General information

Population

10.3M

Online population

9.1M

Currency

AZN

Market overview

Population - 10.3M

At the start of 2024, 57.8% of Azerbaijan’s population lived in urban centres, while 42.2% lived in rural areas.

Internet penetration - 88%

There were 9.1M internet users in Azerbaijan at the start of 2024

FinTech Outlook: Trends, Insight & Technology

There are more than 30 FinTech companies operate in Azerbaijan.

The Central Bank of Azerbaijan (CBA) together with the International Finance Corporation (IFC) is developing a FinTech strategy for 2024-2028, said Director of the Payment Systems and Settlements Department of the Central Bank of Azerbaijan Kamala Gurbanova at the Azerbaijani-Turkish Fintex Forum, Trend reports.

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**Azerbaijan FinTech Association (Azfina)**

It was founded in December 2020 by 6 leading companies operating in the field of financial services. The main goals of the association are to support the creation of a digital financial ecosystem in the country and the creation of conditions for the transition to a digital economy. Currently, FinTechs providing payment terminals, payment aggregators, mobile payment solutions, issuance of electronic money from payment services, QR-code payments, information service providers and other services are represented in the Association with 20 members. Among the members are eManat, PashaPay, GoldenPay, Mpay, Azercell, Pashabank, Azintelecom, Portmanat leading payment and electronic money organizations of the country.

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The country's startup ecosystem, beginning with the Startup Azerbaijan event in 2012 and the establishment of Applab, reflects a commitment to tech innovation. Government initiatives like The Pirallahi High Tech Park further endorse this trend. In 2023, Azerbaijan ranked 84th globally in innovation ecosystems. The youth of Azerbaijan, particularly those under 25, show keen interest in starting new ventures, with fintech being a prominent focus area.

Banks

As of 2024, Azerbaijan has 26 licensed banks operating in the country. This includes both local and foreign financial institutions offering services such as retail banking, corporate banking, investment banking, and digital banking solutions.

Azerbaijan’s financial sector is primarily dominated by banks, which account for approximately 95% of the total financial sector assets. The non-banking financial sector, particularly the microfinance sector, remains underdeveloped, having been significantly impacted by the currency devaluations of 2015.