Digital Transformation and its Impact on the Performance of Banks in Algeria during the Period (2013-2023)
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Abstract
This research paper investigates the impact of digital transformation (DT) on the performance of Algerian banks from 2013 to 2023. It aims to highlight DT's role in improving bank performance by potentially increasing profitability and liquidity, reducing costs, and expanding customer reach and examines Algeria's strategic push, notably through the Monetary and Banking Law n°23-09, which institutionalizes digital banking and a central bank digital currency. Methodologically, the study employs a descriptive analysis of DT concepts and banking performance, coupled with an analytical approach to secondary data from official national and international reports, covering financial and non-financial indicators. Key findings reveal significant regulatory advancements and infrastructural development. Important results include the Real Time Gross Settlement System (ARTS) processing 449,686 transactions valued at 112,535.82 Algerian Dinar (DZD) and the Automated Transfer and Compensation System for Interbank Transactions (ATCI) handling 74.77 million transactions valued at 22,958.5 billion DZD in 2023. Despite progress in electronic payments and card services, the adoption of digital banking in Algeria faces challenges, including infrastructural limitations and low public trust. The study implies that while foundational digital elements are being established, sustained investment in infrastructure, digital literacy, and trust building is crucial for Algerian banks to fully realize the performance benefits of DT and enhance competitiveness.
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