Digital transformation has become a crucial aspect in enhancing the operational management of Islamic banking institutions in Indonesia. The rapid development of information technology has encouraged Islamic banks to adapt their operational systems in order to remain competitive, efficient, and compliant with sharia principles. Digitalization in Islamic banking includes the implementation of core banking systems, mobile banking, fintech integration, and data-driven decision-making processes. These innovations not only improve service quality and operational efficiency but also expand financial inclusion among the Muslim community. In the context of operational management, digital transformation enables Islamic banks to streamline internal processes, reduce operational risks, and enhance transparency and accountability. Furthermore, the adoption of digital technologies supports compliance with sharia principles by ensuring accurate transaction recording and monitoring. This study aims to analyze the role and impact of digital transformation in the operational management of Islamic banks in Indonesia. The method used in this study is a qualitative approach with a library research design, utilizing various academic sources such as journals, books, and reports related to Islamic banking and digital transformation. The findings indicate that digital transformation significantly contributes to improving efficiency, competitiveness, and customer satisfaction in Islamic banking operations. Therefore, a comprehensive understanding and strategic implementation of digital technologies are essential for the sustainable development of Islamic banking in Indonesia.
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