Baku:The Central Bank of Azerbaijan (CBA) is in the process of developing a new regulatory framework focusing on data and artificial intelligence management within the financial sector, as stated by the CBA Deputy Governor, Vusal Khalilov, at the Turkic states fintech forum.
According to Azeri-Press news agency, Khalilov highlighted that banks are at the forefront of digitalization in the financial sector, with fintech companies closely following. Fintech firms have the upper hand in terms of flexibility and speed, enabling them to introduce new products to the market more swiftly than large banks. However, the rise of digitalization has also escalated cybersecurity risks.
The Deputy Governor further explained that the Central Bank has already implemented information security and cybersecurity regulations. These were followed by the creation of guidelines on information technology management, which are anticipated to become mandatory regulations eventually.
Khalilov emphasized that the bank is collaborating with the sector to establish frameworks for data management and artificial intelligence governance, aiming to ensure the secure adoption of innovations and digitalization. He also noted the importance of building a robust information technology infrastructure across all financial institutions, including fintech companies.