Despite an increased uptake of digital financial services (DFS) over the past years the Western Balkans, South Caucasus and Central Asia remain cash-dominated economies. This is due to gaps in the regulatory framework and digital infrastructure, lacking capital and know-how in the private sector as well as low consumer trust in digital solutions.

Overall, the Programme aims at increasing responsible access to useful, affordable DFS products in the Western Balkans, South Caucasus and Central Asia region by advancing the foundations for digital finance. Over a period of four years, the programme will support policy and digital infrastructure level reforms as well as work with financial institutions to increase their capacities to sustainably provide DFS.

Legal framework for DFS growth improved

DFS policy framework on data protection and security introduced

Capacity of regulators and private sector increased and public private dialogue strengthened

Interoperability, capacity and usage of infrastructure for digital onboarding and financial product expansion improved

Transparent and competitive playing field created as well as number of DFS market players increased

Usage and range of new digital financial solutions/products/services increased

FSPs potential to become investment-ready for private equity and venture capital increased

Erwartete Resultate:  

Legal and regulatory reforms for DFS introduced

Policy-level mechanism to identify and mitigate data-handling and consumer protection risks developed

Public-private dialogue for legal and sector reforms established

More consumers remotely / digitally onboarded

Payment instruments made interoperable, and customers enabled to move funds between FSPs at low cost and instantly

Advise provided on expanding access and range of financial services

Advise provided on implementation of innovative technology-based products and digital transformation

Resultate von früheren Phasen:  

The SECO financed IFC Electronic & Digital Financial Services Programme Phase 1 in Azerbaijan and Central Asia has paved the way for the considerable uptake of DFS, especially during the COVID-19 pandemic, and opened new opportunities for FSP.

In total, the Programme has contributed to the adoption of 26 legal and regulatory acts, facilitated 76 FSP engagements to launch DFS products introducing more than 24 million e-wallets through 16 financial institutions.

As a result, more than 2.4 million new clients were introduced to the financial system, transacting over $240.6 million.