Issue #4 (Volume 20 2025)

Type of the article: Research Article

Abstract
This study investigates how corporate governance (CG) shapes financial reporting quality in Jordanian banks and whether audit quality mediates this relationship. Motivated by persistent agency challenges and evolving regulatory expectations in emerging markets, the research examines whether core governance principles – discipline, transparency, independence, accountability, and fairness – translate into more timely, comparable, and understandable reports. A cross-sectional survey of senior executives and board members from 20 banks headquartered in Amman produced 214 valid responses (July–November 2022). Measurement validity and reliability were established, and structural equation modeling was used to test direct and indirect pathways. The results show that CG exerts a strong positive effect on financial reporting quality (β = 0.608) and that audit quality independently enhances reporting outcomes. Mediation analysis indicates that audit quality functions as a significant partial mediator of the CG-reporting link (indirect β = 0.247), demonstrating that governance improvements are amplified when supported by competent, independent, and professionally rigorous audits. These findings imply that governance architecture and assurance practices operate as complementary mechanisms: robust boards and effective audit committees create the conditions for high-quality audits, which in turn convert governance intent into decision-useful disclosures. The study provides context-specific evidence from Jordan’s banking sector, clarifying the channels through which governance reforms strengthen reporting credibility. Practically, the results endorse reinforcing audit committee independence, resourcing internal controls, and embedding transparent disclosure norms to sustain market confidence and align with international reporting expectations.

Type of the article: Research Article

Abstract
This study investigates the link between sustainability commitment and cash holdings and assesses the relationship between board meetings (BM), industry knowledge (IK), and Shariah Supervisory Boards (SSBs) and sustainability commitment in Indonesian Islamic banks. The analysis employs entity-year fixed effects regressions and conducts robustness checks on an unbalanced panel covering 15 banks from 2017 to 2023. Sustainability commitment is proxied by a disclosure index aligned with national and global guidelines, while cash holdings equal cash and equivalents scaled by total assets.
Results from the main specification indicate that stronger sustainability commitment is associated with higher cash holdings (p < 0.05), consistent with precautionary motives under ESG execution and disclosure scrutiny. Board activity, proxied by meeting frequency, is positively related to sustainability commitment (p < 0.01), and SSB size also shows a significant association (p < 0.01). Leadership competency is not a significant factor in the sustainability liquidity link. While standard controls are included, bank age is negatively associated with cash holdings (p < 0.01).
These findings suggest that banks with stronger sustainability commitment maintain larger liquidity buffers, and that SSB oversight and active boards help embed sustainability within prudential liquidity management. The evidence informs regulators and managers seeking to coordinate Shariah governance, sustainability mandates, and cautious liquidity practices in emerging markets.

Acknowledgment
Currently, the manuscript is under the support of The Academic Research Grant (ALG), which is an Internal Research Grant from Unpad (Padjadjaran University) for the year 2023 with reference number 1549/UN6.3.1/PT.00/2023.

The Original Article was published on October 3, 2025

Corrigendum
The authors regret that the original title of the article was inappropriate and wish to amend it to “Do the Sustainable Development Goals enhance bank profitability? Global panel evidence.”
This correction aims to more accurately reflect the scope and focus of the research presented in the paper.
The authors emphasize that this amendment does not affect the data, analysis, or conclusions of the study in any way.
They sincerely apologize for any misunderstanding or inconvenience this may have caused to readers and the editorial team.

Type of the article: Research Article

Abstract
The rapid development of Islamic banking in Indonesia faces challenges in managing Non-Performing Financing (NPF), requiring an innovative approach based on Islamic values. Mabda’ At-Ta’awun, an Islamic cooperative principle that emphasizes collaboration between banks and customers to resolve problem financing, presents a promising alternative solution. This study aims to analyze the effectiveness of implementing Mabda’ At-Ta’awun in increasing the recovery rate and reducing the NPF ratio in Indonesian Islamic banking, as well as to evaluate the influence of bank characteristics on financing risk management performance. The research methodology uses a quantitative approach with panel data analysis from five Indonesian Islamic banks: PT Bank Muamalat Indonesia, PT Bank BCA Syariah, PT Bank BTPN Syariah, PT Bank Mega Syariah, and PT Bank Syariah Bukopin for the period 2016–2024 (45 bank-year observations). Fixed Effects Panel Regression, Seemingly Unrelated Regression (SUR), and Granger Causality Tests are used to identify causal relationships between variables. The results of the study demonstrate the effectiveness of Mabda’ At-Ta’awun in improving the performance of problem financing management: the financing recovery rate increased by 18.47% and the problem financing ratio decreased by 2.34%. Large banks face implementation flexibility constraints, while banks with high profitability demonstrate superior recovery performance. This study provides empirical evidence that implementing the Ta’awun principle can create a sustainable competitive advantage in Islamic banking financing risk management through a win-win solution approach that integrates Sharia compliance aspects with business effectiveness.

Type of the article: Research Article

Abstract
The study examines the Jordanian banking environment against the backdrop of rapid digital advances and whether applying Artificial Intelligence, Financial Technology solutions, and hybrid platforms that combine new and traditional technologies is gaining traction. It surveyed 460 respondents, including 280 bank officials and decision-makers, 140 active Financial Technology practitioners, and 40 regulators and policymakers. These groups were deliberately selected to include different views of operation, usage, and regulation. The questionnaire took place between September and December of 2024, a time in which Jordan itself began an electronic transformation project as a result of the previous pandemic outbreak. Institutional Review Board approval from the Middle East University, as well as consent from online volunteers, preceded this study.
Quantitative analysis demonstrates good readiness to adopt Artificial Intelligence (mean value 4.3) and hybrid integration (mean value 4.2). Application Programming Interface integration was indicated as a chief enabler of Artificial Intelligence adoption (0.78, 0.020), which enabled real-time risk analysis (0.70) and customer satisfaction (0.62). These, in turn, enhanced regulatory compliance (0.57), infrastructure buildup (0.54), and tech capacity development (0.49). The study illustrates the interconnected correlation between infrastructural backup, rule compliance, and technological readiness in ensuring the success of digital transformation processes. By integrating empirically derived data and situational analysis, this work provides a new depth of understanding of the feasibility of restructuring financial services provision in new economies such as Jordan. The study illustrates the possibilities and constraints of Financial Technology and Artificial Intelligence applications, with special emphasis on culturally compliant and morality-inclined innovation.

Type of the article: Research Article

Abstract
This study seeks to empirically evaluate the critical role of cybersecurity awareness and cloud computing capabilities in shaping value co-creation using cloud-based mobile fintech services of Islamic banks in Jordan from clients’ perspectives. By employing a quantitative methodology, 498 clients of Islamic banks completed the questionnaire for this study. The questionnaires were sent to clients who perform their financial activities by using cloud-based mobile fintech services from various Islamic banks in Jordan. Based on Structural Equation Model (SEM) analysis, the results uncover that social engineering threats, password security, and social factors have a significant direct effect on cybersecurity awareness among customers of cloud-based mobile fintech services of Islamic banks in Jordan at a significant value level (P < .05, .01, and .001). The findings also confirm that cybersecurity awareness asserts a positive direct influence on both cloud-computing capabilities and value co-creation among customers of cloud-based mobile fintech services of Islamic banks in Jordan (P < .001). Finally, cloud-computing capabilities have a significant direct influence on value co-creation among customers of cloud-based mobile fintech services of Islamic banks in Jordan (P < .001). The results of the developed model of this study could be used to enhance the financial services of Jordanian Islamic banks, assist in producing new services, reinforce the development process of cloud-based mobile fintech services, and aid in developing cybersecurity awareness algorithms in this field.

Type of the article: Research Article

Abstract
Artificial Intelligence (AI) is transforming banking operations, with many banks rapidly embracing the technology. In annual reports, banks voluntarily disclose information about their AI initiatives, but the extent to which such disclosures influence customer behavior remains underexplored. This study investigates the impact of voluntary AI disclosures on customer deposit behavior, with a focus on the ownership structure of banks in India. The AI disclosure index was constructed from annual reports of 12 Nifty Bank Index constituents. Using a mixed-methods approach, the balanced panel dataset over the period 2019–2023 was analyzed using a random effects model, validated through the Hausman test. Results indicate that voluntary AI disclosure positively influences the deposits, supporting the view that transparent reporting strengthens customer confidence. Public sector banks show stronger effects, with the ownership dummy yielding a negative coefficient, suggesting that private banks face a credibility gap. Profitability had a significant influence on deposit behavior, whereas book values per share and policy repo rate were insignificant. The findings demonstrate that voluntary AI disclosure has a signaling effect, influencing customer trust, which is captured in the form of customer deposits. These results have practical implications for managers in designing disclosure and policymakers in standardizing reporting frameworks to improve reporting transparency.

Type of the article: Research Article

Abstract
Stress is a significant issue affecting employee productivity worldwide. This is especially true for banking employees who are famous for their high workload and pressure. The study seeks to determine how stress management initiatives influence work-life balance and self-efficacy, and how these elements jointly drive employee performance. The research was conducted between December 2024 and January 2025, employing a quantitative research design. The population consisted of employees working in Indonesian State-Owned Enterprise banks. Data for this study were obtained using interval-scale questionnaires and processed through Structural Equation Modeling (SEM) with the assistance of SmartPLS 4. The results demonstrated that both work-life balance and self-efficacy exerted a positive and statistically significant impact on employee performance (p < 0.05). Moreover, a significant positive association was found between work-life balance and self-efficacy (p < 0.05), emphasizing its role in cultivating employees’ confidence and competence. Self-efficacy also acted as a mediating variable linking work-life balance to performance (p < 0.05). Collectively, these findings highlight that effective stress management contributes to improved employee outcomes. Within the banking sector, fostering work-life balance is a vital strategy to minimize stress and enhance performance, while strengthening self-efficacy amplifies these benefits. The mediating role of self-efficacy highlights its contribution in translating balanced work-life conditions into higher performance. Therefore, organizations experiencing high stress and turnover rates are encouraged to integrate work-life balance programs and self-efficacy development into their employee management strategies.

Acknowledgment
The author expresses sincere gratitude to Universitas Sumatera Utara, particularly the Research Institute, for their invaluable support throughout this study. Appreciation is also extended to the Ministry of Higher Education, Science and Technology through the DPPM program (number: 82/UN5.4.10.K/PT.01.03/KP-DPPM/2025), which has provided intellectual and financial assistance. 

Type of the article: Research Article

Abstract
Indonesia, with its position as the world’s largest Muslim-majority country, still shows a striking paradox: conventional banks remain dominant, while the market share of Sharia banks is stuck at 7.83% by the end of 2023. To address this issue, this study examines the role of compliance, Islamic financial literacy (IFL), skepticism, attitude, and religiosity in shaping Muslim consumers’ intention to adopt Sharia banking. The target population was Muslim individuals aged 17 years and above who had not yet opened an account in a Sharia bank, as they represent potential adopters. Data were gathered through an online survey conducted from July to August 2023, involving 210 respondents, with the majority being female (60%), aged 17-25 years (41%), and already employed (70%). Using Partial Least Squares Structural Equation Modeling (SmartPLS 3.0), the findings reveal that perceived Sharia compliance directly increases intention (β = 0.114; p < 0.01) and reduces skepticism (β = –0.556; p < 0.001). IFL does not directly influence intention (β = 0.053; p = 0.134), but it lowers skepticism (β = –0.225; p < 0.01). Skepticism erodes positive attitudes (β = –0.412; p < 0.001), while attitude emerges as the strongest predictor of intention (β = 0.795; p < 0.001). Religiosity further strengthens the link between IFL and intention (β = 0.089; p < 0.01). These findings highlight that authentic Sharia compliance and positive consumer attitudes play a more decisive role than IFL, with religiosity serving as a key factor in shaping decisions to adopt Sharia banking.

Type of the article: Research Article

Abstract
Business intelligence and analytics (BIA) have become an essential tool for improving decision-making and maintaining a competitive edge in the global banking industry. Nevertheless, the extent of adoption varies significantly across emerging economies. This study examines the principal organizational and individual determinants influencing BIA utilization in Jordanian commercial banks, focusing on four main predictors: data literacy, change management effectiveness, strategic alignment, and user involvement in system development. A quantitative research design was used, and an online questionnaire was distributed among all twenty commercial banks in Jordan (15 locally owned and 5 foreign) between January and April 2025. The survey was targeted at information technology professionals, operations managers, and data specialists directly involved in the design, implementation, and operationalization of BIA systems. A total of 566 valid responses were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results prove that user involvement in system development (Beta 0.31, P 0.001), data literacy (Beta 0.30, P 0.001), change management effectiveness (Beta 0.27, P 0.001), and strategic alignment (Beta 0.20, P 0.001) have a significant positive effect on BIA usage. Further comparative analysis shows that there are no statistically significant differences between local and foreign banks as to their BIA adoption levels or the strength of the relations among the variables examined. This means both cohorts have become equally digitally ready and BI-integrated. The study highlights the need to blend individual competencies with organizational capabilities to effectively utilize BIA in the Jordanian banking sector and provides recommendations to help executives and policymakers improve data-driven decision-making.

Type of the article: Research Article

Abstract
The study aims to investigate the effect of the digital HR transformation on the quality of HR services delivered in Saudi commercial banks and to determine whether the human-AI collaboration climate moderates the relationship. The relevance of the study is predicated on the reality that the trend of digitalizing HR processes is growing, and it is a strategic requirement that such developments find their way into the practical outcomes of services delivered to a bank’s staff. The research used a quantitative cross-sectional survey to study the staff at the headquarters of ten Saudi commercial banks in Riyadh. Structural equation modeling was employed to test the study’s hypothesis to verify the measurement structure and test the hypothesized structural paths. The empirical results show that the effect of digital HR transformation on the quality of HR services is positive (b = 0.487, T = 8.392, p = 0.001). Attitudes towards human-AI cooperation also play a statistically significant moderating role (b = 0.138, T = 2.142, p = 0.033). This means that the positive environment of human-AI interaction boosts the contribution of digital HR systems to the service delivery process. The results show that it is important to invest in technology and create organizational climates that make it easier for people and AI to work together. This dynamic offers practical changes that can be implemented by banking institutions to enhance the quality of HR services by aligning digital changes in the strategy.

Type of the article: Research Article

Abstract
This study examines the impact of fintech usage, accounting knowledge, financial reporting systems, and transparency on stakeholder trust, with banking data security playing a moderating role. Warp PLS was employed to analyze data collected from 231 professional employees of private banks in East Java, Indonesia. The sample was purposefully selected to ensure insights from professionals actively engaged with fintech applications in the banking sector. Respondents were surveyed through structured questionnaires to evaluate their perceptions of fintech integration and its influence on trust-related mechanisms. The study follows strict ethical guidelines to protect human participants and uphold the integrity of the research process. The findings highlight that robust financial reporting systems (β = 0.405, p < 0.001) and transparency (β = 0.336, p < 0.001) significantly enhance stakeholder trust. In contrast, fintech usage (β = –0.010, p = 0.440) and accounting knowledge (β = –0.021, p = 0.370) demonstrated no direct impact. Banking data security was found to positively moderate the relationship between fintech usage (β = 0.169, p = 0.004), financial reporting systems (β = 0.229, p < 0.001), and transparency (β = 0.108, p = 0.047) with stakeholder trust. However, data security did not significantly moderate the effect of accounting knowledge on trust (β = 0.055, p = 0.198), suggesting that stakeholders rely on accounting expertise independent of security measures. These results highlight the importance of prioritizing transparency and data security in banking fintech operations to foster trust among stakeholders in private banks.

Type of the article: Research Article

Abstract
Digital financial inclusion (DFI) has become a critical driver of sustainable growth and financial resilience in the digital era, yet its implications for bank stability remain ambiguous, particularly across heterogeneous institutional contexts. This study examines whether and under what conditions DFI fosters bank stability, using data from 65 emerging and advanced economies during 2010–2022. Employing Double Machine Learning (DML) and Causal Forests to address endogeneity and treatment heterogeneity, together with Panel Threshold Regression (PTR) to capture nonlinear dynamics, the paper provides a causal and structural assessment of the DFI–stability nexus. Results reveal that, on average, DFI exerts no statistically significant impact on bank stability across the full sample. However, substantial heterogeneity emerges in financially developed and institutionally strong economies, DFI significantly enhances stability (CATE = +0.0165, p < 0.001), while in underdeveloped systems it weakens it (CATE = –0.0082, p < 0.001). The PTR model identifies a critical DFI threshold (–1.3611), below which DFI undermines stability and above which its effect becomes neutral, confirming nonlinear regime behavior. These findings highlight that DFI alone cannot guarantee stability; its benefits materialize only within robust institutional and financial ecosystems. Methodologically, the integration of causal machine learning and threshold modeling offers a novel framework for examining digital finance policies and contributes to a deeper understanding of conditional digital effectiveness in modern banking systems.

Type of the article: Research Article

Abstract
Environmental, Social, and Governance (ESG) issues today have a profound impact on various aspects of businesses. This research paper explores the relationship between each ESG dimension, including Environmental, Social, and Governance, and employee commitment in Vietnam’s commercial banks. The paper further examines the mediation effect of employee motivation on the relationship between ESG and employee commitment. An online questionnaire survey was administered to employees of 21 commercial banks in Vietnam, yielding a dataset of 411 responses. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.1. The study proposes that the environmental and governance dimensions of ESG have a positive impact on employee commitment, with p-values of 0.000. Additionally, employee motivation serves as a complementary mediator in the relationship between the environmental dimension and normative commitment (p-value 0.000), as well as in the relationship between the governance dimension and both affective commitment and normative commitment (p-value 0.000). However, the social dimension of ESG does not have a direct impact on employee commitment (p-values ranging from 0.069 to 0.219). Furthermore, employee motivation functions as an indirect-only mediator in the relationship between the social dimension of ESG and employee commitment (p-value 0.000). Besides, employee commitment does not moderate the relationship between the environmental dimension and affective commitment (p-value 0.053), the environmental dimension and continuance commitment (p-value 0.134), or the governance dimension on continuance commitment (p-value 0.078). The findings provide valuable insights into ESG practices for fostering employee commitment by enhancing employee motivation in Vietnamese commercial banks.

Acknowledgment
The authors gratefully acknowledge the financial support from the Banking Academy of Vietnam.

Type of the article: Research Article

Abstract
Vietnam’s FinTech-enabled lending market has expanded rapidly, yet concerns regarding trust, service quality, and regulatory legitimacy persist. Understanding gender-based differences in customer experiences is therefore important for sustainable sector development. This study examines the influence of gender on the satisfaction-loyalty mechanism in Vietnam’s FinTech personal lending context. A structured survey conducted between September 2023 and September 2024 produced 952 valid responses (47.3% male; 52.7% female) from active borrowers across the country’s three major regions. Measurement instruments, adapted from validated scales, demonstrated strong reliability (Cronbach’s alpha > 0.78) and validity (CR > 0.81; AVE > 0.51). Data were analyzed using covariance-based Structural Equation Modeling (CB-SEM) and multi-group analysis. The model achieved a satisfactory fit (CFI = 0.916; TLI = 0.904; RMSEA = 0.059). Six of seven hypotheses were supported: perceived usefulness (β = 0.181, p < 0.001), trust (β = 0.132, p < 0.001), service quality (β = 0.173, p < 0.001), social influence (β = 0.070, p = 0.019), and hedonic motivation (β = 0.082, p < 0.001) enhanced satisfaction, which strongly predicted loyalty (β = 0.514, p < 0.001). Ease of use showed no significant effect (β = 0.052, p = 0.159). Multi-group analysis revealed gender asymmetries: perceived usefulness and hedonic motivation were decisive for men, whereas trust, service quality, and social influence were more influential for women. These findings highlight the need for gender-sensitive strategies to strengthen loyalty and support inclusive growth in Vietnam’s regulated FinTech lending sector.

Acknowledgment
This study would not have been possible without the support and guidance of several individuals and organizations. We extend our sincere gratitude to International School – Vietnam National University, Hanoi; Thuyloi University; and Banking Academy of Vietnam for providing the academic environment and resources necessary for this research.
Furthermore, we would like to express our gratitude to our family and friends for their unwavering support and encouragement throughout this research journey.

Type of the article: Research Article

Abstract
Systemic risk in the banking sector poses a major threat to financial stability, particularly in concentrated markets such as Morocco, where the failure of one institution may trigger widespread disruptions. Understanding the extent to which individual banks contribute to systemic risk and generate spillover effects is essential for sustaining financial system resilience. This study aims to assess the systemic risk contributions and spillover potential of six listed Moroccan banks, Attijariwafa Bank (ATW), Bank of Africa (BOA), Banque Marocaine pour le Commerce et l’Industrie (BCI), Banque Centrale Populaire (BCP), Crédit Immobilier et Hôtelier (CIH), and Crédit du Maroc (CDM), by applying the Conditional Value-at-Risk (CoVaR) methodology. The analysis uses daily return data covering the period from January 4, 2010 to January 10, 2025. Value-at-Risk (VaR) estimates at 99% and 95% confidence levels show that the three largest banks, ATW, BCP, and BOA, are the least individually risky banks under normal market conditions, suggesting greater stability. In contrast, the smallest banks, CDM, BCI, and CIH, exhibit higher individual risk exposure. CoVaR and ΔCoVaR (marginal CoVaR) results indicate that ATW, BCP, and BOA are the primary contributors to systemic risk, with a higher potential for spillover during times of distress, while the remaining banks are less systemically significant. These findings highlight the need for enhanced macroprudential oversight and regular stress testing for larger institutions, alongside improved internal risk controls for smaller banks. The study emphasizes the importance of data-driven regulatory strategies in mitigating systemic vulnerabilities and strengthening the long-term stability of Morocco’s banking sector.

Type of the article: Research Article

Abstract
Unveiling the link between financial depth, financial inclusion, and social finance serves as a demonstration of a financing mechanism for socio-economic well-being. This study aims to analyze the dynamics of financial depth and inclusion, including aspects of social finance in Ukraine. Using annual data for 2008–2024, the study constructs composite indices of financial depth (the M2/GDP, the deposits/GDP, the credit/GDP, the bonds/GDP), financial inclusion (bank branches, ATMs and self-service complexes, and POS terminals, per 100,000 adults), and normalized share of pension payments via banks. The paper reveals the decoupling of financial depth and financial inclusion since 2014. The results show a decline in financial depth (from 0.46 in 2008 to 0.18 in 2024) and an increase in financial inclusion (from 0.17 in 2008 to 0.83 in 2024). Financial depth deteriorates, as shown by the decrease in the M2/GDP (from 68% in 2013 to 46% in 2024), the deposits/GDP (from 48% in 2012 to 36% in 2024), the credit/GDP (from 64% in 2014 to 14% in 2024), and the bonds/GDP (from 0,83% in 2008 to 0,01% in 2024). Ensuring financial inclusion is supported by digital finance development, as pronounced by the decline in bank branches, the faster growth of POS terminals compared to ATMs, and the rise in non-cash transactions and social payments via banks. For financial inclusion to draw social finance development along with it, there is a need to strive for a depth-led financial system that provides not only basic financial coverage.

Acknowledgment
The paper was funded as part of the “Financial tools for reducing economic inequality in Ukraine” research project (No. 0124U002254), conducted at the State Organization “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine”.

Type of the article: Research Article

Abstract
Bank liquidity is a critical determinant of financial stability, particularly during periods of economic and geopolitical uncertainty. It is therefore a significant issue for both policymakers and financial institutions to understand the factors affecting bank liquidity in such circumstances. This study examines the main factors influencing the liquidity of European banks during three major crises: the Subprime crisis, the COVID-19 pandemic, and the Russian-Ukrainian war. The empirical analysis uses a dataset of 196 European banks observed from 2005 to 2022, employing Prais-Winsten regression models with panel-corrected standard errors (PCSE). Based on various liquidity measures, this study finds that both internal bank characteristics and external economic conditions influence liquidity, but their effects vary across crises. At the micro level, credit risk and loan loss reserves consistently have a negative impact on liquidity, which intensifies during the COVID-19 and Russia-Ukraine crises, reflecting banks’ increased vulnerability to loan impairments in periods of uncertainty and stress. Market risk has a positive effect on liquidity across all crises, highlighting the growing reliance on interbank markets during times of instability. Bank size consistently shows a negative relationship with liquidity across all crisis periods, indicating that larger banks tend to hold lower levels of liquid assets regardless of the nature of the crisis. Diversification modestly supports liquidity, while capital adequacy is negatively associated with liquidity, indicating a trade-off between capital and liquid asset holdings. At the macro level, inflation enhances asset liquidity but reduces short-term liquidity, whereas GDP growth contributes positively only to short-term liquidity.

Type of the article: Research Article

Abstract
Rapid digitalization is redefining how consumers evaluate Islamic banks, where technological progress must align with Shariah principles to ensure transparency, fairness, and credibility. In this context, digital marketing serves as a critical bridge between technological innovation and ethical communication. This study investigates how digital marketing effectiveness shapes trust and engagement, and how these factors, in turn, influence adoption intention in Islamic banking. It further examines the moderating role of religiosity and compares structural relationships across Saudi Arabia, the United Arab Emirates, and Jordan. A quantitative, cross-sectional survey conducted from January to April 2025 collected data from 824 clients of Islamic banks (Saudi Arabia = 297, United Arab Emirates = 205, Jordan = 322). The data were analyzed using partial least squares structural equation modeling, measurement invariance testing, multi-group analysis, and moderation-mediation procedures. All respondents were Muslim account holders who had interacted with an Islamic bank’s digital marketing campaign within the preceding six months. Digital marketing effectiveness significantly increased trust (β = 0.662, t = 15.42) and engagement (β = 0.628, t = 13.88). Adoption intention was jointly predicted by trust (β = 0.422, t = 10.17) and engagement (β = 0.377, t = 9.83), explaining 60.2 percent of the variance. Religiosity strengthened both relationships, with stronger effects in Saudi Arabia and the United Arab Emirates than in Jordan. Transparent, interactive, and ethically consistent digital marketing enhances trust and engagement, providing the behavioral foundation for Islamic digital banking adoption.

Type of the article: Research Article

Abstract
Transitional banking systems increasingly rely on both digitalization and corporate social responsibility (CSR) to sustain resilience and public trust. This study evaluates whether the integration of digital capabilities and CSR relates to bank-level trust and reputation in Ukraine and Kazakhstan. The study assembled 2019–2023 indicators for four banks – PrivatBank, Monobank (Ukraine), Kaspi.kz, and Halyk Bank (Kazakhstan) – based on publicly available information. All measures were standardized, and Principal Component Analysis (PCA) was used to construct a Digital-CSR Index (DCSI). The first principal component (PC1), which jointly loads on digital innovation, CSR, and sustainability variables, explains 54.5% of total variance and serves as the composite index; document coding achieved Krippendorff’s α = 0.82. Results show a clear rank order: Kaspi.kz = 4.48, PrivatBank = 0.88, Monobank = −0.27, and Halyk Bank = −4.07. Higher DCSI values are associated with stronger outcomes in customer trust and reputation across cases (e.g., trust levels up to 8.5/10), and descriptive fits suggest that the integrated index captures more cross-sectional variation in these outcomes than single-domain proxies. Robustness checks excluding one indicator at a time and restricting Ukrainian observations to the post-2022 period preserve the loading structure and rank order. The study concludes that integration, rather than parallel pursuit, of digitalization and CSR is associated with superior legitimacy outcomes in transitional contexts. Country conditions shape this relationship: Ukraine’s crisis-driven digital expansion is tempered by disclosure volatility, whereas Kazakhstan’s steadier assurance environment favors platformized integration. The DCSI provides a transparent, replicable benchmark to guide managerial strategy and regulatory design in comparable financial systems.

Type of the article: Research Article

Abstract
Investment activities of banks are a key driver in financial sector development, yet their effectiveness largely depends on the quality of financial monitoring, which can detect, diagnose, and correct anti-money laundering and countering the financing of terrorism (AML/CFT) weaknesses. This article aims to assess the effectiveness of financial monitoring in the investment operations of Kazakhstani banks and to identify transaction-level risk indicators that can support data-driven AML/CFT supervision. The study employs a mixed methods design that combines analysis of national AML/CFT legislation and supervisory guidance with semi-structured expert interviews and case studies of three major institutions (Halyk Bank, Kaspi Bank, and ForteBank). In the quantitative component, a synthetic dataset of 1,000 investment-related transactions, calibrated to 2019–2024 statistics from the National Bank of Kazakhstan and the Committee for Financial Monitoring, is analyzed using logistic, multilevel, and Bayesian logistic regression with cross-validation and bootstrapped confidence intervals. The models achieve high predictive performance (AUC up to 0.93, test accuracy up to 93.2%, sensitivity 82.0%, specificity 94.1%) and show that higher transaction amounts, cross-border origin, SWIFT channel use, and investment-linked operations increase the odds of being flagged as suspicious by factors of roughly 1.5-3.5. Qualitative evidence reveals uneven digitalization, fragmented data integration, and capacity gaps, especially in mid-sized banks, which limit the practical implementation of these risk-sensitive tools. The results justify targeted regulatory support for advanced analytics and provide a replicable framework for strengthening investment-related financial monitoring in Kazakhstan and comparable emerging markets.