The Effect of Digitization on Financial Inclusion and Expanding the Scope of Monetary Credit in the Iraqi Banking Sector

Abstract

Digitization was normally a result of the tremendous technological developments taking place globally in recent years, causing a shift in various fields, including the economic sector, which was heavily affected by this transformation. It has resultantly changed the operational mechanisms from traditional methods to digital approaches across multiple domains. However, this study objectively aims at exploring the theoretical relationship among digitization, financial inclusion indicators, and the expansion of monetary credit, with a focus on the development of credit cards in the Iraqi banking sector. Nonetheless, it meticulously investigates how technological innovations can effectively contribute to significantly broadening the scope of financial services and achieving financial inclusion for a larger segment of the Iraqi population. The study also analyzes key technological developments that have affected banking operations within the Iraqi banking sector, assessing their spread in various regions, including remote areas previously excluded from banking services, where individuals no longer need to travel to distant bank branches. This shift undoubtedly contributes to improving financial inclusion for those who previously struggled to access financial services. Finally, the research concludes that digitization has a noticeable impact on the expansion of banking services and the increase in credit provision.