DIGITAL TRANSFORMATION OF ACCOUNTING INFORMATION SYSTEMS AND ITS IMPACT ON ENHANCING THE EFFICIENCY OF CREDIT RISK MANAGEMENT IN KUWAITI ISLAMIC BANKS (A DESCRIPTIVE ANALYTICAL STUDY

التحول الرقمي لنظم المعلومات المحاسبية وأثره في تعزيز كفاءة إدارة المخاطر الائتمانية بالبنوك الإسلامية الكويتية (دراسة وصفية تحليلية)

Authors

  • Ali M S M Sh Al-Mutairi Academy of Islamic Studies, Universiti Malaya, Malaysia.
  • Ahmed Mohammed Ali Al-Rumaithah Centre for Quran and Sunnah Studies, Faculty of Contemporary Islamic Studies, Universiti Sultan Zainal Abidin, Gong Badak, Kuala Nerus, Terengganu

DOI:

https://doi.org/10.22452/

Keywords:

Digital Transformation, Accounting Information Systems (AIS), Impact, Credit Risks, Islamic Banks.

Abstract

This study aimed to investigate the impact of the digital transformation of accounting information systems (AIS) on enhancing the efficiency and accuracy of measuring and managing credit risks, and the subsequent reflection on the quality of decision-making within Kuwaiti Islamic banks. The study seeks to bridge the research gap on how digital technologies align with the unique context of Islamic banking and its Sharia-compliant frameworks. Using a descriptive-analytical approach, the study collected data through an electronic questionnaire distributed to a purposive sample of 80 participants, including accountants, auditors, and IT professionals in the Kuwaiti Islamic banking sector. A five-point Likert scale and inferential statistical tests were employed to analyze the findings. The study revealed that the level of digital transformation in the investigated banks was "high," with "Digital Sharia Compliance" emerging as the primary strategic driver for digitization. Results demonstrated a statistically significant positive impact of using advanced technologies (such as Artificial Intelligence and Big Data analytics) on improving the quality and timeliness of credit data, thereby enhancing the accuracy of risk measurement models and reducing the probability of financial default. Nevertheless, the findings revealed substantial cybersecurity challenges and the need to update legislative frameworks governing digital operations. The study recommended intensifying investment in Blockchain and AI technologies to bolster credit transparency, while emphasizing the development of hybrid regulatory frameworks that integrate technical requirements with Sharia considerations to ensure financial stability amidst accelerating digital transformation. The analytical interpretation further indicates that the overall effect size is moderate; therefore, the positive impact should be interpreted cautiously and should not be overstated or generalized beyond the study context.

Author Biographies

  • Ali M S M Sh Al-Mutairi , Academy of Islamic Studies, Universiti Malaya, Malaysia.

    Academy of Islamic Studies, Universiti Malaya, Malaysia.

  • Ahmed Mohammed Ali Al-Rumaithah, Centre for Quran and Sunnah Studies, Faculty of Contemporary Islamic Studies, Universiti Sultan Zainal Abidin, Gong Badak, Kuala Nerus, Terengganu

    Centre for Quran and Sunnah Studies, Faculty of Contemporary Islamic Studies, Universiti Sultan Zainal Abidin, Gong Badak, Kuala Nerus, Terengganu

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Published

2026-10-23

Issue

Vol. 6 No. 2 (2026): Vol. 6 No. 2 (2026): Online Journal of Islamic Management and Finance

Section

Islamic Accounting

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How to Cite

DIGITAL TRANSFORMATION OF ACCOUNTING INFORMATION SYSTEMS AND ITS IMPACT ON ENHANCING THE EFFICIENCY OF CREDIT RISK MANAGEMENT IN KUWAITI ISLAMIC BANKS (A DESCRIPTIVE ANALYTICAL STUDY: التحول الرقمي لنظم المعلومات المحاسبية وأثره في تعزيز كفاءة إدارة المخاطر الائتمانية بالبنوك الإسلامية الكويتية (دراسة وصفية تحليلية). (2026). Online Journal of Islamic Management and Finance (OJIMF), 6(2), 131-159. https://doi.org/10.22452/