BAKU, Azerbaijan, February 14. Steps are being taken to reduce the dependency of fintech companies on banks, said Khayaladdin Taghiyev, Head of the Payment Services and Payment Systems Regulation Department at the Central Bank of Azerbaijan (CBA), Trend reports.
During his speech at the Azerbaijan Financial Forum, Taghiyev explained that fintechs currently rely on banks for final settlements, making them dependent on the banking system.
“To reduce this dependency, changes have been made to the settlement organization rules to ensure fintech organizations' participation in the Central Bank-operated Instant Payment System (IPS).
These changes will be approved shortly.
Payment organizations and electronic payment organizations must open accounts following the procedures for opening bank accounts.
We have a rule for conducting payment operations and payment instruments. The QR payment method is listed as a payment instrument. Each instrument is designed for remotely managing accounts effectively. The most important aspect is linked to IBAN-structured accounts.
We are promoting QR code payments linked to accounts instead of traditional payment instruments. We encourage both payment and electronic payment organizations and banks to expand the use of payment instruments. Relevant changes to the rule have been proposed and will be approved shortly,” Taghiyev said.
The Azerbaijan Financial Forum is convening in Baku today, aiming to align economic development with the financial sector's potential, enhance financial intermediation and inclusion, eliminate barriers in this domain, and explore opportunities for expediting digitalization through innovative technologies. Additionally, it seeks to improve legislation and regulations within the financial sector, thereby serving as a platform for discussing the accomplishments of the Azerbaijani financial sector to date and the challenges that lie ahead. The Forum is coordinated by the Azerbaijan Banks Association, the Azerbaijan Microfinance Association, the Azerbaijan Insurers Association, the Azerbaijan Fintech Association, and the Azerbaijan Stock Market Participants Association.
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