Varlam Ebanoidze, Head of Fintech and SupTech Development at the National Bank of Georgia (NBG), during his presentation at the 2nd Korea–Georgia Economic Cooperation Forum held on 21st of October 2026, discussed how Georgia is using open banking to promote competition in its concentrated banking sector. Drawing on the country’s experience since 2019, he explained how regulatory innovation can help fintech companies overcome barriers to entry, access banking infrastructure and develop new services.
“In simple terms, my position is all about regulatory-driven innovation to support the competition in a highly concentrated market,” he stated.
Georgia’s banking market is dominated by TBC Bank and Bank of Georgia, which together hold approximately 80% of the market. Although both banks have strong corporate governance, their market position creates challenges for new entrants. Ebanoidze noted that Georgian banks can adopt innovation faster than some established institutions in developed markets.
“They are acting like big fintechs. They can absorb innovation in a speedy way compared to institutions like HSBC, Citi in other countries,” he explained.
He called on regulators to look beyond conventional approaches: “We need to think a little bit beyond the standard box of regulators thinking, be creative in order to change this kind of status quo.”
A Regulatory Approach Built Around Open Banking
Georgia began its open banking journey in 2019, building on the EU’s Payment Services Directive 2 (PSD2) as part of its regulatory harmonization efforts. While PSD2 focuses on payment information sharing and payment initiation, the NBG saw an opportunity to use open banking as alternative infrastructure that would help fintech companies compete with established banks.
Ebanoidze described this strategy as a form of “non-surgical intervention,” aimed at reducing barriers to entry without directly restructuring the market. With customer consent, fintech companies can access information held by banks and use it to develop their own services. Georgia is now working to expand these opportunities beyond the initial scope of open banking toward open finance.
Measuring Progress Through Market Participation
According to Ebanoidze, currently ten non-bank third-party providers (TPPs) are participating in Georgia’s open banking ecosystem. Companies such as Kursi.ge demonstrate how fintech businesses can use this infrastructure to operate in a highly concentrated market.
The participation of new providers is a key indicator of progress. As Ebanoidze explained, “This is one of the most important KPIs with which we measure success of open banking in Georgia.”
For the NBG, the objective goes beyond establishing technical infrastructure. Open banking must enable businesses to develop viable services and compete with established financial institutions.
Looking Beyond Open Banking Toward Open Finance
The NBG is working to expand open banking toward open finance, enabling broader data-driven services across the financial sector and potentially other industries. By reducing barriers to entry, encouraging fintech participation and creating opportunities for new business models, Georgia aims to build a more competitive and innovative financial ecosystem.
