The Role of Banks in Developing Smart Financial Management Models An Applied Study of a Sample of Iraqi Banks

The banking sector is facing a rapid shift in adopting smart financial management technologies with the help of new advances in artificial intelligence, cloud computing, and predictive analytics. This work aims to find the strategic position adopted by Iraqi banks in developing and implementing smart financial management models through a study of banks' institutional capabilities regarding technical, human, and organizational dimensions applicable in smart management.
The study adopted a descriptive analytical design, coupled with field analysis for data collected from a questionnaire administered among a sample size of 40 workers in three private banks in Iraq. Data were also analyzed through various statistical procedures, including mostly linear regression analysis, the coefficient of determination, R², correlation test, as well as statistical significance. Results showed a significant positive relationship between smart financial management models adoption and the rate of efficiency and quality in financial performance. Correlation coefficient (r = 0.85) showed that the coefficient of determination, R² = 0.72, implies there exists an explanation for 72% of variance in quality of financial management based on banks' policies in such a direction. Results also confirmed that "smart risk management" and "digital infrastructure development" were the dimensions with the biggest impact.
The research provides a scientific contribution through the correlation of technical, organizational, and human dimensions with effective smart financial management in the Iraqi environment. It recommends investment in the area of artificial intelligence, improving the effectiveness of the human resources, adopting financial decision-support systems based on predictive analytics, through which it would facilitate the accelerated digital transformation of the banking sector.