DIGITAL TRANSFORMATION IN YEMENI BANKS: AN ANALYTICAL STUDY OF THE REALITY, CHALLENGES, AND OPPORTUNITIES

Abstract

This study aimed to examine the current state of digital transformation in Yemeni banks, analyze the main technical and environmental challenges, and explore the opportunities that may enhance banking performance. The study adopted the descriptive analytical approach. A questionnaire was used to collect data from a simple random sample of 140 employees in the Yemeni banking sector. Data were analyzed using SPSS, and the reliability test indicated a high internal consistency with a Cronbach’s Alpha coefficient of 0.97. The results showed a high level of digital transformation, with an overall mean score of 4.25, reflecting reliance on electronic systems in daily banking operations. The findings also revealed several challenges with an overall mean score of 3.45, led by weak digital infrastructure, followed by poor internet quality. At the same time, promising opportunities were identified, with a mean score of 4.11, particularly the ability to reach wider customer segments. T-test results confirmed a statistically significant relationship at α ≤ 0.05 between adopting digital transformation technologies and improving banking service quality. The study recommends developing digital infrastructure, improving internet quality, and enhancing training programs for employees to support digital transformation implementation.