This study investigates the influence of internal control systems and human resource competence on the digitalization of financial reporting, and their subsequent impact on financial reporting quality within the banking sector. The research was driven by observed weaknesses in the quality of financial reports, deICSte the growing adoption of digital technologies in financial systems. A quantitative method was employed using survey data collected from 75 employees directly involved in financial reporting processes across various banks. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS software. Findings reveal that internal control significantly enhances the adoption of digital financial reporting. Similarly, human resource competence—especially in accounting and digital tools—positively influences digitalization initiatives. Furthermore, the study confirms that financial report digitalization improves financial report quality, particularly in timeliness, reliability, and inter-period comparability. This research contributes to both theory and practice by identifying digital reporting as a crucial mediator that strengthens the effect of internal control and human capital on financial reporting quality. It offers strategic insights for bank management and regulators in optimizing control systems and human resource capabilities to support successful digital transformation.