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Banking sector in Azerbaijan already quite technological - expert

Finance Materials 10 November 2019 12:16 (UTC +04:00)
Azerbaijani economy expert Elman Sadigov has commented on the results of the International Banking Forum held in Baku Nov. 6 and 7, and also spoke about difficulties and problems
Banking sector in Azerbaijan already quite technological - expert

BAKU, Azerbaijan, Nov. 10

By Eldar Janashvili – Trend:

Azerbaijani economy expert Elman Sadigov has commented on the results of the International Banking Forum held in Baku Nov. 6 and 7, and also spoke about difficulties and problems, Trend reports.

Sadigov said that this forum stands out among the three previous ones in terms of organization level and its scope. The event, which was attended by about 1,500 delegates from Europe, the US, Japan, Russia and other countries, attracted great attention, the expert noted.

Earlier, the Global Association of Risk Professionals held a forum on the creation and implementation of artificial intelligence and other technologies, where various issues were also discussed.

“All this indicates that the banking sector in Azerbaijan is already quite technologically advanced and is interested in applying modern innovations in technology, along with developed countries,” Sadigov added.

The expert also noted that there are several points in the process of comfortable adaptation of Azerbaijan’s banking sector to new technologies.

The first issue is the need to take advantage of the experience of leading US, European and Japanese banks in this direction, because most of the new technologies are being introduced for the first time in these countries, Sadigov said.

The second issue is that these technologies themselves require major investments for their implementation, the expert added. Azerbaijani banks need major investments, both for the transition to digital banking and for the application of high technologies, Sadigov noted.

The third issue is related to the fact that when applying these technologies, new risks arise, the expert said.

“Integration of technologies always brings difficulties along with prospects, be it in the banking sector or in any other,” Sadigov noted. “Therefore, in addition to the fact that modern technologies require high costs for implementation and must be serviced by highly qualified personnel, the use of these technologies requires double investment also because of the risks. Therefore, Azerbaijan’s banking sector should be careful in the application of high technologies.”

The expert added that the pace of development in the fields of technology and finance has surpassed the pace of development of the economy itself, as a result of which they are forced to slow down.

In addition to this, the application of some technologies doesn’t justify itself, which means that they have to be replaced by other technologies, and all this entails unnecessary risks and costs, Sadigov said.

“With regard to digital payments, and especially the introduction of post-terminals, there is a state program to stimulate non-cash payments in Azerbaijan for 2018-2020, under which the Central Bank of Azerbaijan carries out certain activities, including an instant payment system, etc.,” the expert added. “This is very important for making payments on non-cash loans in the country.”

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