BAKU, Azerbaijan, October 13.
A digital identity system is planned to be rolled out among Turkic
states, Chairman of the Board of the Azerbaijan Fintech Association
(AzFina), Edgar Abdullayev, told Trend in an exclusive interview.
He said that the integration of digital identity and payment
systems among Turkic states can create new opportunities for
expanding cooperation in the fintech sector.
According to him, there is significant potential for the
development of the fintech sector in Azerbaijan.
"Realizing this potential requires expanding the capabilities of
companies operating in the financial technology field,
strengthening cooperation with regulatory bodies, and applying
international best practices.
Alongside the development of financial technologies,
requirements regarding financial security and the fight against
money laundering must also be taken into account. In this regard,
sector regulation should be risk-based while simultaneously
fostering an environment conducive to the creation of new services
and the implementation of innovative solutions," Abdullayev
explained.
He noted that cooperation and dialogue between the Central Bank
of Azerbaijan and fintech companies play a crucial role in the
sector's development. Solutions such as the instant payment system
and the AZQR standard are significant for expanding payment
services and creating new technological capabilities.
Abdullayev emphasized that the development of the fintech sector
in Azerbaijan also opens up new prospects for regional
cooperation.
"In this regard, the platform of the Fintech Alliance of Turkic
States (TURKFIN), established in 2024, holds special significance.
The platform was founded by the Azerbaijan Fintech Association and
the Payment and Electronic Money Institutions Association of
Türkiye (TÖDEB). Uzbekistan, Kazakhstan, and Kyrgyzstan also
participate in this cooperation framework," he remarked.
The AzFina chairman highlighted that one of the platform's
primary objectives is to coordinate fintech ecosystems among Turkic
states, develop payment services, and deepen cooperation in the
field of financial technologies.
"The integration of digital payment systems and the
harmonization of digital identity mechanisms among Turkic states
could create broader opportunities for users. This could enable the
seamless use of financial services developed in one country across
other countries as well," he said.
According to Abdullayev, the cross-border use of services
provided by electronic money institutions and the interconnection
of instant payment systems could become key areas of cooperation in
the future. Such integration could help accelerate money transfers,
reduce operational costs, and facilitate user access to financial
services.
He added that digital identity solutions could play a
significant role in this process.
"Harmonizing user identification mechanisms across different
countries could facilitate the cross-border use of financial
services. However, the implementation of such mechanisms must also
take into account issues regarding data security, the resilience of
financial systems, and national economic sovereignty," he
mentioned.
The AzFina chairman noted that technological solutions alone are
insufficient for fostering regional integration. It is also
essential to harmonize legislative and regulatory approaches and to
strengthen coordination among the relevant institutions of the
respective countries.
He pointed out that reporting requirements for the operations of
e-money and payment institutions also serve to ensure the
transparency of the financial system and the effectiveness of
oversight mechanisms.
According to Abdullayev, expanding cooperation in digital
identity, instant payment systems, and electronic money services
could facilitate the entry of Azerbaijani fintech companies into
regional markets while simultaneously contributing to the
development of digital economic ties among Turkic states.
