Tripoli, Libya – Research published in 2026 by Hasan Emran of Fezzan University, Salim Alajili of Elmergib University, and Fathia Elhony of Fezzan University shows that digital transformation significantly improves banking service quality in Libyan commercial banks. The study, released in the East Asian Journal of Multidisciplinary Research, highlights that human resource competence, organizational culture, and data security play a stronger role in customer satisfaction than technology infrastructure alone.
The findings provide new evidence from Libya’s banking sector, where empirical research on digital transformation and service quality remains limited. The study offers practical guidance for bank managers and policymakers seeking to strengthen customer trust and competitiveness in the digital financial environment.
Digital transformation has become a defining force in modern banking. Across global markets, customers increasingly expect secure, responsive, and technology-driven services. Banks are responding by introducing artificial intelligence tools, cloud platforms, mobile banking systems, and data analytics. However, successful transformation depends not only on technology investments but also on organizational readiness and workforce capability.
In Libya, rapid technological change and financial-sector competition have increased pressure on commercial banks to improve service quality. Customers now evaluate banking performance not only through physical service delivery but also through digital experience, reliability, and data protection standards. This shift makes digital transformation a strategic priority rather than a technical upgrade.
The research team collected survey responses from 273 commercial bank customers in Libya and analyzed the data using structural modeling techniques to examine how digital transformation requirements influence service quality. The analysis evaluated five major transformation dimensions: leadership strategic vision, technology infrastructure, human resource competence, organizational culture, and security and privacy systems.
Results show that digital transformation plays a measurable and multidimensional role in shaping customer perceptions of banking service quality.
Key findings include:
Human resource competence significantly improves reliability, responsiveness, empathy, tangibility, and security in banking services.
Organizational culture that supports digital innovation strengthens customer trust and improves overall service effectiveness.
Security and privacy protections explain 41 percent of the variation in perceived service quality, making them the strongest influencing factors.
Technology infrastructure improves responsiveness but has limited influence on empathy, tangibility, and perceived security.
Leadership strategic vision strengthens tangibility, empathy, and security but shows little effect on responsiveness.
These findings indicate that customers prioritize safe and trustworthy digital environments over purely technical upgrades. Strong internal capabilities within banks remain essential for delivering high-quality digital services.
According to Hasan Emran of Fezzan University, digital transformation succeeds when organizations align technological change with human capacity and institutional culture. He emphasized that employee skills, internal coordination, and secure data management systems form the foundation of customer confidence in digital banking platforms.
Salim Alajili of Elmergib University explained that strategic leadership vision remains important but must be clearly communicated across institutions to influence service responsiveness. Without strong alignment between leadership direction and operational execution, digital transformation benefits may remain limited.
Fathia Elhony of Fezzan University highlighted that data protection and privacy safeguards are critical drivers of customer satisfaction in digital banking environments. She noted that secure digital systems increase trust, encourage service adoption, and support long-term customer relationships.
The study also revealed that security represents the service-quality dimension most strongly affected by digital transformation, followed by tangibility at 40 percent explained variance. Reliability and responsiveness account for 23 percent, while empathy shows 15 percent explained variance. These differences suggest that customers interacting with digital banking services place greater importance on safety and infrastructure reliability than on interpersonal interaction.
The implications of the research extend beyond Libya. Banks operating in emerging digital markets can use these findings to design more effective transformation strategies by prioritizing workforce training, organizational readiness, and cybersecurity frameworks alongside infrastructure development.
The authors recommend that commercial banks strengthen employee digital skills through continuous professional training programs and invest in advanced security systems to protect customer information. They also encourage institutions to promote digital-friendly organizational cultures that support innovation and responsiveness to customer expectations.
Hasan Emran of Fezzan University noted that digital transformation should be understood as an institutional change process rather than a technology deployment project. He explained that aligning leadership vision, employee competencies, and security strategies allows banks to improve service quality and maintain competitiveness in increasingly digital financial ecosystems.
The research further suggests that policymakers can support banking-sector transformation by developing regulatory frameworks that promote secure digital infrastructure, workforce development, and customer data protection standards. These measures can strengthen financial inclusion and accelerate digital service adoption across the region.
Author Profiles
Hasan Emran – Fezzan University
Salim Alajili – Elmergib University
Fathia Elhony – Fezzan University
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