BAKU, Azerbaijan, October 13.
Azerbaijani fintechs can enter the markets of Turkic states and
countries across the region, Deputy Chairman of the Central Bank of
Azerbaijan (CBA), Vusal Khalilov, said at the Baku Fintech Sector
Trade Mission Program on Tuesday, Trend's correspondent reports from the
event.
According to him, the integration of all banks in Azerbaijan
into the instant payments service has created new opportunities for
fintech companies. In addition to developing open banking-based
products, local fintechs can also expand their operations into the
markets of Türkiye, Uzbekistan, Kazakhstan, and other countries in
the region.
He noted that the digital financial infrastructure taking shape
in Azerbaijan is of great importance for the development of local
fintech companies and their entry into international markets.
"The fact that all banks have connected to this service has
created significant opportunities for fintechs. In particular,
local fintechs can apply the experience they have gained in
developing open banking-based products not only in Azerbaijan but
also in other Turkic states and countries across the region," the
deputy chairman pointed out.
According to Khalilov, the CBA cooperates with the central banks
of Türkiye, Uzbekistan, Kazakhstan, and other countries in the
region. This cooperation is significant for the exchange of
experience in the field of financial technologies and for expanding
opportunities for local companies to access foreign markets.
He mentioned that the creation of special regulatory regimes,
"sandbox" mechanisms, enabling fintech companies to test and deploy
their products in various countries, represents another important
opportunity. These mechanisms facilitate the testing of innovative
financial products within a defined set of conditions.
The deputy chairman added that fintech companies can also
contribute to making cross-border payments faster and more
cost-effective. Expanding regional cooperation and integration
among financial infrastructures is of particular importance in this
regard.
According to Khalilov, the development of the instant payment
system in Azerbaijan also demonstrates the acceleration of
digitalization within the financial sector:
"Currently, the number of daily transactions within the system
has reached 1 million, representing a significant increase compared
to 2024.
Work is also underway to integrate the instant payment system
with the corresponding infrastructures of other countries and
regions. This process could facilitate cross-border payments and
enhance the accessibility of financial services," he explained.
The deputy chairman of the CBA also touched upon the importance
of digital transformation and the application of artificial
intelligence in the financial sector.
He noted that banks lead the financial sector in terms of
digital development, followed by fintech companies. However, one of
the key advantages of fintechs is their ability to develop new
products and services more flexibly and bring them to market more
rapidly.
Khalilov emphasized that alongside the expansion of digital
financial services, ensuring their security is also crucial. To
this end, cybersecurity regulations, recommendations on information
technology management, and frameworks for data and artificial
intelligence governance are being implemented.
According to him, the development of digital infrastructure, the
strengthening of regional integration, and the enhancement of
security mechanisms create new opportunities for the growth of
Azerbaijan's fintech sector, both in the domestic market and
internationally.
