Impact of Salary Domiciliation on the Profitability: An Applied Study in a Sample of Iraqi Banks

Abstract

As a result of the major developments that have taken place in information technology and its implications on all areas, especially in the banking sector. This has had an impact on the methods and facilities that the bank offers to different customers. This research sheds light on one of the most important modern banking services, which is the service of salary domiciliation for employees of government departments and various private sector companies. The aim of this research is to show the effect of the salary domiciliation on the financial performance of the Iraqi banks and in particular the impact on the level of profitability of banks that are working to provide this type of services. The research was based on the basic premise that there is an impact of the service of salary domiciliation in the work to improve the financial performance of banking. Thus, the research applied to a sample of Iraqi banks, which was (6) six in that these banks rely on the service of the salary domiciliation of employees.

The results indicate that the service of salary domiciliation may contribute to work to increase the quality of banking services provided to all bank customers. And work to improve their confidence in the volume of dealing with these banks through the diversity of services and keep pace with all these recent developments in the banking sector, like all banks in developed countries. The banks that provide the service of salary domiciliation to attract more new customers and earn them to this bank, through the provision of advanced electronic services deal with banks. This leads to increased competition between these banks and work to provide more basic support services.