The CEO of Kharazmi Information Technology Development Company, while elaborating on the strategic dimensions of digital transformation in the country's banking system, emphasized: 'What is happening today in the banking industry is not merely a technological modernization or system upgrade, but a fundamental transformation in the logic of bank management, operational structure, service delivery methods, and the bank's relationship with the customer, data, and the market – a transformation that is gradually shifting the foundation of traditional banking toward intelligent, integrated, and data-driven models.
Dr. Mohammad Taghi Saleh, pointing out that digital transformation is no longer an optional choice for banks, stated: "The country's banking network stands at a point where continuing with traditional, branch-centric models and heavy, costly processes cannot meet the requirements of today's financial market."
He continued: "The speed of change in customer expectations, the expansion of modern technologies, increasing competition among financial players, and the necessity of enhancing productivity have made banks inevitably reconsider their structures and move toward modern banking models."
He added: "In the past, a major portion of banking operations was based on in-person visits, manual processes, time-consuming decision-making, and complex administrative workflows. But today, the nature of financial services has changed, and customers expect banking services to be delivered in the shortest time, with the highest accuracy, across diverse platforms, and with the least possible friction. This shift in expectations has forced banks to consider information technology not as a support tool, but as the core of service delivery and value creation."
The CEO of Kharazmi Information Technology Development Company, emphasizing that digital transformation affects both the 'operations' and 'service' dimensions, clarified: "In the operational dimension, banks can leverage modern technologies to automate many repetitive, time-consuming, and costly processes, integrate their systems, and make decisions based on reliable and real-time data. This not only leads to increased speed and accuracy but also provides the groundwork for error reduction, transparency enhancement, improved oversight, and organizational productivity growth."
According to him, one of the most important achievements of digital transformation in the banking network is the change in the service delivery model – a change that transforms the bank from a mere provider of standard and general services into an agile, intelligent, and customer-centric organization.
Saleh explained in this regard: "Today's customer is no longer merely looking to carry out a banking transaction, but expects to receive a simple, secure, fast, and personalized experience from the bank. Therefore, a successful bank is one that can design and deliver its services based on the customer's needs, behavior, timing, and preferences."
He continued: "This is where data becomes a strategic asset. Banks that can properly utilize their data will be able to better understand customer behavior, design more precise services, manage risk more intelligently, and even take the lead in developing new products. In fact, in the new era, the competitive advantage of banks lies more than anything in their ability to analyze, interpret, and apply data."
Dr. Saleh, referring to the role of information technology in redefining banks' business logic, noted: "Digital transformation does not merely change service delivery tools, but also transforms the bank's revenue logic. In the traditional structure, a significant portion of banks' income was based on limited and classical models, but today, with the expansion of digital banking, open banking, APIs, collaboration with fintechs, and the formation of financial ecosystems, new pathways for value creation and revenue development have emerged. This change transforms the bank from a closed and inward-looking institution into an active player in a network of financial services and collaborations."
He added: "In such an environment, banks must move away from siloed views and toward platform-based and integrated architectures. Collaboration with technology businesses, knowledge-based companies, and innovative financial players is no longer a side advantage, but part of the strategy for survival and growth of banks. The bank of the future is one that can play a central role in a dynamic and connected ecosystem and, instead of resisting change, use it to develop its capacities."
The CEO of Kharazmi Information Technology Development Company also identified security, resilience, and data governance as serious requirements of digital transformation in banking and stated: "The more banking services become dependent on digital platforms, the more critical issues such as cybersecurity, data protection, service stability, business continuity, and public trust become. Therefore, digital transformation will be successful when it ensures security, transparency, and infrastructure reliability alongside speed and convenience."
He stressed: "Digital banking without data governance, up-to-date security frameworks, and an organizational culture aligned with transformation cannot lead to sustainable results. Hence, banks must simultaneously invest in human resource training, manager retraining, process redesign, and strengthening decision-making systems alongside technology development. Digital transformation is not merely a technical project; it is a strategic, organizational, and cultural project that encompasses all levels of the bank."
Saleh, stating that the future of the country's banking depends on the readiness of banks to embrace this transformation, said: "Banks that can adapt themselves today to the new logic of competition in the financial market will hold a superior position in the future. But banks that continue to insist on traditional, slow, and costly models will gradually fall behind in the competition cycle. For this reason, digital transformation should be considered a strategic necessity for the survival, growth, and competitiveness of the banking system.
