CBA Launches Fintech Innovation Sandbox to Foster Industry Growth

The Central Bank of Azerbaijan (CBA) is set to launch an innovative program tomorrow, designed to accelerate the development of the fintech sector in the country. This initiative introduces a special regulatory sandbox that will allow developers and financial institutions to test new fintech products and services under real conditions, with oversight from the CBA.

The program aims to create a conducive environment for digital innovation in the financial sector. "We want to enable those working on digitalization to easily create and deliver new, innovative products to the market," said Farid Osmanov, CEO of the CBA, during the announcement of the program.

Encouraging Innovation and Reducing Bureaucracy

The regulatory sandbox is intended to mitigate the risks associated with launching new financial products and to facilitate their quicker introduction to the market. Sahib Hasanov, head of the CBA’s Fintech Innovation department, explained, "This initiative will minimize bureaucratic procedures and simplify access to financial resources, thus propelling the development of pioneering financial solutions."

Eligibility and Participation

To be eligible for the program, fintech products must fulfill several criteria:

- They must be novel to the Azerbaijani market and enhance the accessibility of financial services.

- The products should be ready for testing in real conditions and must not be currently covered by existing regulations.

- Additionally, the products must be intended for use within Azerbaijan, should not pose systemic risks to the financial system, and must be backed by adequate financial, human, and infrastructural resources.

Application Process

Interested participants have from May 1 to May 31, 2024, to apply for inclusion in the sandbox. Applications can be submitted via a dedicated portal at sandbox.cbar.az or in physical form. The CBA website provides comprehensive details about the program, including necessary documentation and application guidelines.

Towards a Digital Future

This new program by the CBA represents a significant step towards realizing Azerbaijan’s digital future. It is expected to stimulate innovation in the fintech sector, enhance the availability of financial services to the public, and affirm the country's status as a regional leader in digitalization. With this initiative, Azerbaijan is positioning itself at the forefront of financial technology innovation in the region.