The Vice Presidency for Science and Technology is preparing to launch a ‘National Financial Lab’ in collaboration with Tehran University and Allameh Tabatabaei University to underpin fintech startups of university students.
Alireza Daliri, an assistant to the vice president for science and technology, the main objective of the lab will be to improve the appeal and quality of financial subjects and create opportunity for students to experience real-life challenges, way2pay website quoted him as saying.
"The lab will enhance the quality of teaching by allowing students to observe the application of financial sciences. It will seek to augment student employability," Daliri said.
Introducing challenging research projects, enhancing academia-industry relations and supporting fintech solutions are the other goals of the lab.
The two prestigious universities were selected as hosting universities in the first phase of the plan. "The lab is expected to be ready for the new semester (in early September)."
The Vice Presidency for Science and Tech has held talks with key financial authorities including the Central Bank of Iran, the Central Insurance company of Iran and the Security and Exchange Organization, he said.
Financial startups are rapidly growing in Iran, especially in recent years and after finalization of the regulatory framework for fintech startups by the CBI.
The sector was dominated by payment firms until the recent past, however, investments by bank sand major industrial companies have increased the scope of solutions offered by non-bank financial companies.
According to E-Commerce Monitor, a company specializing in Iranian startup performance, currently applications offering solutions related to payment, stock market, and cryptocurrencies are more popular among users.
A recent survey by way2pay showed that one-third of the applications offer payment services. Personal finance management solutions and cryptocurrency exchanges rank next.
Surveys also found that 66% of fintech founders are university grads and in the 25-35 age bracket.
Role of Banks
In recent years, several banks have invested in fintech startups or have established accelerators to support fintech innovations.
Bank Melli Iran, Saman Bank, Ayandeh Bank and Bank Pasargad have reportedly put big amounts in boosting fintech startups.
According to the CBI, 26 fintech hubs are active in Iran. Almost 87% of Iranian banks and credit institutions have established their own innovation centers. This has helped banks and innovators to forge a mutual understanding about [improving] the financial market and the fintech ecosystem.
The sector has also managed to attract investments from other industries. Telecom companies, such as Hamrah Aval, major tech companies, like Snapp and Digikala, and major holdings like the Golrang Industrial Group have recently entered the fintech market.
The growth is said to be supported by regulatory bodies. The CBI and the Security and Exchange Organization have recently unveiled regulatory sandboxes to assist the development of third-party platforms.
