During the ‘Electronic Payment towards Financial Stability in Iraq’ conference in Baghdad, the Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, announced that Iraq is poised to have more digital banks than its neighboring countries. This move aligns with a shift towards embracing technology in banking operations.
Al-Alaq highlighted the growing importance of digital banks, noting that their annual transaction volume is currently around $5 trillion, with expectations to rise to approximately $7 trillion by 2027. He added that over 70 banks have submitted applications to set up digital banking operations in Iraq.
The adoption of artificial intelligence, encryption, and big data analytics has been pivotal in the emergence of fully digital banks. These technologies are being integrated into Iraq’s banking sector through the licensing of digital banks, aiming to enhance customer services, foster innovation, and boost industry competitiveness.
Digital banks allow customers to fulfill their financial needs via electronic platforms, utilizing the internet and smart mobile devices, offering the convenience of conducting banking activities remotely. This accessibility ensures that customers can manage their accounts and transactions anytime and from anywhere.
The introduction of smart banking services by digital banks is transforming the traditional banking culture and practices. Increasingly, customers are using touchscreens and electronic signatures for transactions, reducing the need for physical visits to bank branches. This transition is marking a significant shift in how banking services are accessed and delivered in Iraq.
