YEREVAN, November 3. /ARКА/. The Central Bank of Armenia plans to develop an Open Banking and Open Finance concept in 2027, after which it will be formalized into law. This was announced by Central Bank Chairman Martin Galstyan.
“We still have to prepare the concept. According to our plans, we intend to do this in 2027, after which it will be submitted to the National Assembly, become law, and only then move on to practical implementation,” Galstyan said at a press conference on Tuesday, answering a question about the timeline for the implementation of Open Banking and Open Finance, their impact on competition in the banking sector, and the potential for cheaper financial services for individuals and businesses. Speaking about the possible impact of the new concepts on the cost of financial services, the head of the Central Bank did not predict a reduction in their cost, but emphasized that they will increase the financial autonomy of individuals and organizations.
“As for cost reduction, it’s difficult for me to say, but it will increase the financial autonomy of the decision-maker, that is, the individual or organization. In other words, they will be freer to exercise their discretion and make decisions,” Galstyan explained.
He also pointed to other factors determining competition in the financial sector.
“There may be other competitive factors that either neutralize or stimulate such behavior, resulting in interest rates on loans decreasing or increasing, or the cost of services decreasing or increasing,” the head of the Central Bank said.
According to Galstyan, implementing these concepts is one of his goals during his second term as Governor of the Central Bank. Earlier, in an interview with Hetq, Galstyan stated that the Central Bank of Armenia intends to implement Open Banking and Open Finance concepts in the coming years, allowing citizens to independently manage their financial data without being tied to a single financial institution.
The implementation of these concepts will allow citizens to more flexibly switch financial institutions and choose them based on the financial instruments they use.
The head of the Central Bank also announced plans to change the approach to banking licensing, including the possibility of issuing other types of licenses, particularly to investment banks and banks with certain electronic capabilities. He also confirmed plans for digital banks.
