Iraq's First Digital Bank Gains One Million Users, Shifts Cash Economy
First Iraqi Bank, the country's inaugural digital bank, has reached over a million customers, showing rapid adoption of mobile payments in a traditionally cash-driven market.
Kawa Junad founded First Iraqi Bank to introduce digital banking in Iraq, confronting the challenge of convincing a cash-centric population to adopt banking services. After launching its mobile app in April 2021, the bank secured roughly 3 000 small and medium enterprises, creating a critical mass that attracted consumers. Today the privately held Islamic bank, licensed by the Central Bank of Iraq since 2020, serves about 1.3 million customers, most of whom had never held an account, and supports 30 000 merchants through QR-based payments.
Transaction volumes have surged by more than 85 % between 2024 and 2025 and continued strong growth in early 2026, especially among the 18-35 age group. Beyond payments, around 30 % of users now utilize savings, credit and salary products, and the bank aims to roll out significant digital lending for SMEs and individuals by the end of 2026 or early 2027. Physical branches are being added to reinforce trust and encourage further adoption across major cities such as Baghdad, Basra, Najaf and Nineveh.
Why it matters
The bank’s rapid growth signals a shift toward formal finance in Iraq, potentially boosting economic inclusion and modernizing the country’s cash-heavy economy.
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