Baghdad today – Baghdad
The expert in financial and economic affairs, Nawar Al-Saadi revealed today, Friday (16 August 2024), the importance of the benefits of “digitization” of financial transactions for Iraqi banks, while pointing out that digitization can enhance financial inclusion by attracting users who do not deal with traditional banks by providing easy-to-access and easy-to-use services.
Al-Saadi told “Baghdad Today”, that “the digitization of financial transactions in Iraqi banks can provide great benefits, especially with regard to reducing cases of currency smuggling,” noting that “through the adoption of digital systems, banks can track all financial transfers with greater accuracy and transparency, and this means that each transaction is automatically recorded and kept in a central database that can be reviewed at any time, and this allows the concerned authorities to monitor and detect suspicious financial activities quickly, which makes it difficult for smugglers to exploit the financial system to smuggle currencies.”
He added that “the digitization of the banking system contributes to reducing money laundering cases, as these operations usually depend on exploiting gaps in traditional systems, but with an advanced digital system, these operations become more complex, and digitization allows the use of advanced technologies such as artificial intelligence to analyze patterns in bank data and identify any abnormal or suspicious transactions,” stressing that “this helps to prevent money laundering by early identification of unusual activities and reporting them to the competent authorities.”
Al-Saadi explained that “to implement this digital transformation in Iraq, there is a need for investments in technological infrastructure and the development of institutional capabilities of banks,” noting that “this requires providing modern technology, training employees to use it effectively, in addition to developing legislation and laws that protect users and encourage digital transactions. It is also important to enhance customers’ awareness of the benefits of digital transactions and build their confidence in the new systems.”
He stressed that “digitization in banks contributes to achieving more transparency and credibility in the financial system, as each transaction can be easily tracked and reviewed, and improves the operational efficiency of banks by completing transactions more quickly and at a lower cost, and in terms of security, digitization provides higher levels of protection against fraud and theft through advanced encryption technologies.”
The expert on financial and economic affairs concluded that “digitization can enhance financial inclusion by attracting users who do not deal with traditional banks by providing easy-to-to-use services, and the digitization of financial transactions in Iraqi banks carries great potential to enhance economic stability and reduce the risks associated with money laundering and currency smuggling, which leads to a safer and more efficient financial system.”