In November, Kapital Bank in Azerbaijan announced the launch of a new credit product – a credit card that enables cardholders to pay for goods and services in installments. The special feature of this credit scheme is that the interest rate is offset by a discount provided by the merchant for qualifying goods and services. The number of installments and loan amount can either be defined by the customer themselves at the time of transaction, or by the bank (depending on the category of goods and type of merchant). When a customer makes a purchase using the card outside the bank’s partner network, the scheme also enables the flexible definition of loan repayment criteria.
The product is based on the retail banking features of TranzWare CMS from Compass Plus. To implement the product a new financial scheme was developed within TranzWare CMS to support Azerbaijani accounting rules, including the calculation of fees and penalties, etc. Loan repayments can be made from both the customer’s card account in manual and batch mode, as well as by using additional accounts, for example the customer’s salary account. In addition, the new scheme can automatically block the card when the customer falls into arrears and unblock the card when the customer repays any debts within a certain period.
“With the arrival of new bank management, we wanted to pay special attention to the quality of our customer service, as well as launch new banking products currently demanded by the market,” commented Ulvi Mamedov, Director of Payment Cards and Processing Department at Kapital Bank. “I am very grateful to our colleagues who have worked hard on this product, as well as to Compass Plus for their timely support and implementation of our ideas. This effective and mutually beneficial partnership enables the bank to actively develop its retail business and keep pace with the times, responding to all the challenges and realising all the opportunities provided by the changing market conditions.”