Azerbaijan Open Banking Roadmap 2021-2025

The Open Banking Roadmap for Azerbaijan outlines pillars focusing on legislative framework, effective management, technological environment, and implementation process. It involves key stakeholders like the Central Bank, Bank Association, and FinTech Association to ensure the successful adoption of Open Banking practices, including regulatory sandbox, API requirements, and dispute management systems.

• Azerbaijan
• Open Banking
• Roadmap
• Central Bank
• Fintech

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Uploaded on Mar 13, 2025 | 0 Views

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Presentation Transcript

1. GOVERNMENT PAYMENTS STATE TREASURY AGENCY AZERBAIJAN Nazim Gasimzade Director

2. Open Banking Roadmap Azerbaijan 2021/2022 2021/2025 Pillar 2 Pillar 1 Creating a legislative Creating a legislative framework framework Ensuring effective Ensuring effective management management Responsible AZ Central Bank AZ Central Bank - - CB AZ Bank Association AZ Bank Association - - ABA AZ FinTech Association AZ FinTech Association - - AzFina CB ABA AzFina 2021/2023 Pillar 3 2022/2025 Creating an Creating an interoperable interoperable technological technological environment environment Pillar 4 Accelerating the Accelerating the implementation implementation process process

3. Open Banking Roadmap Actions & Responsibilities CB ABA AzFina Ensuring effective management Ensuring effective management with the involvement of with the involvement of ecosystem participants for the ecosystem participants for the implementation of Open implementation of Open Banking Banking Establishment of a Working Group to effectively coordinate the implementation of Open Banking approach Conducting regular meetings of the Working Group, formulating a regulatory framework and ensuring accountability Enactment of the law on Payment Services and Payment Systems Pillar 2 Formation of a regulatory framework for Regulatory Sandbox Creating a legislative framework Creating a legislative framework and recommendations to and recommendations to support Open Banking approach support Open Banking approach Establishment of a regulatory framework for obtaining information on credit institutions and banking products through an Open API Pillar 3 Formation of regulatory framework for Dispute Management System Formulation of security requirements during operations performed through an Open API Pillar 4 Formulation of API requirements for payment transactions Formulation of API requirements for retrieving account information

4. Open Banking Roadmap Actions & Responsibilities CB ABA AzFina Adaptation of technical infrastructures of banks operating in the country (automated operating system, mobile and internet banking resources) to the requirements of regulatory documents for Open Banking Establishment of a centralized Open Banking Platform by the Central Bank Creating an interoperable Creating an interoperable technological environment in technological environment in accordance with the Open accordance with the Open Banking approach Banking approach Adaptation of FinTechs technical infrastructure to the requirements of Open Banking regulation Ensuring the integration of banks and FinTechs operating in the country into the Central Bank's Open Banking Platform Identifying Open Banking-based business solutions and encouraging their implementation Organization of trainings to increase the awareness of ecosystem participants about Open Banking Accelerating the process of Accelerating the process of implementation of the Open implementation of the Open Banking approach by Banking approach by ecosystem participants and ecosystem participants and providing monitoring function providing monitoring function Conducting incentive measures (hackathon, webinar, etc.) to speed up the process of development of Open Banking-based products and services Continuous upgrading the regulatory framework for Open Banking in the light of international experience and organization of monitoring function in accordance with requirements

5. Treasury Information Management System Treasury Information Management System(TIMS) Information about interactive operation and balance via Swift Payments via Swift CB Treasury Single Account (TSA) Income to TSA Payment /Salary Public Sector Entity Salary Commercial Banks Taxpayers Payments Suppliers

6. Open banking APIs Payment service providers IPS PAY Open APIs Customer's Bank Open APIs Obtaining information about the customer's bank account Querying the current account balance Authorization to initiate payment Status exchange between parties

7. Instant Payment System (IPS) Unlike traditional systems, funds are processed into customer accounts as soon as the payment transaction is completed 01 05 There is no liquidity risk Instead of hard-to-remember payment details, the customer needs to write the other party's mobile number and FIN number 02 06 Funds are immediately available to the receiving party The use of banking services is expanding as 3rd party organizations have access to banking services The participants of the system are not limited to banks, but also create integration opportunities for non-banking organizations. 03 07 Opportunities for applying innovative solutions are increasing (QR code, identifiers, etc.) 04 08 Fairer competitive environment is created among market participants

8. Opportunities Card infrastructure integration : Instant transfers from account to account Use of card accounts More information can be transferred via ISO 20022 XML than ISO 8583 Lack of liquidity risk Infrastructural facilities : Direct integration with the internal information system of the Bank Centralized database Innovative solutions Integration with non-bank organizations Provision of digital services at a distance Profitability: Low tariff policy Reducing cash transaction costs by stimulating cashless payments Low transaction cost

9. Payment Types of IPS Personal transfers and cashing P2P E-commerce C2B Points of sale C2B Business transfers B2B, B2G, B2P Government payments G2P, G2B Utility and budget C2B, C2G, B2B, B2G

10. IPS application

11. Off hours transaction amount via OB 250 209,3 200 128.9 150 82,7 100 50 3.8 0 Received Sent 2022 2023

12. T A K Y U H N O