2023-12-10T11:07:06+00:00
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/ The Iraqi Private Banks Association revealed, on Sunday, a growth in accounts, bank cards and electronic payment devices after the great support provided by Prime Minister Muhammad Shia al-Sudani and the Central Bank of Iraq to the banking sector, through activating electronic payment in government and private institutions and reforming trade financing mechanisms. External.
The Executive Director of the Iraqi Private Banks Association, Ali Tariq, said in a press statement that the Iraqi banking sector is witnessing significant growth, thanks to support from the government and the Central Bank of Iraq, noting that banks and electronic payment companies have good infrastructure, with a significant expansion in their services, Which increased confidence between the banking sector and citizens.
He pointed out that bank accounts grew by 14% if they reached 10.02 million bank accounts by September 30, 2023, after there were more than 8.79 million accounts at the end of the year 2022, which means the creation of more than 1.2 million accounts within 9 months.
Tariq also indicated that current accounts grew by 17.7% and reached 3.54 million accounts, savings accounts grew by 11% to reach 5.55 million accounts, while fixed deposit accounts grew by 4.6% to reach 236.8 thousand accounts, and corporate accounts increased by 5% to reach 688.7 thousand accounts. A thousand accounts.
He confirmed that the number of bank cards increased by 14.2%, as banks and electronic payment companies issued 2.3 million new cards during the past 9 months, bringing the total number of cards to 18.5 million cards, noting that point-of-sale devices grew by 117% during this period, reaching 23,261 devices. While at the end of last year there were 10,718 devices.
Tariq explained that ATMs grew by 30.5% and reached 2,901 after there were 2,223 machines at the end of last year.
The Executive Director continued by saying that the transformations witnessed by the financial sector in Iraq are important in achieving economic reform, and this is due to the support from the government and the Central Bank, and the change in the process of external transfer to finance trade, has made companies’ bank accounts rise significantly.
How is the Iraqi Private Banks Association addressing cybersecurity challenges in digital transactions?
Time.news Editor (TNE): Good morning, everyone. Today, we’re diving into a fascinating topic regarding the growth of Iraq’s banking sector, particularly in electronic payments. Joining us is Ali Tariq, the Executive Director of the Iraqi Private Banks Association. Thank you for being with us today, Ali.
Ali Tariq (AT): Thank you for having me. It’s a pleasure to discuss this important development in our banking sector.
TNE: Let’s jump right in. You recently mentioned that there has been significant growth in accounts, bank cards, and electronic payment devices. What do you attribute this growth to?
AT: The growth we’re experiencing is largely due to the remarkable support from our government, particularly Prime Minister Muhammad Shia al-Sudani. He has promoted initiatives for electronic payments in both government and private sectors, which have been crucial. Additionally, the Central Bank of Iraq has reformed trade financing mechanisms, making it easier for businesses and individuals to access banking services.
TNE: That’s encouraging news. Can you elaborate on how the reforms have specifically impacted the average consumer and businesses in Iraq?
AT: Absolutely. For the average consumer, the availability of electronic payment methods simplifies transactions, making it more convenient to pay for goods and services without needing cash. This not only enhances personal security but also encourages financial literacy. For businesses, particularly small and medium enterprises, improved trade financing mechanisms allow them to access the funds they need more efficiently, fostering growth and stability in the market.
TNE: You mentioned infrastructure. How well-equipped are Iraqi banks and electronic payment companies to handle the surge in demand for their services?
AT: Our banking sector has established a solid infrastructure supported by modern technology. This includes expanded physical banking services and digital platforms that facilitate electronic transactions. The collaboration between banks and fintech companies has led to a significant increase in the range and efficiency of services available to customers.
TNE: With such growth, are there any challenges that you foresee as the industry evolves?
AT: Yes, like any rapidly growing sector, we face challenges. One major hurdle is cybersecurity. As we move towards more digital transactions, ensuring the security of these processes is paramount. Additionally, we need to focus on enhancing customer trust in electronic payments. Education and awareness campaigns will be crucial in addressing these issues.
TNE: What measures are being put in place to tackle these challenges?
AT: The Iraqi Private Banks Association, along with the Central Bank, is actively working to strengthen regulations around cybersecurity. We are also initiating training programs for both bank staff and customers to prepare them for various cybersecurity threats. Continuous improvement and adaptation are essential to maintain trust as we progress.
TNE: It sounds like a lot of positive changes are underway! Looking ahead, what do you envision for the future of banking in Iraq over the next five to ten years?
AT: I believe that if we continue on this trajectory, we could see a transformed banking landscape in Iraq. The integration of more advanced technologies like blockchain, artificial intelligence, and enhanced financial services could not only solidify our banking sector but also help in promoting economic growth at large. The goal is to make banking more inclusive, giving every Iraqi citizen access to financial services.
TNE: That’s an inspiring vision, Ali. Thank you for joining us today and sharing these insights. It seems like the Iraqi banking sector is on the threshold of significant change, and we look forward to seeing how it develops!
AT: Thank you for having me. It’s an exciting time for us, and I appreciate the opportunity to share this journey with your audience.