A STUDY ON DIGITAL TRANSFORMATION IN ACCOUNTING INFORMATION SYSTEMS OF FINANCIAL INSTITUTIONS

Digital transformation has become a significant catalyst for improving efficiency, transparency, and strategic decision-making in financial institutions. The integration of advanced technologies such as cloud computing, artificial intelligence, blockchain, and big data analytics has fundamentally transformed Accounting Information Systems (AIS) by enabling automated transaction processing, real-time data analysis, and enhanced financial reporting mechanisms. However, despite rapid technological progress, many financial institutions continue to face challenges in effectively integrating digital solutions within their traditional accounting infrastructures, creating a need for empirical investigation.

The present study examines the impact of digital transformation on the performance and efficiency of Accounting Information Systems in selected financial institutions. The research uses secondary data collected from annual reports, financial databases, and institutional disclosures of major Indian banks. Statistical tools including descriptive statistics, correlation analysis, and multiple regression analysis were applied to examine the relationship between digital transformation indicators, AIS automation, and financial reporting efficiency.

The data analysis reveals a strong positive relationship between digital technology adoption and AIS performance, indicating that institutions with higher digital transaction levels, IT investment, and automated accounting processes demonstrate superior financial reporting accuracy, transparency, and operational efficiency. The regression results further confirm that digital transformation significantly influences financial reporting quality and accounting system effectiveness.

The study concludes that digital innovation is a critical driver of modern accounting systems, enhancing internal control mechanisms, financial transparency, and organizational decision-making. The findings provide valuable insights for financial institutions, policymakers, and accounting professionals seeking to strengthen digital accounting infrastructure and improve financial governance.