The Impact of Using Online Banking Services in Enhancing Social Sustainability: A Predictive Study of the Iraqi Banking Sector for the Period 2017–2023

Abstract

This study seeks to analyze the quantitative impact and the mechanism through which online banking services enhance social sustainability in Iraq, as measured by the growth of credit granted to community services during the period 2017–2023. To achieve this objective, the research employed an advanced quantitative methodology, utilizing a Radial Basis Function (RBF) network as an intelligent model to capture the non-linear relationship between the variables. The results revealed a statistically significant positive relationship between the indicator of online banking service adoption and the growth rate of community credit, with the model explaining over 56% of the variance in the dependent variable. It is concluded that digital transformation serves as an effective channel for promoting social sustainability through community credit, albeit within a complex, non-linear relationship that requires balanced management. Based on these findings, the study recommends developing an adaptive early warning system based on an expanded RBF model. This system would monitor the dynamic interaction between digitalization and banking liquidity indicators, issuing proactive signals to enable banks to adjust their credit policies and manage their liquidity. This approach aims to preserve the gains of digital financial inclusion and ensure the sustainable stability of the banking sector.