The Role of Electronic Banking Services in Enhancing Bank Profitability: An Analytical Study of a Sample of Private Iraqi Commercial Banks

Аннотация

The study aims to demonstrate the extent to which the level of electronic banking services reflects the banking profitability indicators of a sample of private banks (Baghdad, Al-Ahli, and the Middle East) listed on the Iraq Stock Exchange. The study identified a problem: To what extent do electronic banking services affect profitability indicators in the selected sample banks? Are the bank's electronic banking services compatible with the banking industry's economic reality and technological developments? The study reached several conclusions, including that electronic banking services, especially ATMs, points of sale, and electronic card services, have positively impacted profitability indicators in some banks, including the National Bank of Iraq and the National Bank of Baghdad. Their importance has diminished or had no positive impact on the National Bank of the Middle East. Expanding the National Bank's digital infrastructure has reduced costs and increased operational efficiency, improving profitability. Regarding compatibility with economic and technological realities, these services are fully aligned with global trends in the banking sector. This transformation has become inevitable in the current era, as financial institutions strive to provide convenient, fast, and secure services to customers, enhancing their competitiveness in the market. Furthermore, leveraging digital infrastructure helps banks keep pace with global economic transformations that are driving a reduction in reliance on cash and stimulating digital transactions. Keywords: Electronic banking services, commercial profitability, Bank of Baghdad, National Bank, Middle East Bank. electronic banking services they provide quickly, with Introduction: The world is experiencing a wave of high quality, and at the lowest cost. These services offer changes and scientific discoveries in the field of great convenience to customers, whether through the information technology. The invention of computers Internet or other electronic delivery methods, which and the Internet accelerated the transformation of provides ease of transaction and low price. Electronic traditional administrative methods and structures, financing has become one of the most important creating a society based on digital technology. This has technological variables in the financial industry for been reflected in all political, economic, and social banks. The forms of electronic banking services are spheres, including the emergence of electronic banking diverse for these banks, which provide a range of services in the banking sector. services in a bid to gain customer loyalty, including the With this digital development, most Iraqi banks and the multi-functionality of ATMs, the spread of point-of-sale banks of Baghdad, Al-Ahli, and the Middle East (POS) devices and mobile points of sale (POCs), and the compete to gain customer loyalty through the issuance of electronic cards. This has facilitated International Journal of Management and Economics Fundamental 10 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) customers' transactions quickly and easily. banking services and profitability indicators of the commercial banks within the sample. Second: The First: Study Methodology Concept of Electronic Banking 1. Research Importance: The concept of electronic banking is one of the newest 1. In the banking field: This research helps private economic concepts that has received significant commercial banks understand how to leverage modern attention from researchers over the past few years, technology to provide their services to enhance their especially as we live today in an era brimming with competitiveness and profitability. information technology and electronic services, which 2. For customers: Understanding the benefits of the have yielded a vast array of applications and programs electronic services provided by these banks contributes spanning all economic sectors. Under this modern to enhancing the customer experience. concept, bank customers can now conduct exchange 3. For those responsible for banking policies: This transactions (buying and selling) over the Internet, research provides insights into improving the banking using the electronic payment methods available from business environment by implementing modern banks. Banks' electronic services work to achieve the electronic services. highest quality of services produced at a lower cost and in a shorter time (Abdali, Hala, 2017, p. 384). The Bank 2. Research Problem: for International Settlements defines electronic The research problem lies in posing the following two banking as "the state in which banks provide banking questions: services remotely or via electronic channels, whether 1. To what extent do electronic banking services affect to residents or non-residents inside or outside the profitability indicators in the selected sample banks? countr