Analyzing Fintech Startups Development Process in Iran

Nowadays, in the age of digital transformation, the use of financial technologies (fintechs) has become an integral part of the banking industry and partnership with Fintech start-ups is not either a choice it is a necessary. In this study, we want to analysis the development process of Fintech startups in Iran, which are in the early stages of their life cycle. So the main question is; what are the challenges and obstacles facing Fintech start-ups in Iran? This research is applied by its purpose and qualitative by its data gathering method. To achieve this goal, systematic grounded theory approach applied. Data collected using semi-structured interviews with 13 bank experts in Fintech, Entrepreneurs, and Co-founders of Fintech start-ups, by using purposeful sampling method. Data were analyzed using MAXQDA software. The results showed that the most important barriers to the development of Fintech startups in Iran are regulatory challenges, lack of a clear bank strategy for partnership, and macroeconomic conditions of the country, especially sanctions. Therefore, providing strategies such as formulating new standards and rules especially for open banking and complete the digital transformation roadmap of the banking industry with the help of key stakeholders can lead to the development of fintech startups.