BAKU, Azerbaijan, August 13. The development of
financial technology in Azerbaijan was discussed.


This was reported by the Central Bank of Azerbaijan (CBA),
following the meeting between Vusal Khalilov, Deputy Chairman of
the CBA, and representatives of the Azerbaijan Financial Technology
Association (AzFina).


During the meeting, participants discussed the results achieved
in the field of financial technology and payments in the second
quarter of 2026, as well as key trends emerging in the ecosystem
and future directions for development. In addition, special
attention was paid to the implementation of a comprehensive
regulatory framework covering the activities of cryptoassets and
cryptoasset service providers, as well as the work that needs to be
done to draft relevant regulations in this area.


The meeting also featured an exchange of views on the key
strategic goals set for the sector in the next phase, as well as
initiatives aimed at improving control mechanisms to prevent fraud
and illegal transactions.


Meanwhile, the development of financial technologies has also
led to a shift in payment habits in Azerbaijan.


Deputy Chairman of the Central Bank of Azerbaijan Vusal Khalilov
stated at the roundtable discussion “Digital Architecture: Program
Management and a Results-Oriented Approach,” held on July 15, that
digital channels have already become the primary service platform
in the financial sector.


“Digital channels in Azerbaijan have already become the primary
service platform in the financial sector and have brought about
significant changes in the financial behavior of citizens and
businesses,” he said.







According to the CBA’s deputy chairman, the share of non-cash
payments in card transactions has risen from 17.8% to 69.7% in
recent years. The volume of transactions in the instant payment
system reached 940 million manat ($553.02 million), compared to 87
million manat ($51.1 million) at the beginning of 2025.


“These figures demonstrate not only the adoption of technology
but also a shift in the financial behavior of citizens and economic
entities,” Khalilov noted.


He noted that in the financial sector, artificial intelligence
technologies are used for credit scoring, risk assessment, and
personalized product offerings. Work is also currently underway to
implement large language models (LLMs).


According to Khalilov, the strategy of the Central Bank of
Azerbaijan (CBA) is aimed not so much at directly providing
citizens with a wide range of services as at creating favorable
conditions for the private sector to develop innovative financial
products.


In this context, priority areas include the development of an
open API approach, the creation of new opportunities for market
participants, the digitization of supervisory mechanisms, and the
implementation of AI-based supervisory tools.


He also emphasized that risk-based regulation, special legal
frameworks that allow for the testing of innovative products,
expanded access to government databases, and the development of
cloud infrastructure are of great importance for the further
development of the financial sector.