotheses were tested, and correlation, regression, and analysis of variance (ANOVA) tests were conducted. The results showed a significant positive relationship between digital transformation and the financial performance of commercial banks in Baghdad. Based on this finding, the research proposes the following recommendations for commercial banks: increase investment in digital transformation initiatives; Providing training and development programs for employees to enhance their skills and capabilities; focusing on increasing the volume of electronic transactions by encouraging customers to use digital channels; investing in digital infrastructure and cybersecurity to support the growth of digital banking services; and developing comprehensive digital transformation strategies that include specific performance metrics to assess the impact of digital initiatives on financial performance.