THE CHALLENGES OF IMPLEMENTING ONLINE BANKING IN THE IRAQ BANKING INDUSTRY

Abstract

The aim of this study is to identify the challenges of implementing online banking in Iraq. The methodology employed is qualitative research, utilizing grounded theory. Data collection was conducted through unstructured and semi-structured interviews with experts from both academia and the banking industry in Iraq. In this approach, codes were extracted using MAXQDA software, resulting in a total of 170 codes, 105 concepts, and 10 categories, which were further grouped into 5 overarching thematic categories.

The findings reveal that the causal conditions affecting online banking challenges in Iraq include four categories: legal and regulatory barriers, infrastructural obstacles and weaknesses in technology infrastructure, organizational reluctance to cooperate with external partners (and vice versa), and a lack of innovative digital business ideas. The contextual conditions encompass three categories: lack of human resource alignment, cultural barriers, and educational obstacles. Intervening conditions comprise two categories: absence of a clear strategic vision and goal in the domain of digital banking, and the lack of active, dynamic, and flexible organizational structures.

Furthermore, the strategies for implementing online banking involve three categories: strengthening and upgrading infrastructures, generating and presenting innovative online banking knowledge, and strategic digital management. Lastly, the consequences of failing to implement online banking in Iraq include six categories: unmet customer needs, decreased market share, inadequate analysis of customer behavior, failure to provide integrated services, reduced revenues, and increased costs.