In the 9th annual conference of electronic banking, pointing out that a significant part of the development of electronic banking and digital banking is based on the development of the blockchain industry, it was emphasized that regulation in Iran is moving very slowly. In this ceremony, it was also announced that the issue of “validation” will be the priority of the Central Bank in 1402 to help the development of the digital economy in the country.
The opening of the 9th electronic banking and payment system conference was held at Milad Tower conference center, focusing on the three elements of bank, innovation and regulation, following the analysis of the flow of Iran’s modern banking ecosystem.
Validation, the main goal of the central bank in 1402
Mehran Moharmian, Vice President of Financial Technologies of the Central Bank, also emphasized the importance of validation in the development of modern banking and said: “The most important problem of validation in Iran is the issue of data, which according to the resolution of the Central Bank’s Board of Ministers in 2017, it was required to correct this defect. fix it.”
Mohramian pointed out that in this connection the cooperation of organizations with the Central Bank has accelerated, he said: “We are now in a situation where the new validation model is being developed by data taken from different places and will be operational soon.”
Explaining the main goal and priority of the Central Bank in the field of modern financial technologies in the future, he said: “One of the important priorities of the Central Bank in 1402 is to address the issue of validation, and we regularly follow up the issue of data transfer in weekly meetings. »
The initial attractiveness of Neobank and the survival of value creation in Neobank
Referring to the initial attractiveness of neobanks in the country, Moharmian said: “Our expectation from neobanks is to work more on value creation and digital value creation. The consequences of violations in Neobank, as a traditional business, are tens of times higher than the consequences of a traditional bank.
Pointing out that the connection between fintechs and banks is established through open banking, he emphasized the need to prevent violations in this area and said: “In the field of open banking, we are witnessing violations of money creation and currency smuggling. When we can reduce the violations in this area, people who have traditional thoughts will be pushed into this space. “The predictions are that the growth of users in the Neobank field will reach 10 million people by 2027.”
The vice president of new technologies of Central Bank added: “The share of neobanks in the innovation ecosystem is about 5 percent.”
Moharmian said: “We considered several goals for the new technologies deputy of the Central Bank, which have reached the final stages. The business license discussion, especially regarding PSPs, has progressed to a good place. The reform of the fee system is considered as one of the priorities of the new year. In addition, the regulatory sandbox of another project is being pursued. It is expected that there will be more acceptance of this project, which is possible if it is implemented and the market trusts.”
The inseparable relationship between economic growth and development
Emphasizing that there is a relationship between the development of economic growth and digital development, Moharmian said: “There is a relationship between these two variables and economic growth can be increased with digital development. Another point is that the impact of digital development on economic variables in the world is in the early stages.
Explaining the level of access to emerging economies, Moharmian said: “About 1.6 billion people in emerging economies are deprived of access to financial services. Also, about 200 million economic enterprises are deprived of access to credit services.
According to him, with digital development, about 110 billion dollars will be saved per year, which most of the countries are deprived of. Moharmian stated that if digital financial inclusion occurs by 2025, “digital development will add about 3.7 trillion dollars to the world’s gross domestic product and will create 95 million new jobs.”
Blockchain developments are so fast that its status is not clear for governments
“Asghar Abolhosni”, deputy official of the central bank, emphasized the importance of the blockchain industry in the modern world’s banking, and said: “In spite of its short life, the topic of blockchain is very established in transformative technologies. This is despite the fact that the complexities of blockchain developments are so great that it is still not clear for governments to decide on the type of its use.
Stating that the slowness of the regulatory flow in the blockchain field is not unique to Iran and that this field is moving at a slow pace in the world, Abolhasani said: “Understanding the importance of artificial intelligence in this process is very important.”
Explaining the importance of digital money in the world, the deputy official of the Central Bank said: “The world is in a dilemma, either it will reach the position of digital money or it will become a spectator and be oppressed by it.”
Pointing to the importance of artificial intelligence and data mining resulting from it in the field of modern banking, he said: “We must be careful that modern technologies such as data mining through artificial intelligence are very important in the governance of digital banking.”
Emphasizing that the creation of value from the customer channel, the creation of value from the channel of banking operations, as well as the creation of value from the banking ecosystem will lead to the development of digital banking technologies, the deputy official of the Central Bank said: “It should be noted that the most important economic goal is to increase profitability, which One wing of it is cost reduction, which leads to an increase in profit.
According to Abolhasani, the path of digital banking generally reduces costs. In another part of his explanation, Abolhasani emphasized that the targeting of subsidies was not possible without electronic banking, and described this process that led to the development of electronic banking in the country and said: “Before the implementation of this project, we thought that the system would not be able to continue this heavy project. be Meanwhile, fortunately, the project moved forward and developed.”
The 9th annual electronic banking conference focusing on topics such as validation, digital economy, blockchain and cryptocurrencies is being held today and tomorrow, March 1st and 2nd, 1401 at Milad Tower conference hall.