Open Access

Impact of Digital Accounting Systems on Financial Performance in Banking: A Contemporary Analysis

https://doi.org/10.55640/tprjsms-v02i07-01A

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Dr. Godfrey Otieno ¹ , Dr. Nasrin Jafari ¹ ,

⁴ School of Business, University of Nairobi, Kenya

⁴ Faculty of Management and Accounting, Allameh Tabataba’i University, Iran

Abstract

The integration of digital accounting systems in the banking sector has transformed financial operations, offering enhanced accuracy, transparency, and efficiency. This study provides a contemporary analysis of the impact of digital accounting systems on the financial performance of banks. Utilizing empirical data from selected banking institutions, the research evaluates key performance indicators such as return on assets, operational cost efficiency, and financial reporting quality. Results indicate a significant positive correlation between the adoption of digital accounting technologies and improved financial outcomes. The study also identifies challenges related to system integration, cybersecurity, and employee adaptation. These findings underscore the strategic importance of digital transformation in sustaining competitiveness and financial stability in the banking industry.

Keywords

Digital accounting systems, financial performance, banking sector

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