Arab Monetary Fund: Digital transformation “key” to reshaping Arab banking sector
Shafaq News/ On Saturday, Fahad M.Alturki, Director-General of the Arab Monetary Fund, stated that digitaltransformation is “crucial” for reshaping the banking sector in Arab countries.
Speaking at the Electronic PaymentConference on Financial Stability in Iraq, Alturki said, “Regulatoryframeworks, electronic financial transfers, digital financial consumerprotection, and anti-money laundering requirements must balance stimulatingdigital transformation with managing and mitigating risks.”
He added, “Governments and centralbanks can support digital transformation by establishing digital regulations,evident in investments in digital infrastructure and addressing cybersecuritychallenges, which helps create an environment that fosters innovation andgrowth in the banking sector.”
Furthermore, Alturki highlightedthat “investment in digital infrastructure can boost digital banking services,enhancing access to banking services and products for both users and non-usersof the financial system.”
"The Arab region hasexperienced significant growth in fintech companies, with around 1,500 suchfirms globally and within the region by mid-2024."
The Director-General also noted, “Globalfintech statistics present significant investment opportunities, with totalinvestments in fintech reaching about $115 billion in 2023, and expected togrow to $325 billion by around 2026.”
Earlier today, during the sameevent, Iraq’s Financial and Economic Advisor to the Prime Minister, MudherMohammad Saleh, noted that Iraq is experiencing “a significant leap” inpromoting the use of electronic payment cards.
In turn, Central Bank of Iraq (CBI)Governor Ali Al-Allaq predicted a significant rise in the number of digitalbanks in the country. “Iraq is set to become a leader in digital banking, witha greater number of digital banks compared to its neighbors,” he stated.
He further emphasized that the useof electronic payment systems and banking technologies has significantlyenhanced compliance in the country's anti-money laundering efforts.
