Digitization of the financial sector is a step towards an advanced economy

Nasira Syed Ali

Experts in the economic affairs emphasized that the digitization of the financial sector is the main factor in the advancement of the Algerian financial system, and a mover of the wheels of the national economy, noting in the same context that digitization is the pillar of economic development and the country’s access to the highest ranks in the list of major global economies, as required by the same technology, according to them. It prevents bribery and nepotism, and protects construction companies from the bankruptcy that threatens them as a result of disrupting the process of collecting checks at the bank level.

For reference, the Minister of Finance, Aziz Fayed, announced, in a congratulatory message addressed to executives and users of the financial sector on the occasion of Eid Al-Fitr, the need to accelerate the pace of digitization of the financial sector in Algeria, noting the importance of this in the success of the ongoing economic reforms, considering that “the sector is one of the main actors in The embodiment of various sectoral policies, so its digitization and modernization constitute an urgent necessity for the success of the reforms undertaken by the public authorities..”He called for the importance of digitizing all public financial activities at various levels, given the importance of establishing a new system of governance based on efficiency, through the actual dedication of a work culture based on evaluation based on results, from the perspective of improving the quality of public service provided by the sector..”

Digitization can cut taxes at source

In the context, the expert in international trade, Dr. Nabil Jumaa, considered, in his interview with Al-Hiwar, that the digitization of the financial sector is one of the most important pillars for establishing a solid economic base, considering that the digitization of the financial sector is one of the possible solutions to get out of the circle of underdevelopment, citing the saying of a senior economist who said in The largest conference that brought together businessmen and investors in Davos is that digitization can transform the country from a backward country to a developed country, and Chad is a model that introduced digitization to the tax apparatus, the financial sector and customs, so that its financial system became comparable to its developed global counterparts.

And the economist, Dr. Nabil Jumaa, added at the same time that the traditional process by which the tax sector operates in Algeria cost the financial sector a loss of 8 billion dinars as a result of tax evasion, which is included in uncollected taxes, and this is due, as he said, to the absence of an information system that deducts The tax is from the source, calling on the concerned authorities to activate the two mechanisms. Up to 14 months, noting that all the required documents are available, but with the use of the pen and the absence of digitization, it led to the spread of bribery and nepotism, and thus its result will be the spread and disclosure of corruption in the tax system, indicating that investment in information systems and the establishment of a rapid automated media network in all financial institutions will reach a collection The check is within two hours, so as not to disrupt the interests of companies, especially construction companies, to facilitate the work of contractors, and to reach the speedy completion of projects in the construction and construction sector.

Digitization of the tax system, banks and insurance will create a financial balance

For his part, economist Dr. Mukhtar Alali stressed in his interview with Al-Hiwar the need to digitize the financial sector as it is the core of the country’s political and economic life, pointing out that the financial sector is very important because it includes many aspects, including an important aspect, which is the national property, and the digitization of the real estate sector, which It will be useful for many sectors directly affiliated with the state or affiliated with local groups, and it is also beneficial for citizens, and it will be the so-called dashboard for the higher authorities of the country and officials in local groups, and thus the same speaker adds that it will determine the types of property for each person at the national level, and digitization can be done according to him From identifying property belonging to the state, public, or the property of local groups, and the same technology identifies private property for citizens, which will allow the collection of real estate fees.

In the same context, the economist Mokhtar Alali explained that the digitization of taxes is a very important process in order to combat and fight tax evasion. This is the main body that works to determine the value of the state’s revenues annually, in addition to an aspect that is no less important than the aforementioned aspects, which are the public treasury, insurances and banks, and therefore we will determine the actual value. The process of digitizing the financial sector will also allow identifying areas where tax collection revenues are high and also in semi-fiscal revenues, and from them it will allow determining the number of poor municipalities so that they can have support from the state, in addition to the aforementioned operations. The same expert says that digitization will help us to Knowing the extent of the progress of banks in the economic system in terms of loans, savings and investment, because commercial banks work to provide loans to citizens and investors, and on the other hand, they attract income from citizens and institutions as well as what is called savings, the latter according to him must be converted into investment according to economic theories to create institutions In order to raise the field of employment, and thus revive the national economy, which will give us another dynamism and greater activity for the parties to the economic cycle, who are the families. Financial institutions and thus expand the field of investment.

Digitization will encourage productive enterprises

Dat, the spokesman, indicated that digitization will encourage the activity of productive institutions, and there will be accurate access to the value of their inputs and fees collected from their economic activity. The digitization process will also allow organizing the field of import and export, especially since banks are the official sponsor of the previous two currencies, especially those related to hard currency, and therefore when the financial is digitized. And insurances, there will be real exploitation of insurance revenues, and with digitization, there will be a numbering database for all ministerial departments, indicating that the digitization of the financial sector has a sensitive role in light of the regional and international circumstances, especially with regard to the currently renewable data located near the Algerian borders, and through it we will be able to follow the rise in prices in the markets. International, relying on the dashboard to facilitate access to new developments at the national and international levels.