BAKU, Azerbaijan, October 9. Fintechs' activity areas should be expanded on a legislative basis, Chairman of the Azerbaijan Banks Association (ABA) Zakir Nuriyev said at the Baku Fintech Forum 2025 event, Trend reports.
"We need to incorporate international trends in the fintech sector into our system. The biggest burden here lies on improving the legislative framework," the chairman explained.
He noted as an example a requirement for electronic money institutions to store funds in more than one bank.
"At the same time, there is such a requirement for other participants in the financial sector. In particular, there is a requirement for insurance companies to store their funds in different banks. For the upcoming period, it may be important to introduce such a requirement to fintechs as well," he also said.
Nuriyev pointed out that this strategy will not only bolster the security of payment service users' funds but also pave the way for the long-term viability of e-money institutions.
"In terms of developing financial inclusion and more effective application of the financial approach, additional areas of activity of fintechs should be expanded on a legislative basis," the chairman added.
Fintech, an abbreviation for financial technology, encompasses the integration of cutting-edge digital innovations to enhance and streamline financial services and products, thereby optimizing accessibility, efficiency, and cost-effectiveness. It encapsulates a diverse array of cutting-edge advancements, encompassing digital banking infrastructures, mobile transaction platforms, crowd-sourced funding mechanisms, algorithm-driven advisory services, virtual lending solutions, and decentralized ledger technologies exemplified by digital currencies.
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