A Study of the Dynamics of the Fintechs’ Effects on the Inflation Rate in Iran’s Economy

Articles in Press

Document Type : Original Article

Authors

azam ahmadyan ¹

wahhab Qelich ²

¹ Assistant Professor, Banking Studies Department, Monetary and Banking Research Institute, Tehran, Iran. (Corresponding author)

² Assistant Professor, Director of Islamic Banking and Financial Studies Department, Monetary and Banking Research Institute, Tehran, Iran

https://doi.org/10.22067/mfe.2026.92345.1515

Abstract

The significance of fintech’s presence in the economy, particularly in the financial sector, is no longer a secret, and is underscored by the proliferation of recent studies examining the interplay between the performance of fintechs and macroeconomics on a global scale. According to international experiences, fintechs have significantly contributed to bolstering economic growth and controlling inflation by increasing access to financial services. Iran is host to over fifty operational fintech companies that have penetrated diverse facets of the business models employed by banks. Their presence may thus have an effect on the efficacy of the macro economy. A primary focus of economic policymakers in recent years has been the regulation of inflation. The fundamental inquiry is that how fintechs’ presence and emergence affect the inflation. Furthermore, what are the immediate and delayed consequences of fintechs’ existence on inflation? With the aid of time series data spanning 1991 to 2022 and the ARDL model, this paper examines the short- and long-term effects of fintechs on inflation. It categorizes fintechs into two distinct groups: those that engage in competition with banks and those that do not. By separating fintechs into competing and non-competing categories, the impact of each on inflation can be evaluated independently. The research findings indicate that the impact of different types of fintechs (competitor and non-competitor) on inflation differs, as does this impact during economic expansion and recession.

Keywords

Fintech

ARDL

inflatio

Iranian economy

Subjects

• Startups and its financing

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