Digital Transformation in Libyan Banks

Four Case Studies

Abstract

This article examines digital transformation (DT) in the Libyan banking sector, a context characterized by prolonged political instability, regulatory centralization, and economic uncertainty. Using a qualitative comparative case study approach, four Libyan banks representing different levels of DT maturity were analyzed. Data were collected through twenty face-to-face interviews with bank executives and employees, complemented by internal reports and archival documents. The findings reveal that DT adoption is shaped by six interrelated factors: (1) leadership decision-making orientation, (2) ownership structure, (3) levels of bureaucracy and formalization, (4) human resource skills and training, (5) strategic clarity regarding technological development, and (6) investment capacity. Although all banks operate under the same national conditions, the relative influence of these factors varies significantly across cases, resulting in divergent DT trajectories. Rather than pursuing DT as an innovation-driven strategy, Libyan banks primarily adopt digital technologies to ensure operational continuity, regulatory compliance, and institutional survival. This study contributes to DT literature by highlighting transformation dynamics in fragile and conflict-affected environments.