Kapital Bank names digital threats as main risk for banks

Kapital Bank has named digital threats as the main risk for Azerbaijan's banking sector in recent years, the bank's First Deputy Chairman of the Board Javid Mirzayev said at the "Risk Management in Financial Institutions" event organized by AmCham Azerbaijan, Report informs.

According to him, one of the bank's largest investment areas today is the management of technological and cyber risks.

"Previously, Kapital Bank was known mainly for its extensive branch network. Today, while an average of about 500,000 customers visit branches monthly, more than 3 million people conduct transactions through the Birbank app each month. The number of monthly transactions reaches 30 million," Mirzayev noted.

He emphasized that 80–90% of customers use digital platforms, and it is precisely in this area that the main risks are formed.

According to the bank's representative, key areas remain the protection of customers' personal data and the fight against fraud.

"Fraudsters attempt to obtain customers' personal data and seize funds through various methods. To prevent such cases, the bank uses proactive artificial intelligence models based on behavioral analysis," he said.

Mirzayev also identified the resilience of digital systems as an important factor. "If an app with a customer base of 3–4 million people stops working for even one hour, the entire country will feel it - when entering the metro, during shopping, or making payments," he noted.

He added that credit risk management mechanisms in the banking sector have already been established, whereas in the area of digital risks, additional investments and new solutions are still needed.