BAKU, Azerbaijan: The Association of Banks of Azerbaijan will participate in the implementation of reforms to create a network of “payment agents” and introduce a “sandbox” regime for the development of the financial technology ecosystem, which will help expand financial inclusion.
This was stated in the expert group on “Payment Systems and Digital Banking” of the Azerbaijan Banks Association (ABA).
According to ABA, during the implementation of these programs, it is also necessary to increase financial literacy and improve the knowledge and skills of bank employees in the field of digitalization. In this direction, active work continues in various areas of the banking system, including the payment ecosystem and digital payments. This activity is coordinated with the Central Bank, commercial banks, international financial corporations Visa, MasterCard and other international card organizations, as well as internationally recognized financial institutions.
The association said that at the next stage it is planned to actively participate in the formation of a new legal framework in the payment ecosystem and improvement of the existing legal framework.
The ABA stressed that the agenda includes the task of taking significant steps to develop the payment card market, which is an integral part of the payment ecosystem. Thus, this year the Central Bank of Azerbaijan (CBA) has started issuing student cards in cooperation with international card organizations and banks.
It should be reminded that earlier the Association of Banks of Azerbaijan has repeatedly stated that digitalization can become one of the drivers for the development of the banking system of Azerbaijan and this will increase trust between depositors and banks, as well as ensure transparency in the financial sector.
“In general, banks spent more than 310 million manat (eight percent of non-interest expenses) on the introduction of financial technologies. Digitalization requires large investments from banks. However, it should be noted that as a result, banks will be able to receive large income in the medium term,” the association concluded.