BAKU, Azerbaijan, Dec. 30
By Eldar Janashvili - Trend:
PASHA Bank, the largest corporate bank in Azerbaijan, started 2019 with the provision of its clients with the opportunity of round-the-clock currency exchange via the internet banking service.
“The main competitive advantage provided by PASHA Bank with this service to its customers is the opportunity not to be tied to the timeframe of the trading day and conduct currency exchange operations at any time convenient for the client in accordance with the exchange rate set for that day,” Director of the Treasury Department of the Bank Jeyhun Hajiyev told Trend.
At the beginning of the year, the bank received a certificate of compliance with Payment Card Industry Data Security Standard (PCI DSS). The bank’s Chief Operating Officer Jalal Orujov said that PASHA Bank, being one of the leading banks in Azerbaijan, pays great attention to information security and the introduction of the latest technologies in this area.
This year, the bank also offered a new service for individual entrepreneurs and legal entities - the opportunity, for the first time in the Azerbaijani market, to open an account online using ASAN Imza (Mobile ID) service. PASHA Bank also introduced the PASHA Bank Miles & Smiles card, the first in Azerbaijan, in an exclusive partnership with the Turkish Airlines.
The card is intended not only for bank customers, but also for the entire population of the country. PASHA Bank Miles & Smiles card holders got the opportunity to make cashless payments at trade and service facilities, earn miles and exchange them for purchasing airline tickets to 308 destinations around the world both inside and outside the network of POS terminals of the bank.
Digitalization
Since June 2019, PASHA Bank has equipped planes of the Azerbaijan Airlines CJSC (AZAL) with modern POS terminals accepting cards of MasterCard and Visa systems. Thanks to this, passengers don’t need to worry about cash.
In addition, in 2019, PASHA Bank introduced a new generation of cash registers for local entrepreneurs. The main advantage of the new Smart Cash registers is that they fully comply with the planned changes in tax legislation, as well as any changes when transmitting information about all transactions online.
Speaking about a cash register, which combines three functions - cash register, a payment terminal and a printer - Orujov noted that the new-generation cash registers contribute to more comfortable customer servicing.
Orujov added that the cash register comes with pre-installed software that includes all the necessary information about products and services in the device’s memory and allows connecting any additional equipment (scanners, scales, etc.).
“Local entrepreneurs using the services of PASHA Bank can significantly improve the accounting system and optimize the costs when conducting operations,” Orujov said.
Among other innovations of 2019, PASHA Bank, guided by the “We create innovative solutions for you” approach, provided online banking for legal entities and individual entrepreneurs, and also launched the first online booking of payment cards in Azerbaijan.
Chairman and CEO of the Bank Taleh Kazimov in 2019 noted that by the end of 2020, as part of the Development Strategy for 2018-2020, PASHA Bank plans to become the first digital bank in Azerbaijan.
“The digitalization of services and products is one of the most pressing issues on the agenda,” Kazimov said. “As part of the transformation work, PASHA Bank launched a new online banking service for customers. More than 1,100 legal entities and individual entrepreneurs are using this service. I would also like to note that most of these clients appreciated the level of new online banking, which is an important indicator of our transformation efforts.”
Financial activities
In 2019, with the support of PASHA Bank, the Black Sea Trade and Development Bank (BSTDB) issued bonds in national currency in Azerbaijan’s capital market. This issue was remembered as the first issue of bonds of the international financial institution in Azerbaijan. In this matter, PASHA Bank provided basic consulting services. Initially, the interest shown by investors in the BSTDB securities exceeded the issue volume many times.
Innovation
In June, PASHA Bank, for active introduction of innovations in the banking sector following the results of 2018 was included in the list of “Most innovative banks in the field of small and medium-sized businesses in the CIS and the Caucasus.” The award ceremony was held by the SME Banking Club within the 5th annual Tbilisi International Conference.
In the personnel department, PASHA Bank has launched the innovative HackerRank recruiting platform. The system, applied in the Azerbaijani market for the first time, allowed to build efficiently the process of hiring of specialists working in the field of information technology.
PASHA Bank also provided its customers with the opportunity to join payroll projects and order payroll cards without leaving their jobs. To take advantage of the payroll project, a client can determine the appropriate tariff for the company, indicating the number of employees and the monthly salary fund.
As part of strategic partnership with CUBICS Technology, the leading company in developing digital business solutions in Azerbaijan, PASHA Bank provides non-banking services to its customers to support business development.
Awards
Mentioning the bank’s success in 2019, by the end of 2018 the bank was awarded the title of “Leading Bank for POS terminal infrastructure in the local market”.
Taleh Kazimov, chairman of the board of the bank, was recognized by the EMEA Finance, prestigious international economic publication, as the best director general in the CIS, Central and Eastern Europe, becoming the first Azerbaijani to be awarded this title.
In addition, PASHA Bank received several international awards as part of the European Banking Awards. So, PASHA Bank was awarded the title of “Best Bank of Azerbaijan” and “Best Investment Bank of Azerbaijan”. In addition, the bank was recognized as the leading financial institution implementing the best corporate social responsibility program in Central and Eastern Europe, as well as in the CIS.
Among other awards for 2019, the bank received the award from MasterCard for winning the nomination “First bank to increase the number of World Elite cards.”
In January 2019, Standard & Poor’s (S&P), the international rating agency, affirmed the long-term and short-term issuing bank default ratings of PASHA Bank at 'BB-/B', which is one of the highest among private banks in Azerbaijan with 100 percent local capital.
The reaffirmation of the rating is based on an assessment of the market share of PASHA Bank in the corporate lending segment, indicators of geographical diversification compared to similar financial institutions, the quality of bank assets and other fundamental aspects.
Agreements
On May 29, PASHA Bank signed an agreement with Russia’s Gazprombank. Under the agreement, the parties fixed the main areas of potential cooperation between banks, in particular, in the field of financing investment projects in such priority sectors as agriculture, transport, logistics, communications and telecommunications.
Commenting on this agreement, Orujov expressed confidence that the partnership in the implementation of various investment projects will positively affect the development of the market and will make its positive contribution to further diversification of Azerbaijan’s economy as a whole.
In 2019, PASHA Bank also signed a corporate membership agreement with the Azerbaijan Accountants and Risk Professionals Association (ARPA). The bank became the 21st corporate member of the Association. Thus, the association included another financial institution, which plays an important role in the economic stability of the country.
Financial performance
From January through September 2019, PASHA Bank entered the top three banks in terms of some key financial indicators, such as interest income worth 146.4 million manat ($86.1 million), total capital worth 469.1 million manat ($275.9 million), and securities worth 1.1 billion manat ($676.4 million).
The bank’s loan portfolio for the same period amounted to 1.6 billion manat ($989.4 million).
PASHA Bank has been operating in Azerbaijan since 2007 and is part of the PASHA Group of Companies - a major investment holding company also operating in the sectors of insurance, construction, production of building materials, tourism and others. Kapital Bank, one of the biggest banks in Azerbaijan’s retail market, also belongs to the PASHA Group of Companies.