Digital Banking Regulation in Azerbaijan: Empirical Insights into User Trust, Risk Management, and Data Protection
DOI:
https://doi.org/10.15549/jeecar.v12i2.2153Keywords:
digital banking, financial services, risk management, regulation, dataAbstract
This study employs a combination of quantitative and qualitative methodologies to conduct a deep analysis of digital banking regulation. Statistical analysis is used to evaluate numerical data on regulatory effectiveness, financial security, and consumer behavior in digital banking. A comparative analysis is conducted to evaluate Azerbaijani digital banking laws and best practices in international countries, and to identify gaps and areas for improvement. A survey study seeks primary information from banking professionals, fintech professionals, and consumers to evaluate perceptions of regulatory concerns and the impact of financial services. Linear regression (multiregression) analysis is conducted to evaluate the impact of regulatory policies and key financial performance indicators, and to conclude on the impact on financial market stability and the use of digital banking. Correlation analysis helps identify potential relationships among cybersecurity controls, regulatory compliance, and financial fraud events in digital banking. Document analysis examines legal, financial, and policy documents to understand the development and effectiveness of supervision in digital banking. SPSS software is used to process and analyze survey data, producing accurate statistics and reliable outputs.
References
Akhtar S., Ali K., & Alam N. (2018). "The potential of financial technology in East and North-East Asia." United Nations Economic and Social Commission for Asia and the Pacific, 4p.
Baba N., El Hamiani Khatat M., & Roulet C. "Fintech in Europe: Promises and threats." IMF Working Papers, 2020, (59), p.1-36. https://doi.org/10.5089/9781513561165.001 DOI: https://doi.org/10.5089/9781513561165.001
Bazarbash M., & Beaton K. "Financial inclusion and fintech: An analysis across countries." IMF Working Papers, 2020, (150), p.1-28. DOI: https://doi.org/10.5089/9781498314428.001
Cornelli G., Frost J., Gambacorta L., Rau P.R., Wardrop R., & Ziegler T. "Fintech and big tech credit: A new database." BIS Working Papers, 2020, (887), p.1-45. https://www.bis.org/publ/work887.pdf?utm_source=chatgpt.com
Claessens S., Frost J., Turner G., & Zhu F. "Fintech credit markets around the world: Size, drivers, and policy issues." BIS Quarterly Review, 2018(9), p.29-49. https://www.bis.org/publ/qtrpdf/r_qt1809e.pdf
Cambridge Centre for Alternative Finance. (2024). "Global survey on fintech regulation: Trends and regulatory challenges." Cambridge University Press. https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/
Huseynova, S. M., & Hajizada, T. J. (2024). Analysis of the Stability of the Banking Sector of Azerbaijan in Conditions of Economic Crisis Based on the Econometric Model. Statistics and Economics, 21(2), 35-49. DOI: https://doi.org/10.21686/2500-3925-2024-2-35-49
Infante J. "Central bank digital currencies and their macroeconomic implications. Journal of Economic Perspectives, 2021, 35(2), p.15-38.
Kaur J., Sharma R., & Singh H. "Consumer perception towards risks in digital banking: A study in Northern India." Journal of Banking and Technology, 2019, 10(1), p.45-67. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3500640
Lee J. "AI and digital banking: The role of machine learning and large language models in financial services." Journal of Digital Banking, 2024, 11(1), p.22-39.
Law S. "Virtual banks in Hong Kong: Regulatory challenges and financial inclusion." Asian Journal of Financial Regulation, 2021, 6(2), p.78-95.
Ofodile, B. O., Omankhanlen, A. E., Ibe, I. G., & Oaikhenan, H. E. (2021). Digital banking and regulatory frameworks: A comparative analysis between Nigeria and the United States. International Journal of Financial Research, 12(5), 66–76. https://doi.org/10.5430/ijfr.v12n5p66
Pereira P. "Digital tokenization of non-financial assets: Legal challenges in English private law." Journal of Law and Finance, 2023, 18(3), p.73-91. https://doi.org/10.2139/ssrn.4334861 DOI: https://doi.org/10.2139/ssrn.4334861
Pflücke M. "Data access and automated decision-making in European financial law: Opportunities and risks." Journal of European Financial Law, 2024, 15(1), p.42-58. DOI: https://doi.org/10.1017/err.2024.60
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Sara Huseynova, Lala Balajayeva
This work is licensed under a Creative Commons Attribution 4.0 International License.
The JEECAR journal allows the author(s) to hold the copyright and publishing rights of their own manuscript without restrictions.
This journal applies the Creative Attribution Common License to works we publish, and allows reuse and remixing of its content, in accordance with a CC-BY 4.0 license.
Authors are free to: Share — copy and redistribute the material in any medium or format and Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
No additional restrictions — The author may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
The JEECAR Journal is committed to the editorial principles of all aspects of publication ethics and publication malpractice as assigned by the Committee on Public Ethics.
