Abstract

A world has recently witnessed tremendous technological progress in information and communications, which has led to a change in the behavior of economic units and transactions, and the so-called "digital economy" has emerged, in which technology and the Internet are one of the most important pillars, and came with many applications, the most important of which are: e-government, e-commerce.... etc., which is characterized by its activity with speed, ease and low cost. All this has led to the acceleration of the various economic and financial sectors to keep pace with these developments and benefit from them, the most prominent of which is the banking sector, as the banking industry has witnessed a fundamental transformation that coincided with the emergence of financial technology, which has provided banks with new horizons towards digital transformation in products, services and operations in order to reach a more comprehensive understanding of customers' desires and the need to meet their needs in the digital age. Islamic banks have lived radically over the past few years, driven by the growth of digital technologies and the adoption of a digital transformation strategy, as well as the growing demand of customers - especially the youth - for banking products based on the latest innovations to provide better service to customers, all of this confirms the urgent need at the present time for Islamic banking to innovate advanced digital services that live up to the aspirations of customers who are now more connected, knowledgeable and knowledgeable in light of the wide spread of Internet uses and the availability of smart devices more easily, which leads to the need for many requirements for change within banking institutions to achieve the desired goals. In Baghdad, for example, there are 30 Islamic banks that provide various banking services to customers.
An objectives of the research, they can be summarized as follows:
1 - Explaining the nature of digital transformation in Islamic banks
2 - Showing the most important advantages, risks and challenges of digital transformation in Islamic banks.
3- Demonstrating the role of digital transformation in promoting financial inclusion.