Financial Crime World

Turkmenistan Updates Banking Regulations to Boost Financial Inclusion

Ashgabat, Turkmenistan - The government of Turkmenistan has announced a series of updates to its banking regulations aimed at improving financial inclusion and promoting the use of digital payments.

Improving Accessibility

Despite efforts to increase accessibility, an estimated 40% of the adult population remains unbanked, with only 60% of respondents reporting having access to a financial institution account. However, there are now:

  • 150 ATMs per 100,000 people
  • 50 registered mobile money agent outlets

Increased Internet and Mobile Phone Penetration

The proportion of individuals using the internet has increased, with:

  • 80% of adults reporting internet usage in the last three months
  • Over 100 mobile subscriptions per 100 inhabitants
  • Improved Mobile Connectivity Index score, indicating an increasingly enabling environment for mobile internet adoption

Affordable Data Plans

Turkmenistan now offers a data-only mobile-broadband plan providing at least 2GB of high-speed data for just $5.50 per month, making it more affordable for citizens to access the internet on their mobile devices.

Promoting Innovation and Digital Payments

The country has made progress in promoting innovation and digital payments:

  • Financial Consumer Protection (FCP) legal framework is now in place
  • Remote account opening and electronic identification systems are available
  • Payments Infrastructure includes credit cards, debit cards, and online payment platforms
  • Electronic money regulations have been updated to allow for greater flexibility in the issuance of e-money instruments

Fintech Development and Testing

The country has established innovation facilitators:

  • Regulators’ accelerators
  • Sandboxes to encourage fintech development and testing.

Account Ownership and Digital Payments

Account ownership is now higher among women than men, with:

  • 70% of females reporting having an account compared to 60% of males

Digital payments are also becoming more widespread, with:

  • 40% of respondents using mobile money or digital payment methods in the past year
  • Improved Mobile Money Prevalence Index score, indicating greater adoption and activity in the mobile money market.

Conclusion

Overall, these updates suggest a commitment by the government to improving financial inclusion and promoting digital payments in Turkmenistan.