Digital Finance and its Impact on Financial Inclusion

Abstract

The research aims to demonstrate the level of development of digital finance by the Central Bank of Iraq and its impact on financial inclusion in Iraq. The researchers have adopted the descriptive analytical approach by subjecting the data published by the Central Bank, the subject of the research, to statistical analysis to demonstrate the relationship between the research variables and prove its hypotheses. The research is based on the following two hypotheses: The first hypothesis: The digital finance variable is significantly related to the financial inclusion variable. The second hypothesis: Digital finance has a significant impact on the dependent variable, financial inclusion, at the overall level of the two study variables. The research reached a set of conclusions, the most prominent of which is that financial inclusion is linked to many stakeholders, from policy makers and regulators to the private sector, including employers, educational systems, communities and individuals. In this context, it is the responsibility of policymakers and regulators to ensure an open environment for financial services, from predictable laws and regulations to sound and accessible physical infrastructure. There is also a correlation and influence between the research variables The research also concluded with a set of recommendations, the most prominent of which are: Promoting digital financial services as a priority to drive the development of inclusive financial systems, through coordinated national strategies and action plans, monitoring and evaluation.

Providing an enabling and proportionate legal and regulatory framework for digital financial inclusion, taking into account the standards and guidelines of relevant international bodies and standards.