Being the first ever financial institution in Azerbaijan is not enough alone to stand out in a crowded market. Capital Bank has also become increasingly agile in responding to what customers want and need.
“It’s about being the first choice for our customers,” said Farid Huseynov, Chairman and CEO. “We earn their trust by striving for excellence in everything we do.”
Simply put, the bank’s competitive advantage comes from its ability to combine tradition over a 150-year history with innovation. “We have a deep understanding of the Azerbaijani market and have made significant investments in digital transformation to stay ahead of the curve,” he added.
A successful digital journey
A clear example of this is Kapital Bank’s Birbank mobile banking app which is designed to suit the needs of individuals, SMEs and large businesses in managing their finances, making payments and transferring funds.
“It’s more than just a banking app,” Huseynov said. “It is a complete digital ecosystem, designed to simplify our customers’ daily financial needs.”
After launching in 2018, by 2021 Berbank had transformed into a fully digital bank, enabling Capital Bank to pioneer end-to-end banking products through a mobile application within Azerbaijan.
“It was like rebuilding from scratch,” Huseynov explained. “Our mindset has changed, and since 2021, we have continued our digital transformation, constantly evolving in line with global trends.”
About 3 million users attest to the experience and journey. Collectively, they have raised their digital deposit portfolio by AZN 600 million in 2024 so far, bringing their total to AZN 1.1 billion – a growth that demonstrates customer confidence in digital banking solutions.
Loyalty programs are another feature of Kapital Bank’s customer-first approach. This has resulted in cashback, miles and bonus redemptions of over AZN 156 million (US$91.8 million) in 2023-2024, amid net profits of AZN 166 million for nine months of 2024, and assets of over AZN 10 billion.
Make agility the norm
By prioritizing agility in its operations and strategy, Capital Bank has also built a new mindset and culture. It promotes collaboration, agility and continuous improvement across the organization, encouraging teams to take ownership of their projects, quickly adapt to changes and keep customers at the heart of decision-making.
“This journey has also laid the foundation for more flexible and innovative service delivery, resulting in enhanced customer experience and employee engagement,” Huseynov said.
Forward-thinking is reflected in automated tools that create efficiency. The bank has invested in technologies such as voice-to-text and text-to-voice systems, which reduce the need for many everyday customer interactions such as phone calls by resolving issues before they reach the customer, such as advance notifications about potential risks such as blocking the card after transactions. Suspicious. Moreover, the AI-integrated chatbot provides personalized responses to customers based on their behaviors and needs.
Business clients are also benefiting from the drive towards digital transformation. For example, the Birbank Biznes mobile application enables SMEs to access their accounts and perform various financial transactions anytime, anywhere. For example, 99% of all non-lending operations are carried out remotely, including business loans up to AZN 100,000.
Keep the focus on the core
Further strengthening its focus on contributing positively to its home market, Huseynov said Capital Bank currently has no plans to expand beyond Azerbaijan.
He added: “There is still a lot of potential for growth and innovation within our country’s banking sector, and our focus remains on improving the well-being of our employees through customer-focused services and increasing access to banking services across the country.”
This includes efforts to strengthen the local digital ecosystem. A new loyalty program is in the works to offer rewards and bonuses, as well as new digital services, from payment options to innovative products.
By 2026, Capital Bank expects more than 60% of its loans issued to be processed digitally. It also uses advanced scoring models and new data sources to simplify the loan process.
These are examples of how Capital Bank aims to implement its vision for the next five to ten years – to continue to embrace change and innovation, and adapt to new technologies and evolving customer expectations. Huseynov added: “Our commitment to digital transformation remains strong and we aim to continue enhancing our products and services to meet the needs of the rapidly evolving financial ecosystem.”
