BAKU, Azerbaijan, October 13.
Fintech services are planned to be expanded among Turkic states,
Edgar Abdullayev, Chairman of the Board of Directors of the
Azerbaijan Fintech Association (AzFina), told reporters on the
sidelines of the Baku Fintech Sector Trade Board Program on
Tuesday, Trend’s
correspondent reports from the event.
According to him, it’s planned to strengthen cooperation with
Turkic states to foster the development of the fintech ecosystem in
Azerbaijan and expand payment services internationally. Key
objectives within this framework include the integration of payment
systems, the mutual recognition of licenses, and the implementation
of fast, low-commission cross-border transfers.
He stated that significant steps have been taken since 2024 to
regulate the fintech ecosystem in Azerbaijan. From that year
onwards, relevant entities operating in the fintech sector were
brought under the licensing and supervisory framework of the
Central Bank of Azerbaijan (CBA). This has enabled the integration
of a previously unregulated market into a legal framework and
facilitated a more systematic organization of operations.
"The fintech ecosystem in Azerbaijan holds great potential. We
are currently working on the sector's development through a
constructive dialogue with the regulatory authority. This potential
is not limited to the Azerbaijani market alone; there are
opportunities to expand cooperation, first and foremost with Turkic
states, and subsequently with the European Union and global
markets," noted Abdullayev.
The Chairman of the Board of AzFina emphasized that, alongside
the expansion of digital financial services, issues regarding
financial security are also of particular importance. Thus, the
growth of the fintech ecosystem necessitates taking into account
requirements for combating money laundering and the financing of
terrorism.
According to him, an approach allowing the sector to operate
with complete freedom is therefore not feasible. The primary
objective is to establish agile and favorable mechanisms for
business development through dialogue with the regulatory body,
while simultaneously upholding financial security requirements.
Abdullayev also touched upon efforts to expand cooperation in
the field of financial technology among Turkic states. He noted
that the groundwork for creating a platform for cooperation among
the central banks of Turkic states was laid in 2024. As a
continuation of this process, the Azerbaijan Fintech Association
and the Payment and Electronic Money Institutions Association of
Türkiye (TÖDEB) are working, within the framework of the "Turkfin"
initiative and with the participation of other Turkic states, to
establish a cooperation platform.
"The primary objective of the 'Turkfin' initiative is to
establish a unified cooperation platform among Turkic states,
expand payment capabilities, and achieve the harmonization of
regulatory frameworks. This includes exploring the digital
identification of products created under special regulatory
regimes, as well as the mutual recognition of licenses issued for
the provision of payment services.
In the initial phase, establishing a mechanism for the mutual
recognition of licenses among Turkic states could facilitate
fintech companies' access to regional markets. This could pave the
way for companies to expand their operational reach, deliver
services to a broader user base, and strengthen regional
integration in the financial technology sector," he explained.
According to Abdullayev, the long-term goal is to enable a
customer of an electronic money institution licensed by the CBA to
utilize payment services in Türkiye or Uzbekistan using the same
account.
He noted that one of the most significant prospects in this
regard is the integration of the instant payment systems of the
Turkic states. Such a mechanism could enable faster money transfers
between countries and reduce operational costs and commissions.
"From the perspective of a shared financial ecosystem, one of
the greatest achievements would be the integration of instant
payment systems and the execution of transactions between Turkic
states through this common ecosystem. This would make it possible
to both increase transfer speeds and lower commissions," he
emphasized.
The head of AzFina added that the economic sovereignty and
financial security of the countries must also be taken into account
when implementing such integration projects. Therefore, the
coordination of payment systems, the organization of cross-border
transactions, and the development of relevant regulatory mechanisms
should be conducted based on a risk-based approach.
According to him, creating the right balance between financial
security and the development of innovation is one of the key
prerequisites for expanding fintech cooperation among Turkic states
and forming a shared digital financial ecosystem.
