Bank Melli Iran, largest government-owned commercial bank, aims to increase the number of smart branches, launch a digital banking application and increase POS terminals.
Bank managers and BMI subsidiaries discussed a roadmap in an online meeting on Monday. According to the BMI website, the lender is set for digital transformation this year.
According to Alireza Mahyar, the BMI deputy for IT affairs, technological development should trigger major improvement in the bank portfolio.
"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 this year as it will help reduce the number of applications and platforms," he added.
Some banks have recently launched digital banking applications, such as Saman Bank and Middle East Bank and have attracted many users.
The senior bank official noted that the BMI is in the process of developing a neobank where users can access 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, saying that it had issued the license for the first neobank.
Mohammad Hossein Kashi, the CEO of Sadad Company, a payment service provider affiliated to BMI, elaborated on his company's plan of action.
"The total number of Sadad payment gateways, including POS terminals and online gateways, will increase by one million." The PSP is also making efforts to renovate and enhance payment devices.
Majid Jafarian, head of BMI's banking operation department, referred to ‘Kara Cards’ as a move forward in banking services. The card is connected to customers' forex bank accounts and can be used for transactions on the nationwide Shetab network.
Bank Melli is the first national bank founded in 1927.
Since 1933 it has grown into a large retail bank with international branches. It opened its first foreign branch in Hamburg in 1965.
Earlier this month, it was announced 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.
It is the biggest state lender to the knowledge economy with 82 trillion rials ($309 million).
Increase in funding to the knowledge economy is an indication of the government’s interest in promoting and encouraging knowledge-based firms.
Government(s) have voiced support for tech firms and expressed a willingness to improve financial support to help them grow.
