The article aimed to identify the impact of digital transformation as a modified variable on the relationship between commercial bank customers’ empowerment and the competitive advantage of commercial banks. The analytical descriptive approach was adopted using a questionnaire distributed to a random sample of (284) employees in Iraqi commercial banks. Multiple regression equations and hierarchical regression equations were used. The results showed a statistically significant effect at the significance level (α≤0.05) of digital transformation as a modified variable on the relationship between the capabilities of commercial banks' customers and the competitive advantage of commercial banks. The impact of digital transformation as a modified variable on the relationship between customer empowerment and the competitive advantage of commercial banks.

Keywords: customers’ empowerment; commercial banks; competitive advantage; digital transformation.