The Impact of Financial Innovation on the Performance - Evidence from the Iraqi Banking System

The aim of this study is to investigate the impact of MMO, ATMs, POS and POC on the financial performance of banks. This study supports Silber's theory of constraint-induced financial innovation. Using data for the period from 2018 to 2022 due to the availability of data and the recent use of innovation tools in Iraq, this study examines the causal impact of innovation on the performance of commercial banks. 6 sample banks make up the study community. Secondary data was collected during the study period from the annual reports of the Iraq Stock Exchange and statistical bulletins of the Central Bank of Iraq (2021). Based on the analysis of the multiple linear regression model, MMO has the greatest impact on the performance of banks (4.195) due to the large volume and value of transactions that the banking sector goes through. Thus, more mobile and electronic banking services should be provided. The use of ATMs, internet banking and proxy banking has a significant positive impact in the short and long term on the bank's performance in Iraq, with the exception of POC and POS according to experimental results.