CAREC Institute and ADB Launch the New Book on Fintech’s Potential in the CAREC Region

The CAREC Institute, in partnership with the Asian Development Bank (ADB), launched the new book titled “Unlocking the Potential of Fintech in the CAREC Region” during a formal event held at the CAREC Institute headquarters in Urumqi, People’s Republic of China, on June 23, 2025. The event attracted a diverse group of stakeholders, including government officials, scholars from Xinjiang, and development partners, all gathered to explore the transformative opportunities that financial technology (fintech) presents for the CAREC region.

The Director of the CAREC Institute, Mr. Charymuhammet Shallyyev, opened the event with remarks highlighting that fintech extends beyond technological innovation to serve as a strategic driver for inclusive economic growth. He stressed the importance of regional collaboration in realizing the full potential of fintech solutions across CAREC, emphasizing that technological advancements must be complemented by cooperative efforts among countries.

ADB’s Lead Economist, Dr. Kiyoshi Taniguchi, provided insights into fintech’s role as a catalyst for innovation on a global scale, noting its capacity to significantly enhance financial services within CAREC. He pointed out that fintech innovations, such as mobile payments and digital wallets, are crucial for reducing barriers to financial access, fostering entrepreneurship, and supporting sustainable development initiatives across borders.

The event featured presentations from the book’s editors, Dr. Minsoo Lee, and international consultant, Mr. George Kvirikashvili. Dr. Lee introduced the book, which offers a comprehensive analysis of the fintech landscape in CAREC. The book introduces a four-pillar index—Finance, Technology, Capability, and Regional Cooperation—to evaluate the region’s progress relative to global leaders. It identifies key opportunities for growth, including enhancing cross-border payment systems, integrating capital markets, and expanding e-commerce, while also addressing significant challenges such as regulatory fragmentation, outdated legal frameworks, and limited public-private sector collaboration.

Mr. Kvirikashvili outlined the goals of ADB’s initiative, the Fintech-themed Technical Assistance project (TA6803). The project aims to develop cross-border cooperation in fintech among countries in the region. He discussed the key areas needed to build a collaborative fintech community in CAREC. These include establishing cross-border digital payment systems, open banking and data ecosystems, and regional capital markets. He stressed that policymakers and financial regulators should work together to create coordinated strategies. These strategies should support innovation, promote financial inclusion, and ensure responsible digital financial practices, such as protecting consumer data and privacy.

Dr. Ghulam Samad, Chief of the Research Division at the CAREC Institute, served as the discussant at the book launch event, emphasizing the importance of establishing formal mechanisms to strengthen regional cooperation in fintech. He highlighted successful models, such as Georgia’s fintech strategies—including open banking initiatives and regulatory sandboxes—as valuable templates that could be adapted for the CAREC region. Dr. Samad advocated for the creation of a Regional Fintech Council to address shared challenges, promote collaborative efforts, and facilitate co-investment in digital public goods, thereby fostering a more cohesive and innovative fintech ecosystem across CAREC.

At the end of the event, Dr. Kuat Akizhanov, Deputy Director Two at the CAREC Institute, emphasized the importance of the Institute’s Knowledge and Research Hub in supporting informed policymaking. He highlighted the need for ongoing regional cooperation to fully realize the potential of fintech for sustainable development in CAREC. The CAREC Institute is dedicated to using this research and discussion to promote cooperation and support inclusive economic growth through financial technologies.