The impact of digital marketing on banking innovation An Analytical Study of the Opinions of a Sample of Private Banks in Sulaymaniyah, Kurdistan Region of Iraq

Abstract

Digital marketing for banking services is an important and vital field in our current era, as banks and financial institutions compete to attract customers and increase their customer base through the use of digital means and modern technologies.  The current study aims to identify the impact of digital marketing through its dimensions (social media marketing, communication, attraction, retention, and engagement) on banking services innovation represented by (digital transformation, technological innovation, marketing innovation, process innovation, and cybersecurity) in commercial banks in the city of Sulaymaniyah. The main problem of the study revolves around (How does digital marketing affect banking services innovation in the banks studied in the city of Sulaymaniyah in the Kurdistan Region of Iraq?).  The study adopted the descriptive analytical approach. The required data for the study was collected through designing a questionnaire consisting of (44 questions), including (4) questions on demographic information, and (40 questions) to measure the dimensions of the study variables, using a seven-point Likert scale. (17) banks were selected, and (132) questionnaires were distributed to the study community. (127) samples of employees from the studied banks were returned, with a return rate of (96.2%) of those questionnaires. All of them were subjected to a set of statistical analyses and tests, via (SPSS-V.26) and (AMOS-V.24) programs.  The study reached a number of important conclusions, most notably that digital marketing has a strong and positive impact on banking services innovation, and contributes to the innovation and development of banking services. There is a clear disparity in the impact of digital marketing dimensions on banking services innovation, as not all dimensions are equal in the level of impact according to the following order: (participation, attraction, retention, communication, marketing via social networks), and this indicates the importance of studying each dimension separately and understanding its specific impact.  Based on these conclusions, the study put forward several proposals, the most important of which are: It is essential for banks to allocate an appropriate budget to develop digital marketing tools and strategies, given their positive and direct impact in supporting service innovation. Focusing on the integration of digital marketing dimensions, not limiting itself to a single dimension, such as engagement or attraction, but rather working to integrate all dimensions (engagement, attraction, retention, communication, and social media marketing) into an integrated strategy to maximize the benefits of digital marketing in supporting innovation.