Monetary and Banking Research Institution
Date:1/8/2019 9:11:07 AM   |   Code : 294020
Increasing the Profitability of the Banking Industry in Partnership with FinTechs
Increasing the Profitability of the Banking Industry in Partnership with FinTechs
An expert on the field of payment, emphasizing that the movement of the country's banks towards open banking is unavoidable, said: “The most important advantage of working with FinTechs is the promotion of commission-based culture and the increase in profitability.”
 

According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Shahriar Khalili commented on the benefits of cooperating with FinTechs by providing open banking services in the industry, saying that the most important advantage of this cooperation is that FinTechs, with the introduction of fees for their services they provide, lead to the promotion of commission-based culture in the banking and payment industry and increase profitability in this sector.

Referring to the growing activity of innovative businesses in the country, he pointed out: "The various businesses in their financial transactions use the services of FinTech and startup companies, and the services that these businesses offer, in some cases, are in close competition with payment companies."

Khalili noted: “The cooperation of FinTechs and payment companies will bring innovation, increase access to financial services, facilitate complex administrative processes, increase efficiency and create new business opportunities that ultimately affect people's quality of life.”

The company's CEO noted that the general acceptance of FinTechs, which quickly by simplified relationship could provide solutions to improve customer experience with offering a wide range of high value added services, made these new businesses a serious threat to the banks.

He stated that the banks of the world, by offering Open Banking services, turned this threat to the opportunity and chose the cooperation with the FinTechs as one of the strategies to maintain their survival.

Khalili stated: Open Banking, as a new paradigm that is rapidly emerging in the banking world has become an inescapable choice and has expanded the range of banking operations into an area beyond the banking network. Therefore, the banks of the country should join it as soon as possible.

Managing director of Beh-Pardakht Company, with paying attention to the fact that financial companies are seeking to develop the market and attract mass users, said: “The high capacity of FinTechs and Startups in the field of financial services has made cooperation with these innovative businesses a necessity for banks.”

Therefore, if the banks of the country do not start cooperating with FinTechs by providing open bank services through APIs, they will gradually lose a big market.” he added.

Khalili noted: “The high potential of FinTechs and Startup companies in the field of financial services as well as the position of banks in the financial industry has led to a symbiosis and bilateral partnership in this section.”

The Mellat Beh-Pardakht Company's CEO insisted: “To provide open banking services, the banks' infrastructure should also be able to provide such services. Therefore, the agility of the bank in providing open bank services is also important in this regard.

In response to the question that banks in the country are agile enough to provide open banking services, said: “Some banks have provided the opportunity to provide open banking services and actively cooperate with FinTech companies by creating appropriate infrastructure in their organizations.”

Khalili added, “But some of the country's banks do not have the necessary infrastructure to move towards open banking, which should seek to resolve the problem as soon as possible in order to maintain their position in the market.”

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.

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