BAKU, Azerbaijan, December 4. After the introduction of "Open Banking" in Azerbaijan, more small and medium-sized enterprises will have access to loans, Mastercard General Director for Azerbaijan and Türkiye Avsar Gurdal told Trend.
According to him, "Open Banking" is a very important element of digitalization of the economy.
“In essence, 'Open Banking' gives users ownership over their data. According to the Central Bank of Azerbaijan, this service will be available in the country shortly, and the market is ready for it. We expect to see value offers for SMEs such as access to loans through the system and accounting solutions once 'Open Banking' goes live. As an example, when 'Open Banking' was implemented in the United Kingdom, 75 percent of SMEs obtained access to loans, up from 50 percent previously. In the Azerbaijani market, we anticipate similar changes. One of the primary benefits of 'Open Banking' is access to more extensive information on clients, which enables banks and financial institutions to make more informed credit decisions,” Gurdal said.
The second key factor, according to Mastercard General Director, is accounting systems that allow businesses to regulate cash flow and handle cash movements in banks. 'Open Banking' gives consumers with access to personal finance management options. Accounts, payments, and investments in other banks may now be easily managed from a single spot, considerably improving consumer convenience.
Mastercard is a global technology leader with over 2.3 billion account holders in 210 countries. Kantar 2023 ranks the company among the top ten most valuable global brands in the world, with a market worth of more than $390 billion.