Banks need to work closely with financial technology firms, which would foster job growth, the head of the Association of Public-Sector Banks and CEO of Bank Melli Iran said. Mohammad Reza Hosseinzadeh added that since the activities of fintechs lead to new and specialized businesses, the presence of banks in this area is necessary, IBENA reported. The operation of fintechs has had a rocky past in the country due to the lack of clear regulations and the perception of hostile banks that fintechs are rivals of the banking industry. However, in a new model unveiled by the Central Bank of Iran in October, fintech firms are required to link up with banks if they intend to offer banking services and those active in the payment sector need to work with either banks or companies providing payment services. Hosseinzadeh noted that banks have already taken “positive steps” in partnership with fintechs.
Source: Financial Tribune - Date: (08 January 2018)