Economy, Business And Markets

Bank Mellat Launches Anti-Fraud Software

Bank Mellat Launches Anti-Fraud SoftwareBank Mellat Launches Anti-Fraud Software

Bank Mellat–a lender with extensive experience in designing and implementing banking software systems—has launched a fraud detection software that will promote the security of its digital transactions, said a deputy economy minister.

Commending Bank Mellat’s efforts for upgrading its banking tools, Hussein Qazavi added that the anti-fraud software developed by Mellat is one of the most effective banking applications, Bank Mellat’s website quoted him as saying at a gathering of the bank’s executives.  

The official said Iran’s gross domestic product is around 14 quadrillion rials ($373.3 billion) while the country’s trade volume is more than 80 quadrillion rials ($2.13 trillion), with less than 3% of all trades in cash, “that is why the volume of digital transactions is significant”.

“Considering the noteworthy level of digital transactions, a bank should never ignore its risks because if the risk level rises, it would damage the bank’s reputation. Therefore, banks need to equip themselves with fraud detection software to prevent any violation,” he said.

Iranian banks have started to embrace innovative technologies more than ever, striving to address major issues on their path toward modernization and profitability. These measures gained traction after the Central Bank of Iran’s decision to authorize the operation of fintech firms.

At the same time, recent cuts in interest rates are preventing lenders from using “unconventional” methods to attract more savings. People are also showing more interest in using e-banking services, which push lenders to make the best of the new opportunities.

The deputy economy minister had noted earlier that despite restrictions imposed by sanctions, some of which having outlived the 2015 nuclear accord, the administration of President Hassan Rouhani managed to significantly close the technological gap between the Iranian and global banking systems by focusing on innovative products in the field.

Qazavi praised Mellat for equipping the country’s  gas stations with online payment system that eased the payment process for car owners and prompted the security of gas stations as well.

He emphasized the necessity of installing a comprehensive software between all the banks to reduce their operational and reputation risk.

A majority of experts believe that modern technology, social media and customer relations should be the banks’ priorities and true to its spirit, several new services have been launched by lenders in recent months.

  NPL Recovery

Hadi Akhlaqi, CEO of Bank Mellat, also said at the meeting that his bank has succeeded in unveiling 10 services during the previous Iranian year (ended March 20, 2017).

Akhlaqi noted that his bank’s non-performing loan recovery  system was one of the important moves last year, adding that “Bank Mellat’s ratio of bad loans to total loans is lower than our banking system’s average. However, we are seeking to get closer to global standards by implementing an integrated bad loan recovery system”.

As the Iranian banking system continues to grapple with the growing problem of sour loans, the governor of Central Bank of Iran urged lenders this week to direct the bulk of their efforts toward recovering their non-performing loans.

As Seif had announced earlier, NPLs’ ratio dropped in the past four years from 15% to 10%, but their volume reached 1 quadrillion rials ($26.6 billion) to register an increase of 160 trillion rials ($4.2 billion).



Add new comment

Read our comment policy before posting your viewpoints