Abstract
The study examined how the adoption of digital technology influences the operational efficiency of lending institutions, with organizational readiness serving as a key factor in this relationship. Guided by the Technology Organization Environment (TOE) framework and the Resource-Based View (RBV), the research explored how innovation, leadership, and institutional capacity contribute to improved performance in the lending sector. Using a quantitative, descriptive, and correlational approach, data were collected from 133 respondents representing various lending institutions in Bulacan. Results revealed a high level of digital adoption across automation, artificial intelligence, and cloud-based systems, accompanied by strong organizational readiness and efficient operations. The findings confirmed that institutions with greater digital adoption and leadership support achieve higher levels of operational efficiency. The developed Digital Transformation and Operational Efficiency Framework illustrates how readiness enables technology adoption, which in turn enhances efficiency and fosters a continuous cycle of improvement. The study concludes that sustained digital transformation, supported by strong leadership and adequate resources, promotes long-term operational efficiency in lending institutions.
