Digital Banking Capabilities and Their Impact on Smart Financial Management

Evidence from Iraqi Commercial Banks

Abstract

This study aims to analyze the impact of digital banking capabilities on enhancing smart financial management in Iraqi commercial banks, within the context of digital transformation challenges in the local banking environment The study adopts a descriptive-analytical approach, based on data collected from a sample of 40 employees working in three Iraqi private banks using a structured questionnaire.

The findings indicate a significant positive impact of digital banking capabilities on smart financial management, as these capabilities contribute to improving financial decision-making quality, enhancing financial performance efficiency, and fostering financial innovation within banks The results also show that smart risk management and digital infrastructure development are among the most influential dimensions.

The study provides an applied framework that highlights the role of digital capabilities in supporting the transition toward smart financial management in Iraqi banks.