AzFina official urges lenders to focus on underserved small businesses

Azerbaijan has significant potential to expand lending to people without formally documented income and those running small businesses, said Eynar Abdullayev, a board member of the Azerbaijan Fintech Association (AzFina).

Report informs that he was speaking at the 12th Investment and Sustainable Development in Microfinance Conference, organized by the Azerbaijan Microfinance Association (AMFA) in Baku.

He said microfinance institutions should focus more on microbusinesses, self-employed people and customers earning income without formal employment contracts who have limited access to traditional bank loans.

"Looking at the figures, lending in Azerbaijan currently totals approximately 27–30 billion manats ($15.88–17.65 billion). This represents around 30% of our gross domestic product. However, significant gaps remain," Abdullayev said.

He noted that much of the existing loan portfolio is likely concentrated among customers with formal income and a strong ability to repay. Meanwhile, a large customer segment remains outside the lending market.

"These are people without formal employment contracts who earn income even though they do not receive a salary, as well as small businesses and the self-employed," he said.

Abdullayev said nonbank credit institutions and fintech companies could play an important role in expanding these customers' access to financial services.

Identifying specific niche segments and examining their needs and potential more closely could create new lending opportunities, he added.