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Azerbaijan to eliminate non-digital services in banking sector

24 July 2017 14:50 (UTC+04:00)
Azerbaijan to eliminate non-digital services in banking sector

By Sara Israfilbayova

All banks of Azerbaijan will provide digital banking services in 3-5 years.

Zakir Nuriyev, Head of the Association of Banks of Azerbaijan (ABA) made the remarks in an interview with Trend.

"I believe that Azerbaijani banks have already accepted this challenge and have been working in this direction for several years, about 24 banks are already providing Internet banking services, about 12 banks provide mobile banking services, and their number is growing every year. The banking sector itself in the next few years will already complete the processes necessary to respond to these challenges, and we will no longer have banks that do not provide digital services,” Nuriyev said.

He went on to say the full transition to digital banking requires a lot of investment and creation of the necessary infrastructure, adding that it is very important to establish own production.

The Head of the ABA added that transition to digital banking leads to the growth of cyber threats and now the main goal is to create a system that can prevent cyber attacks

Touching upon the facts of revealing counterfeit bills in ATMs, Nuriyev noted that at present banks are actively struggling with this problem.

The latest innovation in this area has become the equipping of all ATMs with surveillance cameras, which allows to track the entire process step-by-step, and view the entire process from beginning to end.

Digitalization is not just a challenge to the banking sector, it is a challenge to the 21st century, and this challenge is today faced by the economies of the whole world and Azerbaijan is not an exception.

The law on Non-Cash Payments, which is still the most discussed in business circles, has come into force since January 1, 2017.

The law was adopted given the need to strengthen accounting in the financial system, through the development of non-cash payments.

The Central Bank of Azerbaijan (CBA) and MasterCard have launched Cashless Azerbaijan project, which includes 3 stages, in February 2017.

The first stage is measuring the country's cash economy, the second-to define a strategy for non-cash payments, and the third stage-to prepare a detailed plan of actions.

The first stage of the project was presented on July 20, the goal of which, is to diagnose the factors that cause a high level of cash in the economy, measure the volume of the cash economy, reduce the volume of cash payments and develop cashless payments.

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