Digital banks to become key components of any developing financial system - ABA

5 July 2021 16:59 (UTC+04:00)

By Trend

Digital banks, providing remote access to all services without physical contact, will be a key component of any evolving financial system, Tamerlan Rustamov, Head of the expert group ‘On Payment Systems and Digital Banking’ of the Azerbaijan Banks Association (ABA), told Trend.

According to Rustamov, in Azerbaijan, as in countries with developed financial systems, the use of mobile platforms in the banking system is inevitable.

Besides, deepening of the process of building digital platforms in mobile banking will ensure that products and services that meet customer needs are delivered through a single platform.

"It’s necessary to ensure the creation of a horizontally integrated chain of products and services through mobile banking. The richness of digital services must be ensured by redefining the service chain provided by banks through mobile banking. This will have a direct impact on the process of expanding the use of value-added services compared to mobile banking," he added.

Rustamov noted that at the same time, banks should focus on the wishes and needs of the client.

"Namely this factor ensures the improvement of users' digital payment habits by attracting a new segment of customers. The focus should be on the use of advanced information technologies, including artificial intelligence, open banking technologies that will deepen the platform, enrich the service chain, and provide products that meet customer needs in advance," the ABA’s representative said.

He stressed that the achievements in the application of innovative technologies and solutions must be supported.

"The process of integrating mobile banking services into the instant payment system operated by the Central Bank of Azerbaijan should be accelerated, and the introduction of tokenization services should be expanded. These innovations should be aimed at strengthening direct access to financial services by increasing the efficiency and security of digital payments," he further noted.

The above factors, according to Rustamov, will ensure focus on the desires and needs of customers, the use of a horizontal service chain, advanced information technologies and innovative solutions, the introduction of new services along with traditional banking products and services on a single platform, as well as the expansion of the client segment.

"In order to increase the level of security, it's needed to establish a set of mandatory requirements for financial institutions by adopting a regulatory legal document in the field of electronic and mobile banking," Rustamov said.

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