The introduction of an open banking model in Azerbaijan will lead to an increase in the availability of financial products and services for customers, as well as a reduction in fees for various services, Sahib Hasanov, head of the project of the information technology department of the Central Bank of Azerbaijan, said at the VI International Banking Forum in Baku, organized with the support of the Association of Banks of Azerbaijan (ABA) and the Central Bank of Azerbaijan in cooperation with the international payment system Mastercard, Report informs.
“Open banking will lead to lower costs for integration with third parties, the creation, and development of a digital financial system, the creation of new information channels, as well as cooperation with technologically advanced companies. Thus, the possibilities for managing personal data and financial products will expand, and it will be possible to manage all financial information in a single window,” Hasanov noted.
According to him, different countries have their own approaches to open banking, and they are divided into two categories: regulatory and sectoral approaches.
“In the regulatory approach, the regulator sets API standards, develops application plans, and requires banks to implement them. With a sectoral approach, API standards are developed by both the regulator and the banks themselves, while the use of the API is not mandatory. Taking into account the conducted surveys and international practice, it was decided to apply a regulatory approach in Azerbaijan,” he said.