BAKU, Azerbaijan, December 3. The digitalization process in Türkiye's financial sector is supported by long-term plans and strong regulatory mechanisms, Deputy Chairman of the Agency for Banking Regulation and Supervision Mustafa Aydin said at the 8th International Banking Forum today in Azerbaijan's Baku, Trend reports.
"The banking regulator of Türkiye, the Banking Regulation and Supervision Agency (BRSA), not only performs supervisory functions but also plays the role of a driver of innovation. In the process of digitalization, the agency has taken important steps that have simplified banks access to customers and enhanced security standards.
Previously, we issued a regulation on banking information systems and electronic banking services, which opened new prospects for the sector in areas such as multi-factor authentication, cloud technologies, open banking services, and remote customer acquisition.
In addition, this regulation established international security and service standards for electronic channels of banking services, benefiting not only the banking sector but the entire financial ecosystem while stimulating the development of financial technologies in our country.
In March 2021, we issued a regulation on methods of remote client identification and the electronic conclusion of contracts, which enabled banks to fully transition to digital customer acquisition," he said.
According to him, after the successful implementation of remote customer service for individuals, Türkiye made amendments to the regulation that opened the possibility of remote servicing for legal entities, considering the needs of the sector.
"Given the changing consumer habits in the digitalization era and the goal of increasing financial accessibility, at the end of 2021, we approved a regulation on digital banks and the service banking model, which became the foundation for the creation of globally operating digital banks.
The Banking Regulation and Supervision Agency has issued licenses for the creation of six digital banks, five of which have already received operating authorization. These steps have not only strengthened Türkiye’s banking sector but also served as an example for other countries in the region," he added.
To note, the 8th International Banking Forum is in full swing over two days in the bustling city of Baku, Azerbaijan, and the key topics of the forum include digital transformation (digital and neobanks), strategies for data management and analytics, the evolution of the payment landscape (transition to contactless technologies), instant, seamless, and compatible international payments, the revolution of decentralized finance (DeFi), cloud systems and alternatives to outdated technologies, digitalization through the lens of cybersecurity, stability and resilience, and green and sustainable banking (ESG).
Stay up-to-date with more news on Trend News Agency's WhatsApp channel