Wafa Fawzi
Introduction
The post-war era in Iraq, characterized by the aftermath of conflicts and political instability, has presented a complex and challenging landscape for the country’s banking sector. Emerging from the shadows of wars and subsequent social and political upheavals, Iraqi financial institutions have faced numerous challenges. These challenges include the destruction of infrastructure during conflicts, disruption of economic activities, struggles with outdated systems, limited technological advancements, erosion of public trust, and displacement of local communities, all hindering the reformation of a stable financial environment.
The imperative need for financial reconstruction is of paramount importance. It not only addresses the physical damage but also aims to rebuild trust in the banking system. To stimulate economic recovery and growth, there is a necessity to modernize financial infrastructure, enhance banking services, and adopt innovative solutions such as digital payments and financial technology. The historical context of Iraq emphasizes the urgent need to embark on a journey of financial revitalization, leveraging technological advancements to overcome the complexities of the post-war era, align with global financial systems, and usher in a new era of economic stability and prosperity.
In recent years, we have witnessed significant progress in financial technology in Iraq, ranging from digital payments and mobile applications to widespread adoption by the current government and its direct interest in electronic payment systems. The importance of updating financial infrastructure through digital payments and financial technology solutions for economic recovery and growth cannot be overstated, especially in the context of countries emerging from periods of conflict, political instability, and economic uncertainty. Embracing digital payments and financial technology leads to transformative impacts across various economic aspects, significantly contributing to the rebuilding process.
The emergence of digital payments in Iraq signifies a transformation in the country’s financial landscape, reflecting a response to global trends and a desire to modernize traditional banking practices driven by technological advancements and changing consumer preferences. Digital payment solutions have gained momentum, providing convenience, efficiency, and financial inclusion. The increasing proliferation of smartphones and improved internet infrastructure has facilitated the widespread adoption of mobile banking services and online transactions. Iraq has seen momentum in this context, particularly with the growing number of tech-savvy youth, a surge in fintech startups, and collaboration between financial institutions and technology providers. This shift to digital payments not only simplifies financial transactions but also contributes to reducing reliance on cash, enhancing transparency, and accountability. As Iraq transitions into the post-war era, the adoption of digital payments reflects a commitment to economic revitalization, job creation, and the establishment of a flexible financial ecosystem prepared for sustainable growth in the digital age.
