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AMMAN — Jordanian banks increased spending on technology and digital transformation to around JD221 million in 2025, up 2.5 per cent from approximately JD216 million the previous year, according to a new study by the Association of Banks in Jordan (ABJ).
The study found that investment extends well beyond the development of mobile banking applications and online services, encompassing technology infrastructure, core banking systems, cyber security, digital channels, data management and analytics, as well as artificial intelligence and other emerging technologies that support digital transformation.
The report also highlighted the growing impact of digital banking on branch networks, saying that nearly 59 per cent of banks either closed or downsized some branches during 2024 and 2025 as customers increasingly shifted to digital banking channels.
Despite the rapid pace of digitalisation, the study found that technological investment has not resulted in significant job losses. “Around 71 per cent of banks said their digital transformation programmes had not reduced staffing levels. Instead, they had redeployed employees, enhanced their skills and prepared them for new roles better suited to an increasingly digital operating environment.”
According to the study, 70.6 per cent of banks have board-approved digital transformation strategies supported by clear performance indicators. A further 23.5 per cent said their strategies remain under development, while only 5.9 per cent reported having no digital transformation strategy in place.
Technology infrastructure, including hardware, networks, data centres and core technology solutions, accounted for the largest share of investment, representing 24 per cent of total technology spending.
“Core banking and enterprise systems made up 21.9 per cent, while digital channels, including mobile banking applications, online services and branch automation, accounted for 17.7 per cent,” the study said.
Banks allocated 17.8 per cent of their technology budgets to cyber security, underscoring the sector's focus on strengthening digital resilience. Spending on data and analytics represented around 8 per cent of total technology investment, while artificial intelligence accounted for 3.5 per cent.
The study also recorded a sharp rise in digital banking activity. The average proportion of transactions conducted through digital channels increased from 59.1 per cent in 2024 to 64.4 per cent in 2025, reflecting growing customer reliance on mobile and online banking services for day-to-day transactions.
Five banks now process more than 90 per cent of their transactions digitally, while four others conduct between 80 per cent and 90 per cent of transactions through digital channels. The findings indicate that more than half of Jordan's banks have reached an advanced stage of digitalisation.
Meanwhile, the proportion of digitally active customers rose from 52.1 per cent in 2024 to 54.4 per cent in 2025, suggesting that the customer base using digital banking services on a regular basis continues to expand.
ABJexpected digital transactions to continue rising over the coming years, with most routine banking services likely to become fully digital as reliance on paper-based transactions and traditional banking channels steadily declines.
The study said that Jordan's banking sector is entering a new phase of development, evolving from digitalisation towards the concept of the smart bank, underpinned by sustained technology investment, institutional expertise, a skilled workforce and an increasingly sophisticated regulatory and organisational framework.
