Iran expected to launch neobanks by 2021
TEHRAN, Iran, Sept.18
Iran is expected to launch two neobanks by 2021 to facilitate banking operations said the Vice Governor of IT Technology department of Iran's Central Bank Mehran Moharamian, Trend reports via IRNA.
A neobank (also known as an online bank, internet-only bank, or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks.
"We are currently establishing a working group to do the design-related tasks. Another issue is the blockchain, which local knowledge-based companies could work on for the bank network," said Moharamian.
He pointed out that establishing a neobank reguires serious security, permits and monitoring, adding that digital banking by nature is very different from traditional banking.
The neobanks in Iran would be able to provide all the banking services, including opening of new accounts, offering loans and carrying out various other financial operations via mobile phones.
The recent decision by Iran's Supreme Council on Combating Money Laundering on establishment of virtual identification service, following the COVID-19 outbreak, has led to local banks and financial institutions adding the identity authentication service.
The above allowed certain experts in Iran believe that the country is moving towards lunching of neobanks.
Iran's Central Bank supports the establishment of the neobanks, they would be able to support the current bank customers and lower the existing economic pressure.