The Impact of the Application of Enterprise Resource Planning System on Banks Financial Performance (A Case Study of Arab bank and Islamic Bank of Jordan)

This Study aims to identify the impact of Enterprise Resource Planning (ERP) on the financial performance of Jordanian Islamic and commercial banks. Tow banks are chosen Arab Bank, representing commercial banks and Jordan Islamic Bank, representing Islamic bank . The following Financial KPIS are adopted in this study : Return on Investment (ROI) , Return on Equity (ROE) , Earnings per share (EPS) and Debt Ration (D.R) for the period from (2005-2015) . Independent Samples T-Test is used to investigate the impact of ERP on all the financial percentiles included in the study foe each bank. Friedman test is used to detect any sign of financial treatmentin each bank . The Study concludes that there is no impact of ERP on the financial performance on both banks . The study also detects some ERP impact on only RIO but not the other Financial KPIs. Moreover, there are no statistically significant differences of the impact of ERP on the study sample. The study recommends that ERP should be applied in all Jordanian banks in their operations , It also recommends to maintain a continuous training for the staff on how to use ERP. Finally, it is recommended to conduit more studies by using different variables to assess the performance of banks in terms of financial and non-financial standards