AN ANALYSIS OF THE IMPACT OF DIGITAL BANKING ON THE FUTURE USE OF OPEN BANKING: A TODA-YAMAMOTO CAUSALITY ANALYSIS IN THE CONTEXT OF AZERBAIJAN

Summary: This study provides detailed statistical results on the use of digital banking and digital payments in Azerbaijan, highlighting a high level of usability. However, consumer adoption of open banking remains very low despite the implementation of relevant legislation and security standards. This study aims to assess the impact of digital banking on the use of open banking in Azerbaijan. Using the Toda-Yamamoto causality method and data covering the years 2022-2024, the variables "Bank accounts", "Bank customers", "Digital banking Number", and "Instant Payment System Number", where open banking operations will be carried out, were used in the econometric model. Based on the Toda-Yamamoto causality between "Digital Banking Number" (lnDBN) and "Instant Payment System Number" (lnIPSN), carried out for the main purpose of the research, digital banking will have a positive effect on the future use of open banking, and there is a bidirectional relationship. Additionally, while there is a causal relationship between "Bank Accounts" (lnBA) and "Instant Payment System Number" (lnIPSN), no causal relationship was found between "Bank Customers" (lnBC) and "Instant Payment System Number" (lnIPSN). Factors such as ease of use, usefulness, reliability, and a sense of psychological ownership will play crucial roles in the rapid adoption of open banking.