The World Bank project
As a result of the economic policy course implemented by the President of the country in recent years, great progress has been achieved, and tendency of leap forward growth has been observed in all sectors of the economy. In the light of this tendency, high-speed development in the postal sector makes all communication happy. More than 50 different services are provided to customers through post offices that are already in use. Every year, new post offices and postal agencies are opened to increase the range of services and to provide new services, while the old buildings are repaired in modern style and given to the population. This, on the other hand, allows Azerpost to increase revenue, on the other hand it serves the convenience of customers.
The Development Credit Agreement (Financial Services Development Project), signed between the Government of Azerbaijan and the International Development Association on May 24, 2005, approved by President Ilham Aliyev on 25.08.2005, is primarily aimed at improving the living standards of the population improving higher quality of service, and ultimately helping to build an e-government. The role of this project is indispensable for the development of the country's economy and the formation of an advanced market economy.
The project - using the current platform of Azerpost LLC (branches and agencies, other current and potential opportunities) to create conditions for the development of financial services in Azerbaijan, free access to banking and financial services in rural and small urban centers, and through local post offices offering a wide range of services to its customers. The main goal of the project is to improve access to financial services in rural areas and small towns and to assist in the development and economic growth by creating a base business infrastructure. As a result of the project implementation, it will provide citizens and businesses with the so-called "electronic government" services throughout the country (including rural areas).
The factors that make the project viable are as follows:
- Improvement of the infrastructure of the payment systems, its individual elements, in particular the need for the free access of the rural population to this infrastructure;
- Financial market deficit, financial services and vulnerability to credit;
- smaller number of bank branches in rural areas and small towns, and virtually the majority of the population is out of bank services;
- Uncertainties existing in collecting utility bills.
With the help of the Azerpost platform, three types of services are expected to be utilized for the implementation of the project:
1. Financial services - electronic payments (scholarships, social allowances, remittances, etc.), collection of payments (utility payments, taxes), deposits (non-term and term), sale of other savings services, improvement of existing money transfer system, debit emission of cards (based on customers' deposits) and so on;
2. Electronic government services - issuing various certificates, business and personal documents by local and central government authorities, paying taxes, duties and other fees to local and central government authorities;
3. Electronic business services - e-commerce, cyber-mail and e-mail address service, internet access, data and e-database access.