Azerbaijan's fintech and financial services ecosystem continued its strong growth trajectory into 2025, as key officials at the Fintex Summit 2025 – Financial Technologies Expo in Baku outlined major milestones in digital payment adoption, cyber resilience and upcoming legislative updates, according to APA News.

According to Vusal Khalilov, deputy chairman of the Central Bank of Azerbaijan, the total transaction volume via bank-issued payment cards exceeded AZN126bn ($74.1bn) in 2024, a 27% increase compared to 2023.

By April 2025, the monthly volume of cashless transactions using payment cards had approached AZN10bn. During the first four months of 2025, more than 67% of the total volume and 91% of the number of domestic payments were conducted without cash, meaning nine out of every ten transactions in the country were cashless.

Khalilov also noted that the central bank is developing new governance frameworks for IT management, data governance and artificial intelligence. These frameworks, to be introduced shortly, are designed in line with international standards to ensure greater resilience, security and efficiency within financial institutions. He added that new data and cybersecurity regulations, in effect since April, are a critical step in bolstering the sector’s defences amid the rise of cyberattacks linked to the rapid expansion of cashless payments. Organisations are currently working with the Central Bank to align their internal roadmaps with the new standards, which are being positively assessed by the regulator.

The Fintex Summit 2025 is being held in conjunction with the International Banking Forum and brings together financial sector leaders and regulators to discuss innovation, cooperation and sustainable development. The agenda covers digital currencies, next-generation banking products, bank-fintech partnerships and cyber threats. Emphasis is placed on establishing robust legal frameworks, enhancing financial resilience and inclusiveness, and improving customer experience. Around 300 organisations from the US, EU, CIS, Middle East and Asia-Pacific are participating, with over 1,500 representatives expected from government agencies, commercial banks, fintech firms, payment providers, investors, diplomatic missions and academia. Close to 50 local and international speakers are presenting on current fintech trends and best practices.

On the legislative front, the Central Bank is preparing amendments to the Law on Payment Services and Payment Systems. Ulfat Yusifov, Director of the CBA’s Department for Oversight and Policy in Payment Services and Systems, stated that these changes are being drafted in response to growing demand for innovative financial products. The aim is to align the law with global best practices and enable the introduction of new digital financial services in Azerbaijan while addressing associated risks. Yusifov confirmed that the draft also includes corresponding amendments to related normative acts.

In the insurance sector, total premiums collected during January-May 2025 reached AZN719.4mn ($423.2mn), up 11.7% year on year, according to the Central Bank. Of this, AZN417.7mn came from life insurance and AZN301.7mn from non-life products. Voluntary life insurance accounted for AZN370.6mn, while mandatory life insurance made up AZN47.1mn. In non-life segments, voluntary policies brought in AZN177.6mn and mandatory ones AZN124.1mn. Insurance payouts during the same period rose 14.8% to AZN314.8mn, with life insurance claims totalling AZN205.3mn (up 20.5%) and non-life claims AZN109.5mn (up 5.4%). Payouts under mandatory and voluntary policies amounted to AZN2.2mn and AZN54.3mn respectively.