BAKU, Azerbaijan, October 13.
The Central Bank of Azerbaijan (CBA) is drafting amendments to
legislation to foster the development of the financial technology
(fintech) sector in Azerbaijan, facilitate the creation of new
products and services, and expand the operational capabilities of
companies, Deputy Chairman of the CBA, Vusal Khalilov, told
reporters on the sidelines of the Baku Fintech Sector Trade Mission
Program on Tuesday, Trend's correspondent reports from the event.
He noted that while the financial sector has traditionally
prioritized the development of payment systems and products, the
creation of other financial products and services is now also a key
focus. Legislative changes in this area aim to enable banks and
fintech companies to introduce new services.
"Traditionally, our main priority has been payment systems and
products. Recently, however, we have also been placing great
emphasis on the creation of other products and services. The
legislative changes encourage the development of products and
services beyond just payments. The goal is to provide citizens with
new services through both banks and fintechs," Khalilov
explained.
According to the deputy chairman, work is underway, in
collaboration with representatives of the financial sector, to
improve the legislative framework. Specifically, draft amendments
to relevant laws and regulations have been prepared in cooperation
with the Azerbaijan Fintech Association and the Azerbaijan Banks
Association.
He noted that the initial drafts were well-received by
representatives of the sector.
"The proposed changes are expected to enable fintech companies
to create new products and services, as well as expand the range of
services they offer to customers.
We maintain an ongoing, extensive dialogue with the fintech
sector. In this context, we are specifically discussing issues
related to integration with the instant payment system," he
emphasized.
Touching upon the development of the instant payment system,
Khalilov noted that the daily volume of transactions within the
system has currently reached one million.
According to him, one of the system's key advantages is its low
operating costs. This allows for a significant reduction in
payment-related expenses for both banks and customers.
"Service fees vary depending on the type of payment; however,
the overall costs associated with the instant payment system are
very low, creating cost-effective opportunities for both banks and
customers," the deputy chairman pointed out.
He added that amendments to the law "On payment services and
payment systems" are also planned. The development of these
amendments will take into account the needs of the financial
market, risk management, and the development of the real
sector.
According to Khalilov, key objectives include not only
mitigating risks but also expanding the capacity of fintech
companies to offer new services, fostering innovation in the
financial sector, and increasing citizens' access to modern
financial services.
