Central Bank of Iran partners with fintechs to advance smart financial services

Central Bank of Iran partners with fintechs to advance smart financial services
/ bne IntelliNews
By bne IntelliNews November 13, 2023

The Central Bank of Iran (CBI) has expressed its commitment to advancing smart banking services, emphasizing collaboration with fintechs in this endeavor, IBENA reported on November 13.

Over the past five years, the CBI has actively worked on fostering digital innovation, unveiling the initial draft of fintech regulations. The bank sees significant progress in the country's electronic payment and e-banking sectors over the past decade, creating a conducive environment for the adoption of technologies such as blockchain and artificial intelligence (AI).

Peyman Qorbani, the head of the Monetary and Banking Research Institution, anticipates that smart banking services will greatly enhance the quality and scope of financial services while simultaneously improving transparency in financial markets. The CBI is optimistic about the positive impact of these services on expanding financial inclusion in Iran.

The CBI has already implemented smart solutions in the credit rating system, interbank check network, and microlending services, achieving successful outcomes. It is also actively working on integrating AI into digital banking platforms for personalized services, identifying suspicious transactions, and ensuring compliance with anti-money laundering regulations.

Kashef Company, a CBI-affiliate overseeing an anti-fraud platform, reported that AI detected 29,000 cases of illegal financial activities, mainly related to online betting and casinos, conducted by 330,000 individuals since March 2022. The CBI is set to launch its smart platform for assessing customers' creditworthiness in the coming months.

The CBI's current strategy underscores a notable shift, with a focus on the influential role of Generation Z in shaping Iran's economic future. Fintechs are expected to play a pivotal role in developing and regulating these innovative platforms.

About 600 AI companies currently operate in Iran. Fintechs recommend a focus on developing infrastructure and leveraging startup potential rather than significant investments in tech tools.