Being the first financial institution in Azerbaijan is not enough to stand out in a crowded market. Kapital Bank has also become more flexible in responding to the wishes and needs of clients.
“It’s about being the first choice for our customers,” said Farid Huseynov, chairman and chief executive officer. “We earn their trust by striving for excellence in everything we do.”
Simply put, the bank’s competitive advantage lies in its ability to combine 150 years of tradition with innovation. “We have a deep understanding of the Azerbaijani market and have invested heavily in digital transformation to stay ahead,” he added.
Successful Digital Journey
A prime example is Birbank, Kapital Bank’s mobile banking app, which is tailored to the needs of individuals, SMEs and large corporations who want to manage their finances, make payments and transfer money.
“This is more than just a banking application,” Huseynov said. “It is a complete digital ecosystem designed to simplify the everyday financial needs of our customers.”
After launching in 2018, Birbank has evolved into a fully digital bank by 2021, allowing Kapital Bank to pioneer comprehensive banking products through a mobile app in Azerbaijan.
“It was like rebuilding from scratch,” Huseynov explained. “Our thinking has changed and since 2021 we have continued our digital transformation, constantly evolving in line with global trends.”
Around 3 million users are a testament to the experience and travel. Collectively, they increased the digital deposit portfolio by AZN 600 million in 2024, to AZN 1.1 billion overall – growth that demonstrates customer confidence in the digital banking solution.
Loyalty programs are another feature of Kapital Bank’s customer-oriented approach. They led to the return of cashback, miles and bonuses in 2023-2024 amounting to more than 156 million manat ($91.8 million), with a net profit of 166 million manat for the nine months of 2024 and assets of more than 10 billion manat.
Make flexibility the norm
By prioritizing flexibility in its operations and strategy, Kapital Bank has also created a new mindset and culture. This promotes collaboration, agility and continuous improvement across the organization, encouraging teams to take ownership of their projects, adapt quickly to change and keep customers at the center of decision-making.
“This journey has also laid the foundation for more flexible and innovative service delivery, improving both the customer experience and employee engagement,” Huseynov said.
Foresight is reflected in automated tools that improve efficiency. The bank has invested in technologies such as voice-to-text and text-to-voice systems, reducing the need for many daily customer interactions, such as telephone calls, by addressing issues before they reach the customer, such as through advance notification of potential risks such as card blocking after suspicious transactions. Additionally, the AI-integrated chatbot provides customers with personalized responses based on their behavior and needs.
Business customers are also benefiting from the shift to digital technology. For example, the Birbank Biznes mobile app allows small and medium-sized businesses to access their accounts and perform various financial transactions anytime, anywhere. For example, 99% of all non-credit transactions are carried out remotely, including business loans in the amount of up to 100 thousand manats.
Focus on your essence
To further reinforce its focus on making a positive contribution to its domestic market, Huseynov said Kapital Bank currently has no plans to expand beyond Azerbaijan.
“There continues to be great potential for growth and innovation in our country’s banking sector and we remain focused on enhancing the well-being of our people through customer-centric services and increasing the accessibility of banking services across the country,” he added.
This includes efforts to improve the internal digital ecosystem. A new loyalty program is in the works, offering rewards and bonuses, as well as new digital services, from payment options to innovative products.
By 2026, Kapital Bank expects that more than 60% of its loans will be processed digitally. It also uses improved scoring models and new data sources to streamline the loan origination process.
These are examples of how Kapital Bank strives to realize its vision for the next five to ten years – to continue to introduce changes and innovations, adapt to new technologies and changing customer expectations. “Our commitment to digital transformation remains strong, and we are committed to further enhancing our products and services to meet the needs of the rapidly evolving financial ecosystem,” Huseynov added.
