The role of digital finance in balancing risk and resilience

Abstract

The aim of the research is to study the role of digital finance in achieving a balance between risk and resilience within banks, by analyzing the conceptual framework of digital finance and demonstrating its role in achieving a balance between risk and resilience. The research relied on a descriptive analytical approach, as it is appropriate for the nature and objectives of the research. The study population consisted of employees at Rasheed Bank in the internal audit and credit departments, considering that they are best able to assess institutional risks and operational resilience resulting from adopting digital finance. A random sample was selected from the research population, and 65 questionnaires were distributed to the study sample. 40 valid questionnaires were retrieved for statistical analysis. The results showed that digital finance contributes effectively to enhancing financial inclusion and improving banking performance, and that digital finance plays a prominent role in achieving a balance between risk and resilience. Based on these findings, the study offers several recommendations aimed at enhancing investment in financial technology, applying artificial intelligence solutions in risk management, using cryptocurrencies with caution, adopting blockchain technology to enhance transparency and security, and developing integrated financial strategies to support banks' ability to cope with crises and enhance institutional resilience while reducing operational and technological risks.