DOI: https://doi.org/10.36719/2663-4619/124/76-80
Kamran Musazade
Baku Business University
Master’s student
https://orcid.org/0009-0008-7850-4336
kamran.musazade.1994@mail.ru
State Regulation of Digital Banking Operations
Abstract
The expansion of digital banking operations in Azerbaijan has significantly enhanced the speed, accessibility, and efficiency of financial services, while simultaneously introducing new regulatory and security challenges. The development of information and communication technologies has integrated banking services into the electronic environment, with online payments, mobile banking, digital credit products, and electronic transfer systems becoming widely utilized service areas. The formation of this ecosystem is supported both by the state’s digital transformation policies and by innovative solutions from the fintech sector.
The proliferation of digital operations has increased cybersecurity threats, data breaches, and operational risks, making state regulation strategically important. In Azerbaijan, the legal framework for digital banking is established through the Law on Payment Services and other normative acts, complemented by risk-based supervisory mechanisms implemented by the Central Bank and relevant authorities. The development of the Fast Payment System, digital identification platforms, and cashless payment infrastructure has further strengthened security and functionality within the sector.
Keywords: digital banking, cashless payments, mobile banking, fast payment system, state regulation