The effect of digital banking on commercial bank performance in Jordan: a mediation analysis of technological infrastructure cost

Abstract

This study aims to investigate how technological infrastructure costs mediate the relationship between digital banking and the performance of Jordanian commercial banks. Data were collected through a structured questionnaire distributed to relevant banking personnel, and the analysis was conducted using Structural Equation Modeling (SEM). The results reveal that the adoption of digital banking leads to increased investment in technological infrastructure, which in turn significantly enhances bank performance. Furthermore, the study confirms that technological infrastructure costs have a significant and positive mediating effect on the relationship between digital banking and the performance of commercial banks in Jordan. These findings highlight the importance of strategic investment in infrastructure to fully realize the benefits of digital banking. Bank managers and policymakers are advised to prioritize technological infrastructure within their digital transformation strategies to improve operational efficiency, service quality, and overall competitiveness.