International rating agency S&P Global Ratings has released a report praising the proactive stance of the National Bank of Georgia (NBG) in fostering financial technology and innovation.
According to S&P Global Ratings, over the past five years, the NBG has built a comprehensive infrastructure to support the development of digital financial services, maintaining a technology-neutral approach to risk supervision.
The agency’s analysts highlighted several key milestones in the development of Georgia’s fintech ecosystem. In 2019, the Financial Innovations Service was established, serving as a bridge between the regulator and fintech companies. A year later, as S&P Global Ratings notes, the country introduced a regulatory "sandbox" that allows innovative financial products to be tested in a controlled environment.
The report also highlights the launch of open banking in 2021, which enabled instant information sharing between financial institutions. By 2023, the system was further expanded to include non-banking organizations.
S&P Global Ratings pointed out several important NBG initiatives in 2023:
- The start of central bank digital currency development
- Updating payment systems legislation in line with EU standards
- Applying for membership in the Single Euro Payments Area (SEPA)
- Developing a comprehensive Fintech Sector Development Strategy
The rating agency’s analysts concluded that the NBG’s consistent efforts have created a favorable environment for fintech growth, contributing to increased financial stability and greater access to services for the Georgian population.
