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Tuesday May 28 2024

Fintex Summit 2024 in Baku showcases surge in Fintech and Banking Innovations

15 May 2024 16:11 (UTC+04:00)
Fintex Summit 2024 in Baku showcases surge in Fintech and Banking Innovations
Nazrin Abdul
Nazrin Abdul
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The Fintex Summit 2024 (Finance and Technologies Expo) kicked off in Baku, with a focus on "New Trends in Banking and Finance Ecosystem: Innovative Solutions, FinTech, and Security," Azernews reports.

Ruslan Talibov, Chairman of the Management Board of the Azerbaijan Fintech Association, reported a nearly tenfold increase in non-cash payments in Azerbaijan over the last five years during the summit.

Talibov highlighted the evolving customer behaviour and related requirements in the sector, emphasising the growing importance of fintech in meeting these demands.

According to Talibov, in the last 4 years, payments for one POS terminal have increased 4 times and reached about 10,000 manats ($5,882): "This brings new targets to fintech due to the increasingly changing customer behaviour and related requirements in the sector."

Vusal Gasimli, Executive Director of the Centre for Analysis of Economic Reforms and Communication, revealed ongoing efforts to prepare a 'fintech strategy for 2024-2028' in Azerbaijan, aiming to define goals and directions for sector development.

Gasimli noted the successful expansion of Azerbaijani fintech companies into foreign markets, including Turkiye, Kazakhstan, Uzbekistan, and Pakistan, underscoring the sector's potential for further growth.

"In the last 5 years, the country's banks have spent 300 million manats (about $176.5 million) on the implementation of financial technologies. Since May of this year, the Central Bank has introduced a special regulatory sandbox that will allow testing new fintech products and services in real-world conditions. Also, the Instant Payments System, which includes modern payment solutions, and the blockchain-based A Digital Identification System have been created," Gasimli added.

The Central Bank of Azerbaijan (CBA) announced that over 20 payment and electronic money organisations have applied for licences, with plans to issue licences to compliant organisations by the end of the month.

Rashad Orujov, the First Deputy Chairman of the CBA, said that the CBA considers relevant applications and provides necessary legal support within the framework of active communication with organisations.

Orujov noted that it is planned to start issuing licences to organisations that meet all legislative requirements by the end of this month.

Zakir Nuriyev, Chairman of the Azerbaijan Banks Association, emphasised the importance of deepening integration of payment ecosystems with neighboring countries and implementing legislative reforms to support digital banking and payment services.

He said that legislative reforms on the formation of digital banks, the provision of payment services based on open banking technologies, and the and the expansion of the scope of electronic money applications are among the tasks to be implemented in the upcoming period.

"Strengthening the integration of payment systems between Turkiс states, developing these relations can be a start. One of the important steps in this direction is the optimisation of cost items in the payment services market, as well as the tariff policy applied by international payment systems for market participants," added the ABA chairman.

It should be noted that the Fintex Summit 2024 provided a platform for discussing financial technologies, digitization, and the payment ecosystem, attracting participation from bank CEOs across Azerbaijan.

Looking ahead, the Fintex Summit Istanbul is scheduled for October 2024 in Turkiye, while the International Banking Forum will convene in Baku on December 3-4.

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