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How Financial Technologies Advance in Georgian Financial Space

Financial Technologies (FinTech) comprises an employment of new and alternative business models and technologies in the field of financial services.

Employment of financial technologies is of crucial importance for obtaining competitive advantage in the finance sector. New technologies have influenced almost all financial activities and transformed money management channels. Financial technologies are developed on global level and naturally, they are introduced in Georgia too. It is worth noting that the banking sector expends an employment of  technologies for development of financial technologies and competes with growing FinTech companies.

Plastic Cards

Plastic card are widely-applied retail instrument in Georgia, which are divided in debit and credit cards. According to January 2018 indicators, number of credit cards in turnover made up 853 152, up 12% year on year. As to quantity of debit cards, they amounted to 7 756 716 in January 2018, down 8% year on year from 8 456 651 cards in January 2017.

It should be also noted that today major plastic card manufacturers are: VISA  (VISA Electron, VISA Classic, VISA Gold, VISA Platinum, VISA Infinite), Master Card (MasterCard Maestro, MasterCard Standard, MasterCard Gold, MasterCard Platinum), American Express (AMEX Personal, AMEX Gold, Amex Platinum, AMEX Centurion).

VISA ranks first in terms of quantity of plastic cards. Its ratio in total number of credit cards in turnover is 50% and in debit cards – 24%.

ATMs and POS Terminals

To improve a use of plastic cards, it is necessary that the country have both ATMs and POS  terminals. According to the January 2018 indicators submitted by National Bank of Georgia (NBG), there are 2274 ATMs in Georgia, up 27 ATMs year on year.

As to number of POS terminals, they may be divided  in POS terminals at trade and service facilities and POS terminals in branches and service centers of commercial banks. According to the same indicators of National Bank of Georgia (NBG), there are 32 130 POS terminals at trade and service facilities, up 2 996 units compared to January 2017, while number of POS terminals at branches and service centers of commercial banks made up 1432 ones, down 174 units year on year.

Operations with Payment Cards

Quantity of transactions with charge cards in Georgia grows year to year. This fact signifies the country easily embraces financial technologies. According to the NBG indicators for January 2018, total number of operations with charge cards in Georgia made up 16 525 473 ones, up 20% as compared to January 2017. Total value of transactions in January 2018 with charge cards made up 1 548 501 000 GEL, up 8.5% year on year.

Operations by Cards of Resident and Nonresident Commercial Banks

It is also interesting that the number of operations carried out by payment cards issued by resident commercial banks also grows. Number of operations with their payment cards in January 2017 made up 13 178 182 and this figure rose by 12% to 15 946  174 in a year.

As a result, volume of money in turnover also grows. According to January 2017 indicators, 1.275 billion GEL were transferred  by resident banks. In January 2018 the figure rose by 11% to 1.416 billion GEL.

As to nonresident commercial banks, they performed 579 299 operations in January 2018, up 14 495 ones as compared to January 2017 (564 734 operations). Despite nonresident commercial banks have increased number of operations, transfers volume is declining. Namely, in January 2017 they transferred 152 896 000 GEL, while the figure constituted 132 163 000 GEL in January 2018, down 20 733 000 GEL year on year.

Internet Transactions

Financial operations by Internet grows month  to month. According to January 2018 indicators submitted by NBG, 2 097 537 Internet transactions were carried out, up 40% year on year. At the same time, the amount of transactions is declining. In the reporting period value of transactions made up 75 215 000 GEL, down 38.5%. This factor signifies that averaged indicator of distinct transactions is declining.

QuickCash Platform

In September 2017 QuickCash company and BIG microfinance organization signed a cooperation agreement for increasing online creditworthiness of small and medium companies through innovative platform. This agreement calls for developing small and medium businesses and their business solvency.

Under the innovative platform of QuickCash, BIG offers to assess creditworthiness of their businesses in 10 minutes without collection of documents and submitting guarantees. QuickCash platform is based on an algorithm of Artificial Intellect, which uses more than 50 parameters and takes only 10 minutes for appraising business. It should be noted that the process proceeds in online regime.

As part of new cooperation format, small and medium businesses are able to to take loans for replenishing working capital by submitting IP card, identification code of the company and passing assessment through our platform on BIG website. Thanks to QuickCash and BIG, legal entities have an unique opportunity to develop their business quickly and simply without leaving offices.