The Role of Digital Transformation in Enhancingthe Quality of Yemeni Banking Services

The study aimed to identify the role of digital transformation—represented by its dimensions (technology, process digitization, digital strategy, human resources, and data)—in improving the quality of banking services across its dimensions (reliability, tangibility, responsiveness, assurance, and empathy) in Yemeni banks located in the Capital Secretariat, Sana’a. The study adopted a quantitative approach, employing a descriptive methodology with analytical and correlational designs. And a questionnaire was used as the primary tool for data collection from bank employees working in supervisory and operational positions. The sample consisted of 405 employees, after distributing 450 questionnaires to all banks operating in the Capital Secretariat, using a proportional stratified random sampling technique to ensure representation of all job levels.

The findings revealed that digital transformation plays a significant role in improving the quality of banking services. The data dimension had the strongest impact on service quality, followed by human resources and technology, while the dimensions of process digitization and digital strategy showed no statistically significant effect. The results also showed that digital transformation explains 75% of the variance in the quality of banking services. The study recommended that Yemeni banks focus on strengthening data systems and analytics, developing human resource capabilities in digital transformation, improving technological infrastructure, and enhancing both digitization and digital strategy to provide higher-quality and more efficient services and to expand digital service delivery for all target segments.

Conclusions

The findings of the study indicate that digital transformation plays a positive role in improving the quality of services in Yemeni banks, and that this role varies across its different dimensions. The data dimension had the strongest impact on service quality, followed by human resources and digital technologies, highlighting the importance of developing data systems, enhancing employee capabilities, and improving the technological infrastructure. In contrast, the dimensions of process digitization and digital strategy showed no significant effect, reflecting the need to strengthen their implementation in the banks under study.