CEO Vugar Namazov: 'We have set the goal of contributing to the development of the capital market' – Interview

Unicapital Investment Company’s CEO Vugar Namazov: "We have set the goal of contributing to the development of the capital market"

Our interviewee, Vugar Namazov, answered the questions we addressed to him.

1. How do you assess your company's performance based on the results of the past year?

Last year marked the end of the first year of our 2023-2025 strategic plan. This year, in line with our main strategic goal, we have set out to contribute to the development of the capital market by offering accessible, innovative financial solutions for everyone.

In 2023, our main focus was on transforming investment services into fintech products, maximizing the use of retail sales opportunities, strengthening institutional stability, and expanding market share in the underwriting business.

According to the results of the past year, our company’s total operational turnover reached 19.5 billion manats, and the value of total assets increased by 55.5%.

Our underwriting services' coverage in the local capital market increased by 30%, with the operational volume in this area reaching approximately 500 million manats. Last year, we attracted a record number of 52 investors to corporate bonds issued in manats in the local market.

Together with our partners, we launched dozens of initiatives aimed at raising awareness and promoting the capital markets. These included both physical materials and various events on topics such as anti-money laundering, IPOs, and investment opportunities.

Unicapital Investment Company adds value to its clients across all segments of the investment services business, including corporate, individual, public sector, private sector, as well as small and medium-sized businesses.

For these reasons, Unicapital was awarded several international prizes due to its successful performance in 2023.

2. What modern opportunities is Unicapital Investment Company creating to drive the development of the capital market?

Thanks to the innovative solutions we offer, we achieved a significant record in the investment services business by surpassing 800,000 opened customer accounts by the end of last year. Naturally, customers expect comfort and efficiency in the services they receive for their investments.

As a result, we have managed to strengthen our customer retention rate to 94% (whereas the average rate in the investment sector is 78%). It is not surprising that eight out of ten customers are ready to recommend us to their friends and family.

Thousands of people use our services daily. Last year, more than 90% of the services provided for executed transactions were carried out electronically, with a significant portion through our mobile application. Despite this, we have established 33 service points in 14 cities across Azerbaijan to be closer to our customers. Based on all these factors, I can say that we are now closer to and more accessible for our customers.

As Unicapital, we have made a mark in the local capital market by launching the first large-scale successful project for providing investment services through a mobile banking application. The provision of investment services via the "Leobank" mobile app is a fintech technology that has elevated this field to a new level.

Additionally, by the end of last year, we enabled our clients to invest in local bonds through the "UTrader" electronic trading platform for the first time in Azerbaijan. Overall, there has been an 83% increase in the platform's user base over the past year.

Currently, as interest in the investment sector in our country grows, the market environment is also progressing in a proportional manner with increased dynamics and competition. The positive results of recent years give us confidence in the success of the work planned for this year.

3. What innovations can we expect from Unicapital in 2024?

Recently, we have witnessed positive trends in the sustainable development of capital markets, increased service levels and accessibility, and investor protection.

We pay special attention to contributing to the implementation of the priorities outlined in the "Financial Sector Development Strategy 2024-2026" approved by the Central Bank of Azerbaijan.

In 2024, we will focus on enhancing our personalized approach to clients, deepening our relationships with them in an empathetic and businesslike manner. As a team, we are constantly evolving to be the clients' trusted choice, offering them the most effective methods and high-standard services. While we have made commendable progress in this direction over the past years, transformation is a time-consuming, multi-year process.

We will also continue to improve our corporate governance practices and shape the investment services business as an attractive workplace for new talents and young leaders. Ensuring employee development and a promising future, as well as selecting high talents and experts, remains a priority for our company.

Currently, our development direction involves making local and international financial market products accessible to our clients, aligning our trading solutions with the "Baku Stock Exchange," a crucial structure of the local capital market, and implementing our plans for participation in local IPOs. Additionally, starting this year, we will advance to the next stage of digitization by expanding our API-based broker solutions.

In conclusion, our main goals for 2024 are to provide more accessible services to our clients, significantly strengthen our position in Azerbaijan, and transform into a more innovative investment services business that supports the country's economic development.