The CEO of Azkivam says that only 2% of Iran’s payment transactions are credit, while this percentage reaches 70% in advanced countries.
According to Iran digital economy annotation, the Parse in Majara event was organized by Azkivam with the aim of reviewing the news of lendtech and issues related to the business of Facilitator.
Mehdi Momeni, the CEO of Azkivam, first pointed out the low percentage of credit services in Iran and said: One of the important tasks of us as lendtech activists is to familiarize the society with the credit field. The share of credit transactions in Iran is only two percent, while this number is between 50 and 70 percent in developed countries. That is, in fact, the ratio of this percentage in Iran is one thirty-fifth compared to other countries.
The goal is financial inclusion
Momeni further pointed to the issue of accessibility and financial inclusion in the country and said: “With all the challenges that stand in the way of Iran in the field of the activities of lendtech companies, we are trying to be able to increase the number of 2% to 10% in the next few years.” but unfortunately the regulatory pressures have intensified since the winter of last year, and each of us facility-related businesses, with all the problems ahead, want to provide more facilities to users with technological and personalized facilities.
Momeni further introduced mandated pricing as a bane of Iran’s economy and digital economy and explained: In practice, the inflation rate is around 60% and the announced rate is 40%, but the central bank expects us to provide a facility of around 23%. This is because of this reason, banks are selective in providing loans to selected users, and in practice, loans are not given to anyone except a limited number of specific users. With the notification of the Central Bank, the pressure on the banks has also increased, and fewer banks are willing to cooperate with lendTechs.
Momeni also said about the reason for the non-activation of promissory note facilities in Azkivam: the correct behavior of consumers in the field of promissory notes has not been formed and even the behavior of the legislative body towards electronic promissory notes is not clear and transparent. In addition, the electronic promissory note solution and its systems are not mature enough and there are many problems. Currently, we only provide facility checks and so far more than 300,000 credits have been paid to users through the Azki platform.
Momeni also added to other platforms regarding the data of bad credit customers: we provide the credit information of all customers to the Iranian validation system in full and not just the bad customers, because we believe that each of us is involved in the expansion of the credit culture. Finally, we believe that if the digital economy wants to be able to grow, all related institutions and systems should accompany in this field.
The CEO of Azkivam also stated that the default rate of Azkivam is about 180%.
In addition, Mahmoud Mirzaei, Vice President of Azkivam Product, said: In the current situation, we are limited to the range of current activities rather than being able to act innovatively, and even though lendtechs could become an arm of user learning and accessibility, the scope of our activities is getting narrower every day with incorrect regulatory laws.
Mohammadjavad Mahmoudi, Vice President of Information Technology of Azkivam, also pointed out the problems faced by technology companies and explained: The issue of immigration is seriously bothering our companies in the technology field, and due to all-round pressures from the internet disruption and regulatory pressures, the motivations of the active forces in this field have decreased. The rules that are formulated and sometimes approved in this area are without considering the conditions of the society and make the team focus on useless activities instead of developing the product.
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