The Role of the Digital Economy in Expanding Banking Credit
Abstract
The objectives of this research are to break down and analyze the impact of the digital economy factors (represented by bank card numbers, Point of Sale (POS) terminals, and e-payment transactions) on increasing banking credits in Iraq during (2010-2024). Using the descriptive-analytic methodology together with the OLS econometric model in EViews software, results showed that there was no statistical correlation between digital economy indices and banking credit size. However, there has been considerable growth in terms of digitalization and financial inclusion factors. The reason behind this can be attributed to the early stage of digital transformation and lack of advanced infrastructure for digital lending along with the extensive reliance on cash-based card usage. In this regard, the study recommends developing a national database for digital credit, issuing instructions for banks to make use of digital data for issuing credits, and introducing innovative digital loans
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