Kawa Junad, Founder and Shareholder, First Iraqi Bank, explains why simplicity, trust, and everyday use cases hold the key to financial inclusion in a cash-heavy economy
Iraq’s journey towards digital finance is unlike that of most markets in the region. With fewer than one-third of adults holding a bank account, the country’s transformation is not simply a shift from cash to digital payments but, for many citizens, a first step into formal financial services altogether. Building adoption in such an environment demands more than technology. Education, trust, accessibility, and a growing ecosystem of everyday use cases all play a decisive role.
Kawa Junad, has been at the centre of this shift, guiding efforts to bring simple, secure, and reliable digital banking to consumers and merchants across a traditionally cash-heavy economy. From QR payments and Soft POS solutions that lower barriers for small businesses, to digital onboarding and eKYC that ease account opening, the focus has remained on removing friction while safeguarding the integrity of the system.
The following excerpts capture Junad’s insights on the technologies accelerating financial inclusion, the foundations of consumer and merchant trust, and the road ahead for embedding digital finance into everyday life in Iraq, along with the lessons this journey offers other emerging markets.
Interview Excerpts:
How did your telecom background shape the way you approached building digital banking?
My telecom background shaped how I approach digital banking. Telecom teaches you that a service is only as strong as the infrastructure behind it — coverage, reliability, scale and ease of use. Customers rarely notice the network when it works, but feel it immediately when it fails. I brought that mindset to Iraq, where the task was not simply launching an app but building the full system around the customer: connectivity, onboarding, merchant acceptance, trust, compliance and daily usefulness. Both sectors are infrastructure businesses requiring scale, reliability and trust, and both connect people to essential services in this market.
What does digital transformation look like in a market where many people are still transitioning from cash to formal banking services for the first time?
Digital transformation in Iraq begins from a more foundational starting point than in mature banking markets. Fewer than one-third of adults hold a bank account, which means most customers are not simply shifting from cash to digital payments but entering formal financial services for the first time. Technology alone is therefore insufficient; education, awareness, trust, and access are equally critical. Early efforts focused on explaining the value of banking itself before demonstrating the convenience of a digital bank. Success depends on simple products, effortless onboarding, and immediate, everyday benefits. Ultimately, transformation is a gradual process of changing habits and building confidence.
Which technologies have had the greatest impact on accelerating financial inclusion and adoption?
The greatest impact has come from technologies that remove friction for customers and merchants alike. QR payments and Soft POS have proved particularly significant, enabling small businesses to accept digital payments through smartphones they already own, without additional hardware or cost. Merchant acceptance remains one of the strongest drivers of customer adoption, as people use digital payments only where they shop, dine, and access services. Digital onboarding, facial recognition, and eKYC have similarly lowered barriers to account opening while preserving security and compliance.
“The most impactful technologies simplify the customer experience while strengthening the reliability of the system behind it.”
What does it take to build trust in digital banking among consumers and merchants traditionally reliant on cash?
Trust is built through repeated, reliable experience. Cash is familiar, and digital banking must earn that same confidence over time. For consumers, services must be simple, secure, and consistently dependable; a failed payment or slow support damages trust quickly. For merchants, the value must be practical, easing daily operations rather than simply appearing modern. Education is equally vital in a market where many are new to formal banking, which is why we engaged customers where they lived, studied, and shopped. As digital payments become visible across local merchants, bills, and transfers among family and friends, familiarity gradually changes behaviour.
What still needs to happen for digital finance to become part of everyday life across Iraq, and what can other emerging markets learn?
The next stage is embedding digital finance into normal daily behaviour, spanning merchant payments, bills, salaries, expense management, and government services. Achieving this requires reliable connectivity, simple onboarding, accessible merchant tools, customer education, and regulation that supports innovation while protecting system integrity. SMEs are critical, needing payment acceptance, cash management, and growth-enabling services embedded within the platforms they already use. Embedded finance will define the future, with financial services integrated seamlessly into everyday activities rather than standalone applications. The lesson for other emerging markets is clear: fintech scales when infrastructure, trust, regulation, merchant acceptance, and customer behaviour evolve together.
Source: Tahawul Tech