On the threshold of a fantastic future: talk about innovations in the banking sector with Teymur Agakishiyev, the head of payment systems center of ”Expressbank”:
Teymur Agakishiyev is a person who has more than 10 years of experience in banking and is involved in the development of payment systems. We have started to focus on the issue of transferring money to plastic cards through the urgent money transfer system "Zolotaya Corona" which is today's topic of our interview and then generally, we passed on the theme of future of banks.
- Please, talk about your new project with Zolotaya Korona instant money transfer system. What are the advantages of the project?
- Taking into account today's innovations in the banking field, customers prefer to use more online services. The popularity of Internet banking, mobile applications is growing. Therefore, our project has been implemented on right time, because it allows customers to get money without leaving their home and to get then in plastic cards.
Moreover, you do not depend on any bank - you can use a card of any bank of the country. Just make a link to the SMS in customer's phone number and download the mobile application "Zolotaya Korona" and add a surname and a patronymic name. Then information about the card is added and after the required checks are made by the bank, it is credited to the card account. Usually, the entire process takes about two minutes. Operation with this route is quick, convenient and simple.
The second step we are going introduce is money delivery - it will be possible to send money through the card without leaving the house, visiting the branch.
- What is the difference between such transfer and card to card transfer?
- There are some limitations on remittances from our country card to another country's card, plus the commissions are very high. It is easier and more economical to do this through “Zolotaya Korona”.
- Will projects be expected in the future with other payment systems?
- Absolutely. I will not name it yet, but negotiations are under way, and such projects are expected to continue. Generally, future cash transfers will be like it.
- Money transfers are mainly made to family members of those our compatriots living in Russia, for example, to their parents living in regions. What do you think, how relevant are digital solutions for the elderly?
- There is still much to be done on card and contactless payments, not just in one region, but even in Baku. Let's look at neighboring Georgia. At present, they are leaders in the development of contactless payments worldwide. How did they succeed? They introduced contactless payment in the transport. In other words, payment for each type of transport can be made with any plastic card. This style also works in Russia. Thus, the population gets accustomed to card payments. Habit occurs.
- 20 years ago, plastic cards were something unusual for us, and now we cannot imagine our lives without them. What do you think about the future of plastic cards?
- Before discussing the future of plastic cards, let's take a look at the history of their creation. The first plastic card was created in 1946, in the same appearance as it is now. The first credit card - in 1951. And for the next 60 years, almost no change was observed on the cards.
The first global innovation took place in 2005 when the first contactless payment was made. Since 2011, cards have joined online systems. Giants such as Amazon, Starbucks now create their own payment systems, and social networks such as Facebook and WhatsApp also. And the card which we get accustomed to will be left in the past for 5-7 years.
The card will not be available physically and will become an online tool. We must to be ready for it. Recently, one story was told me - in one of the shops, at pay desk, the young man asked the question, "Can I pay for watch?" and thus made the lady who worked at pay desk surprised.
The talk was about the “Apple Pay” system. It is well that in our country the government strongly supports the introduction and development of modern payment systems, particularly the Central Bank and the Financial Market Supervisory Chamber.
Therefore, payments through the watch- smartphone, even through bracelet and rings are no longer our future but are today. Our future will be related to biometrics – payments will be done through fingerprints, retina reflection or through sound. What we see in fantastic Hollywood movies is closer to what we think. Do you remember when we were shocked when we saw the usual tablet on the screen a few years ago? Now it is every house.
- Today banks are paying more attention to the development of information technologies, money transfers and payment systems, which is a demand of the future.
But how contactless cards have been spread in Azerbaijan?
- From the beginning of 2017, all cards of Expressbank are contactless. You may not take out the card from the purse - simply bring the purse closer to the POS terminal.
How safe is contactless payment?
The security level of the contactless and contact cards is the same, the talk is about the payment that do not require pin-code. Legislation limits one-time contactless payments - only 50 AZN. Any payment exceeding this amount requires a pin-code.
- But what about the biometrics you forecast, will it be the basis of security?
- Security systems are also developing. For example, in South Africa, biometric code-safe ATMs have such a protective style: if a client wants to withdraw cash from an ATM, if he/she is threatened or plundered, he/she may use a fingerprint that is marked as "danger" beforehand.
In this case, the first thing is to inform the police urgently. Secondly, the display shows an incorrect balance - for example, a total of $ 10, the customer withdraws the money and gives it to robbers, and then they are detained by the police soon. Thus, the number of crimes will be decreased considerably.
- And what about the future of money transfer systems?
- Instant money transfer systems operate from the end of the 19th century, but here, like plastic cards, the future will be in favor of smartphones and social networks. For example, you will be able to make money transfers through WhatsApp. There will also be a "Money Transfer" button.
Instagram has already launched a new project: a user with more than 500 viewers will be able to buy and pay for the goods by having photo of that good and placing them own page. That is, a person simply comes to the store, chooses and places it on his/her "Instagram" page. And if the number of viewers exceeds 500, the payment will be automatically processed.
I think that today's youth will be able to make global changes. Because, if the cash and cards are still relevant to us, for them everything is concentrated here (shows a smartphone).
Will cash payments disappear?
Not in the near future. Even in countries where cashless payments are developed, there is little money in everyone's pocket. Money had laid the foundation of civilization, and the day when electronic money will replace the cash money completely will be recorded in history.
