IFC and Azerbaijan Fintech Association collaborate to promote financial inclusion, drive economic growth

Baku, January 26, AZERTAC

To support Azerbaijan in leveraging financial technology to provide efficient financial services, the International Finance Corporation (IFC) and the Azerbaijan Fintech Association have signed a Memorandum of Understanding. The parties will work to strengthen the framework for fintech companies that help them scale up and offer cost-effective, fast and quality services in the country.

Under the memorandum, IFC’s Embedded Finance and Digital Financial Services Project will conduct webinars to train and build the capacity of fintech companies in line with good international practice. One of IFC’s main priorities is to help bring the unbanked into the formal financial system, ensuring that people have access to financial services. In this context, technological innovation is an effective way to improve access to financial services, while promoting financial inclusion in developing countries.

“Fintech innovations reduce physical barriers to financial services. Initiatives to bring financial services where people live and work enable greater financial inclusion, especially in remote areas where visiting a bank branch may require additional time and resources. Given the country’s growth trajectory, our partnership with IFC aim to help fintech companies thrive, and contribute to the financial sector’s resilience in Azerbaijan, said Ruslan Talibov, chairman of the Azerbaijan Fintech Association.

In Azerbaijan, one of the government’s priorities includes accelerating economic growth based on sustainable, inclusive private initiatives. A significant way fintech can help achieve this is by reducing the cost of financial services. New tools developed through technological innovations such as cloud-based services are transforming the way financial services firms operate – faster and more efficiently, thereby reducing operating costs.

“Fintech, a disruptive technology, provides stronger financial inclusion, the potential for accelerated growth and shared prosperity across developing countries. We hope that our partnership with the Azerbaijan Fintech Association will help fintech companies in the country modernize the way financial services are delivered, and support responsible and innovative solutions to reach unserved and underserved populations, says Rana Karadsheh, IFC’s Regional Director for Europe.

Over the past decade, with the advice of the IFC, in cooperation with the Swiss State Secretariat for Economic Affairs SECO, the government of Azerbaijan has implemented a series of regulatory reforms to improve the country’s financial infrastructure. With IFC’s support, Azerbaijan adopted the Open Banking Roadmap, an important step to help financial sector players and fintech companies offer innovative digital financial services to individuals and businesses.