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 digital transformation is “crucial” for reshaping the banking sector in Arab countries.
Speaking at the Electronic Payment Conference on Financial Stability in Iraq, Alturki said, “Regulatory frameworks, electronic financial transfers, digital financial consumer protection, and anti-money laundering requirements must balance stimulating digital transformation with managing and mitigating risks.”
He added, “Governments and central banks can support digital transformation by establishing digital regulations, evident in investments in digital infrastructure and addressing cybersecurity challenges, which helps create an environment that fosters innovation and growth in the banking sector.”
Furthermore, Alturki highlighted that “investment in digital infrastructure can boost digital banking services, enhancing access to banking services and products for both users and non-users of the financial system.”
"The Arab region has experienced significant growth in fintech companies, with around 1,500 such firms globally and within the region by mid-2024."
The Director-General also noted, “Global fintech statistics present significant investment opportunities, with total investments in fintech reaching about $115 billion in 2023, and expected to grow to $325 billion by around 2026.”
Earlier today, during the same event, Iraq’s Financial and Economic Advisor to the Prime Minister, Mudher Mohammad Saleh, noted that Iraq is experiencing “a significant leap” in promoting 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 digital banks in the country. “Iraq is set to become a leader in digital banking, with a greater number of digital banks compared to its neighbors,” he stated.
He further emphasized that the use of electronic payment systems and banking technologies has significantly enhanced compliance in the country's anti-money laundering efforts.
