A recent study published by the Association of Banks in Jordan on technology investment and digital transformation in 2025 reveals a new stage of development within the Jordanian banking sector. Technology is no longer merely a supporting tool for banking operations; rather, it has become one of the key drivers reshaping business models, services, and operational processes across banks.

 

The study's findings come against a global backdrop characterized by the rapid acceleration of digital transformation, the widespread adoption of artificial intelligence applications, and growing competition between traditional financial institutions and financial technology (FinTech) companies. These developments have encouraged Jordanian banks to increase their investments in digital infrastructure, modern banking systems, cybersecurity, and data analytics.

 

According to the study, total spending by Jordanian banks on technology reached approximately JOD 221 million in 2025, representing a growth rate of 2.5% compared with 2024. This figure reflects more than just an increase in expenditure; it demonstrates the sector’s continued commitment to a long-term vision aimed at building a banking ecosystem that is increasingly driven by technology, data, and digital services.

 

Notably, technology expenditure accounted for 8.5% of total bank revenues and 15.1% of total operating expenses, levels that are considered relatively high by international standards. This reflects a growing recognition among bank management that technology is no longer an ordinary operational expense, but rather a strategic investment linked to competitiveness, sustainable growth, and enhanced customer experience.

 

The study also highlights an important shift in the governance of digital transformation within Jordanian banks. Around 70.6% of participating banks reported having board-approved digital transformation strategies accompanied by clear performance indicators. This suggests that digital transformation has evolved from being a purely technical responsibility managed by information technology departments into a strategic issue subject to governance and oversight at the highest management levels.

 

The findings further demonstrate significant progress in the adoption of digital banking services. The share of transactions conducted through digital channels increased to 64.4% of total transactions in 2025, compared with 59.1% in the previous year, while the proportion of digitally active customers reached 54.4%. These indicators suggest that the Jordanian banking sector is gradually moving toward a “Digital-First Banking” model, where electronic channels become the primary platform for delivering banking services.

 

With regard to investment allocation, the study shows that banks continue to focus most of their technology spending on infrastructure, core banking systems, cybersecurity, and digital channels. Technical infrastructure accounted for 24% of total technology expenditure, followed by core systems at 21.9%, digital channels at 17.7%, and cybersecurity at 14.8%.

 

This distribution indicates that the Jordanian banking sector remains focused on strengthening its digital foundations and building the infrastructure necessary for comprehensive transformation before expanding further into advanced technologies. It also confirms that data protection and cyber resilience have become strategic priorities amid the growing global threat of cyberattacks.

 

As for artificial intelligence, the study suggests that the Jordanian banking sector is still in the gradual expansion phase of AI adoption. Although direct spending on AI applications remains relatively limited at 3.5% of total technology expenditure, many banks have already begun utilizing AI in fraud detection, predictive analytics, customer service, cybersecurity, and intelligent automation.

 

These indicators demonstrate that Jordanian banks view artificial intelligence as the next stage of digital transformation. At the same time, they are adopting a cautious and gradual approach that balances innovation opportunities with governance requirements and risk management considerations.

 

Despite this progress, the study identifies several challenges facing banks in their digital transformation journey. Among the most significant are legacy systems, data quality issues, shortages of specialized digital talent, cybersecurity concerns, and the rapid pace of technological change.

 

The study’s findings confirm that the banking sector has entered a more mature stage of digital transformation. Rising technology investments, increasing use of digital channels, and the adoption of digital transformation strategies at the board level all indicate a transition from partial digitalization toward a comprehensive restructuring of the banking business model on digital foundations.

 

As global developments in artificial intelligence, financial technology, and open banking continue to accelerate, the coming years will be critical in determining the ability of Jordanian banks to translate their technology investments into sustainable productivity gains and competitive advantages, while strengthening Jordan’s position as a technologically advanced banking hub in the region.