the impact of digital transformation on marketing and quality of banking services in Iraq

Prepared by the researche : Rabia Atallah Al-Saadi – Master Degree in Business and Accounting

Democratic Arabic Center

Journal of Afro-Asian Studies : Twenty-First Issue – May 2024

A Periodical International Journal published by the “Democratic Arab Center” Germany – Berlin

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Abstract

This study examines the impact of digital transformation on the marketing and quality of banking services in Iraq. It identifies the challenges faced by public and private banks in implementing digital transformation. The research focuses on preparing human resources and educating personnel to optimize marketing performance. The study found that digital transformation variables positively affect the quality of banking services and customer satisfaction in a competitive environment. However, there are shortcomings in infrastructure and the process of spreading digital transformation culture, particularly among consumers.

The study recommends the use of skilled human resources trained in modern technologies, developing cadres aligned with digital transformation, and focusing on infrastructure development, digital transformation, and marketing to achieve better quality, faster, and less expensive delivery of banking services to customers. The study emphasizes the importance of digital transformation, quality, electronic banking services, convenience of use, time, secrecy, security, and customer happiness.

The introduction:

The globalization of banking activity and liberalization of financial and banking services have led to intense competition and technological development in the banking business environment. The adoption of digital technology has integrated digital information into financial institutions’ infrastructure, generating goods and services to attract more consumers and clients. This has resulted in fierce competition between financial and banking institutions to market their services. To compete, electronic banking and delivery over the Internet are essential. Automated teller machines (ATMs) and electronic communications are essential channels for electronic banking services.

Banks must focus on satisfying customer demands to acquire their contentment. Government and commercial banks face a competitive climate, and their marketing portfolio must provide a variety of services to attract clients. Customer trust in government banks is larger than in private banks, motivating them to support their marketing direction.

This research aims to answer these questions by examining scientific and practical options for improving organizational performance and maintaining a competitive advantage in selling services. The study will focus on Iraqi banks and explore four axes: research techniques, theoretical framework, practical consideration, and conclusions and suggestions.

 Research problem:

To improve banking services, identifying deficiencies, gaining customer satisfaction, and gaining trust is crucial. Banks directly impact the national economy and investment. However, Islamic society often discourages dealing with banks, and government banks struggle with embracing digital techniques. The study explores the feasibility of digitally transforming public sector banking services, ensuring efficiency and client satisfaction, and assessing the impact of high-quality, user-friendly electronic banking on customer recruitment.

The importance of the research:

The research aims to understand electronic marketing in financial institutions’ operations, create strategies to enhance efficiency and diversity, improve customer satisfaction, and manage digital transformation concerns. It is crucial for the banking sector in Iraq, which is considered one of the most significant in the technological revolution.

Research objectives:

The text explores the civilized method of selling banking services online through the electronic revolution and its impact on service quality. It identifies challenges in adopting digital transformation in banks through electronic marketing and proposes procedures to enhance the approach to financial services, thereby boosting client confidence and satisfaction.

Research hypothesis:

The study posits a positive correlation between digital transformation and the quality of banking services. It consists of three sub-hypotheses: the positive association between digital technology and digital customer service quality, the positive association between customer experience and digital customer service quality, and the positive association between digital technology and the quality of banking operations. The researcher used basic linear regression to validate these hypotheses.

Search method:

This study utilized a descriptive approach, referencing sources like books, dissertations, university theses, periodicals, and internet sites. The researcher’s personal experience as an employee in the banking sector, along with a survey list, was used to gather information. The data was then analyzed using the SPSS application.

• Previous studies: (Studies focused on digital transformation)

1. Salem Al-Enezi Study:

The study investigates the role of digital transformation in enhancing financial technology risk control mechanisms and its impact on electronic banking services in Kuwaiti banks during the Covid-19 crisis. The research used an inductive approach and statistical methods to analyze and classify financial technology risks, revealing that digital transformation in the governance system provides adequate results and maintains the integrity of digital banking operations. The study suggests that financial technology is a modern research area that offers fertile ground for future studies, addressing variables such as financial performance, market share, financial value chain, customer role in digital transformation, and the quality of banking service. The findings suggest that digital transformation is a vital tool for improving the efficiency and effectiveness of electronic banking services in the face of the COVID-19 pandemic (Al-Anazi 2020).

2. Wadih and Metwally Study:

The study examines the impact of Egyptian banks’ digital products on their competitive position through three axes:

• Digital transformation requirements for banks.
• Designing digital products for banks.
• This reflects the competitive position of the banks under study.

The study used personal interviews and surveys with 12 bank leaders and 383 employees to identify discrepancies in digital transformation requirements between public and private banks. The research also revealed a discrepancy in designing digital products for targeted customers, affecting their competitive position. The researcher recommends that banking units adopt a digital transformation philosophy and design their products to support their competitive position, ensuring survival, growth, and continuity. This will help banks maintain their competitive position and ensure their survival and growth (Wadih 2020).

• Studies focused on the quality of banking services:
• Al-Naimat Study:

This study investigates the impact of the quality of banking services on performance in Jordanian banks. Results show that employees are generally aware of these dimensions and customer satisfaction, and the quality of banking services is influenced by both customer and financial perspectives. The study recommends increasing interest in tangible aspects of banking services and modernizing services through technology. The quality of banking services is crucial for the performance of Jordanian banks, and addressing these dimensions is essential for enhancing customer satisfaction and overall performance (Al-Naimat 2014).

• Al-Taher study:

The study aims to explore the effectiveness of quality banking services in enhancing banks’ competitiveness. It highlights the challenges posed by global variables, such as the lack of parity between local and global competition due to the globalization of banking activities. The study suggests that developing banking services, staying updated with technological advancements, and focusing on service quality and customer satisfaction are key factors in enhancing and enhancing banks’ competitiveness (Al-Tahir 2015).

• Jumaa Study:

The study analyzed the impact of banking marketing on improving the quality of Egyptian services. It found a significant relationship between marketing and service quality. The key recommendations were the use of marketing programs to inform customers about new developments and services that meet their needs, requirements, and desires (Jumaa 2017).

• The second axis / theoretical framework

Banking shopping:

Banking marketing is a strategic approach to managing banking services, aiming to meet market demands and satisfy customer needs while generating profit for the bank. It involves activities that bank employees perform to meet customer expectations and gain loyalty. Banking marketing is a dynamic movement that ensures the flow of banking services and products, such as borrowing and lending, to customers, ensuring their satisfaction and continued dealings with the bank. Banking marketing is defined as the invention, innovation, and delivery of banking services that create happiness and contentment among recipients while generating profit for the bank. It is not manufactured or kept in the same way as other items, as they are delivered as soon as the consumer wants them. Bankers must be experts in offering services to each client individually and efficiently, without showing a sample to obtain prior consent. Banking services are not a service, but rather a product that can be examined according to set criteria. Employees must provide services that retain customers and continue doing business with the bank. Financial services are created and consumed simultaneously at the point of completion, and clients cannot transfer or exchange them with others. Banking services cannot be monopolized by removing them from the market and placing them in the hands of a single monopolist. Instead, they are exposed to market competition among banks to acquire consumers by delivering the best services.

Stages of banking marketing:

The banking industry has evolved through several stages, each with its unique challenges and opportunities. The first stage involves producing and providing banking services, which is characterized by an increase in demand over supply. This can be achieved through expanding branches, increasing employees, offering new services, and increasing production to meet demand.

The promotion phase involves advertising and promoting banking services to attract new customers, maintain existing ones, and increase the size of the bank’s customer base. The promotion process is linked to the relations department, which identifies customers’ needs and advertises them to attract them.

The second stage involves personal attention to customers, which involves meeting their needs and gaining their satisfaction. Banks use this approach to create an atmosphere of friendship between the bank and its customers, provide guidance on the type of service that can benefit them, and use the latest technology to provide service quickly and provide comfortable waiting rooms.

The third stage is renewal and innovation, where banks focus on improving the quality of services they provide and providing new services to meet customer needs and achieve goals. This includes studying customer behavior and orientations to provide services that fulfill their desires and keep pace with development.

The fourth stage is marketing information systems, where banks practice marketing activities within integrated information systems, prepare and monitor marketing plans, develop marketing research and information, support marketing communications systems, and prepare short- and long-term marketing plans that serve both the bank and the customer.

The fifth stage focuses on a specific sector of the market, where banks specialize and pay attention to specific segments of the market. This involves developing a specific marketing program that suggests different services provided by the bank, distinguishing it from other banks.

In conclusion, the banking industry has evolved through various stages, each with its unique challenges and opportunities. By embracing these changes and adapting to the changing market landscape, banks can ensure stability and growth in the ever-evolving banking industry (Lami).

The researcher proposes a marketing strategy for banking services, focusing on the following components:

Banking marketing plays a crucial role in a bank’s management by conducting regular research to understand the volume and diversity of operations, customer quality, and preferences. It also involves innovating new banking services to attract the largest number of customers while studying competitors’ services and plans. It also explores future customer needs and explores ways to meet them by opening new units or finding alternatives. Bank employees are also educated on the concept of banking marketing and its impact on management. Promotional campaigns are prepared and implemented to meet customer requests, speed transactions, and service quality. The bank’s marketing activity is evaluated and updated to suit economic and technological development.

Marketing environment:

The private banking environment is a complex interplay of external variables that directly impact a bank’s activity and goal achievement. It includes competitors, who compete to win the largest market share represented by banking clients. The most important elements of this environment include customers, who consume the bank’s services, and the social concept, which emphasizes satisfying customer needs effectively and efficiently. Banks must define their target market and divide the market into sectors to adopt appropriate marketing strategies. The social concept focuses on integrating societal needs with the bank’s functions, aiming to achieve society’s goals rather than just profitability. Banks face two types of competition: direct competition, which occurs between banks that provide similar services, and indirect competition, which is non-price competition based on the quality and differentiation of banking services provided to customers. Failure to be prepared and aware of these competitions could lead to losing market share. In summary, the private banking environment is a complex interplay of customers, competitors, and social concepts, all of which play a crucial role in a bank’s success (Taha 2000).

Banks compete with other financial institutions offering similar services, such as insurance and savings funds, to attract savings. Suppliers provide the bank with materials and services, and management must ensure a continuous flow of quality materials at appropriate prices. Government regulations govern the environment and influence bank policies and activities. The global trend is to reduce compliance with bank procedures to allow banks to compete and adapt to globalization. Crowds, or pressure groups, exert pressure on banks, influencing policies and performance. Major shareholders are the most prominent pressure groups. There are three main groups: those with common interests with the bank, those interested in the bank, and those the bank cares about, such as the media and newspapers. These groups influence the bank’s policies and performance, and banks seek to improve their image with customers by having newspapers publish news about them. The competition between banks and other financial institutions is crucial for maintaining competitiveness and standing up to globalization (Al-Haddad 1999).

Political and legal conditions:

Political and legal conditions significantly influence a bank’s marketing activity, as political stability ensures the best possible environment for the bank to carry out its activities. This is influenced by laws and legislation, such as those governing consumer credit, branch opening, and allowing foreign banks to open in the local market. Social and cultural factors also play a role in how the bank manages and deals with customers, affecting their educational level and lifestyles. The bank’s marketing manager must consider these factors when developing marketing policies and strategies, as they influence customers’ tendency to save, spend, and borrow. The banking industry is highly affected by technological development, which has greatly impacted the diversity and multiplicity of banking services. Bank managers must navigate these challenges by making appropriate changes in their strategies and enabling banks to innovate new products and services for customers. Overall, the banking industry is influenced by various factors, including political stability, social and cultural factors, demographic environment, and technological advancements (Zidane 2000).

Digital structure:

Digital transformation in the banking sector has been a significant shift in recent decades, focusing on the use of digital technologies to enhance banking services, improve production efficiency, and achieve superior performance. This transformation involves integrating digital technology into all business areas, transforming from local computers to cloud computing, and designing a distinctive business system that fully invests in communications and information technology. This includes smart choice of customers and service beneficiaries, designing mechanisms for excellence, and encouraging human resources to work in the organization. Digital transformation aims to enhance efficiency and quality in banking services, provide a comfortable and safe banking experience for customers, and reduce operational costs. It is crucial for banks to maintain their competitiveness and improve financial performance by providing innovative and advanced digital banking services. Digital banking services have become a strong alternative to traditional banks, allowing customers to send and receive money, make digital payments, and purchase products online. These services also include features provided via mobile applications or personal computers, allowing users to conduct their financial transactions and meet their needs for various services in banks (Ali N/D).

According to the researcher, one of the critical steps that must be taken to maintain bank competitiveness and improve financial performance is to provide innovative and advanced digital banking services to customers, which can be accomplished by using modern technologies in banks that will improve the efficiency of banking operations and facilitate the conduct of banking operations. Financial transactions: People no longer need to visit traditional banks to do financial transactions, payments, or other activities. Customers may now build an immediate balance, a wallet for financial services, a bank account, and so on without leaving their rooms. That is, digital banking services have emerged as a viable alternative to banks since they are used to send and receive money, make digital payments, purchase things online, and provide a variety of additional financial services that satisfy the demands of all clients. Digital banking services also comprise all the features that are available through mobile phone applications or the user’s personal computer, allowing him to effortlessly perform financial transactions and satisfy the demands of clients for various services in banks.

Digital financial services:

 Digital financial services are information and internet-based financial services that allow customers to conduct banking operations through digital methods, such as withdrawals, credit, transfer operations, and securities dealing. The Covid pandemic has significantly accelerated the adoption of digital banking services, creating digital platforms for banks worldwide. The advantages of using electronic banking services include ease of conducting transactions, improved banking services, speed and saving time and effort, reduced operational costs, improved security and protection, enhanced competitiveness, and reduced errors. Digital banking services provide various types of transactions without the need for traditional banks or ATMs. Digital transformation allows banks to access accounts and conduct banking operations via the internet and mobile applications, allowing for faster and more efficient transactions. This saves time for companies and individuals, allowing them to focus on other accomplishments. Reducing operational costs, improving security, and enhancing competitiveness are also benefits of digital transformation. Banks can use the latest technologies to protect their customers’ data and transactions from hacking and electronic fraud, ensuring the authenticity of funds, transactions, and account details. In conclusion, digital financial services offer numerous advantages, including improved efficiency, reduced costs, enhanced security, enhanced competitiveness, and reduced errors. By adopting digital transformation, banks can enhance their competitiveness and improve customer relationships, ultimately leading to increased financial transformations and improved profits (Natarajan 2020).

Digital transformation requirements:

Digital transformation in the banking sector involves several challenges, including investing in modern technology, enhancing customer digital awareness, providing necessary training, and ensuring security and protection. Banks must also train and qualify employees to use modern technologies effectively. Legal and regulatory challenges arise, as banks must adhere to regulations related to electronic protection and security. The high cost of converting traditional business processes to digital ones is expected to improve financial performance. However, digital banking transformation also presents economic challenges, as it requires a significant investment in technology. Despite these challenges, digital banking transformation can help banks improve their competitiveness and market share, enhancing their ability to compete with modern competitors (Natarajan 2020).

According to the study, the future of financial services and customer happiness will be built on a more flexible, non-cash technology civilization that is skilled in using digital services with extraordinary ease. Blockchain databases, for example, are emerging technologies that may be utilized to revolutionize a cashless economy. As a result, contemporary communication technologies minimize the cost of infrastructure, which aids in the expansion of banking activities. Digital banks, reception offices, and employees qualified for electronic business will be the digital bank’s interface in the future and will be able to provide banking services such as connecting to the bank from anywhere and at any time, cashless and paperless transactions, and automated transaction processing, all of this will improve client satisfaction and increase their value.

Electronic payment in Iraqi banks:

Iraq has transitioned to electronic payment systems since 2004, transforming the banking sector from manual to automated. The Central Bank of Iraq introduced electronic payment in 2004, facilitating the circulation of funds between banks and financial institutions. The system is managed by operators, with central banks responsible for managing and operating payment systems. Electronic payment plays a crucial role in distributing funds for economic activities and is considered a social infrastructure. Banks are adopting automated financial systems and networks to link banks and financial institutions, conducting payment and clearing operations. This enables automatic financial transfers, ensuring they reach the beneficiary at a specific time. This modern communication base allows banks to provide advanced banking services and enhances financial performance. The RTGS (Real Time Grosse Settlement) system is a specialized system for transferring money and securities in real time and on a gross basis. It is not subject to waiting periods for high-value payments and settles each payment individually and immediately in real time. The ACH electronic clearing system (Automated Clearing House) and RPSI (Retail Payment System Infrastructure) are among the types of electronic payment used in Iraq. These systems aim to optimize the use of funds and encourage investors while avoiding risks from direct trading in securities. The Central Bank of Iraq implemented a system on 8/24/2006, settling payments individually without grouping them with other payment processes. Once processed, payments are final, irrevocable, or cancelable. The Central Bank is linked to the main bank branches and the Ministry of Finance ( The Central Bank of Iraq 1998).

The ACH electronic clearing system is an electronic exchange of magnetic instruments between banks, enabling the organization of checks and payment orders at one time, place, and electronically. It was implemented by the bank at the Iraqi central office on September 14, 2006. The objectives of this system include reducing time, costs, confidentiality, and risk of manual exchanging instruments, as well as implementing non-cash payments effectively through electronic transfers between customers instead of cash deposits (Al Masoudi 2016).

RPSI Retail Payment System Infrastructure is a system for transferring money and payments of relatively low value made by individuals and companies, such as salary payments, online shopping payments, utility bills, and other obligations. It processes many payments on the same day, with the Central Bank being the system operator and sponsor. This system contributes to revitalizing the local market and reducing cash dealing, creating an atmosphere of competition between banks to provide new services to attract customers, encourage investors, revive the local economy, and provide job opportunities (Al -Shammari 2008).

There are various types of retail payment systems, including electronic bank cards (plastic cards), automated teller machines (ATMs), electronic points of sale (POS), and mobile phone payments. Credit cards have a specific credit ceiling for withdrawals and annual fees and interest on unpaid balances. Debit cards allow users to pay for purchases directly from their current account at the bank. Prepaid cards are not linked to a bank account but loaded with a certain balance, allowing shopping within the limits of the balance loaded into it (Rahim 2017).

Automated teller machines (ATMs) are electronic devices that allow users to use machine-readable plastic cards to withdraw money from their accounts or other services. Electronic Points of Sale (POS) are machines deployed in institutions, commercial, and service stores, deducting amounts from customers’ accounts electronically by swiping the card into the device and linking it to the customer’s account at the bank (Safar 2008).

In 2005, the Central Bank of Iraq granted a license to two companies (Asia Hawala and Iraq Wallet) to work as service providers for mobile phone payments ( The Central Bank of Iraq 1998).

The Practical side:

The research used statistical analysis to prove hypotheses. A questionnaire was distributed with 25 statements representing the dimensions of the research variables. The questionnaire was designed based on the research topic, objectives, and questions, and included three parts: personal data, items related to digital transformation, and items related to the quality of banking services. The questionnaire consisted of 150 questionnaires, 132 of which were retrieved. Table No. (1) displays the research variables, measurement items, and question codes. The questionnaire was designed after reviewing previous studies and the researcher’s practical experience. 

Table 1 

Research variables, measurement elements, and question codes

 Table 2

Likert scale scores

The sample members’ responses to scale items were assessed using a five-point Likert scale.

Table 3 Level of importance of sample members’ responses to Likert scale items

The level of importance was determined using the equation (5 – 1) ÷ 5 = 0.080, as shown in Table No. 3.

 The research tool’s validity and reliability are assessed through its internal consistency and apparent consistency. Internal consistency is determined by calculating the correlation coefficients between each statement of the questionnaire and the total score for the dimension. The results show that all 9 statements of the digital technologies dimension have statistically significant correlations with the total score of the dimension to which they belong, at a significance level of 0.01, indicating that the statements are true to what they were designed to measure. On the other hand, construct validity measures the achievement of the tool’s goals by showing the extent to which each dimension of the research is related to the total score of the dimensional phrases. The correlation coefficients of each dimension of the questionnaire with the total score in the exploratory sample N =30 was used to calculate the internal consistency of the questionnaire.

Results of the field study:

The field study utilized the SPSS package for statistical analysis, including arithmetic means, standard deviations, and weighted average percentages for descriptive analysis, Simple Linear Regression Analysis for determining the effect of the independent variable on each dimension of the dependent variable, and Stepwise Multiple Regression Analysis for determining the effect of dimensions on the dependent variable.

Table 4 Standard deviations, and responses of the research sample towards digital technologies, N =132

research sample’s responses to digital technologies in the banking sector showed a high degree of remoteness, with a total score of 4.10, a standard deviation of 0.845, and a percentage of 82%. This indicates a decrease in dispersion and convergence of opinions. Private banks showed a higher degree of remoteness of digital technologies compared to public banks, indicating an increase in digital technologies in private banks.

Table 5

Standard deviations, and responses of the research sample towards the customer experience, n= 132

The research sample’s responses to the customer experience dimension in the banking sector were analyzed. The total score for the dimension was high, reaching 4.385 with a standard deviation of 0.689. The percentage reached 87.70%, indicating a decrease in dispersion and convergence of opinions. Private banks had slightly higher remoteness of customer experience than public banks, but both had high levels. The study also showed a high degree of digital customer service in both sectors.

Table 6

Standard deviations, and responses of the research sample towards the digital customer service dimension, n=132

 The research sample’s responses to digital customer service dimensions in the banking sector showed a high degree of convergence, with a total score of 4.42, a standard deviation of 0.667, and a percentage of 88.4%. This indicates a low dispersion of opinions and a higher degree of digital customer service in private banks compared to public banks, despite being high in both sectors.

Table 7 Standard deviations, and responses of the research sample towards banking operations, N =132

The research sample’s responses to the quality dimension of banking operations were analyzed in a table. The total score for the quality dimension was high, with a mean of 3.74 and a standard deviation of 0.836. The percentage reached 74.8%, indicating a decrease in dispersion and convergence of opinions. Private banks had a higher quality dimension of banking operations compared to public banks, despite their high standards.

Results of testing the research hypotheses:

The study hypothesizes a positive, statistically significant relationship between digital transformation and the quality of banking services. It divides this hypothesis into sub-hypotheses, with the first hypothesis proving the relationship between digital technologies and digital customer service quality using simple linear regression.

Table 8

 Shows the results of a simple linear regression analysis of the impact of digital technologies on the quality of digital customer service.

The study reveals a significant relationship between digital technologies and the quality of digital customer service in banking services. The correlation coefficient R is 0.549, and the degree of influence B is 0.240. An increase in digital technologies leads to a decrease in digital customer service quality. The F value is 37.881, and the T value is 6.155. The first hypothesis states that digital technologies positively influence the quality of digital customer service, while the second hypothesis suggests a positive relationship between customer experience and digital customer service quality. The researcher used simple linear regression to verify the validity of these hypotheses.

Table 9

 Shows the results of a simple linear regression analysis of the effect of customer experience on the quality of digital customer service.

The study reveals a significant relationship between customer experience and the quality of banking services. The correlation coefficient R is 0.706, and the coefficient of determination R2 is 0.498. The degree of influence B is 0.342, indicating that an increase in customer experience leads to an impact on digital customer service quality. The significance of this effect is confirmed by the calculated F value (16.242) and T value (4.616). The second hypothesis, “There is a positive, statistically significant relationship between the customer experience and the quality of digital customer service,” is fulfilled, and the third hypothesis, “There is a positive, statistically significant relationship between digital technologies and the quality of banking operations,” is also supported.

Table 10  Shows the results of a simple linear regression analysis of the impact of digital technologies on the quality of banking operations.

The study reveals a significant relationship between the dimension of digital technologies and the quality of banking operations. The correlation coefficient R and coefficient of determination R2 indicate that a change in the quality of operations results from the change in digital technologies. The degree of influence B is 0.312, indicating that an increase in digital technologies leads to an impact on the quality of banking operations. The calculated F value and T value confirm this effect. The third hypothesis, which states a positive, statistically significant relationship between digital technologies and the quality of banking operations, is fulfilled, while the main hypothesis, which states a positive, statistically significant relationship between digital transformation and the quality of banking services, is also confirmed. The results support the hypothesis that digital transformation is positively correlated with the quality of banking services. The study reveals a significant impact of digital transformation on the quality of banking services in the banking sector. TBI and the Bank of Baghdad have higher quality services than Al-Rasheed and Al-Rafidain Banks due to their use of electronic work and higher volume of electronic transactions. The employees in these banks are qualified and experienced, providing flexibility, speed, and diversity of services to satisfy customers and attract them in the face of competition. The increase in investment in digital transformation, particularly in infrastructure, is due to the significant value of it. The size of customers’ deposits also allows them to invest, and the value and volume of daily transactions, particularly related to government transactions, contribute to the success of these banks.

Conclusions and recommendations:

The competitive environment has made it challenging for financial institutions and individuals to maintain success and excellence. To overcome these challenges, they must face problems and seize opportunities. This requires a combination of effort and creativity. Ensuring workforce development, building digital marketing expertise, and focusing on employee psychology can positively impact performance and achievement indicators for both individuals and organizations.

Conclusions:

• When compared to government banks, private banks are more concerned with the type of service and are more equipped to prepare human resources for effective electronic marketing performance.
• It was discovered that, in contrast to private bank managers, most government bank managers do not understand the significance of digital transformation.
• Government banks’ lack of interest in customers’ demands and aspirations, indicating a lack of flexibility in their financial operations and the absence of the notion of modern digital transformation.
• failing to pay attention to the external and internal look of bank buildings, as well as failing to provide customers with the essential services when they are in the bank.
• Failure to keep up with technical advancements in banking services as compared to commercial banks.
• The absence of quality performance in what banks deliver in general, whether in the quality of services or in how these services are given, because of the bank’s poor electronic marketing direction and failure to raise client knowledge about digital transformation.
• The lack of many electronic banking services, which resulted in customers dropping out and turning to alternatives other than banks, such as banking and transfer offices, causing banks to lose cash liquidity for the purpose of trading it for various other services, such as bank credit to obtain a financial return, represented by interest and various fees.

Recommendations:

• Increasing the efficiency of digital workers and providing ongoing training on dealing with digital services and clients.
• Extending the financial service system to facilitate more digital transformation in the banking industry, particularly the government sector, which now lacks such a system.
• Promoting a culture of digital transformation implementation among bank workers and encouraging them to increase efforts to educate citizens about the necessity of digital transformation, accessible services, and how to use them.
• Increasing investment in electronic security software, preventing piracy, and safeguarding financial networks through legislation that holds them accountable, protects the consumer, and ensures the security and secrecy of his transactions.
• Increasing the range of digital banking services to fulfill the requirements and wants of the most often used clients, as well as offering ATMs that are still insufficient for banking transactions and decreasing credit risks.
• Marketing digital services to conventional consumers who are not digitally literate, as well as organizing a session for them through banks to raise digital awareness.
• Increasing the availability of new digital banking services that keep up with increasing technological advancement.

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