Financial Inclusion Department

As part of supporting the Iraqi economic reform efforts within the banking sector, the Central Bank of Iraq has enacted and prepared numerous plans and regulations aimed at strengthening and supporting the Iraqi banking industry. The ultimate goal is to serve the country’s economic development and benefit Iraqi citizens. To achieve this, the Central Bank of Iraq has decided to establish the Financial Inclusion Department in all banks and financial companies. This department is intended to focus on customers, address their concerns (if any) within specific timeframes, and in accordance with the Central Bank’s guidelines.

The country is undergoing a challenging phase, which necessitates implementing various measures and policies to protect citizens, strengthen trust between customers and banks, and raise public awareness about safeguarding their money by depositing it in bank vaults. This approach not only protects funds from theft but also utilizes them to serve the economic development essential to individuals’ lives.

Asia Iraq Islamic Bank aims to set an example in educating and protecting the public, not only by receiving and addressing complaints but also by analyzing them and using the findings to prevent anything that might harm the interests of customers or the bank. Furthermore, the bank is committed to educating customers about banking services, how to use them, and the procedures in place to develop and enhance these services. This contributes to both economic and social development and helps guide customers in selecting suitable products that meet their needs. This is the core purpose of establishing the “Financial Inclusion Department,” as per the Central Bank of Iraq’s directive No. 9-4-289, dated 12-06-2024.

Through these efforts, the bank strives to achieve success by improving its relationship with customers and building trust, which leads to increased profitability and attracts a larger customer base. Since the customer is a fundamental factor in the bank’s success, an increase in deposits indicates the bank’s success and sustainability.

Financial Inclusion

What is Financial Inclusion?

It is the process of providing financial services to all segments of society and using them more widely across different geographic areas, including poor and marginalized groups, with the aim of promoting economic development and improving the standard of living in Iraq. Moreover, there is a need for a comprehensive framework to protect the public, which will increase trust and competitiveness in the financial and banking system, thereby improving the quality and standards of financial services provided to customers.

What is the Importance of Financial Inclusion?

The importance of financial inclusion stems from the close relationship it has with financial stability and economic growth. For example, providing and making financing available to small and medium-sized enterprises (SMEs) supports economic growth. Financial inclusion also impacts the social aspect by giving greater attention to the poor and low-income individuals, and reaching micro, small, and medium-sized enterprises.

Additionally, financial inclusion contributes to the public interest by creating job opportunities, which helps achieve economic growth. This, in turn, reduces poverty and unemployment rates, improves income distribution, and raises the standard of living. The importance of financial inclusion also lies in the provision of financial services in an easy and simple manner, at minimal costs.

What are the Mechanisms of Financial Inclusion?

1. Developing an Operational Plan.
2. Preparing Quarterly Reports.
3. Setting Future Goals and Prioritizing Them.
4. Developing a Strategic Plan.
5. Creating a Database Containing Detailed Statistics and Information on All Banking Operations.
6. Ensuring that the Goals or Strategy are Specific, Measurable, Achievable within the Set Timeframe, and Work to Unite Efforts under One Umbrella to Achieve the Desired Goals and Reach the Largest Possible Segment of the Targeted Sectors.

What is the Role of the Bank in Promoting Financial Inclusion?

The Central Bank of Iraq plays a crucial role in enhancing financial inclusion by overseeing, monitoring, and supervising the efficiency of the financial inclusion department’s performance both administratively and in the field. In turn, we implement laws and regulations by providing simplified financial and digital services aimed at expanding banking services and facilitating procedures in all their forms. Additionally, we activate credit inquiry services, develop electronic payment systems, and encourage our bank to promote financial and digital literacy, with the goal of increasing the number of bank accounts for marginalized groups by simplifying account opening procedures and reducing fees.

Digital Financial Inclusion:

Digital financial inclusion refers to the ability to digitally access and use formal financial services by individuals who are financially excluded. These services should meet customer needs, be provided in an easy, clear, and sustainable manner, and at an affordable cost within a suitable legislative and legal framework. It can also be described as ensuring that individuals in underserved or marginalized communities have access to financial products and services at reasonable prices.

Our bank’s Financial Inclusion Department works in coordination with the relevant departments to ensure the use of digital financial services and the development of digital applications in the near future. These applications will be easy and secure to enhance financial inclusion. Additionally, we monitor the responsible parties within our bank to ensure the continuous availability of digital financial services without interruption and to protect customer data.

The Role of Banks in Promoting Financial Inclusion and Meeting the Needs of All Segments of Society:

The role of banks in promoting financial inclusion generally involves the following:

1. Innovating New Digital Financial Products: This includes products for savings, insurance, and payment methods, not just loans and financing, along with providing training for employees in this field.
2. Encouraging Competition Among Banks: By offering more options to customers and enhancing competition among banks, which helps maintain high-quality services at reasonable costs.
3. Reducing Unjustified Fees and Commissions: Banks should reduce unnecessary fees and commissions imposed on customers, as well as financial services that are not suitable for customers in exchange for paying high commissions.
4. Considering Customer Circumstances: Banks should take into account the circumstances of customers when dealing with them and avoid exploiting their situation or burdening them with excessive loans.
5. Easing Financing Requirements: In coordination with the Central Bank of Iraq, banks should reduce the requirements for financing to make it more accessible

The Key Pillars for Enhancing the Concept of Financial Inclusion:

1. Supporting Financial Infrastructure: This includes developing payment systems, providing comprehensive databases, enhancing geographic outreach, and more.
2. Financial Protection for Consumers: Ensuring that consumers are protected in their financial dealings.
3. Developing Digital Financial Services and Products: Offering digital financial services and products that meet the needs of all segments of society.
4. Financial Literacy Education: Promoting financial and banking literacy to help individuals understand and effectively use financial services.

How is Financial Inclusion Enhanced?

Enhancement is achieved through the following:

1. Financial Awareness and Education: Promoting financial literacy and educating the public about the benefits of financial inclusion.
2. Increasing the Number of ATMs: Expanding access to banking services by increasing the number of ATMs and any other means that can broaden the network of financial services.
3. Expanding Digital Financial Services: Focusing on the growth of digital financial services to reach a wider audience.
4. Creating Comprehensive Databases: Establishing databases that include credit history records for individuals and small to medium-sized businesses, in addition to databases for recording movable assets.
5. Developing Payment Systems: Improving and developing payment systems to facilitate financial transactions.
6. Contributing to the Expansion of Digital Financial Services: Monitoring and supporting the spread of digital financial services offered by the bank.
7. Expanding the Network of Financial Service Providers: Focusing on the establishment of branches or small offices to finance micro-enterprises.
8. Improving Communication and Information Sharing: Expanding the provision of digital financial services, particularly mobile payments.
9. Attracting and Supporting Modern Financial Technology Innovations: Encouraging the adoption of new financial technologies to improve services.

10.Organizing and Supporting Small and Medium Enterprises (SMEs): Promoting the   growth and development of small and medium-sized businesses.

How is the Consumer Protected Financially? And How Does This Contribute to Enhancing Financial Inclusion?

To protect consumers financially, several procedures must be followed by institutions providing financial services. Implementing these procedures contributes to promoting financial inclusion. These procedures include:

1. Providing Accurate and Necessary Information: Ensuring that consumers have the required information at all stages of their interactions with banks, including the advantages and risks associated with financial products. Establishing a system to keep consumers informed about regular updates and changes to the products offered.
2. Ensuring Fair Treatment: Ensuring that customers receive fair treatment and access to financial services easily, with reasonable costs and good quality.
3. Providing Advisory Services Based on Customer Needs: Offering advisory services based on the complexity of the products and services provided, ensuring they meet the customer’s requirements.
4. Protecting Customer Financial Data: Implementing appropriate systems of oversight and protection to safeguard customers’ financial rights and data.
5. Providing Effective Complaint Handling Channels: Establishing independent, impartial, accountable, and effective mechanisms to handle customer complaints, following international best practices and in a timely manner.
6. Customer Awareness and Education: Raising awareness, especially among those who do not yet benefit from financial services, about consumer financial protection principles so that they understand their rights, responsibilities, and how to fulfill their obligations.

The Goal of Financial Education and Literacy in Promoting Financial Inclusion:

1. Creating an Integrated Financial Education System: Establishing a comprehensive financial education system to build a financially literate society, thereby enhancing and developing awareness levels across all segments of the population.
2. Helping Citizens Make Sound Investment Decisions: Assisting citizens in making informed and well-thought-out investment decisions regarding their financial transactions, with minimal risk.
3. Enabling Individuals to Acquire Skills and Knowledge: Financial education helps individuals gain the necessary skills and knowledge to manage their finances properly.
4. Reducing Unemployment and Poverty Rates: Financial education contributes to reducing unemployment and poverty, promoting economic growth, and integrating marginalized groups into society. Additionally, it plays a key role in enabling access to and comparison of different financial services.

What Should Be Done to Promote Targeted Segments in Financial Inclusion Through Financial Education?

1. Focus on Enhancing Financial Awareness and Knowledge for SME Owners and Managers: Providing dedicated efforts to increase financial awareness and knowledge among small and medium-sized enterprise (SME) owners and managers.
2. Develop a National Strategy for Enhancing Financial Education: Establishing a national strategy aimed at improving financial education levels, evaluating its success, and ensuring the involvement of government entities, the private sector, and stakeholders in financial literacy efforts.
3. Address the Limited Experience of New Consumers in Using Financial Services: Helping new consumers understand their rights and responsibilities regarding financial services, considering their lack of experience.
4. Provide Consumer Awareness Programs: Conducting public awareness campaigns aimed at empowering consumers to make financial decisions that align with their needs.

Guidelines for the Roles and Responsibilities of the Financial Inclusion Manager

First: Job Description for the Financial Inclusion Department Manager:

The manager is responsible for overseeing the department and should have a thorough understanding of financial literacy, consumer protection, financial inclusion indicators, and the ability to develop plans. They are also responsible for educating and raising awareness among the public about banking products, protecting them, and ensuring the implementation of directives issued by the Central Bank of Iraq. Additionally, the manager will guide customers to select the right information to meet their needs.

Second: Requirements for the Financial Inclusion Department Manager and Deputy:

The Central Bank of Iraq mandates the following conditions for both the department manager and deputy:

• The manager and deputy must be at least 28 years old.
• The manager must hold a university degree in one of the following fields: Business Administration, Statistics, Economics, Financial and Banking Sciences, or Media Studies.
• At least 4 years of banking experience.
• Good reputation and conduct.
• Approval from the Central Bank of Iraq for the appointment.

Third: Requirements for the Financial Inclusion Department:

A. The Financial Inclusion Department must prepare a quarterly report and complete the financial inclusion data form approved by the Central Bank of Iraq.

B. The department must develop an operational plan, which must be approved by the Board of Directors and then submitted to the Central Bank of Iraq, Financial Inclusion Division.

C. A complaint form should be established in the event of customer complaints, containing the following details: (Name of the complainant, Type of complaint, Date of the complaint submission).

D. Displaying explanatory and informative boards detailing how transactions are processed and the specific requirements for each transaction.

E – Setting up an electronic information screen that includes the services offered by the bank to customers, as well as information on profit rates, commissions, and the specific requirements for the services provided. Care should be taken to warn customers about fraudulent digital transactions.

F – Creating a dedicated email address for the Financial Inclusion Department

Fourth: Necessary Procedures for Financial Inclusion:

• Retain copies of quarterly reports.
• Maintain comprehensive records of all customer complaints received.
• Ensure confidentiality of banking information and require employees to adhere to this, preventing the leakage of customer information which could expose them to risks such as fraud and theft.
• Employees must interact with customers in a courteous and professional manner to build trust, reassurance, and comfort.
• Customers should be informed about potential fluctuations in prices, including exchange rates and profit rates.
• When opening or closing accounts, the “Know Your Customer” (KYC) principle must be followed, in compliance with anti-money laundering (AML) and counter-terrorism financing laws. These regulations should be applied correctly and not impede simple customer transactions.
• Do not impose unnecessary conditions or complications when customers withdraw amounts from their accounts. These requirements should apply when opening accounts or depositing large sums, not when withdrawing an amount from an already-established account.

Fifth: Tasks and Responsibilities:

The Financial Inclusion Manager is responsible for preparing quarterly reports and submitting them to the executive management for feedback and decisions. These reports are then sent to the Central Bank of Iraq, Banking Supervision Department, Financial Inclusion Division. The reports should include data on financial inclusion indicators, the number of valid complaints, the subjects of these complaints, what has been done to address each issue, and the current status of each complaint.

Sixth: Success Factors:

Continuous monitoring of the instructions and regulations issued by the Central Bank of Iraq.

Full cooperation with both customers and employees.

Responsibilities and Tasks of the Financial Inclusion Department:

1. The department is directly connected to the designated director, according to the Central Bank of Iraq letter number 9-4-289, dated 12-06-2024.
2. The department consists of the department manager, assistant manager, and staff members.
3. Appoint a liaison employee in all branches of the bank.
4. Provide mechanisms that facilitate the investigation of complaints from customers who have accounts with the bank, based on the contracts signed with them.
5. Prepare a standardized customer complaint form that outlines the complaint submission process, required documents, and any other relevant details.
6. The department must provide a written response to the customer regarding the subject of the complaint.
7. The department is responsible for public awareness, customer protection, following up on complaints, and implementing the instructions issued by the Central Bank of Iraq in all matters related to its work.
8. Submit quarterly reports to the board of directors and the Central Bank of Iraq, including aggregated statistics on the number of complaints received, the actions taken, and any recommendations.
9. Provide sufficient guidance materials within the bank’s branches and on the website to inform customers of their rights.
10. Establish at least three channels for receiving customer complaints, including:
11. Through email.
12. Through the official website.
13. Through mobile phone.
14. Instruct and monitor bank employees to maintain customer confidentiality and not disclose any financial information regarding customers. The complaint should not be under judicial review.
15. The department must provide its opinion to the customer within a maximum of (15) working days from the date the complaint was filed, and inform them of the investigation results within (5) working days from the completion of the investigation.

Organizational Structure of the Financial Inclusion Department

Assistant Department Manager

Department Manager

Employees

Employee in each Branch

General Principles of Financial Inclusion

First Principle: Fairness and Equality in Dealing
The bank must ensure that all interactions with customers are conducted with fairness, equality, integrity, and honesty at all stages of the relationship. This approach should be part of the bank’s operational rules.

Second Principle: Disclosure and Transparency
The bank should update information about the services and products provided to customers to ensure that it is clear, concise, easy to understand, accurate, and not misleading. Customers should be able to access this information effortlessly, especially regarding terms and key features. This should include clarifying the rights and responsibilities of each party, pricing details, and providing information about alternative products and services offered by the bank.

Third Principle: Financial Digital Education and Awareness
The bank should develop programs and mechanisms and issue digital applications to enhance the knowledge and skills of current and future customers. These initiatives should help customers access secure digital products, raise their awareness, and guide them in understanding fundamental risks. The bank should assist customers in making informed and effective decisions and direct them to the appropriate entity to meet their needs.

Fourth Principle: Professionalism and Work Ethics
The bank should operate in a professional manner that serves the best interests of the customers throughout their relationship. The bank is primarily responsible for safeguarding the customer’s financial interests.

Fifth Principle: Protection of Information Privacy
The bank should protect the financial and personal information of customers by implementing a high-level monitoring system to maintain the confidentiality of customer data.

Sixth Principle: Complaint Handling
The bank should handle customer complaints in a way that ensures the customer’s rights are protected and addresses any negative phenomena clearly and effectively without delay.

Seventh Principle: Protection Against Financial Fraud
Banks must safeguard and monitor customer deposits, savings, and other financial assets from suspicious activities. This should be done by establishing high-efficiency, effective monitoring systems to minimize fraud, embezzlement, or misuse.

Eighth Principle: Competitiveness
Customers should have the ability to research and compare the best services, products, and providers. They should be able to switch easily and transparently, with reasonable costs involved.

Ninth Principle: Protection from Risks of Outsourced Operations
If the bank uses external operational services, it must ensure that these external parties comply with the principles outlined in the Consumer Protection Guide and act in the best interests of the bank’s customers. They must also ensure the confidentiality of customer information.

Tenth Principle: Conflict of Interest
The bank should have a written, clear, and approved policy regarding conflicts of interest. It should ensure that policies are in place to identify potential conflicts of interest and that these policies are effectively implemented.

Protect customers

Importance and Concept of Consumer Protection

Consumer protection refers to the actions and measures implemented to reduce the risks consumers might face in their dealings with banks. This is achieved by establishing regulatory frameworks, policies, and procedures that ensure consumers receive financial services within a transparent and integrated system. The goal is to guarantee that consumers receive their rights without compromise, protect their interests, and hold accountable those who violate these regulatory frameworks.

Consumer protection is based on three main dimensions:

1. Regulatory and Supervisory Dimension: This includes a set of strategies, applications, and practices adopted by regulatory authorities to enhance consumer protection. It involves monitoring and overseeing the financial services sector to ensure that institutions comply with standards that protect consumers.
2. Legislative Dimension: This refers to the activities, practices, and regulations that govern the rights and obligations of consumers. It forms the mandatory legal framework within which banks must operate. Non-compliance by banks with these regulations may result in legal penalties.
3. Awareness and Educational Dimension: This involves a series of activities aimed at improving customers’ financial and banking knowledge. By enhancing their financial literacy, consumers become better equipped to make informed decisions that protect their interests and ensure they receive their rights.

Banking Awareness and Protection of the Public

-1Banking Awareness:

According to the requirements of regulatory authorities for Islamic financial institutions, raising awareness among employees and customers is essential for these institutions. Banking awareness aims to provide adequate and accurate information about the products and services of Islamic financial institutions to their employees, enabling them to serve customers correctly. It also ensures that this information is continuously updated and that employees stay informed about these updates. Moreover, it aims to educate customers of Islamic financial institutions about financial and banking information that helps them make balanced financial decisions, ensuring that the relationship between the customer and the financial institution is fair and well-balanced.

Customer awareness and education are integral to the functions of banks and financial institutions. This is a task that cannot be separated from the banking and digital financial services and products they offer. The educational role complements the practical aspects, providing customers with the necessary knowledge about their rights and responsibilities. This clarity helps avoid any feelings of injustice or imbalance between the customer and the institution.

The educational duties of banks and financial institutions are not one-sided. Both parties—banks and financial institutions, as well as customers—share the same boat. Both benefit from these educational efforts when they are properly followed, and both are at risk of harm if there are any shortcomings in this regard.

Trust is the balance in this interactive relationship, and it determines the degree of benefit or harm that may affect both customers and financial institutions. Just as the primary goal of the customer is to secure and invest their money, ensuring it is in safe hands, the primary concern of banks and financial institutions lies in their good reputation, transparency, and credibility.

Knowing their rights and obligations is the cornerstone of the relationship between customers and financial institutions. Any healthy relationship between the two must pass through this educational phase.

Customer and Bank Rights and Obligations:

All banks, in the context of providing banking and digital financial services and products of all kinds, are obligated to educate their customers and raise awareness about their rights and obligations. This awareness should be spread through the bank’s main branches, all of its branches, websites, and other communication channels with customers. These obligations include the following:

1. Developing Customer Skills:

 The bank should design appropriate mechanisms to develop the skills of both current and future customers, raising their awareness and providing guidance. Customers should be empowered to understand the basic risks associated with banking transactions, helping them make informed financial decisions. Additionally, they should be directed to the appropriate sources to obtain the information they need.

• Financial and Banking Awareness via the Website:

The bank’s website should include a dedicated page for banking awareness, containing a guide that includes customer rights and responsibilities, as well as how to file complaints and answers to frequently asked questions.
In this regard, the bank should do the following:
A. Develop a strategic plan that includes an operational plan with specific programs aimed at increasing financial and banking awareness among customers.
B. Collaborate with civil society institutions, scientific bodies, and professional organizations to promote financial and banking awareness.
C. Participate from time to time in conducting studies to measure financial awareness and the impact of measures taken to enhance this awareness.

• Transparency in Banking Products and Services:

Banking transactions are highly detailed and require customers to be aware of even seemingly minor information, as it could have significant financial consequences.
To eliminate any ambiguity and enhance transparency between the bank and its customers, the bank must provide accurate, clear, and comprehensive information about the terms of products and services, their benefits, and potential risks. Customers should also be informed of any changes to these terms.
In addition, all customer inquiries should be responded to quickly and efficiently.
For example, the information should include:

• The method for calculating the actual cost (expenses/fees/charges) for each product or service.
  • Assurance that the product or service is appropriate for the customer’s needs.
  • Transparent and accurate advertisements that do not mislead customers.
  • Protection of customers’ financial and personal information in accordance with applicable laws, such as the Banking Secrecy Law and the Anti-Money Laundering and Terrorism Financing Law.
  • Providing customers with periodic statements for all accounts linked to products or services, including relevant data and information.

2- Protecting the Public:

One of the responsibilities of the Financial Inclusion Department in our bank is to protect the public by addressing customer complaints. This involves receiving, recording, and documenting complaints, from the moment they are received to their final resolution. Additionally, a complaint form is prepared, which outlines the procedures for submitting a complaint, along with the required documents and information, as well as other aspects related to filing and processing the complaint promptly.

Complaints

The bank is committed to providing customers with service standards that align with international benchmarks. The scope of complaints is designed to protect the rights of customers and ensure their issues are addressed properly. The bank also ensures that complaints are not subjected to any financial charges, whether fees or commissions, and that no conditions or restrictions are imposed that could prevent customers from filing complaints. The only exception is if the customer withdraws their complaint voluntarily and provides proof of this action.

Dealing with Customer Complaints:

At the outset, we must recognize that there are fundamental rules in the field of service delivery. Some of the most important rules include:

• The customer (service seeker) is always right.
• Service differentiation primarily depends on ensuring complete customer satisfaction.
• Complaints are a natural occurrence, and therefore, they should not be resisted.
• It is essential to identify effective ways to receive complaints from customers, ensuring at least three methods are available:
  • Through email.
  • Through the official website.
  • Through mobile phone.
• There should be a digital system or log to record incoming complaints, collecting related documents and files, and assigning a unique reference number (non-repetitive) for each complaint submitted by a customer.

From this perspective, a service provider who maintains continuous relationships with their clients is in a great position to repeatedly receive requests for services from these clients personally. Consequently, customer satisfaction and goodwill represent a valuable asset for the service provider, as they ensure continued success.

Reasons for Customer Complaints

There are various reasons for customer complaints, some of which are due to the bank, others due to the service provider, and a third category stems from the customer themselves:

• The first type includes issues related to the procedures followed by the bank.
• The second type involves personal mistakes made by the service provider.
• The third type refers to the customer’s lack of understanding of the actual benefits of the service after receiving it, or the effort required to complete it in a certain way.

Despite these differences, customers who feel neglected do not always voice their complaints, and only a small percentage report their issues, which may be addressed to their satisfaction. However, they all remain alert for other potential problems. If their issues remain unresolved, they will join the majority who never reported their problems in the first place. This presents a serious problem, and it can be viewed as follows:

The sensitivity of the services provided by the organization to the customer makes any complaints raised by customers a source of annoyance for the service provider. As a result, the provider works diligently to avoid hearing the phrase from their supervisor: “There is a complaint.”

Rules to Be Considered When Dealing with Customer Complaints:

A customer always wants to find someone to whom they can express their complaints, and the outstanding service provider is the one who addresses the complaint before it reaches higher levels, especially since most customers welcome solving their problems in the shortest possible way.

When dealing with customer complaints, the following rules should be observed:

1. Fully understand the customer’s issues, no matter how small, and work to identify such issues whenever possible.
2. Listen attentively to the customer’s problems, as this is one of the most important aspects of the service provider’s role.
3. Communicate the issue honestly to the supervisor if the employee is not authorized to resolve it.
4. Follow up on resolving the issue to ensure that it aligns with the concept of “exceptional service.”
5. Analyze the customer’s problems thoroughly to identify the causes and prevent similar issues in the future.
6. Follow the bank’s general policy for resolving customer problems to ensure fairness and improve customer acceptance of the bank.
7. It is important to adopt the rule that “complaints are natural and should not be resisted”.
8. View complaints from the customer’s perspective, not from the service provider’s or even the bank’s viewpoint.
9. Understand that the complainant may be emotionally unstable due to their feeling of being right; listen to their complaint and work to restore their balance as quickly as possible.
10. Do not assume the customer is dishonest in presenting their complaint, even if they exaggerate it. A small issue may seem trivial to the service provider, but to the customer, it might feel significant.
11. Before dismissing a complaint as unsolvable, study alternative, innovative solutions, as they may be simple.
12. Do not delay resolving the complaint; the customer should be informed that immediate action will be taken to address the issue.
13. When dealing with complaints, it is always preferable to use face-to-face confrontation and verbal methods instead of responding in writing.

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In the case of complaints that are decided to be rejected, the following should be considered:

1. Clarifying to the customer that the rejection of the complaint is not personal but is due to a conflict with the bank’s policies and interests.
2. Providing documentation and evidence that convincingly explains the reason for the rejection of the complaint.
3. Ensuring the customer does not feel that the service provider or the bank has triumphed over them by rejecting their complaint or that they are in the wrong. Instead, the customer should be convinced, leaving the service point with the understanding that there was no negligence on the part of the bank or its employees.

Advertising and Promotional Materials

Advertising plays an increasingly important economic role, gaining growing attention from economists and stakeholders. This heightened interest has prompted researchers and industry experts to fund studies aimed at identifying the best methods to influence consumers and drive them to choose one product over others, even when faced with a wide range of available options.

Concept of Advertising and Publicity

Advertising:

 Advertising is an activity aimed at influencing the consumer (or audience) to encourage them to purchase a product, request a service, or adopt an idea. This influence is based on the advertiser’s understanding of the consumer’s mindset and how to impact them, either consciously or unconsciously, to engage in a certain consumer behavior or accept a specific idea. The ultimate goal is, of course, the benefit of the seller of the product, service, or idea. This seller pays for the advertisement to attract customers by promoting the idea, regardless of whether the seller truly believes in the product’s benefits, the necessity of the service, or the correctness of the idea. The key factor for the institution is attracting customers through the innovation of new digital financial services aimed at all segments of society, thus contributing to achieving financial inclusion goals.

Publicity:

Publicity refers to the effort to influence individuals and groups to control their behavior within a specific society and for a particular goal. It involves the efforts made to change people’s beliefs, attitudes, and opinions using various media channels. Publicity efforts include advertisements, brochures, and pamphlets distributed to consumers, newspapers and magazines that dedicate full pages to advertisements, posters, and billboards placed in public spaces such as squares and streets. There are also special display windows for showcasing products, along with, of course, radio and television advertisements.

These media forms rely on psychological studies to determine the best ways to influence public opinions and shift consumer behaviors. Economists argue that advertising is essentially the manipulation of consumer behavior to stimulate purchasing motives.

The importance of advertising and publicity in today’s:

The importance of advertising and publicity in today’s world has grown significantly. With the development of communication media that have made the world a small village, as they say, reliance on advertising to market goods, services, and even ideas has become indispensable. The importance of advertising and publicity can be summarized in the following points:

1. Promotion of Goods, Services, and Ideas: Advertising promotes products, goods, services, and ideas in the simplest and most cost-effective way. The advertisement, regardless of its content, reaches the widest audience the advertiser wants, after selecting the preferred advertising medium, whether visual, written, or audio.
2. Consumer Awareness: Advertising helps consumers understand the features, characteristics, and price of a product, or the necessity, nature, and process of a service, or it simplifies the explanation of an idea. It eliminates the need for the consumer to go to the place where the product or service is offered, as advertising brings the product to the consumer wherever they are.
3. Market Expansion: Advertising expands the market and helps traders, economists, and industrialists become familiar with goods and services, thus opening numerous opportunities for trade and economic dealings among people with different economic interests.
4. Encouraging Competition: Advertising encourages competition among producers and manufacturers to deliver the best products, motivating them to innovate in order to attract consumers’ attention.
5. Revenue for Media Outlets: Advertising is one of the main sources of income for visual, audio, and print media outlets. Today, we see a significant increase in advertising space on satellite channels and a large rise in the number of pages in newspapers and magazines dedicated to publishing advertisements.

The bank must adhere to the following:

1. Ensure that all its advertisements and promotional materials used in offering its products and services do not contain inaccurate or false information that could lead to a misunderstanding by current or potential customers, which may result in incorrect decisions.
2. Ensure that the advertising and promotional materials for its products and services are easy to read and understandable to the general public.
3. Take into account the legal responsibility that may arise from publishing advertisements or promotional materials that contain incorrect data or information used to market its products and services to customers.
4. Avoid advertising products or services that contain risks that are only understood by experts and refrain from encouraging customers to engage with these services or products without appropriately disclosing the risks involved.
5. Establish a policy for promotion, advertising, and publicity, approved by the board of directors, ensuring that it includes principles, rules, and practices that are professionally and legally acceptable in all the advertisements and promotional materials issued by the bank.
6. The bank’s financial inclusion department must ensure that the policy for advertising and promotional materials aligns with the established rules and practices and is free from any messages that could be misinterpreted. If inquiries or clarifications arise regarding the impact of these materials, immediate actions should be taken to remove any confusion or ambiguity.
7. When the bank announces that it has received awards, certificates of distinction, or superiority, it must disclose sufficient information regarding the awarding entities, the methodology used to grant the certificate, and the criteria that were followed by the awarding body.
8. The financial inclusion department must obtain approval from the Central Bank of Iraq for promotional campaigns and advertisements related to new banking products and services.

Conclusion:

The efforts being made in Iraq to promote financial inclusion encompass a variety of measures aimed at improving access to financial services for all citizens. While challenges persist, government policies and ongoing banking initiatives strive to reduce the financial gap and achieve economic development through greater financial inclusion.

Financial inclusion strengthens customer confidence in the banking market, which is characterized by good performance and transparency in providing financial and banking services. This fosters opportunities to maintain financial stability and achieve growth, while also encouraging innovation in financial digital products. Enhancing trust is closely tied to the existence of a robust economic environment and effective regulatory bodies that protect the customer. This importance increases with the rapid evolution of the financial and banking product market, as consumers face potential risks of fraud or mistreatment due to insufficient oversight of service and product providers.

The topic of financial inclusion in banking services has gained significant importance, particularly in light of the current challenges imposed by the rapidly changing and accelerating phenomenon of globalization, which has impacted the financial transactions of clients. The importance of this issue grows as electronic financial tools and products evolve, necessitating the review of procedures to ensure the protection of customer rights and prevent harm, especially for individual clients who are often the weaker party in the contractual relationship with banks and financial institutions.

The Central Bank of Iraq, in its work, has aimed to activate the concept of transparency and disclosure in financial and banking transactions, while also working to create an environment that protects customer rights on one hand, and safeguards the banks and financial institutions providing those services on the other.

As such, Asia Iraq Islamic Bank, since its establishment, has focused on the awareness role, which includes educating the public and implementing a series of measures to protect this public. The bank continues to develop and review these methods and procedures regularly to provide the best service.