A Model of Electronic Banking Services’ Impact on Iraq’s Financial System Development
Keywords:
Electronic Banking, Financial System Development, Interpretive Structural Modeling (ISM), Fuzzy Delphi Method (FDM), Digital InnovationAbstract
This study aims to propose a model to examine the impact of electronic banking services on the development of Iraq's financial system. Electronic banking, through the introduction of channels such as online banking, mobile banking, and digital wallets, has enhanced accessibility, speed, and convenience in financial service delivery. This transformation has not only improved customer experience and reduced operational costs for banks but has also played a pivotal role in advancing financial inclusion, increasing financial literacy, and fostering economic growth. In this research, leveraging Fuzzy Delphi Method (FDM), Interpretive Structural Modeling (ISM), and the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique, key factors influencing electronic banking were identified, and their causal relationships were analyzed. Subsequently, using Structural Equation Modeling (SEM), a comprehensive model illustrating the impact of these services on Iraq's financial system was developed. The findings revealed that components such as trust, security, digital innovation, and IT infrastructure serve as driving forces, significantly influencing user adoption and service efficacy. These factors indirectly affect other dimensions, including service quality, regulatory frameworks, and financial inclusion. Ultimately, the proposed model underscores the necessity of an integrated approach to digital banking development through infrastructure enhancement, trust-building, innovation, and legal reforms. This framework can serve as a guideline for policymakers, bank executives, and technology stakeholders in transitioning toward a more efficient and transparent financial system in Iraq.
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Copyright (c) 2025 Ghadeer Hamid Shakir (Author); Mahdi Madanchi Zaj; Hamidreza Kordlouie (Author)
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