The National Bank of Georgia’s new regulation aimed at protecting customers aged 60+ from financial fraud will create additional costs for fintech companies, according to Davit Kikvidze, Chairman of the Georgian Fintech Association. He said providers already have fraud-monitoring systems, but some technological adjustments may be needed to comply with the new requirements.
Kikvidze said the NBG’s decision is understandable, noting that payment and virtual asset service providers regularly submit transaction data to the regulator. This allows the NBG to monitor market trends and identify potentially risky activity. He also pointed to Georgia’s still-low level of financial literacy as another reason for strengthening consumer protection.
At the same time, Kikvidze said any additional regulation requires businesses to allocate more resources. Companies may need to modify their existing fraud-monitoring systems and introduce additional rules and scenarios specifically for customers over 60. These systems are often outsourced, meaning that adding new monitoring logic can also increase monthly fees and require additional investment.
Under the new rules, payment providers must suspend certain high-risk transactions above GEL 500 initiated by customers aged 60+, including transactions related to gambling, forex and crypto. Customers will have 48 hours to make a final decision and confirm the transaction. The NBG says the measures are intended to strengthen protection for the vulnerable segment against fraudulent schemes.
