Financial technology and innovation is present all over the world. Even in Iran, there are several dozen initiatives to take note of. It goes to show how positive regulatory measures can facilitate a wave of innovation.
Iran Welcomes Fintech
Several years ago, it became apparent that Iran wanted financial innovation. Following the launch of various initiatives, the government eventually intervened. To many people’s surprise, the intervention is a positive one. It allows for financial technology innovation to become a part of the country’s overall efforts.
In 2017, the central bank and government introduced new regulatory measures. Those laws aim to make Tehran a global fintech hub. All of this is part of the Iran Vision 2025. By that time, the nation is expected to reach the level of a “developed country”.
Further regulatory measures will be introduced over the next few years. It will impact fintech in Iran as a whole. Creating a safe and healthy environment is crucial to foster further innovation.
Fintech in Iran Today
As one would expect, there are plenty of companies active in the Iranian fintech industry already. While those names aren’t known in the West, they are still worth paying attention to. It is not unlikely that some of these firms will establish a global presence over time.
Crucial areas to take note of are payment and money transfer, investment management, insurance, and accelerators. All of these segments will allow for further industry growth. Iran is also home to innovation labs, capital raising providers, and several banks venturing into fintech.
The biggest “moral victory” for fintech in Iran is the launch of an official association. Known as Fintech A, it will help companies find a solution to their problems. Moreover, it will serve as a bridge between entrants and regulatory bodies.
Looking Toward the Future
There is still plenty of progress to be made. Fintech in Iran is still in the relatively early stages of where it can be. With a growing focus on local events and Meetups, an important first step is taken. Engaging in an open dialog with regulators will pave the way for future growth.