Digital financial services as a tool for enabling financial inclusion: An analytical study of a sample of Iraqi banks

Abstract

The research aims to demonstrate the development of the level of digital financial services by the Central Bank of Iraq as a tool to enable financial inclusion in Iraq. This study aims to examine digital financial services such as mobile payment services, points of sale, electronic wallets, and electronic banking platforms, which enable individuals to conduct electronic financial transactions locally to promote financial inclusion. The study adopted the descriptive analytical approach, where a questionnaire was distributed to a sample consisting of employees of three Iraqi banks representing different types of banking sector (governmental, private commercial, and Islamic), with (150) questionnaires, with (50) questionnaires for each bank, in order to ensure the diversity of the sample and representation of different forms of banking work. The researcher reached several conclusions, the most prominent of which was that the descriptive analysis showed that digital financial services enjoy a high level of availability in the Iraqi banking environment, although their dimensions were characterized by varying degrees of variation. Financial services infrastructure ranked first, followed by technological integration and innovative technologies, which showed good levels of availability. Digital credit, global investment trends, and regional reach ranked lower, with greater variation in respondents' opinions on these areas. This indicates that Iraqi banks are making clear efforts to improve their infrastructure and integrate technology. However, there is a significant gap in the geographically and strategically balanced dissemination of these services. The researcher also made several recommendations, the most important of which is the need to focus on raising the quality of financial services provided to customers in terms of efficiency, transparency, and security, while simultaneously developing plans to expand banking coverage to include remote and rural areas. Addressing the geographical gap is a crucial step in broadening the customer base and strengthening confidence in the banking system.