BAKU, Azerbaijan, June 29. More than 35 applications for innovative financial products have been submitted through Azerbaijan's regulatory sandbox over the past two years, according to Fidan Tofidi, director of the Financial Technologies and Innovations Department at the Central Bank of Azerbaijan (CBA), Trend's correspondent reports from the event.
Speaking at the "Digital Financial Agenda of Azerbaijan" event in Baku, Tofidi said digital financial services have become an integral part of everyday life, with many banking transactions now conducted without visiting a branch.
"When we talked about digitalization and digital financial services several years ago, we discussed the future. Today we are already living in this future. Along with the development of technology, the expectations of users have also changed, who are increasingly focused on fast, affordable and convenient financial services.
In these conditions, the role of the Central Bank is changing. In addition to ensuring financial stability and market regulation, the CBA considers the formation of an innovative environment as one of its key areas of activity," she said.
Tofidi also stressed the importance of balancing innovation with effective risk management.
She noted that Azerbaijan began implementing its three-year Financial Sector Development Strategy in 2024 and that the current strategy concludes this year. The Central Bank has already started preparing its next strategic plan.
Among the regulator's most significant achievements in recent years, Tofidi highlighted the launch of a regulatory sandbox, a special testing framework that allows new financial products and services to be evaluated before being introduced to the broader market.
"The Central Bank provides temporary authorization and creates a test environment for a new product or service. If the solution is successful, it can be released to the wider market, and if necessary, changes to legislation or the development of new regulatory rules. In two years, under this mechanism, the CBA received over 35 applications for new financial products.
Of course, not all applications were approved, but I think this is a fairly good indicator," she said.
