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Nazrin Abdul

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Azerbaijan must align its financial system with international fintech trends, and the primary responsibility lies in improving the country’s legislative framework.

Azernews reports that this was stated by Zakir Nuriyev, Chairman of the Azerbaijan Banks Association (ABA), during the Baku Fintech Forum 2025.

According to Nuriyev, one of the key regulatory updates should address how electronic money institutions manage their funds. “Currently, there is a requirement for these institutions to hold funds in more than one bank,” he noted. “A similar requirement already exists for other players in the financial sector. For example, insurance companies are obligated to distribute their funds across multiple banks. Extending this requirement to fintech companies could become increasingly important in the near future.”

Nuriyev emphasized that this approach would not only enhance the security of customer funds using payment services but also strengthen the resilience of electronic money institutions.

“We believe that, in order to advance financial inclusion and improve the application of modern financial approaches, the legal framework must be expanded to allow fintech companies to explore additional areas of activity,” he added.

The statement reflects growing momentum in Azerbaijan’s financial sector to modernize its regulatory environment in line with global standards, ensuring that fintech development is both secure and sustainable.