Technological advances comprise a significant potential to enhance government accountability and transparency. Since financial development is essential for economic growth by promoting capital accumulation and technological progress, its improvement has a crucial role for the state. Considering the weight of banks in the Azerbaijani financial sector, investigating the digital integration of the banking system will be helpful to financial technological development. Considering this importance, the paper focuses on estimating the digitalization level of the banking system in Azerbaijan. For this purpose, the digital characteristics of the banking system were defined, and a new methodology was proposed by applying the Fuzzy (Mamdani) Inference System. The application of the developed fuzzy approach concluded that digitalization level of the Azerbaijani banking system is 70.3%.