Azerbaijan’s financial ecosystem is built on digitalization and security

Zakir Nuriyev, Chairman of the Azerbaijan Banks Association (ABA), said the country’s financial sector is undergoing a continuous and deepening digital transformation, where new technologies and cybersecurity remain key priorities.

Speaking at the forum titled “New Trends in the Banking and Financial Ecosystem: Innovative Solutions, FinTech, and Security,” Nuriyev noted that the Central Bank is working on a centralized platform based on open banking, and that fintech companies operate in line with international standards.

According to Nuriyev, Azerbaijan currently has 19 licensed electronic money institutions, 8 payment institutions, and one payment system operator. In the first four months of 2025, the share of cashless payments reached 67%, and e-commerce turnover increased 1.4 times year-on-year.

As of the end of April 2025, the banking sector’s assets had risen by 10.9% year-on-year to 54.6 billion manats. The loan portfolio stood at 28.1 billion manats, with business loans making up 15 billion manats. The dollarization rate of loans dropped to 15.2%.

The banking sector recorded a total profit of 339.8 million manats and earned 1.5 billion manats in interest income. The number of payment cards in circulation reached 20.7 million, with 81% supporting contactless payments.

Nuriyev also emphasized the need for new legislation on digital banking, the establishment of innovation centers, secure access to government data, and the enhancement of anti-fraud mechanisms as key priorities for the upcoming period.

“The spirit of innovation, reinforced security frameworks, and inclusive collaboration will position Azerbaijan’s financial ecosystem at the forefront of global competition,” the ABA chairman said.