Financial Inclusion

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Financial Inclusion

Definition of Financial Inclusion:
Financial inclusion refers to efforts aimed at expanding and improving access for all segments of society, including individuals and companies, particularly those financially marginalized and low-income groups, to financial sector services and products. This includes integrating them into banking systems to facilitate their interaction through the use of electronic payment methods and digital technologies, thereby promoting economic development and reducing financial gaps between different societal groups.

Objectives of the Department

  • Enhancing Access and Quality of Financial Services:

Facilitate access and usage of financial services for all societal segments, particularly financially marginalized groups, enabling them to benefit from economic opportunities.

  • Promoting Digital Transformation of Financial Services:

Encourage modern financial innovations and adopt technology to improve accessibility, ease of use, and cost reduction via mobile applications, internet banking, and electronic payment methods, with a focus on improving security and transparency in financial transactions.

  • Providing Financing for Official Projects:

Establish mechanisms to direct necessary financing for small, micro, and medium-sized enterprises, reducing their involvement in the informal economy. This includes enhancing banking finance, developing guarantee funds, and encouraging public and private companies and international organizations to participate.

  • Fostering Economic Development and Sustainability:

Support economic growth by engaging the community with financial systems to enhance investment capabilities, expand economic activities, and promote sustainability through a shift toward a digital economy relying on technology.

  • Developing Modern Financial Technologies:

Contribute to identifying, providing, and enhancing modern financial technologies and the necessary infrastructure to apply and promote digital financial inclusion.

  • Facilitating Banking Services for Marginalized Groups:

Explore optimal methods to provide essential banking accounts and other financial services to unbanked and marginalized communities, such as basic savings accounts, digital wallets, electronic cards, and payment devices.

  • Issuing Regulations:

Develop guidelines for financial and banking services and products while ensuring consumer protection based on international standards and best practices.

  • Raising Awareness:

Design awareness campaigns targeting all societal segments to increase financial literacy and emphasize the importance of financial services.

  • Developing Financial Inclusion Strategies:

Create and implement integrated operational plans and strategies to achieve financial inclusion objectives.

  • Data Collection and Analysis:

Collect and analyze data to measure progress in financial inclusion and evaluate its impact and results.

  • Collaborating with Financial Sectors:

Work with banking and non-banking financial sectors, government bodies, and private entities to develop financial technology innovations (FinTech) to attract unbanked groups by creating new financial products focusing on savings, insurance, and modern payment methods, not just lending and financing.

  • Promoting Technology for Small Projects:

Support technology adoption for small and medium enterprises to enhance operations and provide electronic payment solutions.

  • Facilitating Accessible Financing Systems:

Develop easily accessible financing systems for small and medium enterprises to obtain low-interest loans.

  • Expanding Digital Financial Services:

Manage and develop the provision of digital financial services through mobile payments, point-of-sale devices, digital wallets, and systems for government and private collections, as well as wholesale and retail transactions.

  • Developing Financial Inclusion Strategies:

Establish comprehensive strategies and operational plans for financial inclusion by collaborating with relevant internal departments at the Central Bank of Iraq and external parties. This includes identifying initiatives to improve access to financial services and funding programs.