V International Banking Forum started

08-12-2021

8 December 2021, Baku. The traditional V International Banking Forum organized by the Central Bank of the Republic of Azerbaijan, the Center for Economic Reforms Analysis and Communication and the Azerbaijan Banks Association and supported by the Ministry of Digital Development and Transport of the Republic of Azerbaijan and the Small and Medium Business Development Agency of the Republic of Azerbaijan started. The goal of the forum titled ‘Cashless economy: reliable, safe and sustainable’ is to be a platform for discussion of the topics on initiatives and upcoming challenges to make the economy cashless, digitalization, the current situation on financial technologies, new and future trends, modern banking products, fintech opportunities, and cybersecurity.

The 2-day Forum represented by the Finance Office of the Presidency of the Republic of Turkey, the Central Bank of  the Republic of Turkey, the Central Bank of the Russian Federation, the International Monetary Fund, the International Finance  Corporation and other organizations is participated by related public institutions, commercial banks, heads of local and foreign business and public organizations, as well as  representatives from about 100 international organizations and reputable companies from the USA, Japan, China, Europe and the CIS.

To note, more than 1,000 speakers are expected to join the panels to host more than 40 speakers.

Opening the event Anar Guliyev, First Deputy Governor of the Central Bank noted that dynamic development of modern technologies has led to fundamental changes, translating to all sectors of the economy. The pandemic further accelerated digitalization trends. Over the pandemic Internet banking increased by 23% and mobile banking by 30% globally.

Creation of a digital ecosystem in Azerbaijan is the artery of institutional, socio-economic reforms in the country. “Even before the pandemic, in September 2018 Mister President demonstrated his political support for building a digital economy in the country by approving the ‘State Program on Expansion of Digital Payments in 2018-2020’. Within the framework of the Program, successfully completed in 2020, the Central Bank, relevant government agencies and the banking sector implemented various actions and national projects to further improve the institutional environment for digital payments, formation of the digital ecosystem and other areas,” - emphasized A.Quliyev.

As for national projects, it was noted that capabilities of the Instant Payment System based on the latest payment trends have been expanded, cheap payment methods, like QR codes have been created to allow small businesses to accept cashless payments, and QR codes have been introduced in pilot merchants. Blockchain-based Digital Identification System (DIS) has been put into operation to innovate electronic banking services and expand the range of remote services.

At the initiative of the Central Bank, with the support of the banking sector and international card organizations, the Apple Pay payment solution has been successfully activated in Azerbaijan to increase the range of contactless payment solutions in the country and apply innovative technologies.

The measures taken yielded a high growth rate in the country's non-cash payments.  According to the 10-month indicators of the current year, the share of cashless circulation in domestic card payments y/y increased by 8.2 pp and for the first time exceeded 30%. The volume of domestic cashless payments y/y increased by 71% to AZN8.6B. The volume of e-commerce, with a large share in cashless payments, y/y increased by 65% to AZN5.5B. The number and volume of domestic contactless card payments exceeded the 10-month indicators of 2020 by 3.9 and 6.3 times, respectively.

To note, more than 500 bank employees, entrepreneurs and students took part in about 10 seminars and webinars on the topics discussed before the Forum.