BAKU, Azerbaijan, June 29. More than 35
applications for innovative financial products have been submitted
through Azerbaijan's regulatory sandbox over the past two years,
according to Fidan Tofidi, director of the Financial Technologies
and Innovations Department at the Central Bank of Azerbaijan (CBA),
Trend's
correspondent reports from the event.


Speaking at the "Digital Financial Agenda of Azerbaijan" event
in Baku, Tofidi said digital financial services have become an
integral part of everyday life, with many banking transactions now
conducted without visiting a branch.


"When we talked about digitalization and digital financial
services several years ago, we discussed the future. Today we are
already living in this future. Along with the development of
technology, the expectations of users have also changed, who are
increasingly focused on fast, affordable and convenient financial
services.


In these conditions, the role of the Central Bank is changing.
In addition to ensuring financial stability and market regulation,
the CBA considers the formation of an innovative environment as one
of its key areas of activity," she said.


Tofidi also stressed the importance of balancing innovation with
effective risk management.







She noted that Azerbaijan began implementing its three-year
Financial Sector Development Strategy in 2024 and that the current
strategy concludes this year. The Central Bank has already started
preparing its next strategic plan.


Among the regulator's most significant achievements in recent
years, Tofidi highlighted the launch of a regulatory sandbox, a
special testing framework that allows new financial products and
services to be evaluated before being introduced to the broader
market.


"The Central Bank provides temporary authorization and creates a
test environment for a new product or service. If the solution is
successful, it can be released to the wider market, and if
necessary, changes to legislation or the development of new
regulatory rules. In two years, under this mechanism, the CBA
received over 35 applications for new financial products.


Of course, not all applications were approved, but I think this
is a fairly good indicator," she said.