Digital Banking in Jordan: Billions in Transactions as Security Risks Test Customer Trust

Mahrouq: Digital banking transactions surge 70%, with JD 221 million spent on technology in 2025

Bayaydeh: Human error remains banking security’s weakest link as AI creates new fraud risks

Al-Anbat – Haifa Ghaith

Jordan’s banking sector is undergoing rapid digital transformation, making financial transactions through smartphones and banking applications an essential part of daily life. While digital banking usage and electronic transfers continue to grow, cybersecurity threats, online fraud and customer data protection remain pressing concerns.

This shift raises questions about whether technology investments are improving banking services and reducing costs, and how banks can balance faster transactions with financial security, particularly as artificial intelligence (AI) enables increasingly sophisticated fraud and identity impersonation.

5.4 Million Users and JD 66 Billion in Digital Transactions

Director General of the Association of Banks in Jordan (ABJ), Maher Mahrouq, told Al-Anbat that internet and mobile banking users increased by 15%, from 4.67 million in 2024 to 5.4 million in 2025, with individuals accounting for approximately 98%.

Payment transactions through these channels surged 70%, from 123.9 million to 210.3 million, while their value rose 30%, from JD 50.8 billion to JD 66.1 billion.

Electronic transactions accounted for 88% of all banking payment transactions, up from 84% in 2024, while traditional transactions declined from 16% to 12%.

A 2026 ABJ study covering 17 banks found that digital transactions exceeded 90% of total transactions at five banks and ranged between 80% and 89% at four others.

Mahrouq highlighted the expanding role of national payment systems, noting that CliQ processed approximately 270 million payment orders worth JD 26.3 billion in 2025, while eFAWATEERcom handled 75.4 million transactions valued at JD 16 billion.

He emphasized that digital transformation is reshaping physical branches toward advisory and financing services rather than eliminating them.

JD 221 Million in Technology Investments

Mahrouq revealed that technology spending by banks surveyed reached JD 221 million in 2025, up 2.5% year-on-year, representing 8.5% of revenues and 15.1% of operating expenses.

He said digital transformation has improved operational efficiency, automated procedures, reduced paperwork and saved customers time and money.

However, these improvements do not necessarily mean lower banking fees and commissions across the board, given the continued investment required to develop and secure digital systems.

Bayaydeh: Fraudsters Exploit Customer Awareness Gaps

Cybersecurity expert Professor Wael Bayaydeh warned Al-Anbat that the human factor remains the weakest link in banking security, despite technological advances and banks’ compliance with Central Bank of Jordan regulations.

He identified phishing messages impersonating banks and urging customers to update personal information or increase transfer limits as major threats, alongside fraudulent calls from criminals posing as bank employees or officials to obtain passwords and one-time verification codes.

Bayaydeh also highlighted scams targeting CliQ users through forged transfer receipts or requests to return funds allegedly sent by mistake, exploiting the speed of instant payments.

He stressed that technical safeguards alone are insufficient without greater customer awareness and caution against sharing confidential information or responding to suspicious links and calls.

Regarding unauthorized transactions, Bayaydeh said customers should immediately notify their banks, which may block cards, suspend mobile banking access and reset login credentials.

Further measures include filing official reports, coordinating with law enforcement and contacting receiving banks to trace transferred funds and pursue available precautionary action. Technical and legal investigations determine responsibility and compensation eligibility under applicable regulations.

Artificial Intelligence: Stronger Protection, Emerging Threats

Mahrouq revealed that six banks have begun using AI for fraud detection, data analysis, credit risk management and customer service.

However, Bayaydeh warned that the same technology enables sophisticated identity impersonation through deepfake voices, images and videos, particularly as remote bank account opening expands.

He emphasized the importance of liveness detection, digital identity verification and behavioral analytics to identify unusual account activity and counter advanced fraud.

Bayaydeh also called for regular penetration testing, security assessments and simulated cyberattacks, alongside compliance with international standards, including ISO 27001 and the Payment Card Industry Data Security Standard (PCI DSS).

He noted that effective cybersecurity extends beyond regulatory compliance to include rapid incident detection and response, blocking suspicious transactions, phishing simulation results, and the readiness of disaster recovery and business continuity plans.

Meanwhile, Mahrouq cited an ABJ study of 11 banks showing an average digital operational resilience maturity score of 4.47 out of five, reflecting progress in risk management and digital incident response among participating banks.

Technical Challenges and Customer Confidence

Mahrouq said 64.7% of surveyed banks reported difficulties integrating legacy systems with modern solutions, while 52.9% cited data quality and integration challenges. The same percentage reported shortages of specialized technology professionals, and 41.2% identified high investment and development costs as a major obstacle.

Other challenges include data protection, cybersecurity, risks associated with technology service providers and cloud computing, highlighting the need for continuous system upgrades and workforce development.

Mahrouq stressed that digital transformation should not be measured solely by transaction volumes or technology spending, but also by customer satisfaction and trust, service speed and reliability, and banks’ ability to resolve complaints and technical disruptions.

He cautioned that increased digital banking usage does not necessarily indicate higher customer satisfaction.

Overall, the figures demonstrate unprecedented growth in digital banking adoption across Jordan. Yet sustaining this transformation depends on banks’ ability to protect customer funds and data, improve service quality and affordability, and strengthen awareness of electronic fraud.

While technology makes banking faster and more accessible, the central challenge is ensuring that digital services are equally secure, reliable and efficient, and that growing investments translate into better customer experiences and stronger public confidence in Jordan’s banking sector.