Iraq to lead regional digital banking revolution

Central Bank of Iraq (CBI) Governor Ali Al-Alaq announced that Iraq is set to lead its regional counterparts in the number of digital banks. 

Speaking at the ‘Electronic Payment towards Financial Stability in Iraq’ conference in Baghdad on Saturday, Al-Alaq underscored a transformative shift towards digital banking that aligns with global technological advancements.

“Digital banks signify a change in orientation toward an approach that is entirely consistent with technological advancements and their application to a range of operations,” Al-Alaq stated. He highlighted that Iraq’s digital banks, which currently handle an annual transaction volume of approximately $5 trillion, are projected to reach around $7 trillion by 2027.

The governor revealed that over 70 banking institutions have already applied for licenses to establish digital banks in Iraq. This move marks a significant step in integrating cutting-edge technologies like artificial intelligence, encryption, and big data analytics into the nation’s financial system.

Digital banks offer a myriad of benefits, including 24/7 access to banking services through internet and mobile platforms, which allows customers to manage their finances and conduct transactions anytime, anywhere. This shift is not only enhancing customer convenience but also driving innovation and competitiveness within the banking sector.

As Iraq embarks on this digital banking journey, it promises to reshape the country’s financial landscape, making banking more accessible and efficient for its citizens.