Digital banks and financial inclusion
Today, Iraq is witnessing the launch of a new era of banking services, shifting toward digital services in line with the global trend toward digitization and the abandonment of traditional services.
This sound approach is not just about smart applications and digital platforms, but rather represents the launch of an ambitious vision for a more comprehensive and efficient financial future. The traditional banking sector has always been the cornerstone of economies, but for years it has been confined by walls of branches and long bureaucratic wires, which has prevented it from reaching broad segments of society. Obtaining a bank account or a simple loan is an arduous journey, especially in remote areas. Here, the…
The importance of the real revolution of digital banks.
The technology has matured, becoming more secure and safe than ever before thanks to advanced encryption and biometrics. Consumer confidence has matured, as consumers have learned how to manage their daily affairs through their smartphones. More importantly, the urgent need to popularize the concept of the financial citizen, who has the right to save, invest, transfer, and finance with ease and transparency, has matured.
A digital bank, then, is not a luxury, but a strategic necessity. It is the bridge that will allow millions of the “unbanked” to cross into a world of economic opportunity that once seemed out of reach. It is the means by which the small shopkeeper, the woman working from home, the ambitious young man, and the elderly man in a remote village will be brought under the umbrella of the formal financial system. These are not just transactions; they are true empowerment.
Hence the importance of digital banks in achieving financial inclusion.
Digital banks are distinguished by their absence of the huge operating costs of traditional branches. Digital banks can offer their services at highly competitive prices, lower fees, and higher returns on savings, benefiting all customers, especially those with limited income.
The launch of these banks is a clear message of confidence in our economy, our technological capabilities, and our future. It is a declaration that we believe in all our citizens and strive to provide every individual with the tools they need to be an effective part of the economic fabric.
This is not the end of banking as we know it. Rather, it is a new birth—smarter, faster, and closer to the pulse of the people. The financial future begins today, with the push of a button, the touch of a screen. Let us all be the ones who make it happen.
Today comes the Central Bank’s step
The launch of e-wallets is a fundamental prerequisite and an important path to launching digital banks in Iraq. This approach forms part of a broader strategy for digital transformation in the Iraqi banking and financial sector. This step—and I mean the launch of the e-wallet—can be considered a
Preparing the digital infrastructure and developing the payment and financial transfer system in Iraq. These wallets serve as a technical and operational foundation for building integrated digital banking services.
• By enabling transfers between e-wallets and merchants, the Central Bank facilitates the transition to cashless transactions, a necessary step for digital banks that rely entirely on electronic services. This will contribute to enhancing digital financial literacy.
Having secure e-wallet systems in place also makes it easier for future digital banks to comply with regulatory standards without having to build systems from scratch.
All these efforts coincide with the banking sector reform plan launched by the Central Bank, which focuses on enhancing financial inclusion and digital transformation.
Alsabaah.iq