Economy, Business And Markets

CBI Seeking Self-Sufficiency of Fintechs

CBI Seeking Self-Sufficiency of FintechsCBI Seeking Self-Sufficiency of Fintechs

The Central Bank of Iran is determined to create an appropriate environment for the operation of fintech companies, the director of CBI’s Department for Information Technology said.

“Value creation is in the nature of fintech services … It's better for developers of financial technologies to change their mindset and stop seeking help from the government, since it would be costly for both fintechs and the government,” CBI's website also quoted Nasser Hakimi as saying on the sidelines of the Sixth Conference on E-Banking and Payment Systems held in Tehran on Tuesday.

Hakimi implied that regulating fintech companies will not necessarily help them grow.

"Still there is no clear understanding about fintechs and their operations. They are still in the making and are very successful. How can we decide about issues that are not defined yet,” he said.

“[Even] right now, we are making decisions for fintech companies without any of them being present here.”

According to the official, support for fintechs is being provided in line with support for users in other countries.

“The government is basically in charge of creating a competitive environment for the growth of these companies,” he said.

Hakimi said there has been much talk about fintechs in the media.

“Developers should be worried about recent talks, since it will not benefit them,” he was quoted as saying by IBENA.

High-Risk Decision-Making

Fintech firms are in direct contact with people, not with the government.

“The government is not good at making decisions for high-risk businesses,” he said.

 “Several fintech companies are already linked to the payment network … Their income is considerable, without being supported by anyone.”

Hakimi noted that Iran is where high-risk businesses manage to grow.

Earlier in December, the Office of Vice President for Science and Technology Affairs said it would send the final version of “financial framework of knowledge-based economy” to the government, in which fintech firms have been recognized as legitimate e-commerce entities.

Later, an official in the Ministry of Communications and Information Technology announced the development of a framework for the operation of fintechs.

The CBI also unveiled plans for launching a new regulatory body specifically for fintech firms.

Ali Kermanshah, CBI’s deputy for innovative technologies, said the central bank intends to set the rules for the operation of new players in financial markets instead of vetting each firm on a case-by-case basiss.

Back in October, Nasser Hakimi held a meeting with fintech developers where he said the CBI allows fintech firms to operate as long as they are not involved in money creation, currency exchange, offering payment tools (like cards) and  attracting deposits.

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