CBA: All Banks Connected to Instant Payments Opens Fintech Access to Regional Markets

The connection of all Azerbaijani banks to the instant payment system has created new prospects for fintech companies. Local players can not only build products based on open banking but also scale their activities to the markets of Turkey, Uzbekistan, Kazakhstan and other countries in the region.

This was stated by Vusal Khalilov, Deputy Chairman of the Central Bank of Azerbaijan (CBA), during the "Baku Fintech Sector Trade Mission" program, FinFly reports.

He emphasized that the digital financial infrastructure being formed in the country is important for the development of local fintech companies and their entry into international markets.

"The connection of all banks to this service has created broad opportunities for fintech companies. In particular, the experience accumulated by local fintech companies in developing products based on open banking can be applied not only in Azerbaijan but also in other Turkic states and countries of the region," the deputy chairman noted.

According to Khalilov, the CBA is cooperating with the central banks of Turkey, Uzbekistan, Kazakhstan and other countries in the region. This is important for exchanging experience in financial technology and expanding opportunities for local companies to enter foreign markets.

He added that the creation of special regulatory regimes—sandbox mechanisms that allow fintech companies to test and implement products in different countries—also opens up important opportunities. Such mechanisms allow innovative financial products to be tested within the framework set by the regulator.

According to him, fintech companies can also contribute to faster cross-border payments at lower costs. Here, the expansion of regional cooperation and the integration of financial infrastructures are of particular importance.

Khalilov noted that the development of the instant payment system indicates an acceleration in the digitalization of the financial sector.

"Currently, the number of daily operations in the system has reached one million, which indicates significant growth compared to 2024. Work is also underway to integrate the instant payment system with the corresponding infrastructures of other countries and regions. This process will simplify cross-border payments and increase the accessibility of financial services," he said.

The CBA deputy chairman also touched upon the digital transformation of the financial sector and the use of artificial intelligence. According to him, in terms of digital development, banks occupy leading positions, followed by fintech companies, whose main advantage is the ability to develop new products more flexibly and bring them to market faster.

Khalilov emphasized that along with the expansion of digital services, it is important to ensure their security. To this end, cybersecurity rules, IT management recommendations, as well as framework approaches to data management and artificial intelligence are applied.

According to him, the development of digital infrastructure, strengthening regional integration and improving security mechanisms create new opportunities for the development of Azerbaijan's fintech sector both in the domestic and international markets.