From the first of January 2025, changes in the National Bank of Kyrgyzstan's resolution ‘On Bank Payment Cards’ came into force in Kyrgyzstan, according to which all processing centres servicing operations with bank cards must be located in the country. The editorial staff of Akchabar tried to understand why such a decision was made and how the financial system of the republic will react to it.

A processing centre is a specialised organisation that ensures processing and transfer of information on payments between participants of the payment system, such as banks, sellers and buyers. Its main task is to verify the accuracy and security of payment data and to debit the buyer's account and credit the seller's account. Encryption methods, multi-level authentication technologies and transaction monitoring are used to ensure security. Processing centres also collect and analyse payment data to help improve service quality and detect fraud. Thus, in the era of fast payments, they play a key role in ensuring reliability and speed.

However, not all banks are willing to invest in their own processing centres and prefer to outsource these functions. Moreover, even if a bank has its own processing centre, it may be located outside the country, especially if the bank itself is originally foreign. In this context, the question arises: why does the regulator insist on the mandatory location of processing centres exclusively in the country?

One of the main advantages of this change is to increase the level of transaction security. Transferring processing within the country allows for more thorough control and protection of customer data. Storing information on the territory of Kyrgyzstan makes it less vulnerable to external threats, such as leaks through international channels. This, in turn, contributes to the growth of public confidence in financial institutions.

In addition, the processing centre on the territory of the country provides a guarantee of uninterrupted operation of the bank. If we recall the beginning of 2022, when due to the events in Kazakhstan a number of local banks lost access to the service, the requirement of the National Bank becomes more relevant than ever, especially given the current geopolitical instability.

One example of the transition to the new procedure is Optima Bank, which has already moved its processing centre from Kazakhstan to Kyrgyzstan. The bank itself emphasises that the migration of processing will ensure a higher level of protection of customer data. Previously, transactions were processed through a centre outside the country, which implies dependence on external factors. After the migration, all data is now stored and processed inside Kyrgyzstan, which meets international standards of information security. This has reduced the risks of leaks, unauthorised access and external threats.

Another advantage is an increase in the speed of transaction processing. An external processing centre could create delays due to system overloads or complex processing routes. After the transfer of processing, card payments will be made almost instantly, without additional intermediaries.

Also, the transition to an in-house processing centre opens up new opportunities for banks. Optima Bank noted that now we should expect the introduction of new products, including virtual and children's cards, as well as the expansion of the functionality of the mobile application and ATMs. Modern POS-terminals with the ability to generate dynamic QR-codes and improved support for NFC and Google Pay are expected to appear.

Thus, the changes introduced by the National Bank of Kyrgyzstan create the basis for a safer and more secure banking system. Although they require significant investment and adaptation, financial and credit institutions such as Optima Bank have already fully integrated into the process, realising that ultimately these measures will increase customer confidence and ensure long-term stability in the country's financial sector.