BAKU, Azerbaijan, October 13. A digital identity system is planned to be rolled out among Turkic states, Chairman of the Board of the Azerbaijan Fintech Association (AzFina), Edgar Abdullayev, told Trend in an exclusive interview.
He said that the integration of digital identity and payment systems among Turkic states can create new opportunities for expanding cooperation in the fintech sector.
According to him, there is significant potential for the development of the fintech sector in Azerbaijan.
"Realizing this potential requires expanding the capabilities of companies operating in the financial technology field, strengthening cooperation with regulatory bodies, and applying international best practices.
Alongside the development of financial technologies, requirements regarding financial security and the fight against money laundering must also be taken into account. In this regard, sector regulation should be risk-based while simultaneously fostering an environment conducive to the creation of new services and the implementation of innovative solutions," Abdullayev explained.
He noted that cooperation and dialogue between the Central Bank of Azerbaijan and fintech companies play a crucial role in the sector's development. Solutions such as the instant payment system and the AZQR standard are significant for expanding payment services and creating new technological capabilities.
Abdullayev emphasized that the development of the fintech sector in Azerbaijan also opens up new prospects for regional cooperation.
"In this regard, the platform of the Fintech Alliance of Turkic States (TURKFIN), established in 2024, holds special significance. The platform was founded by the Azerbaijan Fintech Association and the Payment and Electronic Money Institutions Association of Türkiye (TÖDEB). Uzbekistan, Kazakhstan, and Kyrgyzstan also participate in this cooperation framework," he remarked.
The AzFina chairman highlighted that one of the platform's primary objectives is to coordinate fintech ecosystems among Turkic states, develop payment services, and deepen cooperation in the field of financial technologies.
"The integration of digital payment systems and the harmonization of digital identity mechanisms among Turkic states could create broader opportunities for users. This could enable the seamless use of financial services developed in one country across other countries as well," he said.
According to Abdullayev, the cross-border use of services provided by electronic money institutions and the interconnection of instant payment systems could become key areas of cooperation in the future. Such integration could help accelerate money transfers, reduce operational costs, and facilitate user access to financial services.
He added that digital identity solutions could play a significant role in this process.
"Harmonizing user identification mechanisms across different countries could facilitate the cross-border use of financial services. However, the implementation of such mechanisms must also take into account issues regarding data security, the resilience of financial systems, and national economic sovereignty," he mentioned.
The AzFina chairman noted that technological solutions alone are insufficient for fostering regional integration. It is also essential to harmonize legislative and regulatory approaches and to strengthen coordination among the relevant institutions of the respective countries.
He pointed out that reporting requirements for the operations of e-money and payment institutions also serve to ensure the transparency of the financial system and the effectiveness of oversight mechanisms.
According to Abdullayev, expanding cooperation in digital identity, instant payment systems, and electronic money services could facilitate the entry of Azerbaijani fintech companies into regional markets while simultaneously contributing to the development of digital economic ties among Turkic states.