BAKU, Azerbaijan, November 21. Azerbaijani banking is in the fast lane, as digital technologies, artificial intelligence (AI), open banking infrastructure, and mounting cybersecurity challenges are turning the sector’s strategic priorities on their head. These trends were highlighted at the Ninth International Banking Forum in Baku, which became a key platform to showcase the future direction of the banking sector both regionally and within Azerbaijan.
The digital banking scene is picking up steam
These days, hitting up a bank branch is not just a choice for many people. Mobile applications, online services, and AI-enhanced operations have become the bread and butter of banking.
Alpaslan Çakar, President of the Banks Association of Türkiye, described the future of banking: “Artificial intelligence is inevitable. The main fuel of banking in the coming years will be data.” He emphasized that digital banking is not just about accessibility but about creating a smarter, more agile, and predictive system where banks transform into technology hubs that analyze customer behavior and anticipate needs in advance.
Rafal Sokolowski of the Polish Banks Association noted that Azerbaijan’s digitalization keeps up with European trends.
“Innovation in banking is transforming the entire region. Digital payments in Poland have reached record levels, and Azerbaijan is taking equally rapid steps.” He highlighted the country’s advancements in instant payment systems, mobile banking, and digital services as aligning with modern European financial models," Sokolowski stressed.
As the representatives highlighted, in the years ahead, it’s a safe bet that most banks will be leaning on artificial intelligence (AI)-powered systems to tackle customer inquiries, speeding up service while keeping a tight rein on operational costs.
Open banking: flexibility beyond borders
Open banking is coming to the forefront in Azerbaijan, allowing banks, fintechs, and other financial institutions to join forces on a common platform and share data securely, all with the customer's nod of approval.
Sahib Hasanov, Head of the Special Regulatory Regime Department at the Central Bank of Azerbaijan (CBA), explained that in addition to unified standards, a shared infrastructure has been created for institutions to access open banking services. CBA’s “technical sandbox” will allow startups to safely test innovations using synthetic data, providing more sustainable results without negative scenarios.
"Testing innovation without exposing it to negative scenarios will deliver more sustainable outcomes," he added.
In essence, the regulatory official emphasized that the open banking model has the potential to boost competition within Azerbaijan’s financial ecosystem, foster the development of new products, and provide customers with a more flexible and diverse range of services.
Security: a growing responsibility in the shadow of digitalization
The rapid expansion of digital services brings with it a heightened responsibility: robust cyber defense. Today, banks must prioritize not only fast and convenient service but also ensuring the highest standards of security.
Resat Kokcen, a cybersecurity lead at Mastercard, emphasized the importance of defense against foreign-directed attacks.
“A large share of attacks targeting Azerbaijan come from abroad… We are applying our global threat intelligence more actively here,” Kokcen highlighted.
This statement is no coincidence. As Azerbaijan rises to the occasion as a regional hub for digital payments, the country is bound to become a shining star in the financial landscape.
Kokcen also pointed out that the company is gearing up to set up a local cybersecurity team in Azerbaijan, which will surely bolster their security capabilities right in the heart of the action.
Elvin Juvarov, a digital anti-fraud expert at CBA, highlighted that most digital fraud, around 80-90 percent, occurs through customer manipulation.
This striking figure underscores that even with strengthened technical defenses, the human factor remains a critical and complex challenge. It calls for ongoing education and awareness for both banks and their customers.
Juvarov emphasized the need to bolster standards, enhance authentication processes, and expand information sharing between banks to effectively address these risks.
Regional Banking Integration: Complementary Markets
The forum offered more than a glimpse into domestic trends; it highlighted how the region’s banking sectors are increasingly interlinked. Participants from Azerbaijan and neighboring countries shared their insights, showcasing a growing alignment in the region’s vision for the future of banking.
Mikheil Kapanadze, CEO of the Open Banking project of the Georgia Bankers Association (GBA), pointed to the potential for expanded cooperation in open infrastructure and innovation between Azerbaijan and neighboring countries. The expert noted a clear trend: South Caucasus and Central European banks are moving in unison on digital payments, identification systems, and open APIs, shaping a new regional financial map.
To wrap things up, Azerbaijan is stepping into a brave new world of banking, bolstered by the wonders of AI, the open banking revolution, and a fortress of cybersecurity. The 9th International Banking Forum (IBF 2025) demonstrated that the country’s financial sector is not only adapting to these changes but actively preparing to lead. If these strategies keep rolling, Azerbaijani banking is on track to turn into a more nimble, savvy, and safe financial landscape before long.
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