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.