
Following recent successful instant settlement cross-border transactions made on the RTGS.global network, we sat down with Eraj Alisherov from partner, Alif Bank to discuss the successful test and the how it was an important milestone for banks in the Central Asia region.
Please introduce yourself, your role, and Alif Bank’s mission
I am Eraj Alisherov, a twenty-year-old professional serving as the Head of International Banking Relationships at Alif Bank. Despite my young age, I have gained recognition in the banking sphere of the Republic of Tajikistan for my knowledge and passion for the industry, which I have grown over the past three years.
At Alif Bank, I made a significant impact by legally establishing the International Banking Relationships Sector (IBRS), a division that did not exist before my involvement. My article on the importance of IBRS for international interbank diplomacy prompted Alif Bank’s management to take the steps to grant me this crucial position. I am also known for forging connections with numerous institutions and maintaining a strong commitment to my role in the face of global challenges.
Alif Bank's mission is simple yet powerful: to become the world's premier Islamic fintech unicorn. This vision was brought to life by the founders, Abdullo Kurbanov, Zuhursho Rahmatulloev, and Firdavs Mirzoev, whose shared dream laid the foundation for Alif Bank's success.
What is your core purpose, and what makes Alif Bank unique?
At the International Banking Relationships Sector (IBRS), our core purpose is to ensure and safeguard Alif Bank's position in the international arena of interbank diplomacy. We want to influence and shape the various revolutionary banking events within the global financial system.
We embody a philosophy of being ready to make sacrifices to achieve our goals, to be pioneers in our field, and to set new standards. This commitment to our mission sets Alif Bank apart from others. We understand that to accomplish great things and to get them done right, certain sacrifices must be made. It is this dedication and willingness to go the extra mile that makes Alif Bank truly unique in the banking industry.
Since launching in 2014, what have been your biggest successes?
The concept of success is subjective, but you only need to look around to witness the impact Alif Bank has made since its establishment.
Before 2014, our distinctive green logo was nowhere to be found. The idea of Alif Bank was merely a dream, perhaps even considered a delusion or a crazy idea by some. However, the founders turned this vision into a reality and that in itself is our most significant success.
As we continue to grow, we are confident that Alif Bank will soon be recognised not only in the region but also on a global scale.
How about your biggest challenges?
We cannot solve problems with the same mindset that created them. The idea of bringing Alif Bank into reality was the source of our challenges, meaning that as long as Alif Bank exists, there will always be obstacles to overcome. This understanding teaches us not to rely on past thinking patterns, as the past has already happened. Instead, we must find new ways and solutions.
The challenges that we have faced have helped us grow and develop as an organisation. We’ve learned to adapt, think creatively and find ways to turn obstacles into opportunities. By embedding this mindset into our organisational culture, we have been able to not only anticipate problems but also develop effective strategies to resolve them.
What motivated Alif Bank to engage in a pilot with RTGS.global, and how does this partnership align with Alif Bank's overall strategy and vision?
When a colleague shared information about RTGS.global with me, I was immediately intrigued by their vision. As we discussed the potential partnership within the IBRS team, some members raised concerns about a full partnership with RTGS.global as they were still in the early stages of bringing their concept to life.
However, I had a different perspective. I believed that waiting for RTGS.global to prove themselves before offering our support could lead to missed opportunities. There's a saying in Tajikistan that resonates with me: "You didn't want to see me when I was down, so don't expect to see me when I'm up."
I couldn't ignore the potential I saw in RTGS.global. Despite the uncertainties surrounding the pilot program and our participation, I had faith in their vision. Our primary motivation was to experience first hand the speed and quality they promised in processing payments, which aligns perfectly with Alif Bank's strategy and vision of embracing innovation and collaborating with forward-thinking organisations to enhance our services and better serve our customers.
What are the main challenges faced by financial institutions in Central Asia when it comes to cross-border payments, and why is efficient settlement crucial?
The challenges faced by financial institutions in Central Asia when it comes to cross-border payments are multifaceted. Some banks limit their operations to specific regions due to familiarity, while others, like IBRS, constantly seek to expand their reach and grow, even if it means stepping out of their comfort zone.
The trio of currencies - USD, EUR, and GBP - is essential for international business. As a negotiator, I often advise that if you want consistency, you should open an account in the country of the currency itself, which means the USA or Europe. However, not all banks in these regions are willing to work with smaller institutions as they prioritise larger, more financially substantial partners. This can be frustrating for banks in Central Asia, where innovative ideas and potential should be valued as much as size.
In 2012, Citibank and Bank of America closed correspondent accounts in Tajikistan and 40 other countries, labelling them as not 'commercially viable'. This decision forced many banks to establish relationships with intermediary banks that had direct connections to the USA and Europe. However, this approach created another issue: American and European banks could easily prohibit these intermediary banks from processing payments from third parties. The ideal solution would be to open a correspondent account directly with these banks, but that is only possible when the bank is considered commercially viable - a true Catch-22 situation. This is the primary challenge we face in Central Asia.
Efficient settlement is vital, but the question remains: who will step up to make it a reality? While it takes time for a bank to grow and establish connections with globally recognised institutions, waiting is not a viable option. Every payment, regardless of its size, should be treated equally and processed efficiently. I firmly believe that everyone should have the opportunity to make payments if the infrastructure supports it.
How does the partnership between Alif Bank and RTGS.global aim to improve cross-border settlement processes, and what benefits do you expect Alif Bank's customers to experience as a result?
The biggest improvement will be the time saved. By partnering with RTGS.global, we will be able to streamline cross-border settlement processes and significantly reduce the time it takes for international payments to be completed. This will allow our clients to focus on what's important, rather than worrying about the status of their transactions.
What attracted Alif Bank to RTGS.global's solution for cross-border payments, and how does RTGS.global's technology differentiate itself from other cross-border payment solutions in the market, in your view?
The speed of RTGS.global's solution was the main attraction. In today's business environment, where a single day can make or break a deal, the time it takes to move money across borders remains a significant challenge for the banking industry.
RTGS.global's technology differentiates itself from other cross-border payment solutions in the market by prioritising speed and efficiency. Their approach to real-time gross settlement ensures that funds are transferred quickly and securely, without the need for intermediaries or lengthy clearing processes. This translates to faster transaction times, reduced costs, and increased transparency for both the sending and receiving parties.
What are you doing to improve financial inclusion?
Improving financial inclusion is one of our core missions at Alif Bank. Our team is committed to making a difference in this area, constantly seeking new ways to break down barriers and expand access to essential banking services.
We believe that the key to driving change is to question everything. Too often, people become complacent and accept the status quo, finding reasons to avoid pushing past their limits. At the IBRS, we challenge this mindset by asking ourselves two critical questions: What is the reason behind this and why do we continue to do so? By confronting these questions, we remind ourselves that there are no valid excuses for not striving to make a difference.
But what does this look like in practice? At Alif Bank, we're tearing down walls and inviting everyone to the table. We recognise that financial inclusion is not just about serving the needs of those in big cities, but also about reaching individuals in remote villages and underserved communities. Our mission is to empower people's dreams.
What’s next for Alif Bank?
We’re driven by a commitment to excellence. Our goal is not just to be good at what we do, but to be the very best. This means consistently pushing ourselves to innovate, adapt, and grow, no matter what challenges come our way.
As we look to the future, we are excited to continue collaborating with partners around the world, contributing to the evolution of the banking industry. We believe that by working together with like-minded organisations, we can achieve remarkable things and make a lasting impact on the global financial landscape.
How do you see this collaboration with RTGS.global evolving in the coming years to address opportunities in the broader financial sector in Central Asia?
This collaboration is positioned for remarkable growth in the coming years. We anticipate having a transformative impact on cross-border payments and settlements in the region.
By leveraging RTGS.global's technology, Alif Bank will unlock significant liquidity benefits and streamline processes that have traditionally been cumbersome and time-consuming. The demand for efficient, frictionless cross-border solutions is strong in Central Asia and we believe that our collaboration with RTGS.global will play a crucial role in meeting this demand.
How would you describe RTGS.global in three words?
The Latin phrase "veni, vidi, vici," which translates to "I came, I saw, I conquered," perfectly encapsulates RTGS.global