Mobile Financial Services in Azerbaijan Implementation in “Azercell Telecom” LLC

Abstract

Mobile business has been transformed into the most pivotal source of the development of banking due to the ubiquitous nature of the mobile devices intensified by the strengthened importance of the mobile business. Moreover, mobile devices contribute to the facilitation of innovation that will lead to the quick transformation of retail banking across the world. Furthermore, banks and other financial institutions possess more vital resources to make investments in mobile novelties and for taking advantages of the strengthened development of the mobile banking. (Krishnan, 2014). Azerbaijan finance and telecommunication markets are prone to constant changes due to fluctuations in the economy, changing legislation, increasing digitization level of customers’ expectations, improving financial inclusion level and strengthening interest and support of the government to digital aspects of the economy. Strengthened rivalry on telecom market leading to challenges and problems, fosters telecommunication companies, including “Azercell Telecom” to consider new opportunities and revenue streams for attracting new customers and keeping the retention rate stable. Digitization of all spheres of business requires the appropriate improvements in the processes, products, and services provided by telecom companies for enhancement of the competitive position in an imperfectly competitive business environment and ensuring its steady growth. The purpose of this Business Consultancy Project (BCP) is the identification of advantages and disadvantages of MFS launching by “Azercell Telecom” in the current environment. Moreover, changes in legislation, increased attention and support of government to the growing share of electronic payments in the economy and general digitization of payment industry leading to more transparent economy, might influence the development of telecommunication field positively. This BCP analyzes the finance, telecommunication and MFS fields in Azerbaijan and around the globe, the position of “Azercell Telecom” in the market and opportunities of competitive edge, specifics of MFS, financial feasibility of launching new service and other related matters. To identify the factors influencing the process and outcome of the implementation of MFS, various analytical tools and academic frameworks were implemented, such as: SWOT Analysis, Porter’s Five Forces, PEST and seven-pillar MFS development measurement tool. The conducted analysis including financial feasibility of the project resulted in the recommendation to implement MFS by “Azercell Telecom” through the cooperation with one of the most reliable and developed banks in Azerbaijan, “Pasha Bank”, due to favorable ongoing legal amendments, internal and external factors, evident financial and reputational benefits, investment analysis, high level of digital development and existing resources of the Partner and other aspects. The proposed changes in legislation, including strategic Roadmap reflecting various aspects involving the significance of electronic payments and development of telecom industry suppose the creation of the favorable environment for the MFS development in Azerbaijan.