Studying the Impact of Banking Innovations on Banks' Credit Security: Evidence from the Iraqi Banking System
Keywords:
Banking innovations, credit security, Iraqi banking systemAbstract
This study aims to examine the magnitude and mechanism of the impact of banking innovations on banks’ credit security in Iraq. This applied study employed a correlational design. The statistical population consisted of employees, senior managers, and customers of ten private and public digital-oriented banks in Iraq. A sample of 200 respondents was selected using purposive and simple random sampling. Data were collected using standardized banking innovation and credit security questionnaires. Data analysis was conducted using Pearson correlation, regression analysis, and structural equation modeling in SPSS and AMOS. Banking innovations exerted a significant positive effect on credit security (β=0.38, p<0.001). A strong positive correlation was also observed (r=0.68, p<0.01). The regression model explained 65% of the variance in credit security. The effect was stronger in private banks compared with public banks. Banking innovations—particularly fintech technologies and organizational innovations—play a pivotal strategic role in enhancing credit security, improving credit scoring accuracy, and reducing default risk in the Iraqi banking sector.
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Copyright (c) 2025 Maan Hadi Hasoon Al-Absi (Author); Maryam Khalili Araghi (Corresponding author); Zohreh Hajiha (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
