The Impact of Digital Transformation on Internal Control Systemsin Yemeni Banks Operating in the Capital SecretariatA Field Study

aimed to analyze the impact of digital transformation on internal control systems in Yemeni banks operating in the Capital Secretariat of Sana’a, in response to the scarcity of applied studies that have examined this relationship in an integrated manner within the Yemeni banking environment. The study focused on four dimensions of internal control systems: improving the control environment, enhancing the quality of the control system, rationalizing costs, and rationalizing decision-making. The study population consisted of (18) banks operating in the Capital Secretariat, from which a representative sample of (16) banks was selected. The study adopted the descriptive-analytical approach and used an electronic questionnaire to collect data from a stratified random sample of (130) respondents working in financial control departments, internal audit, information systems, compliance and risk management, in addition to specialists at the Central Bank of Yemen. Data were analyzed using the Statistical Package for Social Sciences (SPSS). The results revealed a statistically significant positive impact of digital transformation on improving the quality and environment of internal control systems, rationalizing their costs, and supporting control-related decision-making, with variations in the magnitude of impact across the dimensions. The study recommended adopting a clear institutional strategy for digital transformation, strengthening investment in technological infrastructure, and developing a regulatory framework that supports the implementation of digital systems and continuous electronic control in the Yemeni banking sector.