Bank Melli Iran is planning to use ‘LendTech’ to ease the processing of microloans, an official with the bank said.
The measure is in accord with the Economy Ministry's recent notifications to state banks to focus on the creditworthiness of applicants for small loans, Alireza Mahyar, BMI's deputy for IT said, Peivast reported.
Mahyar said BMI's LendTech platform is near completion and would launched next March. "The platform will not be restricted to BMI use. We have agreements with private fintechs and LendTech companies to improve the quality of services."
LendTech or lending technology is a digital means to provide loans and banking services to people securely online. Banks and other financial companies digitally provide customers a platform to manage loans and its processes through their platforms.
BMI says it is in the process of making the best use of technological advancement to improve its services. Recently it announced plans to launch a digital bank application to offer a wide range of services.
"With 51 million customers and 70 million bank cards, BMI must concentrate on technological advancement," Mahyar said.
"The digital Bank Melli application will be a major achievement as it will help reduce the number of applications and platforms," he noted.
Some banks have recently launched digital banking applications, such as Saman Bank and Middle East Bank to attract customers.
The senior bank official noted that the BMI is also developing a neobank where users will have access to investment, insurance and financial services in one place.
Neobank is a new type of bank available to customers only through mobile applications and personal computer platforms. The CBI last year authorized the establishment of neobanks.
It was announced recently that Bank Melli plans to increase funding for innovative projects and knowledge-based companies. BMI is reportedly working to address risks and challenges vis-à-vis funding startups namely in the pharma, oil/gas and petrochemical industries.
The bank is the biggest state lender to the knowledge economy with 82 trillion rials ($309 million).
According to Mahyar, the BMI is collaborating with Sharif University of Technology and Tehran University to benefit from their potential in fostering technology in bank operations.
