In today’s rapidly growing banking landscape, management accounting has transcended its traditional role to become a cornerstone of strategic decision-making. Modern banking institutions face unprecedented challenges, including the integration of digital transformation technologies, increased regulatory scrutiny, and the demand for sustainable finance. This study examines how modern management accounting practices are shaping decisionmaking processes in this dynamic environment, with a focus on digital innovations such as artificial intelligence (AI), machine learning (ML), and blockchain technologies. The research stresses the increasing reliance on realtime data analytics and predictive modeling tools that management accounting provides to enhance credit risk analysis, optimize cost structures, and improve resource allocation. It also explores the impact of environmental, social, and governance (ESG) metrics on management accounting, reflecting the growing importance of sustainability in banking strategies. By analyzing case studies from leading financial institutions that have successfully integrated these practices, this research emonstrates how management accounting is enhancing resilience and competitive advantage. Furthermore, this study highlights the challenges of implementing advanced management accounting systems, such as cybersecurity concerns, skills gaps, and resistance to regulatory change. The findings contribute to modern discussions on the role of management accounting in driving digital transformation and sustainable growth within the financial banking sector. Policy implications and best practices are also expected to harness these developments to enhance decision-making capabilities in an increasingly complex financial ecosystem.
