BANKING IN THE PALM OF THE HAND: EASE OF USE, TRUST, AND THE SUSTAINABILITY OF MOBILE FINANCIAL SERVICES IN IRAQ

Abstract

This study investigates mobile banking in Iraq as an increasingly important banking channel, particularly among younger customers who are attracted by its potential to reduce both transaction time and associated costs. Against this background, the study considers whether the growing use of mobile banking is supported by the two fundamental capabilities required for sustainable digital banking, namely usability and trust. More specifically, it evaluates the capacity and effectiveness of technological applications to support sustainable banking practices within the Iraqi banking sector. Data were collected through an electronic questionnaire from a purposively selected group of 130 customers using mobile banking services provided by Iraqi public and private banks. The instrument assessed six indicators relating to ease of use and five indicators concerning trust and security, with responses recorded using a five-point Likert scale. The reliability analysis demonstrated satisfactory internal consistency, as indicated by a Cronbach's alpha value of 0.864. One-sample t-tests were subsequently employed to determine whether the observed responses for each dimension differed from the neutral midpoint. Although both dimensions showed statistically significant departures from neutrality, the analysis at item level identified a clear divergence in customer perceptions. Respondents viewed the convenience associated with routine transactions favourably, whereas perceptions concerning fund transfers, account inspection, and legal protection remained below the scale midpoint. In light of these findings, the study recommends that Iraqi banks continuously adapt to technological developments in mobile banking to support the long-term sustainability of their operations. Greater adoption of such services may contribute to broader financial inclusion and the advancement of sustainable banking. At the same time, banks should place greater emphasis on building customer confidence by reinforcing data confidentiality, information security, and the protection of customers' personal and financial information.