http://www.banks.am/ Բիզնես լուրեր Հայաստանից, ֆինանսական լուրեր, բանկեր, աշխատատեղեր, դոլար, եվրո, փոխարժեքներ en-us Thu, 04 Jun 2026 18:30:47 +0400 https://banks.am/en/news//30774 https://banks.am/en/news//30774 Banks.am’s interview with David Rapava, CEO, Silk Hospitality

- Silk Hospitality has evolved from operating individual hotels to creating what you call “destination experiences” across Georgia. What drove this strategic shift, and how do you define a destination experience versus traditional hospitality?

- This shift came naturally because Georgia is not a destination where hospitality can be limited to a room or a lobby. The real value is in the full experience: food, wine, culture, music, landscape, people, and emotion.

For us, a destination experience means creating a reason to travel, not only a place to stay. In Tbilisi it may be architecture, restaurants, nightlife, and urban culture. In Tsinandali it is wine, music, history, and nature. In Batumi it is the sea, leisure, and entertainment.

[[gallery1]]
Our goal is simple: hotels should not only host guests; they should reveal the destination.

- From your perspective, what makes Georgia’s hospitality landscape unique, and how is Silk Hospitality positioned within it?

- Georgia is unique because it combines ancient culture with modern energy. It has wine, cuisine, mountains, the sea, heritage, and a very strong tradition of genuine hospitality, all within a compact country.

Silk Hospitality is positioned at the meeting point of local identity and international standards. We are not trying to copy foreign models. We want to create hospitality that is globally competitive but emotionally Georgian.

- Do you think that Georgia and Armenia share similar tourism development trajectories in the post-Soviet space?

- Georgia and Armenia share many similarities: strong history, culture, cuisine, hospitality, and post-Soviet transformation. Both countries are rediscovering how to present themselves to the world.

At the same time, their strengths are different and complementary. Georgia has developed strongly around wine, lifestyle, the Black Sea, mountains, and urban hospitality. Armenia has exceptional heritage, cultural depth, and diaspora connections.

[[gallery2]]
Together, they can create a stronger regional tourism story.

- Your portfolio spans very different geographies -  from urban Tbilisi and seaside Batumi to mountain Tusheti and wine country Tsinandali. How do you maintain brand coherence while serving such diverse destinations and traveler needs?

- For us, coherence does not mean making every property look the same. Georgia’s destinations are too different for that.

The common thread is our philosophy: authenticity, design, service quality, emotional connection, and a strong sense of place. In Tbilisi this may feel urban and social; in Tsinandali, cultural and refined; in Batumi, energetic and leisure-driven; in the mountains, quiet and authentic.

Same values, different expressions.

- What distinguishes a “lifestyle hotel” from a traditional luxury property, and why has this become central to your strategy?

- Traditional luxury is often about formality, materials, and service rituals. Lifestyle hospitality is more about atmosphere, design, food, music, culture, and social energy.

This is very important for us because Georgia is emotional, warm, and social by nature. A hotel here should not feel anonymous. It should be alive, connected to the city or destination, and attractive not only to hotel guests but also to locals.

Luxury today is not only about perfection. It is about identity and memory.

- Silk Hospitality offers “much more than accommodation” through restaurants, bars, wellness, and cultural programming. Can you walk us through a specific example of how these elements create a complete guest experience at one of your properties?

- Tsinandali Estate is a good example. A guest may arrive for a hotel stay, but the experience quickly becomes much broader.

They can enjoy the historical estate, gardens, Georgian wine, wellness, local cuisine, and during the festival period, world-class classical music. These elements are not separate; together they create one complete emotional journey.

[[gallery3]]
The same applies at Telegraph in Tbilisi: history, design, restaurants, bars, and city energy all become part of the stay.

- Tsinandali Estate has positioned itself as both a hotel and a cultural destination with its music festival and historical significance. How do you balance commercial hospitality operations with cultural preservation and programming?

- Tsinandali is not just a hotel. It is part of Georgian cultural memory, so we have to treat it with responsibility.

For us, culture is not separate from business; it is the core of the experience. The festival, wine heritage, historical estate, and gardens all strengthen the property commercially, but they also protect its identity.

[[gallery4]]
The goal is to make commercial success support preservation and cultural programming, not replace them.

- Armenian travelers have become increasingly significant visitors to Georgia. Which of your properties resonate most with Armenian guests, and do you tailor any experiences specifically for the Armenian market?

- Armenian travelers are very important for us because of the natural closeness between Armenia and Georgia. Many know Georgia well, so they appreciate quality, atmosphere, good food, design, and authentic experiences.

We see strong interest in Telegraph Hotel in Tbilisi, our Batumi leisure projects, and Tsinandali Estate for wine, culture, wellness, and weekend escapes.

[[gallery5]]
For this market, we focus on food and beverage, family travel, wellness, premium short stays, and personalized experiences for repeat guests.

- The Telegraph hotel is your new “gem”. Is it popular among Armenian visitors?

- Yes, absolutely. Telegraph has quickly become one of the most interesting hotels in Tbilisi for regional travelers, including Armenians.

Its appeal is the combination of location, historic architecture, contemporary design, restaurants, bars, and atmosphere. It does not feel like a standard luxury hotel; it feels connected to Tbilisi.

[[gallery6]]
We also see interest from younger travelers and creative professionals from Yerevan who come for weekends, dining, events, and social experiences.

- What’s your assessment of regional tourism cooperation in the South Caucasus? Many Armenian tour operators combine Georgia-Armenia itineraries — how does this influence your strategy?

- Regional cooperation is very important. Many international travelers see the South Caucasus as one broader journey rather than only one country.

[[gallery7]]
Georgia and Armenia work very well together in combined itineraries culture, wine, food, heritage, nature, and city experiences. I see this as complementary, not competitive.

For Silk Hospitality, this means positioning our properties as key anchor points in regional routes: Tbilisi, Kakheti, Batumi, and beyond. A stronger South Caucasus tourism ecosystem benefits everyone.

Ara Tadevosyan spoke to David Rapava ]]> Mon, 01 Jun 2026 22:30:00 +0400 https://banks.am/en/news//30747 https://banks.am/en/news//30747 The true meaning of independence, the proper management of conflicts of interest, and the formation of a “working board” are among the key issues in modern banking governance. Banks.am spoke with Elena Khachvankyan, a member of the Board of IDBank, about these topics.

- At the Fast-Forward 2026 conference, you used an interesting formulation, describing independence as the “air” of conflict-of-interest management. On a more practical level, what does that “air” represent in the board’s day-to-day work?

- One of the most important functions of an independent board is to identify, manage, and prevent conflicts of interest that may arise at different levels, including within the board itself.

We approach the concept of independence quite profoundly. True independence exists when a person has no ties to the company or to any individual exercising control over it, does not represent anyone’s private interests, and, in the event of disagreement, can confidently say “goodbye” and leave without hesitation. Under such conditions, if an independent board member identifies a potential conflict-of-interest risk, they are able to speak openly about it and initiate solutions, avoiding the conflict.

This is exactly what I meant by “air”.

- What are the key indicators that distinguish a genuinely independent board member from someone who merely holds the formal status of “independent”?

- The first and most important indicator is professionalism. When a person has invested time and effort into becoming an expert in their field and is committed to applying and continuously developing their knowledge and experience, their judgments are naturally based on expertise and guided by the company’s long-term interests. In addition to what I mentioned earlier, I believe this is one of the most essential components of true independence.

Another important factor is financial independence.

It is the combination of these two elements that ensures the genuine independence of a board member, enabling them to make objective decisions based on their own thinking, professional experience, and expertise.

- Beyond formal independence, what professional and personal qualities are necessary for a board member to create real value?

- Armenia has a rather unique context in this regard. The tradition of forming independent boards is still relatively young, while for many years a culture of following the leader prevailed across different spheres of life. This stems largely from a “tribal” mentality, where decisions were determined by the authority of the head of the family or group. To some extent, that cultural legacy still influences organizational management today: personal trust and relationships are often valued more highly than institutional processes or systems of checks and balances.

[[gallery1]]
In many ways, Armenia is currently going through a transition – from a personality-driven management model to a more institutional and professional governance system.

At the same time, communication skills are critically important. A board member must know how to ask questions in a way that is not perceived as criticism or a personal attack. The goal should be to create an environment where questions are understood as an invitation to healthy discussion. This culture is still developing in Armenia. Very often, people react defensively to questions, assuming they are being criticized.

Another essential quality is the ability to maintain a broad, strategic, “top-down” perspective. While executives are primarily focused on day-to-day operations, the board must be able to see the larger picture from a long-term standpoint. A board member should think not only about tomorrow, but several years ahead, because the board’s core responsibility is to ensure the company’s sustainable, long-term development. For that reason, it is important to avoid pursuing short-term interests if they may ultimately undermine long-term goals.

- During the conference, you also emphasized the importance of raising “uncomfortable questions.” To what extent has this culture developed in the Armenian business environment?

- This culture is still in the process of formation in Armenia, but there is clear and visible progress. Authoritarian management models are gradually giving way to more participatory approaches, where collective discussion and decision-making are viewed as signs of healthy corporate governance.

This shift is also being driven by the fact that many companies are moving from a phase of rapid growth to a stage of more stable, future-oriented development. At that stage, businesses begin to understand more clearly that incorporating diverse viewpoints is essential not only for risk mitigation, but also for creating long-term value. As organizations become larger and more complex, the experience and intuition of a single individual are no longer sufficient for making all key decisions. What becomes necessary instead is a combination of diverse professional experience, sector-specific expertise, and independent perspectives.

- How can an effective balance be maintained between shareholder influence and board independence so that the board does not become merely a formal structure?

- An effective balance is possible when shareholders themselves are genuinely interested in the board’s work and recognize the real value it creates. It is important for shareholders to understand that unilateral decision-making is not always the most effective approach, because no individual can consistently make the right decisions in every situation.

[[gallery2]]
When decisions are shaped through open discussions, through raising different viewpoints – including “uncomfortable” questions – searching for answers, and, when necessary, conducting additional research and analysis, the decision-making process becomes far more grounded and resilient. As a result, decisions not only become higher in quality, but also pass through multiple layers of verification that help identify potential mistakes or hidden risks at an early stage.

Ultimately, this balance must be built on mutual benefit. On one side, there is a board whose purpose is to support the company by ensuring its sustainable, long-term development. On the other, there is a shareholder who recognizes that value and places trust in the board’s work.

- In your opinion, what real changes have already taken place in Armenia’s corporate governance sector, and what challenges remain unresolved?

- In fact, 30 years is a relatively short period for the formation of a corporate culture. Even in countries where corporate governance traditions have developed over 150 years, the system has continued to evolve significantly over time. In particular, in developed economies, the concept of stakeholder capitalism has emerged over recent decades, according to which companies are expected to take into account not only the interests of shareholders, but also those of all stakeholders – customers, partners, communities, and the environment. This approach contributes to more sustainable growth and a higher level of trust among all parties involved.

At the same time, in our country, shareholder capitalism was still in its formative stages. Especially in the 1990s, the focus was largely on short-term profit, while the idea of building a long-term, generational business was not yet fully developed. Over time, however, companies have increasingly come to understand that a business is not merely a revenue-generating instrument, but an independent value, reputation, and responsibility that must be preserved and strengthened – and that achieving this requires proper tools, including effective corporate governance.

[[gallery3]]
Another important development has been the growing recognition among companies of the importance of international partnerships for growth and access to global markets. International partners, in turn, place strong emphasis on governance quality, particularly on transparency and predictability in decision-making processes. When this process appears unpredictable or risk-prone, potential partners are often discouraged from engaging.

If Armenia aims to deepen cooperation with developed economies, it is essential to establish reliable, predictable, and legally robust governance systems that will support the development of such partnerships.

- If we try to localize these ideas within the framework of IDBank, how would you assess the current development of the board as a “working board”?

- The current board has been operating since 2024, and during this period we have been working together and gradually evolving into a fully functioning “working board.” A board cannot become effective overnight; it requires time to understand each member – who they are, what experience and value they bring, what interests guide their approach, how they engage in discussions, and what issues they tend to raise.

Through this process, a culture of constructive dialogue and effective questioning begins to take shape. I believe we have made significant progress in this direction over the past two years. In parallel, we have also reviewed and updated our internal legal frameworks to align them with best practices in corporate governance.

At the same time, this is not a one-time transformation, but a continuous and dynamic process in which the governance model evolves alongside the business model, constantly seeking a balance between flexibility, control, and long-term development.

- What specific mechanisms or practices are used at IDBank to ensure the independence and effectiveness of the board?

- At the board level, we conduct regular self-assessments – both collectively and individually – in order to identify our strengths and areas for improvement.

In terms of independence, all members of our board are considered independent according to the criteria defined by the company. This creates a model in which there is no single dominant voice representing only the direct interests of a shareholder. Instead, the board serves as a bridge between shareholders and the executive, where each member contributes their own experience and professional expertise to the discussion, and the members complement one another in the decision-making process.

A possible next step is introducing external evaluation mechanisms, since relying solely on internal self-assessment can sometimes limit objectivity – either becoming too strict or overly lenient. An external review would provide a more balanced and comprehensive perspective, both in terms of methodology and outcomes. 

- Are there any examples where the involvement of independent members has helped to better balance risks and strategy?

- I cannot provide specific examples, as these relate to the company’s internal processes. However, I can describe the broader picture: the diversity of the board does contribute to a more balanced strategy. In addition, the Risk, Audit, and Compliance Committee operating under the board ensures that key issues identified by the supervisory system are discussed in detail and, when necessary, brought to the attention of the board.

[[gallery4]]
This is one of the board’s key functions: to ensure the effective operation of the internal control system. Since the executive team is primarily focused on day-to-day business operations, risk and compliance matters can sometimes be deprioritized. 

To address this, we have revised a number of internal regulations, introduced digital solutions, and continue to develop anti-money laundering tools in order to remain aligned with the evolving risk environment and regulatory requirements. 

- If we consider IDBank as a model, what advice would you give to other Armenian companies seeking to establish truly functioning boards?

- The most important principle is honesty with one’s own organization. Self-assessment – whether formal or informal – should not be treated as a procedural formality, but as a genuine tool for understanding whether the board is truly functioning or merely exists as a formal structure. 

If the goal is to move beyond formality, one must be ready for change – whether that means updating board composition, attracting new professional expertise, or investing in the development of existing members.

Another critical factor is trust between the executive team and the board. An effective board does not operate in a “punitive supervisory” mode. The best outcomes are achieved when there is open dialogue, and management is willing not only to present successes but also to openly discuss challenges and risks.

Finally, it is important not to attempt to build a “perfect” governance system all at once. The key is to start – even with small steps – and recognize that board effectiveness is developed over time through experience, trust, and the right culture.

Arpi Jilavyan

Photos by Emin Aristakesyan ]]> Mon, 25 May 2026 00:15:00 +0400 https://banks.am/en/news//30516 https://banks.am/en/news//30516 Banks.am's interview with Professor Leslie Szamosi, Dean of the School of Business at York University Europe Campus and Director in the Pan-European Executive MBA programme.

- York University Europe Campus is the partner of the Fast Forward 2026 conference. Perhaps, this reflects the importance you attach to open and frank discussions of issues related to business leadership in Armenia.

- Business leadership, cutting edge leadership, is absolutely critical for business development for companies both inside Armenia and in the global marketplace. 

[[linked-news30498]]
Business leadership is critical to a country's development because it acts as a primary engine for economic growth, innovation and social stability. Effective business leaders navigate complex global trends and translate strategic visions into practical actions that create value for both the local economy and society at large.  

- One of the conference topics is the institute of independent directors. In your opinion, how important is this institute for ensuring the “maturity” of Armenian businesses?

- The institute of independent directors is a real sign that Armenian businesses are coming of age. Global dedicated organizations train and certificate of independent directors and board members helping them bridge potential gaps between knowledge and practice and navigate complex and potentially acrimonious boardroom dynamics and ESG (Environmental, Social, and Governance) requirements.  

- Another topic of the conference is business succession in Armenia. 

- Business succession is very often a missed dynamic in businesses today. Senior managers and owners become so absorbed in day-to-day operations that they forget about succession. 

[[gallery1]]
Business succession planning needs to be seen as a strategic imperative that is directly linked to trying to ensure operational continuity, financial stability, and long-term growth and development rather than simply a one-time event.  

Succession is a continuous process of identifying and developing future leaders to prevent disruptive "leadership vacuums". It is also a way to encourage staff by identifying those who are ready, willing, and able to step up when the time arises. This is even more critical in family based businesses as the founders hand their “baby” to the next generation.

- Are these topics addressed in one way or another with the students of your Pan-European Executive MBA program?

- All of the issues we have discussed are critically addressed with our students in the Pan-European Executive MBA program. From day one through the conclusion of the program these critical elements of leadership, among others, form the foundations for developing the next generation of Armenian business leaders ready to challenge a global marketplace. 

[[gallery2]]
In this “era” of AI orientation, effective business leadership is more critical than ever in terms of shifting from the “nice to have” to a strategic imperative.  AI cannot replicate the uniquely human elements of leadership, such as setting aspirations, making complex moral judgments, and building deep trust. Bottom-line the “human” elements built around leadership will also be critical to building the Armenian business of tomorrow. ]]> Fri, 03 Apr 2026 09:44:00 +0400 https://banks.am/en/news//30494 https://banks.am/en/news//30494 Finbox is Armenia’s first and only independent ATM network, providing broad access to cash-in (including bulk cash-in) and cash-out transactions for both individuals and legal entities. Banks.am spoke with Aram Azatyan, Founder and CEO of the Finbox payment and settlement company, about the company’s creation, as well as the technological solutions and innovations it has introduced to the Armenian financial market.

– Mr. Azatyan, you managed one of the leading companies in the payment and settlement sector for more than 15 years. Why did you decide to create your own company, and what innovation does Finbox bring to the market?

– After working in the same place for 15 years, I can say the moment had matured; there was a desire to grow further.
We have been building Finbox for about two years, and now it has entered the operational phase. We have already installed ATMs and created an interesting product.

Today, Finbox is the only payment and settlement company in Armenia with ATMs that support cash-out transactions using ArCa, Visa, and Mastercard cards, as well as cash-in payments(), including bulk cash-in. A Finbox ATM allows for depositing up to 200 banknotes of different denominations in a single transaction, automatically counting and accurately crediting them.

Essentially, we have combined both cash-in and cash-out in one machine. The main feature of Finbox is that it is “multi-bank,” meaning users can perform cash-in and cash-out transactions using cards from any bank.

– As an experienced specialist in the field, how would you describe the current state of Armenia’s fintech market? Was it ready for the solutions Finbox offers?

– The market was more than ready. Traditionally, fintech refers to banking apps that provide financial services to customers. A few years ago, payment and settlement companies drove innovation through their apps, influencing banking app development. Today, the situation has evolved: many banks now have modern, user-friendly apps with integrated banking products. From this perspective, Armenia’s financial market is among the leaders in terms of the tools available to customers.

Finbox offers banks an “ATM as a Service” model. As an independent ATM network, we provide full outsourcing of cash services. By partnering with us, banks can move ATM servicing to a digital platform, paying only an interbank commission, which is more cost-effective, while gaining access to a wide network for both cash-in and cash-out operations.

[[gallery1]]
In other words, banks receive a turnkey solution, freeing themselves from organizational and technical burdens. Additionally, Finbox integrates modern solutions, including user identification via the imID system, fully compliant with Central Bank requirements.

– Many people are used to traditional banking models. What is Finbox’s conceptual difference, and how does it help banks optimize costs?

– The key difference is the “ATM as a Service” model, which allows banks to use an independent ATM network without building their own. This solves several problems: banks eliminate high maintenance and servicing costs, while customers gain wider access and convenience, with the ability to use Finbox ATMs with 0% commission.

We have developed flexible pricing models, so each bank can choose what suits its strategy and needs. As a result, there are already cases where banks are replacing their old ATMs with Finbox machines, significantly reducing costs.

Before launching the project, we held active discussions with banks and the Central Bank of Armenia.

– What technical and security systems are implemented in the Finbox network?

– The Finbox network is fully built on solutions from GRG Banking, one of the world’s largest and fastest-growing ATM manufacturers. We use these modern solutions and have obtained the necessary licenses and certifications from ArCa.

Our ATMs run on Windows 11, which is still rare in our market and provides a higher level of security. Physical security is ensured through special protective ink systems.

– One of Finbox’s core pillars is the “independent ATM network.” How does it work for individuals and businesses?

– We have created a synergistic center for three key segments.

First is B2C: individuals who can both deposit funds and withdraw cash with 0% commission.

Second is B2B: businesses working with cash can deposit bulk cash and immediately manage it in their bank accounts.

Third is B2F (Business-to-Finance): banks and payment organizations that use our “ATM as a Service” model for outsourcing ATM operations.

Thus, we have created an independent ATM network that serves everyone.

– How will the geographic expansion of Finbox ATMs develop?

– Since we are just starting, our operations are currently concentrated mainly in Yerevan. However, our development plan aims to achieve full nationwide coverage by the end of 2027, including remote rural communities where ATMs are currently unavailable.

By the end of 2027, we plan to expand our network to up to 200 ATMs.

– There is a lot of discussion today about the “disappearance” of cash. How does Finbox bridge cash and digital economies?

– One of the state’s strategic goals is to promote cashless transactions through legislation and regulation. However, completely eliminating cash is nearly impossible. Even in the most “cashless” countries, about 25–30% of card funds are eventually withdrawn as cash.

I often say there is no monetary ecosystem without a cash component. At the same time, the decline in cash usage increases its servicing cost, since banks have mostly fixed expenses. If ATMs process fewer transactions, their depreciation and fixed costs remain.

[[gallery2]]
In such conditions, an independent ATM network makes cash more accessible and affordable. Our approach is that accessible cash actually stimulates the growth of cashless payments. For example, if a person struggles to find their bank’s ATM, they tend to withdraw more cash than needed to avoid returning. That cash continues circulating.

If cash is accessible anytime and without commission, people withdraw only what they need and prefer cashless payments more often.

Thus, our mission is to stimulate cashless growth through accessible cash.

– What is next for Finbox? Are you planning to expand beyond Armenia?

– We believe there is still a lot to accomplish in Armenia over the next three years, so our main focus remains here. At the same time, we have created a model that can work in any country. 

We are currently conducting research and negotiating with investors who are interested in our model. It is very possible that in the future, we will expand beyond Armenia.

– If we set aside numbers and business, what principles guide you as a leader?

– In today’s business environment, you cannot be a good leader without continuous self-development. I follow a simple principle: to be slightly better every day than I was yesterday. This motivates the team and sets an example, especially for the younger generation, as the world is constantly changing and offers daily opportunities to learn. I am very happy to live and work in my country and believe that only through our work can we make it stronger.

[[gallery3]]
I also highly value a team with “burning eyes” – motivated people. One of the hardest challenges for a leader is finding such individuals. If a person has the desire, results are inevitable. If you surround yourself with such people, success will come.

Today, competition in the market is high, and building a team requires more than financial motivation. I believe we have achieved this at Finbox. Our team consists of highly professional, motivated individuals specializing in cash flow management and efficiency. I am confident we will achieve the goals we set.

The most important of Finbox's corporate values is time. If we can save even a little bit of time for people through our work, that will be our greatest achievement.

Arpi Jilavyan

Photos: Emin Aristakesyan ]]> Thu, 02 Apr 2026 14:18:00 +0400 https://banks.am/en/news//30505 https://banks.am/en/news//30505 Banks.am’s interview with Davit Gasparyan, Chief Client Relationship Manager, Wilco Wealth management company.

David Gasparyan is a finance professional with international experience in wealth management, client advisory, and strategic partnership development.

At Wilco, David strengthens client relationships and leads international initiatives. He specializes in asset structuring and advisory for UHNWI and MFO clients across Europe, Switzerland, the UAE, Armenia, and the U.S. His work includes building strategic partnerships with private banks, legal advisors, and fintech platforms, as well as driving market expansion through localized solutions. 

David holds degrees from the Higher School of Finance at Plekhanov Russian University of Economics and the University of Delaware (U.S.).

Prior to Wilco, he supported HNWI clients at international financial institutions including Renaissance Capital and Alfa Capital (Wealth Management).

- Wilco Wealth Management Company is a partner of the Fast-Forward conference, which is taking place on April 6. Can this be seen as evidence that Wilco prioritizes open discussions about business leadership in Armenia?

- Indeed. We believe that developing business leadership in Armenia requires open dialogue and the exchange of expertise.

We adhere to international best practices, adapting them to the local context. By supporting platforms like Fast-Forward and participating in similar discussions, we are working to create a business environment where leadership is built on transparency and accountability.

- Another theme of the conference is succession planning in the Armenian business. Would you say this topic is directly related to Wilco's activities?

- It is actually one of our key areas of focus. Although Wealth Management is often viewed narrowly as merely capital management, it’s actually about working with a family’s past, present, and future. We compare our role to that of a "family doctor" for finances and assets. Our approach is preventive, aimed at mitigating risks before they arise and building a foundation for a healthy financial future.

For Armenian businesses, succession planning is an important topic. We are at a historic turning point: the generation of entrepreneurs who built the country’s largest companies is beginning to consider passing the torch. It is important to understand that business succession is not only about the legal transfer of shares. It's about establishing a sustainable structure that allows a founder's life's work to endure beyond their lifetime and continue benefiting Armenia. To us, succession means transferring assets, preserving family values and traditions, and structuring the business for the transition to the next generation.

We work with families and family offices, helping them manage finances and other assets, such as businesses or real estate. We consider global trends while maintaining an in-depth understanding of Armenian cultural nuances and business practices. Our goal is to help different generations find common ground and work together to develop the family business, ensuring its resilience for years to come.

- How important is wealth management for Armenia, and what growth prospects do you see?

- Armenia has a stable and developed financial system. Over the last 30 years, the country has experienced no bank defaults, and its banking assets exceed its GDP—a characteristic shared by only about 50 countries worldwide. Against the backdrop of the recent rapid growth in brokerage services, the demand for high-quality wealth management has become the next logical step in the market's evolution.
 
This process is inextricably linked to the generational shift. Worldwide, the culture of managing family wealth has been established over decades, and in some cases, centuries, forming a solid foundation for legacy transfer. Today, a new generation of heirs with a global perspective is entering the picture in Armenia, and wealth management is becoming an essential tool for institutionalizing the transfer of capital.

[[linked-news30498]]
Another powerful growth driver, in my view, is our solutions for the Armenian diaspora. We are developing a robust infrastructure that allows Armenians worldwide to integrate their assets into the secure jurisdiction of their historical homeland. Armenia is becoming a safe haven for them—a place where wealth management services align with global industry standards while remaining deeply connected to our national roots.

- Wilco underwent a rebranding in 2025. Should we expect this year to be a milestone for client base growth and the expansion of your service portfolio?

- Although the company has a long-standing presence in the market, we have undergone a large-scale transformation over the last few years. Today, Wilco is entering a qualitatively new phase of its development.

We are not only helping clients grow their capital but also expanding our suite of services—introducing solutions that were previously available primarily in major international markets. For us, Wealth Management is about more than just investments. We also provide support with capital structuring, tax and legal matters, and other critical aspects of asset management.

Through our partner network across various countries, we can address a wide range of needs: from facilitating real estate transactions to more personal requests, such as selecting international medical clinics. Ultimately, we act as a single partner, helping a family manage their assets and protect their interests holistically. ]]> Wed, 01 Apr 2026 14:13:00 +0400 https://banks.am/en/news//30495 https://banks.am/en/news//30495 In February, Team Holding announced the launch of the second tranche of its U.S. dollar-denominated registered coupon bonds.

As with the first tranche, the offering was carried out in partnership with the investment firm Freedom Broker Armenia.

In an interview with Banks.am, Taron Oganesyan, Director of Private Wealth Management at Freedom Broker Armenia, spoke about the new bond issuance, shared his perspective on current investment opportunities in Armenia, and highlighted the critical role of transparency and trust in the development of the financial market.

- Team Holding recently announced the launch of the second tranche of its USD-denominated bond offering, with the first tranche having closed ahead of schedule. How would you assess this outcome? Does it primarily reflect investor confidence in the company, or growing interest in bonds within Armenia?

- For Freedom Broker Armenia, this marked our first experience in underwriting, and we approached the selection of our partner with great care. Our decision to collaborate with Team Holding was driven by the trust and interest the company has earned in Armenia.

[[gallery1]]
I often emphasize that Armenia represents a highly attractive investment market, as the country has its own stock exchange. The development of this market is essential, and as a company, we have assumed – and continue to assume – responsibility for contributing to its growth.

We place particular importance on transparency in our investment processes. For instance, in the case of Team Holding, specific covenants were introduced to protect investors against a potential increase in the company’s debt burden. Such mechanisms are more commonly used in international practice – and this is precisely the standard we aim to bring to the Armenian market.

Our strategy extends beyond operating within Armenia; we are equally focused on expanding our reach. We take all necessary measures to safeguard the interests of both our clients and investors. In financial markets, trust is difficult to build and easy to lose. That is why maintaining transparency and protecting the interests of all parties remain fundamental principles of our work.

- What are the key benefits for investors who choose Team Holding bonds? What type of investor is this investment primarily designed for?

- The second tranche of Team Holding’s bonds is broadly accessible to all clients. In other words, it is not limited to a specific target group, with the minimum investment set at just $100 – the face value of a single bond.

In the first tranche, the coupon rate was 9% per annum, while the second tranche offers a yield of 8.75%. We are observing strong demand from investors, as there are relatively few companies in the market that combine this level of reliability with such a yield.

[[gallery2]]
The new funding round is closing at a steady pace, which is a very positive outcome – particularly given that the offering is not focused on large institutional investors, but rather on making investment opportunities accessible to a broad audience. 

Expanding participation is a key priority for us, especially among individuals with little or no prior investment experience. This represents a strong entry point, particularly as the product combines a conservative investment profile with reliable returns in U.S. dollars. 

In terms of participation, 281 investors took part in Team Holding’s first tranche, fully subscribing to the issuance, which totaled approximately $9 million (around 1.4 billion AMD). The investor base was notably diverse, ranging from individuals who purchased a single $100 bond to those who invested several million dollars. 

- Based on your observations, how is the investment culture evolving in Armenia? Is the mindset shifting away from keeping money “under the mattress” or in a bank?

- Global economic developments consistently demonstrate that an investor’s most reliable principle is diversification – the allocation of capital across different asset classes. From a personal standpoint, I would never concentrate all my capital in a single financial instrument.

When selecting Team Holding as a partner, one of the key considerations for us was that it is not just a standalone company, but a diversified group of businesses. Across economic cycles, individual sectors may face temporary downturns, but others can perform more strongly, helping to balance overall performance and support the group as a whole.

For investors who are just beginning their journey, finding a similar opportunity is typically quite challenging. In this case, however, by investing in a single instrument, they effectively gain exposure to multiple sectors simultaneously. Today, Team Holding unites more than 10 companies operating across over 7 economic sectors and providing services in 4 countries. This makes the investment both well-balanced and particularly attractive.

- Traditionally, the bond market has been dominated by financial institutions. What changes with the entry of non-financial companies, such as Team Holding, and what impact does this have on the development of the corporate debt market in Armenia?

- The stock market and the securities market are among the key drivers of the economy. Why? The reason is that they provide companies with several ways to raise funds for growth. A business can obtain a bank loan, go public by offering shares, or raise funds through bond issuance.

All of these mechanisms serve one purpose: enabling business growth. Companies use the capital to expand, create new jobs, which, in turn, leads to higher incomes.

[[gallery3]]
Bonds represent a particularly interesting investment instrument. Unlike bank loans, which require regular monthly repayments and may involve restrictive terms, bonds offer more flexible repayment schedule. For example, in the case of Team Holding, interest payments are made on a quarterly basis, while the principal is repaid at maturity – in this case, after four years. This structure allows companies to allocate resources more efficiently and pursue steady, long-term growth. 

In developed markets, such as those in Europe and the United States, these instruments have long played a central role in stimulating economic development. For Armenia, however, it is particularly important to develop its own financial products and support local businesses.

I am confident that bond issuances carried out in partnership with reliable companies will not only provide investors with a secure investment option, but also facilitate capital formation for businesses. Indirectly, this contributes to the sustainable development of Armenia’s economy.

- What role does Freedom Broker Armenia play in the placement of such instruments? Can we say that such projects are fostering a new investment culture and increasing market transparency?

- As a broker operating both on the Armenian Stock Exchange and in international markets, we provide clients with access to a wide range of investment opportunities. This includes not only securities issued by Team Holding, but also instruments offered by our global partners. 

Our core objective is to identify each client’s investment goals and risk profile, and to select suitable instruments based on their time horizon, return expectations, and risk tolerance. Every investor faces certain risks; what matters is that these risks are properly assessed, clearly communicated, and managed as effectively as possible.

We work closely with clients to align their goals with realistic return scenarios, helping them avoid unpleasant outcomes. Our team consists of over 200 professionals, including specialized units such as the institutional business department, which focuses on underwriting and works with companies seeking to access capital markets. 

[[gallery4]]
In this sense, we operate at the “intersection.” We engage both with investors looking to allocate capital and with companies seeking financing. This positioning gives us a comprehensive view of the market, allowing us to better understand investor demand, issuer needs, and overall market dynamics. 

- We’ve discussed the expansion of investment opportunities, but to what extent does the current level of financial literacy in Armenia align with the current situation? What steps are needed to encourage more people to invest wisely?

- To be honest, when looking at the overall picture people need training and support to manage their finances properly.

This is reflected in financial behavior, including spending habits, levels of indebtedness, and overall money management practices. In other countries, such as the United States, it is common practice for individuals to regularly direct a portion of their income toward investments, often through diversified instruments like index funds. Over time, such investments can ensure a comfortable financial situation by the time they reach retirement age.

We strive to foster this understanding among people and promote financial literacy. Many questions revolve around which currency to save and how best to structure personal savings. To address this, we have developed the Freedom Academy platform, which offers a wide range of educational resources, from free introductory content on YouTube to more structured courses. Anyone can gain valuable information and practical skills.

In addition, we help clients make financial decisions by providing them with support and guidance tailored to their goals and strategy. From the outset, it is essential to establish clear coordinates so as to avoid veering off course later.

- Today, technology permeates every aspect of business, which, while offering many benefits, also carries significant risks. How has the digital revolution impacted the investment sector, and how can these risks be managed?

- I believe there’s no point in resisting progress – we need to embrace it. From an investment perspective, we profit from these trends. Many public companies benefit directly from digitalization, whether in manufacturing chips, microchips, or other products. This allows investors to participate and make profit. While digitalization does introduce certain risks, the advantages it offers are invaluable.

Today, clients can access their accounts and buy or sell securities directly from their phones. To ensure security, we implement two-factor authentication and place a strong emphasis on cybersecurity across all our systems. 

[[gallery5]]
Freedom Finance Armenia is part of the Freedom Holding, which is audited by Deloitte, and we are also subject to audits by the U.S. Securities and Exchange Commission (SEC), one of the strictest securities regulators in the world. These audits examine not only our financial operations but also our overall risk management practices. In some respects, our security standards even surpass those of banks. Under international brokerage regulations, clients cannot withdraw funds to anyone else’s account – for example, I cannot withdraw funds to my spouse’s account. These rules are governed by international legislation on cash withdrawals.

- The Second Investment and Financial Forum of Armenia was scheduled for March 2026 in Yerevan, but was canceled due to the escalating situation in the Middle East. When is it expected to take place, and which international participants are anticipated?

- Yes, the forum has indeed been rescheduled, and we are currently finalizing the new dates, with September 2026 as the target.

This was a carefully considered decision. We are closely monitoring the situation in the region, and under the current circumstances, our top priority is the safety of participants and speakers, while maintaining the international standard and quality we initially envisioned for the event. 

All previously announced speakers remain committed to joining us, and we are actively coordinating with them to finalize the next steps. We will announce the official date shortly. I am confident that, when it takes place, the forum will be even more substantive and impactful, both in terms of its agenda and the lineup of participants.

Yana Shakhramanyan

Photo: Emin Aristakesyan ]]> Tue, 31 Mar 2026 22:30:00 +0400 https://banks.am/en/news//30307 https://banks.am/en/news//30307 Mane Martirosyan, Executive Director of “Nairi Insurance”, gave an interview to the prestigious French magazine Fusions & Acquisitions.

- Could you present the origins and objectives of the strategic relationship between Nairi Insurance and AXA Health International? What competitive advantages does this alliance bring to the Armenian market? 

- The strategic collaboration we have established represents a major milestone for Nairi Insurance. Thanks to this relationship we are working with one of the world’s leading insurance companies.

We are considering this from both a long-term and a short-term perspective.

In the short term, together with AXA Health International, we have developed and are localizing an international health insurance package, thus making high-quality international healthcare services accessible for our citizens. By securing reinsurance for this health package, Nairi is able to promote, distribute, and service its own international plan to our citizens, who can receive care within AXA Health International’s global medical network of 2.1 million healthcare providers and access a wide range of medical services, including preventive screenings, outpatient services, specialized treatment, and more.

This will be a benchmark for a new quality of life and healthcare for the citizens of Armenia.

From a long-term perspective, we plan to further strengthen and expand this strategic cooperation. This collaboration with AXA Health International is of major importance not only for our company, but also for the country and its economy. We are convinced that in future years there is an opportunity for it to serve as a key driver for the development of the Armenian insurance sector. 

- How has Nairi Insurance established and maintained its leadership position in Armenia’s insurance market? What are your main differentiating factors? 

- Founded in 1996, Nairi Insurance is approaching its thirtieth anniversary and is the oldest insurance company operating in the Armenian market. Over the years, our most valuable asset has been the experience we have progressively built. 

We view insurance as a field that relies equally on experience and data analysis. It is the effective combination of these two dimensions that allows us to create security, assess risks and anticipate challenges, whether major or more modest in nature. This is why experience is one of our core values. At the same time, this experience goes hand in hand with a strong culture of innovation. We closely monitor global developments and adapt to them rapidly by localizing international best practices. This applies not only to our products and offerings, but also to our service standards, operational processes and client communication methods. In this context, we actively but selectively integrate modern tools, including artificial intelligence. Despite nearly three decades of operation, we continue to experiment and innovate. While we are the oldest insurance company in Armenia, we consistently strive to remain at the forefront of digitalization and innovation. Another key differentiator lies in our international relationships. We place great importance on them, not only to develop internationally oriented products, but also to learn from global industry leaders and adopt best practices. Competitiveness, in our view, is not confined to the national level. It must be understood in an international context. We are ambitious and, above all, a learning organization. Continuous learning, whether in skills, processes or ways of thinking, is one of our guiding principles.

Our international partnerships and experience-sharing benefit not only our company, but the entire sector. In a small country like Armenia, the growth of one company inevitably contributes to the development of the market, the sector and, ultimately, the national economy.

In short, Nairi Insurance is both the oldest insurer in the market and a company in constant evolution, one of our most defining characteristics. Over the past thirty years, we have never interrupted our trajectory of continuous development.

- Could you explain the specific features of the Armenian regulatory framework regarding employer-sponsored insurance? How do you navigate this legal environment?

- As of January 1, 2026, Armenia will introduce a universal and mandatory health insurance system. This is a major reform with significant social impact for the country.

We firmly believe that an effective system can only be implemented through close cooperation between the state and the private sector. In this model, the state fulfills its social role by providing citizens with basic insurance packages, while private insurers complement this framework by offering additional coverage and services.

We are also convinced that a well-functioning system will strengthen public trust in both the insurance and healthcare sectors, fostering the emergence of a genuine insurance culture. Mandatory insurance plays a structuring role. It drives sector development and gradually builds the habit and culture of being insured.

- What are your plans for expansion with French partners, and how do you envision strengthening bilateral cooperation? 

- Armenian-French ties are rooted in history. We are proud to be able to play a significant role in strengthening these ties, and through long-term collaboration with AXA Health International, we have jointly developed a healthcare package that will best meet the health preservation and treatment needs of Armenian citizens – both in Armenia and internationally.

- What new insurance products are you currently developing, and how do they respond to emerging market needs in Armenia? 

- Each year, we localize and launch at least three new insurance packages. This year is no exception, with the introduction of several new offerings, including Cyber Insurance. 

Cybersecurity is now one of the world’s major challenges, affecting both individuals and businesses. Cybercrime causes billions of dollars in losses globally. This is why we have localized a cyber insurance product that covers the most common cyber risks for both individuals and legal entities.

We have also integrated several innovations into our health insurance packages. In collaboration with Mayo Clinic Healthcare London, one of the world’s most renowned medical institutions, we offer a preventive health screening program, the Executive Medical Check-Up. This program provides access to advanced diagnostic protocols tailored to age and gender within a medical institution with more than 160 years of expertise. It includes a comprehensive range of screenings covering cardiac, pulmonary, hormonal, genetic, oncological and other health areas. 

At the same time, our team is actively working on the development of several next-generation and innovative insurance products.

- What is your vision for the evolution of Armenia’s insurance sector over the next five years? 

- When speaking with international partners, I often emphasize that Armenia is a small country with a limited market, which may initially appear less attractive to large insurance and reinsurance groups. However, behind these modest figures lies a defining characteristic that makes our market unique. It is growing rapidly. And the smaller the market, the greater its growth potential. 

Although the Armenian insurance sector has a history of roughly thirty years, Nairi Insurance has already reached a high level of structural and product maturity and retains significant growth potential, including from a financial performance perspective. 
In this context, it is important to note that we are the first, and to date the only, insurance company in Armenia to have obtained a credit rating from Moody’s, B1 with a stable outlook. This rating reflects our financial strength and the momentum of our development.

- What investment opportunities do you see in Armenia’s insurance sector for international investors? 

- While Armenia may be unfamiliar to some on a map, what truly matters to investors is the development trajectory of the sector in which they invest. 

Armenia’s insurance sector is undergoing a major transformation, moving from a traditional model toward a more digitalized and insurtech-oriented ecosystem. In this transition, international insurance groups can play a significant role by supporting the development of online insurance products, modernizing services and introducing innovative solutions.

- How does AXA’s international expertise enrich your service offering and your approach to the local market? 

- Our relationship with AXA Health International has already come a long way, and an even longer road lies ahead – something we are truly excited about.

This collaboration is not just another contract; it marks a new path of development, bringing the transformation of our processes in line with international standards, elevating customer service, and introducing a new level of responsibility across everything we do in our daily operations.

- What role does Nairi Insurance play in the development of Armenia’s economic ecosystem and in attracting foreign investment? 

- For several consecutive years, Nairi Insurance has ranked among Armenia’s largest taxpayers. This reflects our financial strength and represents a tangible contribution to the country’s economic development. 

As a major taxpayer, we help strengthen economic stability and enhance Armenia’s attractiveness to foreign investors. More broadly, these advances, combined with our international partnerships, create additional value and open new perspectives not only for Nairi Insurance and its clients, but also for the entire sector and the country as a whole. 

In a small country like Armenia, the growth of one company naturally stimulates the growth of others. Ultimately, the entire sector benefits and, in the long run, so does the national economy. 

Our activities are guided by two core principles: creating additional value for our clients and contributing to the country’s economic dynamism, in order to support collective well-being. ]]> Wed, 18 Feb 2026 12:34:00 +0400 https://banks.am/en/news//30129 https://banks.am/en/news//30129 Summarizing the year 2025, Artak Arakelyan, CEO of Armeconombank, reflects on the bank’s key achievements and priorities, including newly introduced products, digital innovations, environmental, social, and corporate governance (ESG) principles, and more.

- Mr. Arakelyan, toward the end of the year it is customary to pause and reflect on the year gone by. Looking back at 2025, what key achievements and priorities would you highlight? Has the bank succeeded in achieving its goals and addressing the challenges it faced?

- Periodic retrospective analysis of completed work is important. It helps identify achievements and possible shortcomings, draw conclusions, and outline necessary steps in both the short and long term. Summarizing the year, I should note that it was indeed intense and eventful: significant developments, the launch of new banking products with digital modernization as a priority, active cooperation with international partners, optimization and modernization of the branch network, professional training programs for employees, various initiatives and events, and more.

With a strong focus on delivering high-quality customer service, the bank introduced new deposit and loan products. Clearing services were expanded to make transactions more rational, secure, transparent, and predictable.

In 2025, Armeconombank achieved significant growth across key indicators and substantially expanded cooperation with international partner institutions, attracting over USD 150m – twice as much as the funds raised in the previous year. These resources will be directed toward financing SMEs, female and young entrepreneurs, agriculture, and green projects.

- You mentioned SME lending. It is no secret that one of the key objectives of SME financing is to support sectoral development and enhance SME competitiveness. Banks, responding to existing challenges, continuously introduce new financial instruments to promote sector growth and improve the effectiveness of SME lending. From this perspective, what will the planned introduction of leasing bring to Armeconombank?

- We are currently preparing for an active phase of leasing operations with the aim of unlocking the full potential of SMEs. SMEs are the backbone of the economy, yet they often have limited financial capabilities. Leasing is one of the key instruments that addresses this systemic challenge of financing accessibility for SMEs.

This is why we view leasing not as a standard financial product, but as an important component of the bank’s SME financing strategy. We believe that our SME strategy will be more comprehensive if we can also offer this instrument to entrepreneurs for business development.

In today’s rapidly evolving environment, reliance on outdated technologies poses a serious risk. Leasing projects will help SMEs avoid this risk and stimulate technological modernization by introducing modern production equipment, IT infrastructure, and more.

- Digital transformation is widely regarded as a necessity in the banking sector. What new solutions does Armeconombank offer its customers?

- Improving digital systems and services is an ongoing, everyday effort for us. In a competitive market, Armeconombank continues to expand its customer base by offering simpler and more modern digital solutions for accessing banking products.

This year, the “Savings Account” product was launched in the AEB Mobile application. This flexible personal finance management tool was designed to strengthen customers’ financial stability and security.

In addition to existing online identification, we recently became the first in the banking market to launch imID-based identification within AEB Mobile. This solution simplifies and accelerates the identification process and expands customers’ access to digital products. Importantly, it will also be used in the near future to carry out various banking transactions in a more secure and predictable environment.

Through the AEB Mobile app and the AEB Online system, the Bank has enabled the purchase of AMD- and USD-denominated bonds issued by Armeconombank.

[[gallery1]]
In this context, it is important to note that Armeconombank has joined the ArcaQR system, allowing users to access the Bank’s mobile app, scan a QR code, and make payments directly from their bank accounts. In the near future, we will also complete the implementation of IdramQR, which will also enable account-based payments via mobile applications.

Another new solution is the ArcaPay service, a simple, fast, and secure system for instant transfers between customers using phone numbers. Very soon, our customers will also be able to withdraw cash from ATMs without a card, using a one-time code. And this is not all.

Functional improvements have been implemented across the Bank’s digital platforms and systems, increasing the efficiency and speed of AEB Mobile and AEB Online. In general, alongside service provision, we place great importance on customer consultation, making digital transformation accessible to a broader audience.

- Attention to sustainable development issues is growing worldwide and has a significant impact on the financial landscape. What approach does Armeconombank take in this area as a key player in the country’s banking sector and economy?

- Being responsible for long-term strategic development of the bank, we view our commitment to environmental, social, and corporate governance (ESG) issues not only as corporate responsibility, but also as a key business development priority. Since 2016, Armeconombank has consistently implemented an Environmental and Social Management System (ESMS), which is updated and improved annually.

In line with its ESG vision, Armeconombank joined efforts to reduce carbon emissions in Armenia within the framework of the Partnership for Carbon Accounting Financials (PCAF).

The bank was actively involved in the working group developing the Central Bank’s ESG and climate risk assessment tool, the Risk Radar.

The bank’s 2025–2027 strategy includes “Green Lending” and “Lending to Women” strategies, which envisage significant growth in the coming years.

In 2024, Armeconombank became the first bank in Armenia to develop a 2025–2027 Action Plan jointly with IPC consulting under the Asian Development Bank’s Technical Assistance program. The Green Strategy outlined in the roadmap includes embedding sustainability, climate responsibility, and inclusiveness into the bank’s operations, as well as implementing a Green Taxonomy based on international ICMA and LMA principles.

For us, ESG principles are no longer just about compliance as they are reshaping the financial sector now. That is why we plan to take concrete steps in the near future to promote and institutionalize ESG approaches across Armeconombank’s operational geography, which will undoubtedly lead to tangible changes.

- In the banking sector, evaluations from credit rating agencies and international institutions are generally regarded as highly significant. What made 2025 special for Armeconombank in this regard?

- We are proud to note that in 2025, Moody’s Investors Service international credit rating agency affirmed Armeconombank’s long-term B1 deposit ratings in both local and foreign currency, with a stable outlook, and updated the credit opinion on the bank.

Within the framework of the Asian Development Bank’s 11th Annual Trade Finance Awards, Armeconombank received another “Leading Partner Bank in Armenia 2025” award. This marks the sixth time the bank has received this recognition since 2015.

The list could go on, but I would like to add that our most important achievement has always been the trust and loyalty of our customers. This inspires us to continuously improve the quality of services that Armeconombank has been providing for the past 34 years.

Summing up the year, I am proud to say that through our collective effort and dedication, we have achieved notable accomplishments. We have further strengthened our position as a key player in the country’s economy and banking system, expanded our services, and steadily advanced toward our strategic goals. I am confident that we will continue to achieve meaningful successes and contribute to building a more sustainable future.

Let me also extend my congratulations on the upcoming New Year and Christmas holidays. May 2026 bring peace, prosperity, and significant achievements to Armenia and the Armenian people. ]]> Fri, 26 Dec 2025 17:23:00 +0400 https://banks.am/en/news//30084 https://banks.am/en/news//30084 Interview with Shushan Harutyunyan, founder of the communications company AxelMondrian, for Banks.am

– If we compare how Armenia’s business environment (specifically large businesses) perceives the importance of PR and strategic communications today with, say, ten years ago, what picture do we see?

– I will try to single out three factors.

First, there are clear changes. I am glad that communications professionals are now involved in boards of directors at many companies. In addition, PR is now consulted before decisions of public significance are made, rather than afterwards, when a scandal erupts and crisis communication becomes necessary. This is an objective answer, presented to some extent from the perspective of professional self-interest.

The reality, however, is that the communications environment was already a systematised chaos ten years ago, and it remains so today. Awareness of the sector’s importance, or its increased popularity, has not produced any substantive impact.

The substantive change is that in recent years, large-scale lying or what might be called a “demarche of deception” has become precedential. This undermines the power of speech and public consensus. This is a direct and existential question for the survival of our profession. We, who were meant to create compelling and convincing narratives based on facts, find ourselves facing a professional crisis when, for example, we learn that a request for information has received a false response.

The third and most significant difference is that even large businesses have shifted to so-called “flexibility” and short-term planning. Large business has begun to play by the rules of small and medium-sized enterprises, replacing strategic communications with direct advertising. In the short term, this increases competitiveness. In the long term, large business falls outside the field of social engineering. It merely exploits opportunities and reacts to circumstances, rather than shaping an environment that ensures the continuity of its own business. In other words, large business extracts value from opportunities until markets collapse. When they do collapse, the problem is no longer its own, but that of the sector, the public, and the state. After all, who would want, for example, the banking, pension, or construction markets to face a major crisis? No one. Therefore, the burden of this short-sightedness is, in the literal sense of the word, a public burden.

The problems of small business belong to itself; those of large business belong to all of us. And this has a direct impact on the communications environment and on the precedents it creates.

– In this context, are there certain behavioural patterns (both positive and negative) that are characteristic of our businesses?

– I have already alluded to the dangerous ones; let me focus on the positive. All business precedents that involve moving from a single line of activity towards the creation of sectoral ecosystems are positive manifestations. It is important to understand that an “ecosystem” is not a trend, but a necessity for staying in the game by responding to the needs of the modern individual.

From a bank to a digital wallet, from telecoms to content creators, from a service centre to a shop-café — all of these are positive developments.

At present, markets are overloaded with offerings. In every category, there is an endless number of so-called problem-solving business models. No one needs those “damn problem-solvers” in the old format anymore. There is no room for pure salesmanship either; what is needed are thinkers. We need to think ahead: how we can genuinely improve people’s quality of life; how to create products and solutions that are not merely a redistribution of added value.
And how, within our professional field, we can truly speak to and understand people, rather than turning social media into a medieval marketplace, where everyone is engaged in petty trading at the level of “come this way”, “how much is it?”.

– I am asking this question also from a “narrowly professional” perspective. What can be done to make businesses more open to the media and more willing to engage with us? In the past, half-jokingly and half-seriously, we used to say that businesspeople avoided the media in order not to attract the attention of the tax authorities and other bodies. Today, such a “risk” certainly no longer exists, yet businesses largely remain closed to the media. I believe this is, above all, a cultural issue.

– I agree, this is a cultural issue. To some extent, it is also a manifestation of a lack of media literacy. We often tell our partners that what is presented on your own communication platforms — your business website, your Facebook pages — is only your version of the story. For your story to gain “legitimacy”, third-party platforms or so-called third-party endorsements are necessary, and this is where the power of the media comes into play. Not to mention how important media publications are from the perspective of search engines. This is the practical side of the issue.

On a substantive level, the problem is that, to this day, many businesses are not ready for open and transparent engagement with the media. They view the media merely as platforms for publishing press releases. For such a simplistic function, cooperation with the media comes at a very high cost in terms of marketing return on investment.

Let me also “throw a stone” at the media field by noting that businesses are often constrained by the media for a simple reason as well: to this day, many outlets cover businesses only in problematic contexts — legal issues, regulatory problems, shareholder-related matters, or issues of quality and service — while almost never covering other aspects of their activities. In other words, no one examines the media’s commitment to covering cases that are useful and important for the public. Yet this is where a fundamental balance is missing. For example, in cases of social responsibility or interesting, precedent-setting projects, when a business approaches a media outlet to invite coverage, the advertising department is immediately brought in. “Good news” is paid for; “bad news” is free. This is what businesses know about the media, and unquestionably, an effective dialogue is needed — one from which everyone will benefit, and therefore the public as well.

– Another issue is the lack of independent and competent experts. For example, when we prepare an article about the banking or telecommunications sector, it is almost impossible to find someone willing to express an opinion. We constantly remain “in between” the actual market players and the regulators. Is this also a problem for you, and what solutions do you see?

– Today, I do not know a single sector leader in Armenia who does not consider professional capacity-building and the lack of qualified specialists to be a problem. On the one hand, there is a shortage of narrowly specialised expertise across all sectors, compounded by the small-market factor. On the other hand, the field is crowded with dangerous know-it-alls or generalists who feel able to comment on everything — from capital markets to the psychology of relationships. As an employer, I can say that this is a painful issue.

– Please present examples of successful cooperation from Armenia’s private and public sectors that you consider particularly noteworthy.

– What I am about to say may sound pathetical, but at AxelMondrian we believe in our cases and are emotionally connected to each and every one of them. The logic is simple: if you are presenting a strong case, you are the first to believe in it yourself; you live it as if it were under your skin. If it is a bad case, why take it on at all? I like to say to our partners: give me that trust and conviction — I will find the method to convey it to the public.

If I were to single something out, I would have to speak not as a professional, but as an Armenian. I consider particularly important all those projects of ours that create Armenian-language content, rooted in Armenian reality, yet competitive and contemporary by international standards.

For example, recently, for the Hayastan All-Armenian Fund, which has initiated the reconstruction of the Spandaryan Canal in Syunik, we developed the “Homeland and Eternity” campaign, which also consists of three short films. In the campaign, we spoke about the vitality of the homeland through a new-generation model, conducting systematic research into aesthetics and every single detail. The gusans’ song “Akh im hayrenikis jure” was reinterpreted in a new way by Yellow Heart — Lili — one of the new-generation artists, while the texts were read by actors Narine Grigoryan, Artashes Mkhitaryan and Babken Chobanyan, all of whom are popular among young audiences. I will not even mention how difficult it was, for example, to take a 60-member film crew up into the mountains in freezing weather in UAZ vehicles, to manage lambs, or to film both in water and on land. But no one complained, and I hope that through the frame we managed to convey that pure love — the white and the blue — that is the homeland: that which is worth fighting for, preserving and keeping alive. Judging by the tens of millions of views and people’s reactions, I hope — and believe — that we managed to pass on that love, and that the fundraising will indeed succeed, helping Spandaryan and Syunik.

Another example is the campaign developed for “Chinar”, a restaurant of Armenian cuisine, entitled “Redefining Armenian Cuisine”. In popular imagery, a restaurant serving Armenian cuisine is often portrayed as loud, everyday and associated with simplistic food. We disagree with this positioning, and “Chinar” not only presents exceptional Armenian dishes in a new interpretation, but our campaign was also a visual provocation — combining imagery, characters and what they were tasting: for example, eating panrkhash with onions while wearing an evening gown, or cracking walnuts in a restaurant while dressed in a suit. The songs were specially selected from folk heritage — “Margeri orore”, “Yerevanum bagh em arel”, “Yars kertsa sibekhi”, “The Song of Shatakh’s Sand” — all intended to ignite imagination and to allow people to see and feel the richness and nobility of Armenian cuisine and song.

– No one likes to talk about failures, but perhaps you could break the tradition. Can you present cases (without naming clients) where it seemed that cooperation would succeed, yet the opposite happened?

– We have had two cases in which we initiated the unilateral termination of a contract. Two out of a hundred. In both cases, the reason was disrespectful behaviour towards a company employee or towards professional work itself.
When crude remarks of the “whoever pays the piper calls the tune” variety are voiced, in such situations it is necessary to end the meeting on the spot and ask some of Armenia’s well-known and much-admired business figures to leave the office. Apparently, any issue can be discussed — except bargaining over respect and dignity.

– Around one third of your clients are not based in Armenia — they come from EU countries, the MENA region and the CIS. I understand that the world has become global, but I have always believed that in communications, if not mandatory, it is at least desirable to be in the “same space” as the client, in order to understand and take into account various nuances. How do you address the component of local experience?

– “Local experience”, in essence, means command of the language and an understanding of local customs, because culture, in the broad sense — or at least as Émile Durkheim formulates it — is the expression of local habits. Let us contrast Durkheim with Marc Augé’s concept of the “non-place”, which, in a single word, is the passport of the global world. A non-place is a chain coffeeshops, a hotel, an airport terminal — where, even without knowing the language or being there for the first time, you are nonetheless guaranteed an identical experience; you know how to use the space and how to navigate it. This is roughly what protests were about in the 2000s, under slogans such as “against globalisation”, which later quietly faded away.

[[gallery1]]
What I want to state here is that, unfortunately or fortunately, modern business is a “non-place”. The subject of business — people like me, who implement projects in different countries — speaks a single business language: Western education, Oxford’s reputation management frameworks, the same metrics for assessing business effectiveness, and so on. And the object of business — people, consumers — has lost its cultural specificity. Culture has remained in places that exist in a social vacuum, without internet access.

Thus, “local particularities” have died as a category, and public opinion and market research are, in a phenomenal way, beginning to produce identical findings about consumerism in different countries. Of course, no one has abolished the role of social capital and personal connections in global business. But that is a completely different side of the question.

– Since you also work in other markets, I assume you have noticed the main differences between the behaviour of our businesses and “theirs”.

– Armenians, and Armenian business, are carriers of an "verbal culture". You may recall the sign on a minibus that reads “Zeytun–Station”, yet people still open the door and ask the driver, “Master, are you going to the Station?” In Armenia, businesses prefer face-to-face meetings, enjoy endless conversations, do not read written files, and consider it important that what is written is also presented verbally. This is the fundamental difference. Incidentally, the same applies to Middle Eastern countries. And, of course, the most destructive manifestation of Armenian oral culture is managing business processes through voice messages, conveying figures and circumstances in that way. Whereas many issues would be resolved if people simply opened a computer and clearly formulated the problem in a single email. A large part of the work would already be done.

– AI is certainly the most frequently mentioned topic of the year. On the one hand, there is an opinion that creative industries like yours and ours are not yet under serious threat, as machines can process vast amounts of “raw material” and propose solutions, but cannot truly create. There is also another view: if a company does not need to solve highly complex or crisis-related communications issues, it can comfortably rely on AI-generated solutions and avoid engaging specialists. What is your view?

– If AI is developing according to the scenario described by Geoffrey Hinton, who won the Nobel Prize in machine learning last year, then we should enjoy life now — because this may be the end (smiles — ed.).

For now, generative AI helps replace many mechanical functions in our field as well. There is no need to “spit against the wind”: editing, data checks and many functions can be easily integrated — for a competent professional, it is a convenient tool. For a fool and those around him, it is a real headache, because from a creative standpoint, AI is still engaged in plagiarism, harvesting ideas, texts and content. As a result, every file you receive has to be double-checked, so that you do not inadvertently become a publisher of plagiarism, with all the legal consequences that entails. At AxelMondrian, we already have a policy on the use of AI and its limitations, and it is public.

Incidentally, we have already had a case where we were approached for crisis communications precisely because of a problem caused by AI-driven plagiarism. An importing company in Armenia had outsourced the management of the social media pages of a well-known brand it represents to a group of freelancers. The latter published well-crafted texts generated by AI, as many do. This continued until one day the brand’s competitor sued the brand itself for unfair competition and plagiarism.

On the eve of this, I had been invited to give a public lecture, and we discussed this topic at length. I tried to convey to students that AI is not your enemy — there is no need to fear it. Your enemy is mediocrity.

– Should communication shape taste and set precedents, or should it solve concrete problems, such as sales or market growth? And is it possible to combine the two?

– David Perell wrote a brilliant essay, The Microwave Economy, in which he argues that people’s lives have improved because, in five minutes, you can heat up and enjoy even the most complex restaurant dish, without spending much money or time. And that is true. Today, all resources and energy are concentrated on making the world “cheaper” rather than more “functional”, or more “unique” rather than more “meaningful”.

Under the banner of progress, art, poetry and rhythm are treated as archaisms. Beauty is considered irrational, not measurable. Businesses want to speak in numbers. “It makes no difference to me whether you show dog excrement on screen or something else — what matters is that there are sales,” one well-known businessman once told me while formulating his marketing problem. I considered that he was entitled to his desired outcome, but that it was our task, in solving the problem as he defined it, to ensure that “excrement” did not end up being presented as a campaign. It is our professional duty to think about the consequences of a frame or a story, to dignify people, to inspire and to create meaning.

[[gallery2]]
Business will never say: let’s do something aesthetic, enjoy ourselves, and end our activity there. Short-sighted businesses want sales; strategically minded businesses want to create viable ideas, stories and ideals to ensure business continuity. At AxelMondrian, we try to be patient and to walk the road together with those businesses that are playing not to score a single goal, but to win the championship again and again.

– As the year is coming to an end, I cannot avoid the traditional question: how are you “closing the year”? What do you consider the main achievements of 2025, and what plans are outlined for 2026?

– We almost always say: “this year was the hardest”. Then the next year comes along, and at the end of it we say again that that year was the hardest. The greatest achievement of 2025 was that we survived (laughs — ed.). We implemented 21 complex projects in one year. We need rest — and for 2026, health. We have three pro bono projects planned for 2026. I pray to the Lord for strength and perseverance to bring them to life.

Ara Tadevosyan talked to Shushan Harutyunyan ]]> Tue, 16 Dec 2025 23:00:00 +0400 https://banks.am/en/news//30075 https://banks.am/en/news//30075 The Pullman Living and Residences Yerevan complex is being built at Norki Ayginer 180 in Yerevan. It combines high-end residential comfort and international-standard hotel services in the same area as well as an exceptional track record of attracting investments. Scheduled for completion by the end of 2027, the complex is being built in partnership with Accor, one of the world’s leading hospitality groups, and the Armenian company Technotun.

Banks.am spoke with Tigran Mnatsakanyan, Director of Technotun, to learn about the project’s prospects, its impact on the real estate market, and investor expectations.

- Mr. Mnatsakanyan, could you introduce Accor’s Pullman brand?

- Accor is one of the world’s 10 largest hospitality groups, with a headquarters in Paris. Its portfolio includes about 5,600 hotels, 10,000 restaurants and cafes in more than 110 countries. The group boasts one of the most diverse hospitality ecosystems, a broad portfolio of hospitality projects, featuring 51 hotel brands. Pullman is the company’s premium brand, which we are bringing to Armenia through our cooperation with Accor. Today, Pullman is represented in 49 countries.

The concept we are introducing in Armenia under the Pullman brand is relatively new. It is a “living and residence” project, part of which is a 5-star hotel and the other part is a residential complex. The entire residency is maintained and serviced by Pullman.

- What led to the partnership with Accor and the decision to implement the Pullman Living and Residences project in Yerevan? What was the main motivation behind this decision?   

- When we began designing the building, our initial intention was to include high-end recreation areas: swimming pools, a gym, a kids’ club and other amenities typically found in a five-star hotel. One of our consultants recommended that we consider branding the building and aligning it with international standards to ensure that a complex of this scale offers high-quality service.

After discussions with numerous brands, we realized that the most important and decisive factor for us was that the brand served the entire complex. Therefore, we ultimately chose Accor, one of the world’s largest hospitality groups, whose approach aligned with our founder’s vision of providing all residents and guests with equal, premium service.

[[gallery1]]
In some areas, our own requirements and standards were even higher and stricter than those of the brand, as we were committed to creating a truly unique complex. The memorandum of understanding with the company was signed on July 2 of last year, signaling the start of the cooperation. Today, Pullman Living and Residences Yerevan complex is being built entirely in accordance with Accor’s standards and under their supervision, setting a new culture. This is an important experience not only for our company, but also for Armenia’s construction sector, in bringing in new international standards, knowledge, and high requirements.

- According to Alexis Delaroff, Accor’s Chief Operating Officer for New East Europe, the company is introducing something entirely new to Armenia, and “we are one of the leaders in this field.” Could you explain what makes this project so unique?

- The project is so unique because it introduces a new lifestyle. It is designed for people who value their time, enjoy life and want access to a full range of amenities right where they live. Pullman Living and Residences Yerevan will offer an exceptional variety of outdoor and indoor amenities meeting international premium standards.

[[gallery2]]
There will be outdoor and indoor amenities. Outdoor facilities will include an infinity pool, a kid’s pool, basketball, football and volleyball fields, a tennis court, jogging and bike lanes, open playgrounds, walking and relaxation areas, designated spaces for pets. Indoor facilities will include a 500-square-meter state-of-the-art fitness center, a spa spanning over 1,000 square meters with a heated pool, Kid’s Club, Co-working space, a conference hall and meeting rooms, a restaurant and a lounge bar, a beauty salon, a supermarket, and a pharmacy.

Residents will enjoy the following main services: concierge, valet, as well as security and video surveillance. In addition, they will have access to Pullman’s premium À La Carte services such as dry cleaning and laundry, in-residence housekeeping, room service, “While You Are Away” service, for those residents who are away. Thus, residents can enjoy all these services without leaving their home.

Services provided in the hotel section of the building will also be available to primary residents. I think there is currently no other project in Yerevan that combines such a large land area and such comprehensive and multifunctional solutions.

- According to preliminary estimates, the project’s investment budget exceeds $100 million. How is this investment structured?

- The total investment package amounts to $100 million, primarily comprised of the company’s founders’ own funds, bank loans, and the unfreezing of advance payments received from buyers.

Pullman’s role is to support the implementation of the concept in accordance with the company’s high standards, and it will later take on the responsibility of servicing the complex.

- How attractive is Armenia for large-scale investments today? What advantages and risks do you consider when implementing such projects?

- This is a valid point, the sector has experienced developments that, in my opinion, were largely driven by force-majeure sentiments, and there have been significant changes due to the impact of external factors. Nevertheless, over the last decade, Yerevan’s real estate market has continued to demonstrate steady growth. While expert opinions sometimes vary, the current data for 2025 do not indicate significant price declines. According to official data published by the Cadastre Committee of the Republic of Armenia, prices have maintained a positive and relatively stable trend, reflecting continued high demand and investment interest.

There is clearly a need for legislative reforms in the sector to provide greater clarity. While this could create a stir, nevertheless, I would like to point out that in addition to our project, some of the world’s largest players in the hospitality industry are launching several new projects. This bears witness to the fact that despite some uncertainties the market is growing, and the level of confidence in Armenia is rising. Attracting such partners, in turn, creates a more predictable environment for investors.

I hope that in the near future we will see an even more stable environment, which will directly stimulate investment growth. It’s safe to say that the presence of a brand like Pullman in Armenia boosts confidence in the country and conveys a sense of stability and reliability to investors.

- It would be interesting to hear your expert opinion on the Armenian real estate market. We often hear that the construction boom does not meet the demand, while your project seems to demonstrate the opposite. What is actually happening in the market?

- Following the adoption of the legislative package on income tax refunds and the subsequent revitalization of Armenia’s real estate market, a large number of construction permits have been issued, and construction volumes have significantly increased. As a result, the market has become more saturated, offering buyers a wide range of options. This demand has also influenced the growth of tourism and the significant flow of visitors to Armenia in recent years.

Market sentiment certainly has a great influence, but in the case of some individual projects, demand develops differently. Our customers, in addition to Armenia, also come from various European countries, the Russian Federation, and the United States. The majority are ethnic Armenians, which further reinforces the need to maintain the uniqueness of the project. 

- And finally, what do you personally expect from this project as the head of the investment initiative?

- I believe this project will help attract new investments to Armenia. The main unique features of the project are: the strength of the Pullman brand and compliance with international standards, the quality of construction and materials, as well as innovative approaches and the use of advanced technologies.

New jobs will be created after the opening. Recruited and locally trained specialists will join our team, which will also boost the development of the hospitality sector. From a tourism perspective, the “living” concept, designed for medium- and long-term stays, will allow people who have relocated to Armenia for work to find their temporary home here, which in turn will further contribute to an improved investment climate.

[[gallery3]]
Our commitment to an ecologically clean environment was driven by the fact that out of 20,000 square meters, 16,000 will be reserved as green and common areas, where our adopted “no cars” policy will also apply. Furthermore, the complex will have “A” class energy efficiency to create a cleaner environment.

Attaching great importance to corporate social responsibility, we have committed to renovating the road leading to our street, which will be illuminated, asphalted and will have newly built sidewalks. And the above-ground infrastructure cables and pipes have been replaced with underground ones. With our own funds, we have already replaced the water lines of G. Hovsepyan and A. Armenakyan streets. About a year ago, the Yerevan Municipality launched the reconstruction project of former “Norki Ayginer” at the lower part of our property line. About 7 hectares of forest were planted, and we were actively involved in it contributing equipment and manpower.

Tigran Mnatsakanyan was interviewed by Arpi Jilavyan ]]> Mon, 15 Dec 2025 12:47:00 +0400 https://banks.am/en/news//30074 https://banks.am/en/news//30074 Banks.am’s interview with Ofelia Ghazaryan, Head of the MaxMonitor Media Monitoring and Analysis System at Mediamax Media Company

- The year is coming to an end, and assessments are already underway – both for the sector as a whole and for individual companies. What kind of year was it for the media monitoring and analysis market?

– It would be an exaggeration to say that 2025 differed a lot from previous years.

However, several trends are worth noting. In recent years, many companies have begun to entrust the media monitoring function to global free or low-cost platforms. It seemed that they would provide the same quality and depth of service as specialized organizations, but time has demonstrated that this is not the case.

Yes, it is possible to work that way, but if a company is dealing with complex, evolving challenges, it must rely on specialized services. Among other reasons, no global platform will modify its system to meet your needs. We, on the contrary, regularly receive requests from clients and implement many of those changes within a very short timeframe.

While media monitoring used to be a priority mainly for large companies, we are now seeing growing interest among medium-sized and even small businesses. 

There are cases when a company we approach initially believes it does not need monitoring tools and can track the news landscape on its own by checking websites and Facebook pages. Yet after just one or two weeks of using our platform, they become convinced of its value. 

MaxMonitor not only saves time and human resources but also significantly reduces the risk of missing important information. Moreover, when we speak about optimizing human resources, we do not imply that the employee who previously handled this work manually should lose their job. On the contrary: with MaxMonitor, that same employee can redirect the time saved toward analyzing the information.

[[gallery1]]
Another trend we observe is that, whereas many companies previously wanted us to monitor “everything” for them – meaning every possible news source – today more clients prefer selective monitoring and rely on our expertise to filter sources effectively.

It is no secret that of the more than 150 news websites operating in Armenia, only about 25-30 percent consistently produce original content. As a result, some clients request monitoring limited strictly to those outlets. MaxMonitor is highly adaptable in this regard: for one client, we may track the same keywords across 120 websites; for another, 50; and for yet another, just 10.

From the outset, we designed the system to serve both small businesses and large corporations, ensuring it can be tailored precisely to their needs.

– How do you assess the fact that one of the market participants will stop providing services as of January 1, 2026?

– In a way, this development is natural. It is difficult to remain in the market and continue growing if, for years, you follow a pricing policy that helps attract new clients but does not generate enough resources required for continuous product and service development. Our approach is different. Of course, we aim to bring in new customers, but that is never a goal in itself. When you attract a client, you take on the responsibility of delivering high-quality, uninterrupted service – something that is simply not feasible at an unsustainably low price.

That said, we believe competition is healthy for the market, as each company has the opportunity to demonstrate its advantages.

– And what are MaxMonitor’s advantages?

– Perhaps, our most significant advantage is that MaxMonitor operates within the Mediamax media company, whose core mission is the creation of high-quality content. Having worked within a journalistic environment and understanding the industry from the inside, we offer clients an experience and level of expertise that other market participants simply do not possess.

In recent years it has become nearly impossible to introduce a purely software-based solution that is truly exclusive. However, the ability to integrate these solutions with the diverse needs of various clients and to provide supplementary tools requires knowledge of the media landscape, which we have.

Additionally, we are the only company in Armenia that is a member of FIBEP, the international association of media monitoring organizations. This allows us to receive industry updates first-hand and to maintain partnerships in multiple countries. For example, together with our partner in Austria, we offer a comparative analysis service for Facebook pages – the only service of its kind on the Armenian market.

[[gallery2]]
Thanks to these and other strengths, MaxMonitor has been and continues to be the leader in the Armenian market, which, of course, does not mean we can stop thinking about further development. 

- What development plans does MaxMonitor have for 2026?

- We introduce updates to the system on a continuous basis. As I mentioned earlier, some enhancements come directly from client suggestions. We also have plans to integrate various AI components into the platform, and we will work to implement these ideas in 2026.

At the moment, we are offering special terms for companies interested in becoming MaxMonitor subscribers. All clients who sign a contract with us by December 30, 2025, will enjoy a 20 percent discount on our services for 2026. Those interested can contact us through this link. ]]> Mon, 15 Dec 2025 00:11:00 +0400 https://banks.am/en/news//30038 https://banks.am/en/news//30038 In an interview with Banks.am, Ani Makaryan, Chief Executive Officerof the Central Depository of Armenia, spoke about the institution’s decision to become a client of Euroclear Bank, the new opportunities for integrating with international markets, as well as reviewed the developments of 2025 and outlined strategic priorities for the coming year.

- What does it mean for the Central Depository of Armenia to become a client of Euroclear Bank? How does this benefit the Armenian capital market?

- Euroclear Bank is an international central securities depository that safeguards assets worth more than 40 trillion euros and counts major institutions such as JP Morgan among its shareholders. Only a few such depositories exist worldwide, and they form the backbone of global financial market infrastructure. Becoming its client is a mark of distinction, a proof that the Armenian market and its infrastructure, in this case the Depository, meet high standards. It provides global visibility and recognition.

It is particularly noteworthy that Euroclear Bank’s access is currently closed for our region. In our case, the presence of a European shareholder – Warsaw Stock Exchange (GPW) – played a decisive role.

[[gallery1]]
Even before joining Euroclear, we already had access to global markets through our long-standing relationship with Clearstream (an international central securities depository, ed.), where we have been a client for about ten years. Through Clearstream, we have provided Armenian investors with access to international markets and facilitated the entry of foreign investors into Armenia. Becoming a client of Euroclear Bank expands these opportunities even further, offering broader access to international securities transactions and custody services.

Our cooperation with Euroclear Bank will progress through several stages. The first significant milestone was obtaining client status, which reaffirmed that our regulatory framework, risk-mitigation policies, technological capabilities, and operational processes align with high international standards. The next step is opening mutual accounts. In the near future, we plan to open an account with Euroclear Bank, giving Armenian investors expanded access to global markets. This partnership will also enhance the overall quality of our services by incorporating the expertise and standards of a major international institution.

- How did the connection process unfold? What were the main stages and technical requirements you had to meet?

- The entire process took about two years. Euroclear Bank conducted a comprehensive assessment of all aspects of the Central Depository’s operations: the group’s structure, shareholder composition, risk management framework, including policies for combating and managing AML/CFT (anti–money laundering and combating financing of terrorism) risks, sanctions compliance, overall compliance procedures, and technological capabilities, including our information security policy.

[[gallery2]]
The technological integration has not yet been completed, but this stage is not expected to pose major challenges, as both institutions are already connected to global communication systems. From a technical standpoint, our infrastructure fully supports cooperation with partners that operate under very high international standards.

- What new opportunities for integration with European and international markets does this step open up for both investors and Armenian financial institutions?

- Euroclear Bank serves more than 90 markets worldwide. Its group includes several national central securities depositories – Euroclear Finland, Euroclear Netherlands, Euroclear Sweden, Euroclear Belgium, as well as CREST (the UK and Ireland securities settlement system, ed.). Euroclear Bank serves as the issuing central depository for securities from these jurisdictions, which means these instruments will now become accessible to Armenian investors.

- Can we expect this step to encourage foreign investors to enter the Armenian market?  If so, how?

- Opening an account with Euroclear Bank may become the next stage of our cooperation, though it is still too early to talk about it. At the same time, such a partnership would give local issuers, including the state and the Central Bank of Armenia, the opportunity to attract international investors through this channel. A similar opportunity already exists via Clearstream, but Clearstream currently serves only the government bond market. We are making great efforts to enable access to local corporate securities as well.

This cooperation will signal to international investors that our market operates in line with global standards, allowing them to invest in Armenia with the same level of confidence they have in developed markets. 

- Please describe the main functions that the Central Depository performs in the Armenian financial market today.

- The Central Depository serves as the centralized registrar and custodian of securities in Armenia. It conducts the final settlement of stock exchange transactions, handles over-the-counter (OTC) operations with local securities, and administers corporate actions such as coupon payments, share distributions, and dividend payments.

[[gallery3]]
Another key responsibility is servicing the Mandatory Funded Pension System. The Depository acts as the registrar of participants in the mandatory funded pension system, maintains citizens’ funded pension accounts, and administers their units.

The Central Depository is also responsible for the custody of pension fund assets. For instance, pension fund managers such as C-Quadrat Ampega and AMUNDI-ACBA ASSET MANAGEMENT can use Euroclear Bank’s services through us to invest in foreign securities.

- We regularly hear about the Central Depository’s goal of becoming a regional hub. How do you assess Armenia’s position in the region?

- Several important factors support our position. First, the feedback we receive from clients who also work with other regional depositories highlights the high quality and efficiency of our services. A major part of this success is the strong specialization and expertise of our team. These elements form a solid foundation for building a competitive advantage within the region.

In 2025, we implemented several initiatives that position us as a regional hub. We connected to the Abu Dhabi Capital Market and its Tabadul platform, which enables us to integrate with all markets that will join that platform. In parallel, we introduced the mechanism of remote membership in the Armenian market.

Another significant competitive advantage is the presence of the Warsaw Stock Exchange among our shareholders. Having such an international partner is crucial for establishing broader relationships and connections with global markets. 

[[gallery4]]
Another important source of momentum is the interest from international investors who wish to access other regional markets through us, for example, the market of Uzbekistan. To meet this demand, we must strengthen not only our links with global markets and international central securities depositories, but also our cooperation with regional depositories as part of the broader market infrastructure.

In essence, we cannot limit ourselves to servicing only the Armenian market. One of our strategic goals is to build bridges between markets across different regions, ultimately positioning ourselves as a regional international depository.

- What kind of cutting-edge technologies or digital solutions is the Depository introducing?

- From the perspective of both retail clients and institutional partners, I would highlight the solutions offered through the CDA Online application. One of our main goals is to provide the most comprehensive set of services via this platform, thereby enhancing the experience for retail clients as well.

I would also like to emphasize that our core software system, which handles securities transactions, is developed in Estonia. This system has been successfully used by Nasdaq and fully complies with international standards.

Overall, our digital solutions are designed to provide foreign partners with a seamless and reliable way to connect with us, which also strengthens our competitive position.

Additionally, we plan to implement securities payments directly through the Depository.

- How would you assess the year 2025 for the Central Depository? What were the key achievements?

- 2025 was a successful year for the Depository, marked by significant progress in international integration and the enhancement of service quality. In addition to the achievements already mentioned, I would like to highlight our cooperation with the The Central Securities Depository of Poland, which focused on two key areas: capital markets integration and the provision of LEI (Legal Entity Identifier) codes for identifying legal entities.

Through this partnership, we obtained agent status for providing LEI codes, allowing us to continue serving local legal entities.

- What impact did these programs have on market development and investor confidence?

- As I mentioned, our role is to provide a high-quality infrastructure with maximum connectivity and opportunities. However, infrastructure alone is not enough to develop the local capital market. From a development perspective, it is essential to continuously modernize capital market regulations, enhance the capabilities and services of intermediaries such as banks and investment companies, and offer incentive programs for both investors and issuers. The development of the capital market requires the involvement of all stakeholders.

- What will be the Central Depository’s main strategic directions for development in 2026?

- We will continue to follow the path of institutional development that defines our role as a market infrastructure. This includes implementing global best practices, such as the creation of a central agent, which will help remove barriers and make the Armenian market more attractive to investors.

[[gallery5]]
Another key strategic direction is the expansion of our activities in the crypto-asset sector. Overall, our focus will remain on measures that enhance the accessibility of the Armenian capital market for foreign investors.

- What is needed to boost foreign investor activity, both at the state and infrastructure levels?

- It is essential to provide foreign investors with access to the full range of the market, including corporate securities. Achieving this will require a number of legislative adjustments.

On the domestic front, it may be necessary to review existing laws to ensure that the potential of the real sector of our economy is reflected in the securities it issues. In practice, attracting foreign investors requires having a “product” that genuinely interests them.

[[gallery6]]
Beyond local securities, it is also important to consider the Central Depository’s role as an intermediary to facilitate access to other markets, particularly those that lack a fully developed infrastructure.

- And finally, Ms. Makaryan, what motivates you to continue implementing such systematic and complex projects, while maintaining a work/life balance?

- Actually, I’m not sure if that balance is maintained or not, perhaps my family would have a better answer (laughs, ed.). But what truly inspires me is the work itself, especially when it involves significant projects. I think my previous experience helps me in this regard. I worked at the Central Bank for many years and was involved in quite important reforms. It is very meaningful to me to implement large-scale projects that have a lasting impact and deliver long-term benefits to our country.

Arpi Jilavyan

Photos by Emin Aristakesyan ]]> Mon, 08 Dec 2025 08:07:00 +0400 https://banks.am/en/news//29863 https://banks.am/en/news//29863 Banks.am's interview with Hayk Gyuzalyan, founder of Highgate Consultancy, Board member of the World Association for Public Opinion Research (WAPOR).

Please tell us about your organization and the work you do in Europe and in Armenia.

I have worked in survey research for all my professional life, for over 25 years. I worked on large-scale international surveys of the largest global market research companies, Ipsos and Kantar/TNS, and several years set up my own research company in Brussels and London. 

Our company does international survey research from our offices in Brussels. Several years ago, we set up a branch in Armenia to handle fieldwork for Armenian and international clients. We provide high quality social and marketing research, bringing the best international standards to the Armenian market. 

How has the demand for professional polling and market research evolved among Armenian businesses over the past years?

Twenty or thirty years ago, market research was limited to the activities of large international firms. The main focus was on the surveys for traditional market research activities: tobacco and alcohol companies, FMCG companies.With the development of Armenian economy and growth of national businesses, came the demand for suitable research responding to the needs of the Armenian market. 

Now, we have a steadily developing market research sector which responds to the businesses’ needs to grow their customer base, to develop services demanded by the customers, to test the advertising content, to measure the brand awareness and market segmentation.  

What are the unique challenges of conducting accurate polling in Armenia's relatively small market, and how does this affect the reliability of data for business decision-making?

One of the biggest challenges is the increasing cost of running surveys. The current tools used in Armenia are mostly telephone and face-to-face surveys. They obviously rely on the human interviewers to conduct interviews, and the rising labour costs make the surveys quite costly. Customers are increasingly less willing to engage in interviews, which drive the costs even higher. 

In more developed markets, market research responded to these challenges using several methods. One is outsourcing the labour costs to the third world countries, by hiring the telephone interviewers in countries with lower labour costs. It has had limited impact, because customers are not very keen on engaging in conversations with interviewers outside of their home country. 

Another is by developing automated telephone research. Customers are still not very willing to engage in interviews with machines, so the response rates remain extremely low. AI may have an impact, as current AI tools can quite convincingly imitate human interviewers, but it is still not very common to use AI for survey research. 

Generally, there has been a shift to lower cost online research. When I started working in Ipsos, one of the largest survey research companies, in 2005, online survey research was still considered a niche product. In the UK, it only amounted to about 10% of all market research spend. With the increasing online penetration and developments in research methodology, it now takes at least 50%-60% of the market research revenue. 

What are the key differences in how Armenian businesses use polling data compared to more mature markets in the region or globally?

In many sectors, market research still has a limited impact on the management decision-making. Executives do not rely on the objective measurement of customers’ preferences and opinions, often making management decisions based on a “hunch” or a “feeling,” of what could be optimal strategy for developing a business or a service. In more established sectors, market research is a refined tool which helps tailor the management decisions to grow the business, to increase the brand loyalty, to target different customer segments. 

How can polling help Armenian banks better understand customer preferences?

I can see the potential in polling both for the Armenian financial sector as a whole and for individual banks. 

Surveys are especially helpful in highly competitive sectors and can help better target different customer segments and understand how to tailor the services to target different customer groups. It can help tap into the segments which are not currently covered by specific banking services. 

Importantly, there are financial services which are severely under-utilised, mostly due to customers not being informed of them and banks not engaging in exploring the potential demand. For example, Armenian retail banking customers are not used to investing their savings, investment accounts are rare and money is kept in the more traditional ways. Polling can help understand whether under-utilisation of services beyond retail banking and traditional savings accounts comes from lack of information, lack of trust towards the financial institutions, or any other reason, and can help build the strategy and services that target those gaps. 

What role does polling play in helping banks assess credit risk and understand borrowing behaviors in Armenia, where informal economy activities remain significant?

This sort of questions can be answered by a consolidated survey which would benefit all banks. Understanding consumer behaviours, especially in relation to customer financial behaviour like saving, investing and spending, are essential in buliding a financial system which is beneficial both for consumers and banks. The Central Bank of Armenia sometimes commissions such surveys. 

They need to be organised based on rigorous internationally accepted methodological standards. There is no point in getting into technical details of methodology, but the survey design can be easily improved with several tools which are commonly used in government surveys in Britain and other countries. 

What role does customer satisfaction polling play in helping Armenian banks improve retention in an increasingly competitive market?

I think a few Armenian banks extend a considerable amount of effort to measure the customer satisfaction. I see mystery shopping done regularly and it helps understand the gaps in the customer services quality. The main problem is that each individual bank can only cover their own customers. By definition, it misses those who have already left its services because they were not satisfied, and other non-customers. Customer satisfaction surveys need to be organised among the general population, so the findings can reflect the views of not only existing customers. 

What are the most effective polling methodologies for the Armenian market - phone surveys, online panels, face-to-face interviews - and why?

I think online surveys are under-utilised in Armenia in general. Face to face and telephone surveys have their use – as in the above-mentioned consolidated surveys, which help understand the consumer financial behaviour and underlying driving factors for it. However, they are costly as they rely on the labour of interviewers, and have other certain limitations. Online surveys can be very cost-effective and quick. Nowadays, with over 80% online penetration in Armenia, online surveys can be a good alternative to the traditional survey methods. 

They have several significant benefits. 

-    They can provide data very quickly. With online panels, the turnaround can be as short as 3-4 days from formulating the questions and getting the computer tables with the sex, age, regional cross breaks. 

-    Questionnaires can be very short. You can ask just 3-4 questions, which is difficult to do with traditional modes of data collection. 

-    You have a lot of variety in the way the information is presented to the respondent. You can ask about different design options, include animation or measure reactions to a video. 

It is challenging to organise a good quality online survey. It is easy to ask a few questions on Facebook, but the problem is getting a sample of responses which is representative of the Armenian population. Although many people are on Facebook, but it is not a representative cross-section of Armenia society. A great deal of effort goes into ensuring that the online survey provides views which correctly reflect the views of everyone in the Armenian society. 

How is digital transformation changing the polling industry in Armenia as the new tools or approaches are becoming available to businesses? For instance, banks may use their mobile apps for collecting data about their customers.

I think, Armenian banks have done amazingly well with using the benefits of digital transformation. This is truly one of the most developed services in Armenia. Banks use their mobile apps to get regular feedback from their customers, and hopefully use this information to improve the existing services and offer new ones. However, as I already noted, the obvious restriction is that you can only get the feedback from your own customers. You will miss the views of people who have left the bank because they were not satisfied with the services, or those who never became the bank’s customers for one reason or another. ]]> Sun, 02 Nov 2025 23:17:00 +0400 https://banks.am/en/news//29822 https://banks.am/en/news//29822 To strengthen trade, economic and investment cooperation with Armenia, the Dubai Chamber of Commerce organized a business forum in Yerevan on October 22-23 under the title “Business Relations with Armenia”. 

Banks.am spoke with Salem Al Shamsi, Executive VP of International Relations at Dubai Chambers, who arrived in Armenia to participate in the forum.

- Dubai is often described as a bridge between East and West. How does Dubai Chambers help international businesses including those from Armenia  use Dubai as a gateway to global markets?

- I think the main topic is how Dubai Chamber of Commerce (one of the three chambers operating under the umbrella of Dubai Chambers,- author) can help Armenian businesses connect to the world. We work with our closest partners and the largest players in regional logistics, DP World and Emirates.

The UAE accounts for 41% of total exports and re-exports from the Middle East, which shows the power of UAE and Dubai’s logistical companies and the connectivity that we have with the rest of the markets. DP World itself has over 90 ports around the world. These ports play a big role in terms of helping different businesses reach different markets. Take Africa, for example. More than 20 ports in Africa are managed by DP World. So, Armenian businesses can take advantage of Dubai as a logistical hub to reach this market. As Dubai Chambers, we work closely with DP World and connect the businesses.

[[gallery1]]
When it comes to airlines, Flydubai and Emirates serve over 200 destinations worldwide, including Yerevan. This connectivity helps businesses travel around the world. This is another reason why the UAE is so strong in connecting businesses globally. As for Dubai Chambers, we represent the business community in the city. We connect international businesses with the local market as well. For example, if a businessman from Armenia wants to enter the market, we offer a concierge service that helps to connect with the local business community – free of charge. We also connect them to business partners, whether they are exploring joint ventures (JV) or seeking investors. We help them grow within Dubai, since they are registered there. Once registered, we help them expand into other markets through our 37 offices. These offices play a major role in helping us connect businesses globally.

- What specific sectors or areas do you see as having the strongest potential for cooperation between Dubai-based companies and Armenian businesses?

- This is our first interaction with the business community here in Armenia. Definitely, this will not be the last. We call this a study mission and aim to understand the dynamics of Armenia’s business community.

[[gallery2]]
We are going to take the feedback also from the delegates that we brought. We brought 15 businesses from Dubai, representing nine different sectors. We are here to understand more of what Armenia provides. And we are going to take it back home, do our homework and then maybe come back with different ideas. We see very promising sectors including retail and apparel, and the ICT sector. We have seen the increase in the focus of ICT and start-ups specifically in Armenia. So, this is very promising as it complements what we have in Dubai. We have different ideas that we shared with the different stakeholders here. How can we help the start-up community take advantage of what is provided in Dubai, like for instance of Expand North Star, which is the largest tech exhibition in the world? This is something we discussed earlier with stakeholders. As Dubai Chambers, we are keen to support them in this and help them expand from Dubai into other markets.

- Dubai is well known for its innovation-driven economy. What lessons or best practices can Armenian businesses learn from Dubai’s experience?

- We want to learn from Armenians as well. They are great businessmen and businesswomen. But how can Dubai Chambers help share the knowledge of our business community with the Armenian? I think this may be ensured by increasing the business delegations from both sides. This is very important and we would like to help. The more businesses come back and forth, the more they understand the dynamics and how Dubai has been successful in its business strategies. 

[[gallery3]]
I think the key factor is encouraging businesses to visit Dubai to understand more about how it happened. And this is something that Dubai Chambers also facilitates. 

- How does Dubai Chambers view our region, and particularly Armenia, in its broader strategy for expanding trade and investment partnerships?

- Armenia has a strategic location. It is well positioned geographically between Asia and Europe. We see this forum as an opportunity to explore how we can expand this connectivity after the event and how Dubai businesses can benefit from Armenia’s geographic location.

[[gallery4]]
The Armenian businesses are looking forward to doing business in Dubai. During the forum we’ve seen that there is eagerness from the business community here in Armenia. We view this as an opportunity for both markets to benefit. And I’m looking forward to what’s next after this event.

- Looking ahead, what are your expectations for the Armenia–Dubai business relationship in the next few years? 

- I hope I know the future. But for me, I see positiveness. As I told you from the conversation that I had with the delegates, there is a possibility of doing business in Armenia. As Dubai Chambers’ representative, I’m really keen to facilitate this. Hopefully, in the next years, we will see an increase in the number of businesses both ways – Dubai businesses in Armenia and Armenian businesses in Dubai. We’ve seen an increase of 38 percent this year alone of businesses from Armenia. Seventy-nine companies joined us only in the first six months of 2025. So, we want to push it even further. Right now we have 500 active members of Armenia in Dubai Chambers. Maybe in the five years, it reaches 5,000 – this is something I’m looking forward to.

Arpi Jilavyan ]]> Fri, 24 Oct 2025 14:35:00 +0400 https://banks.am/en/news//29748 https://banks.am/en/news//29748 In an interview with Banks.am, Hayk Yeganyan, the CEO of the Armenia Stock Exchange (AMX), spoke about capital market developments in 2025, their impact on the Armenian economy, and cooperation with neighboring countries and European markets.

- Mr. Yeganyan, it’s been a year since our last interview. How would you assess the developments in the Armenian capital market in 2025? What do you consider the year’s main achievement?

- 2025 started on a positive note with issuance volumes increasing. Bond issuers from new sectors have emerged, for example, from the retail sector, which we didn’t have before. The government’s “State Support Program for Issuance and Rating” has played a key role here, through which issuers’ expenses and interests are partially repaid. Now the European Bank for Reconstruction and Development (EBRD) is implementing a similar program to encourage retail issuers. The Armenia Stock Exchange also constantly organizes “road-shows” - a series of presentations, to increase interest in the capital market among potential issuers.

As the biggest achievement of the year, I would like to highlight the signing of a joint agreement with the Abu Dhabi Securities Exchange, which allowed us to integrate the markets into the Tabadul platform (brokers of exchanges that have joined Tabadul have the opportunity to trade with instruments available in other exchanges, - author). This year we achieved significant recognition in the United Arab Emirates. We hope that by the end of the year or early next year, investments from these areas will flow to Armenia.

[[gallery1]]
Another major achievement for the capital market recently was the fact that for the first time in Armenia, Ameriabank modernized its infrastructure and integrated the trading platforms of the Armenia Stock Exchange into its online banking. It is called “Direct Market Access (DMA)”. This is already a significant achievement. This concept has been used globally for about 25 years, but was only introduced in Armenia this year. We are moving forward in small steps.

- How would you rate AMX’s performance in recent years and the results of its strategic moves?

- Attracting Western institutional capital to the financial system of developing countries is considered a crucial task, as this capital reflects the real value of the economy, sets the price for the economy, and contributes to the country’s long-term economic development. A vivid confirmation of this is the fact that even the largest companies in non-Western countries are seeking to list on American stock exchanges to gain access to this valuable long-term capital.

It’s also important to remember that protecting healthy and reasonable interests begins, first and foremost, with protecting one’s own interests. Therefore, attracting investment is not just a short-term transactional phenomenon, but also one that creates long-term security and importance.

The beginning of the last decade was not very favorable and encouraging for the stock exchange and the depository: shareholder exit, transitional period, and attraction of a new valuable shareholder. But today, we can confirm that over the past 10 years, the team has quadrupled in size, reaching 100 employees, and our financial performance has transformed, recording dynamic growth. One of the most important facts is that the largest stock exchange in Eastern Europe has become a shareholder in the company, with over 60% of its trading volume handled by major American investment banks, and the majority by Goldman Sachs. We have begun to establish ties with the second-largest economy in the Middle East and the largest stock exchange operating in that economy.

[[gallery2]]
This year alone, two major depositories opened custody accounts with our depository (KPDW & ADX CSD). We are actually a company linking the most important capital market infrastructures of these two economies. This way we brought our economy even closer to the economies of the West and the Middle East and integrated it with them.

At the same time, starting in 2022, we deprived ourselves of short-term profitable trades by demonstratively rejecting high-risk yet lucrative opportunities, abandoning a short-term transactional mindset, as this could jeopardize the entry of the The Central Securities Depository of Poland (KDPW) into Armenia. 

- How did the Warsaw Stock Exchange decide to become a shareholder of AMX and what impact did it have?

- The Warsaw Stock Exchange has been investigating us since 2019. Their interest in Armenia was further heightened when they visited Armenia at my invitation and became familiar with the local potential. They spent three years studying our company, our performance during the COVID pandemic, the 44-day war, and the first 10 months of the Russia-Ukraine conflict. They were convinced that despite external and internal upheavals we are capable of maintaining stability, continuing development, and advancing institutional market reforms thanks to a clear strategy and a professional team.

WSE became a shareholder of the Armenia Stock Exchange in 2022, when sanctions had tightened and Armenia was considered a medium-to-high-risk country for the outside world. I am certain that without them as shareholders our correspondent accounts could have been closed and our assets would have been at risk. It is through these accounts that we conduct pension fund investments.

Our collaboration with them also resulted in the entry of the Abu Dhabi Stock Exchange, the Central Securities Depository of Kazakhstan (KCSD), and the Central Securities Depository of Kazakhstan (KCSD) into the Armenian capital market. In other words, we were able to attract international partners to our infrastructure and become a reliable partner for them. Reliability also depends on who your shareholder is.

[[gallery3]]
The most important factor in our cooperation with Warsaw is that it is long-term. The Armenia Stock Exchange is not a company focused on short-term transactions. Our mindset is not that of a short-term trader. We strive to invest in the long-term sector in developing infrastructure that will ultimately generate significant returns. It is important to us to create long-term values that will benefit future generations.

- Let’s talk about projects that have already been implemented or will be launched in the near future aimed at developing the market. What are your expectations?

- Here I would like to mention government projects aimed at developing the securities market, which are expected to attract interest also from small and medium-sized enterprises, and issue volumes will increase, at least for corporate bonds. 

At the end of the year, we plan to visit Abu Dhabi together with our investment banks and brokers to organize a “road-show” to introduce investors operating in the UAE to Armenia’s investment opportunities. We need to go and show how much money they can make in a new market. Our capital market needs international exposure, and we are trying to fill in that gap too.

We will do the same in Poland, trying to bring Polish investment services companies to Armenia.

- What is needed to develop cooperation between the Armenian capital market and neighboring countries, as well as European markets?

- To help the public understand the role of the Armenia Stock Exchange, I compare us to an airport. If your country doesn’t have an airport or border checkpoints you cannot have any tourists at all. Imagine we have an airport, but there is no air travel regulation, no law, no flights. We, as a state, a company managing the airport, need to take steps to make sure that flights are operated. In this comparison, airlines and travel agencies are investment banks and securities brokers.

We have built an infrastructure, established ties with other countries, and paved the way for cooperation with other countries. Now we need securities and investment opportunities to be created here, and these are created by investment banks and companies providing investment services. We have to try to develop the sector through joint efforts with the government. There are positive developments in this direction, but they are not enough.

[[gallery4]]
Overall, cooperation in the capital market is a confirmation of the company’s chosen path. Ten years ago, we began building bridges with developed capital markets, which was only possible thanks to cooperation. The results achieved today are the result of many years of work and a mission to build reputation and trust. Take, for example, the composition of the supervisory boards of the Depository and the Securities Exchange. They would never agree to become part of a company that could potentially harm them. The fact that they have joined us bears witness to the fact that we have earned the trust of our partners. Their presence, in turn, has become a crucial indicator for establishing international partnerships.

We also attach great importance to internal cooperation with partners with whom we can create long-term values. A prime example is our partnership with the Union of Banks of Armenia. I also commend our cooperation with government agencies: the ministries of Finance, Economy, and the Central Bank. After all, it is no wonder that cooperation in the capital market is characterized by the formula: 1+1 tends to 3.

- To what extent does the capital market actually influence Armenia’s economy today? What steps need to be taken to make it a key driver of economic growth?

- In fact, it has a very significant impact on the economy, but people are not aware of it. For example, a large volume of government debt in national currency is raised through the Armenia Stock Exchange. The entire volume of state bonds is placed through the Armenia Securities Exchange, since the state attracts borrowed funds through securities. Without the capital market, without regulation, the state would not be able to attract these funds. The capital market has a crucial impact on GDP.

[[gallery5]]
Unfortunately, the capital market does not yet have such a significant influence in the corporate sector, but that is not the only task of AMX. We are an infrastructure company, a link between investors and issuers, and this is not limited to Armenia. We are trying to provide regional investors with the opportunity to invest in international securities through us. In other words, we create infrastructure, a safe environment, adopt sanctions, and hope that with the involvement of investment banks, the real economy will be even more involved in the capital market. For this, the real sector definitely needs advisors - investment banks. Without them, an issuer cannot determine the appropriate bond price or find investors.

Thus, the sector is regulated, the supervisory authority is in place, but investment banks are currently absent from this broader chain in Armenia. Although there has been interest in recent years, new investment companies are entering the market, and human capital is flowing into Armenia, particularly from Russia, the positive impact of which is already noticeable. This, at the very least, has a positive impact on people’s financial literacy, when these companies start communicating with people, explaining and convincing them to withdraw their deposits, bring them in and invest through them.

- There is a belief that the capital market can also become a platform for startup financing. How do you see this trend developing in Armenia?

- They are called crowdfunding platforms, and this trend is also very important. Generally speaking, the Armenia Stock Exchange, which is responsible for organizing the trading of bonds, shares, and investment funds, operates the majority of the capital market in Armenia. The exchange is a regulated platform where investors and issuers operate according to clear rules. However, this should not be limited to large companies.

Crowdfunding platforms where small and newly established companies can raise capital on easier terms by issuing shares or bonds are developing in the world. We also have great potential for such initiatives. It is necessary to digitalize processes through websites and mobile apps, ensuring the connection of investors and startups.

- The legislative and regulatory environment is also crucial for the development of the capital market. What reforms are needed to create greater momentum?

- Proper regulation is a crucial requirement in the financial world. There is a saying: starting a business is like marrying the country’s regulator. If the regulator is good, they will come and invest. Fortunately, in Armenia, that role is fulfilled by the Central Bank of Armenia (CB), which is cooperative, progressive, and open to innovation. Over time, the securities market would benefit from having its own regulator, which could also become part of the CB. For now, what we have is sufficient: the law on market is in force, proposals are taken into account, heard, and cooperation is taking place.

[[gallery7]]
Current investment policy, as well as legislative and regulatory reforms, should facilitate increased activity in the Armenian capital market, which is only possible through the provision of specialized and high-quality investment services. Now is the time for investment service providers to present Armenia’s investment opportunities in a comprehensible and attractive manner.

- Public participation in the capital market remains relatively low in Armenia. What initiatives are being undertaken to increase financial literacy and build public trust?

- Trust is built through knowledge: the more literate the person is, the more in-depth analysis he or she makes, rather than making superficial, emotional decisions. We will soon be implementing the AMX Academy initiative, which will serve as a training platform. The Academy will collaborate with various institutions. We are partnering with the Warsaw Stock Exchange Foundation. They have provided us with high-quality educational materials, which we are adapting for our market. We also work with international associations and certification bodies to ensure that the graduates of our programs receive international certificates.

[[gallery8]]
Active public participation is essential for capital market development. If people lack financial literacy, they will not participate in the market. As participation increases, requirements will gradually become more stringent. We already have a minimum threshold for issuers to prevent unilateral decisions and protect shareholder interests.

- The demand for digital solutions is growing in the world. How do you keep up with global digitalization?

- Actually, have been digital for a long time. We do not have any paper documents confirming ownership rights, all this information is digital. The same applies to securities: they are also created digitally, certificates are not printed. However, there is still considerable room for innovation and further development.

- If we try to imagine the Armenian capital market in five years, what would you like to see as the main outcome and key change in the development of the country’s financial system?

- Hundreds of companies with issued shares, market capitalization of several billion dollars, as well as bonds worth tens of billions of dollars, international investors, and several very good investment banks that will help and support real-sector businesses in issuing bonds.
 
Arpi Jilavyan

Photos: Emin Aristakesyan ]]> Mon, 06 Oct 2025 22:30:00 +0400 https://banks.am/en/news//29540 https://banks.am/en/news//29540 Interview with Sargis Harutyunyan, Director of Noventiq Armenia

- Mr. Harutyunyan, could you please tell us the story of Noventiq Armenia?

- Our office in Armenia was opened in 2008. It has now been 17 years. During this time, we have grown from a local branch of an international company into a mature technology partner working with the country’s largest organizations - in banking, government, manufacturing, and retail.
At the core of our work has always been not just a “sales” approach, but engineering thinking: we never propose a solution without first understanding why the client needs it. That’s why many of our projects are not one-time implementations, but long-term partnerships.

 - Noventiq is an international company present in dozens of countries. What does being part of such a group mean to you?

- It gives us a strategic advantage. We are connected to global expertise exchange, participate in international projects, and test new technologies first-hand. At the same time, we remain fully local: all solutions are adapted to the realities of the Armenian market.

We understand how business operates here - what constraints exist, which approaches work and which don’t. That’s why in Armenia, Noventiq is not just a local office of a global company, but a center of expertise with a deep understanding of the local market.

We are not just another IT service provider. We are part of an international structure with real depth and local involvement. We speak the language of business, not only the language of technology. And we are not here temporarily - we are building a long-term story.

 - How would you define the mission of Noventiq Armenia today?

- We want IT in companies to be not an expense, but a strategic asset. This is not just rhetoric - it is a necessity. Modern business is too vulnerable without a mature infrastructure: data, processes, access, scalability - everything must be under control.

Our task is not to sell a separate product, but to build with the client an architecture that will work both now and five years from now. And at the same time, to be by their side - not only at the implementation stage but also in daily support.

[[gallery1]]
 - Which areas are most relevant for businesses in Armenia today?

- The first is information security. We see increasing maturity in this area: if earlier companies thought about it after the fact, today cybersecurity is integrated at the strategy level.

The second is cloud solutions. More and more companies are moving to hybrid or fully cloud-based models, showing strong interest in Microsoft Azure, Microsoft 365, and other solutions.

The third is technical consulting and support. Business needs not only a platform but also confidence that it is configured correctly, maintained, and scalable when necessary - especially in large organizations.

 - What approach do you take when working with clients?

- We always start with questions. We need to understand the context, expectations, infrastructure, and the maturity of the team.

Only after that do we propose solutions. We don’t provide “magic buttons” or throw around trendy terms like “AI” if they don’t add real value. We honestly tell clients when the problem should be solved not by software but by rethinking processes. And it is precisely this honesty that our partners value.

 - What are your development plans for the coming year?

- We are expanding our team and strengthening expertise in three key areas:

•    Cybersecurity - from Zero Trust architecture to vulnerability assessment and endpoint protection;
•    Cloud transformation - migration, optimization, support;
•    Integration and consulting projects, including in the banking and public sectors.

We also plan to organize educational formats: technical workshops, sessions for IT directors, and informal discussions with business owners. We want the market to better understand that technology is not complicated when you have a reliable partner by your side.

 - How do you assess the development of the IT market in Armenia?

- The potential is enormous. Businesses want to change - this is obvious. The demand for mature, systematic approaches is growing. More and more companies are moving away from the principle of “implement and forget” and are realizing that IT is a living organism that requires constant attention.

I believe that IT in Armenia is not only about exports or startups. It is also about building a mature infrastructure inside the country - so that local businesses grow not through chaos but through sustainable, well-thought-out solutions.

Noventiq is not a company of one product or one technology. We know how to speak with businesses, not only with IT departments. We are here to support, explain, and work together.

Yes, we are part of a large international company, but everything we do in Armenia is genuinely local.

 - What would you like the business community to know about Noventiq Armenia?

- That behind our solutions are not just presentations but real people with real expertise and deep involvement. That we have been here for 17 years and are not going anywhere. And that we don’t just sell products - we build partnerships.

If a business needs clear, honest, and professional technological support - we are always here. ]]> Tue, 19 Aug 2025 14:00:00 +0400 https://banks.am/en/news//29322 https://banks.am/en/news//29322 A resilient economy, strong human capital, and a vibrant private sector form the foundation of the World Bank Group’s International Finance Corporation (IFC) support to Armenia.

Ines Rocha, IFC Division Director for Europe, spoke with Banks.am about IFC’s ongoing work in Armenia, the opportunities and challenges related to sustainable economic growth, and shared forecasts.

- What is the main mission and strategic focus of IFC’s support for private sector development in Armenia? 

- In terms of the key priorities for Armenia, earlier in January 2025, the World Bank Group presented to the Board Country Partnership Framework. This is basically a strategy. The new strategy really emphasizes the need for a stronger focus on building resilience to economic shocks and also natural risks and hazards.

It focuses on three key objectives - providing more and better jobs, a stronger human capital and also a more resilient economy. As part of these efforts, we expect to invest between $500 million to $700 million in Armenia for the next strategy period in areas such as infrastructure and real sectors, including through public-private partnerships, the development of sustainable infrastructure, like green energy, water, green transport, as well as easing access to financing for small and medium-sized enterprises, including through the banks with which we cooperate in Armenia.

- What programs has IFC implemented, or is currently implementing, to support private businesses in Armenia?

-  I’ve got here some very good figures. Since Armenia became a member country, IFC has invested close to $1.3 billion in Armenia, including mobilizing other investors. We led, for example, the financing and privatization of Vorotan Hydropower Cascade, and this cascade accounts for a significant share of the country’s electricity generation.

And more recently, in December 2024, we invested $200 million with Ameriabank to support on-lending for women-owned smaller businesses, sustainable projects, and MSMEs. And this project will be very critical to support job creation in Armenia.

We have also collaborated with ACBA Bank, Converse Bank, and Evocabank to support small businesses, agribusiness, and women entrepreneurs.

And I wanted also to highlight a very interesting deal with Team Telecom Armenia. We anchored a landmark $75 million sustainability-linked bond with the company with a $13.5 million participation. And this is an important one, because not only it’s going to support the rollout of 4G+, and fiber-to-home networks, but also it will extend the coverage to an additional 300,000 mobile data customers, connect 90,000 more homes to high-speed network by 2029. And because it is a sustainability-linked bond, it is a funding tool that supports the company’s adoption of sustainability goals. 

[[gallery1]]
I must note that we had a record investment year in Armenia for IFC. Our fiscal year counts from July 2024 to June 2025. We are at about $355 million of investments. And this is compared, if I look at the previous figures, to actually no investments the year before in 2024, and in fiscal year 2023 only $15 million. So it’s a really big increase of what we have done over the last 12 months. 

- What are your forecasts for the growth of Armenia’s green and sustainable economy?

- The core message of our report is the following - in Armenia, there are a lot of opportunities for greener and faster growth, energy security and resilience, and we see two challenges.

One is dependency on imported gas - up to 63% of Armenia’s energy depends on imported gas. And obviously, gas being a fossil fuel also has an impact on health.

The second challenge that we see is exposure to natural disasters, water stress, floods, droughts, landslides. So, there is a water-stressed environment. With about $8 billion of investments in green solutions, you could make a significant contribution to a more sustainable Armenia. And the private sector can, according to us, contribute about 75% towards this effort.

So, where do we see the opportunities? The answer is - solar energy, which is a cleaner domestic source of energy, cutting away from gas dependency, and energy storage, because with solar and other solutions, you also need the storage. There are also opportunities in electrifying heating and transport in a sustainable way, where a lot of emissions come from, making critical infrastructures, such as schools and hospitals, more resilient to natural shocks and finally, strengthening agricultural resilience.  

- How can Armenia make itself more attractive for investments?

- There is a need to continue the path on key reforms to attract the private sector in  key areas like the energy sector or the financial sector. We are supporting this in collaboration with the public sector arm of the World Bank Group, which is the International Bank for Reconstruction and Development (IBRD). It is working very closely with the government of Armenia through a number of facilities that also imply reforms and technical assistance to improve certain areas. 

Armenia, by adopting a sustainable finance framework aligned with EU regulations, can really attract foreign direct investments and also scale up green financing. 

Another example is public-private partnerships, which Armenia has been using in some renewables, water, and transport. But there is also a need to increase the institutional capacity in planning and identifying projects that can be used for public-private partnerships to ensure a better project delivery.

Arpi Jilavyan ]]> Mon, 30 Jun 2025 00:10:00 +0400 https://banks.am/en/news//29300 https://banks.am/en/news//29300 Converse Bank is the first and currently the only bank in Armenia engaged in exchange trading that has joined the Tabadul regional hub through AMX, becoming a full member. During ConFEAS 2025, the Bank also participated in the very first transaction in Armenia executed through the platform.

Mr. Abdulla Salem Al Nuaimi, Group CEO of the Abu Dhabi Securities Exchange (ADX), shared insights on the Tabadul regional hub and its opportunities.

- What distinguishes the Tabadul platform from other international trading platforms, and how does it contribute to regional financial integration?

- When we launched Tabadul in July 2022, our goal was not just to connect stock exchanges – but to enable real-time, secure, and scalable access to new investment opportunities across borders.

What makes Tabadul distinct is its mutual market access model. Investors can trade securities listed on other exchanges through their local broker, without opening foreign accounts or navigating unfamiliar procedures. It’s a seamless digital infrastructure that removes traditional barriers.

The platform now links nine exchanges – six of which are live – including our newest member, the Armenia Stock Exchange. This enables ADX investors to explore emerging opportunities in Armenia’s growing capital market, while investors gain access to one of the most active and diverse exchanges in the region. The model is designed to deliver value on both sides.

In 2024 alone, Tabadul recorded a 1029% increase from the previous year. It also facilitates cross-border IPO subscriptions offers debt instruments, and carries the region’s most diverse ETF lineup, while also allowing remote market makers. All this within a unified experience designed to generate long-term benefits for every participating market.

- What are the expectations of the Abu Dhabi Securities Exchange regarding the development of the Tabadul platform and the stimulation of regional investment flows?

- Tabadul plays a strategic role in our ambition to reshape regional capital mobility. We’re focused on onboarding more exchanges, expanding the investor base, and introducing new financial instruments as part of our ongoing efforts to diversify the range of products available on Tabadul, ensuring they are tailored to meet the evolving needs of investors. 

We’re also enhancing the platform’s user experience to ensure it remains intuitive for both retail and institutional investors.

Beyond the operational benefits, Tabadul supports Abu Dhabi’s broader vision of economic diversification and financial innovation. It positions our markets as globally connected, investor-friendly, and forward-looking.

- What are the cooperation opportunities between the stock exchanges of the Tabadul platform member countries, particularly within the Eurasian region?

- Tabadul is unlocking new dimensions of collaboration between regional exchanges – particularly in the Eurasian corridor, where capital markets are evolving rapidly.

A recent example is our partnership with the Armenia Stock Exchange. Following an MOU focused on market development and technology exchange, AMX joined Tabadul, enabling the first trade between investors in Armenia and the UAE earlier this year.

This is not just about enabling transactions, it reflects a win-win model. Through Tabadul, Armenian companies gain visibility and access to broader capital, while ADX-listed firms reach new pools of investors. It’s a shared growth story that reinforces the strength of regional collaboration.
We’re seeing increasing interest from other exchanges in Central Asia and beyond, and we believe Tabadul will continue to serve as a catalyst for capital market connectivity and innovation.

- What mechanisms are currently in place or planned to facilitate investor transactions across different Eurasian stock exchanges?

- Tabadul is designed to replicate the simplicity of local trading across borders. Investors can access listed securities and financial products from other markets via licensed brokers in their home country. 

The platform ensures real-time data sharing, harmonized settlement processes, and compliance with shared KYC/AML protocols all integrated to provide a secure and efficient experience. Payments are conducted in local currencies, with currency conversion handled automatically within the system, eliminating the need for manual foreign exchange transactions. 

No new accounts are required, and investors remain fully within their domestic broker ecosystem. This level of interoperability has already enabled access between ADX and Eurasian markets, with more to follow as the network continues to expand.

- What new financial instruments and services are planned to be introduced within the Tabadul platform in the near future?

- Our development roadmap for Tabadul is shaped by evolving investor needs and the vision of a diversified, future-ready marketplace.

We have already introduced ETFs and debt instruments to the platform, and we are actively collaborating with member exchanges to expand the range of investment products available, ensuring they meet the evolving needs of both institutional and retail investors across the region.

Additionally, cross-border IPO access is already active, enabling investors to subscribe to offerings across markets through a single domestic channel. The platform also benefits from the participation of remote market makers, who play a vital role in supporting liquidity across interconnected markets, helping to ensure tighter spreads and smoother trading activity. 

In short, Tabadul is a dynamic platform built on regional diversity and designed to scale with the ambitions of the exchanges and investors it serves.

To take advantage of Converse Bank’s offer for investing in securities traded on the Tabadul platform, please contact the bank at:

investments@conversebank.am
 +374 10 511 211 (extensions 1248 or 2056)
 +374 77 718008

The bank is regulated by the Central Bank of Armenia. ]]> Tue, 24 Jun 2025 10:24:00 +0400 https://banks.am/en/news//29286 https://banks.am/en/news//29286 ArmSwissBank has once again received the “Most Active Issuing Bank” and “Best Deal of the Year” awards by the European Bank for Reconstruction and Development (EBRD).

Anzhela Barseghyan, Deputy CEO of ArmSwissBank and Director of Trade Finance and Correspondent Relationship Department, spoke about the bank’s awards received in the trade finance sector, target clients, the services it offers and personalized solutions it provides.

- Mrs. Barseghyan, ArmSwissBank has received the “Most Active Issuing Bank” and “Best Deal of the Year” awards. What do these recognitions from the EBRD signify?

- Each year, the Trade Finance Program (TFP) session is held within the framework of the Annual Meeting held by the EBRD. The main objective of the Trade Finance Program is to support and develop international trade finance across EBRD partner countries. During this event, awards are presented to EBRD partner banks that have demonstrated outstanding activity or executed transactions of particular significance during the year. This year, ArmSwissBank was the only bank in Armenia to receive these awards. Moreover, we received the “Most Active Issuing Bank of the Year” award for the seventh consecutive year, and have been recognized as the winner in the “Best Deal of the Year” nomination for the third time.

The EBRD has been the bank’s strategic partner for about 15 years, and these awards are a clear reflection of our deepening and effective cooperation in the field of trade finance. It is noteworthy that over the course of our cooperation, the trade finance limit allocated to our bank has increased nearly tenfold – now one of the largest in Armenia’s banking sector.

- Since ArmSwissBank does not engage in widespread advertising, many may not be aware of the range of services you offer. Could you tell us more about your target clientele?

- The bank’s limited use of advertising is a deliberate choice, shaped by our strategic approach. As we do not provide mass-market services, we rely on Direct Marketing principles, which have consistently proven effective. This approach enables us to design and offer tailored solutions directly to our core clientele.

The bank’s target clients are legal entities, in particular, medium and large enterprises involved in production or international operations, especially in the export direction.

We offer a full suite of corporate banking services that go beyond conventional short- or long-term business loans. The bank’s toolkit also includes flexible investment solutions that help to effectively manage temporarily idle funds and hedge against foreign exchange risks.

In the field of trade finance, we provide alternative financing mechanisms that both support sales growth and offer the agility needed to adapt to rapidly changing market conditions.

Our goal is not merely to serve as a financing institution, but to be a genuine partner that deeply understands each client’s business model, supports the development process, and helps overcome challenges.

- How does ArmSwissBank approach trade financing, especially in light of current market challenges and customer needs?

- ArmSwissBank has always placed strong emphasis on the development and implementation of trade finance instruments, closely cooperating with both foreign banks and international financial institutions. A key focus has been the design and expansion of collateral-free products, particularly aimed at supporting exporters. We took early steps in this direction back in 2008, becoming the first Armenian bank to join the FCI (Factors Chain International).

In addition, we have carried out extensive work in partnership with the Export Insurance Agency of Armenia to develop and launch joint products.

I strongly believe that our achievements in this field stem from a clear strategic vision: when addressing our clients’ financial needs, we don’t limit ourselves to traditional lending practices. Instead, we strive to identify and provide the most suitable trade finance tools that effectively mitigate transaction risks while fully addressing the client’s financial objectives.

– What are the main risks mitigated by trade finance instruments, and how does the bank manage them?

- Participants in international trade face several key risks, in particular, the risk of non-fulfillment of obligations by the counterparty, including non-payment, as well as foreign exchange risk. Therefore, when considering each transaction, we assess these risks and build trade financing solutions accordingly.

To address these risks, ArmSwissBank offers a diverse range of instruments. For instance, to mitigate buyer non-payment and country risk, we work with partner banks abroad or credit risk insurance companies. To manage foreign exchange risk, when developing a trade financing transaction, we combine it with a forward instrument to fix the exchange rate, shielding clients from potential future currency losses.

By the way, the bank also specializes in derivative instruments, which allows our customers to hedge currency risks in various situations.

Our collaboration with international financial institutions and global banks enables us to operate without restrictions in terms of currency or geographic coverage when it comes to trade finance tools. I would also highlight that recently, thanks to the use of innovative solutions, the bank’s capabilities in foreign currency transfers have expanded significantly.

- In your opinion, what is the main obstacle limiting the use of trade finance products, leading to underutilization of potential?

- In my experience, the primary barrier is the low level of awareness among customers. This is something the bank is actively working to address. We regularly organize workshops for both existing and potential corporate clients to introduce our products, present the advantages and highlight the risks they help mitigate.

In addition, ArmSwissBank actively participates in professional events hosted by international financial organizations, such as the EBRD, Asian Development Bank (ADB), and other strategic partners, sharing our rich expertise or acting as a sponsor of the event.

In particular, we’re preparing a new event focused on factoring and export financing. Interested parties can stay informed by following updates on the bank’s official website and social media platforms.

- Your bank often emphasizes green financing. How is this reflected in your trade finance activities?

- Green trade finance is a strategic priority for us. Our objective goes beyond simply financing trade – we aim to actively promote the integration of sustainability principles across various sectors. To support this goal, the bank offers preferential financing terms for transactions that align with ESG criteria. In fact, the most recent transaction that earned us an award was specifically recognized for its alignment with these principles. We firmly believe that banks play a vital role in promoting sustainable environmental and social management models.

- How do you see the development of trade finance at ArmSwissBank in the coming years, considering international trends and changing customer needs?

- Future trends in trade finance clearly indicate that demand is moving towards complex, integrated solutions. Today, we view trade finance as a platform that brings together various financial instruments, covering the entire trade cycle. This approach allows our clients to go beyond simple short-term financing or risk mitigation – it enables greater operational flexibility. In addition to traditional trade finance instruments, such as letters of credit and guarantees, the solutions we offer also include other effective supply chain finance solutions, including domestic and international factoring, pre-export financing, receivables financing. We often combine trade finance tools with leasing to effectively mitigate the risks associated with each transaction.

Of course, the described approaches become possible only when managed by a professional team that not only understand the tools at hand but also the specifics of each client’s business.

In this regard, the knowledge and years of experience of our employees remain a key source of our competitiveness. That’s why we are committed to continuing our investments in both product innovation and human capital development.

Ultimately, our vision for the future is built on a foundation of a robust partner network, an experienced team, and a commitment to continuous innovation. ]]> Thu, 19 Jun 2025 17:17:00 +0400 https://banks.am/en/news//29154 https://banks.am/en/news//29154 In 1995, when Armenia’s financial system was still in its early stages, Mellat Bank took a bold step by entering the country.

Thirty years later, the bank’s CEO, Seyed Gholamreza Mousavi, reflects on the journey and assures that overcoming the challenges was worthwhile. The bank has become a symbol of Iran’s stable financial presence in Armenia.
 
- Mr. Mousavi, first of all, we’d like to congratulate you on the 30th anniversary of Mellat Bank. How do you feel about reaching this significant milestone?

- Thirty years in Armenia is truly a significant number, one that shows we have deep roots in this country. It’s both pleasant and a source of pride that we’ve been able to play our part in the friendly relations between our countries, Iran and Armenia.

- The bank has branches in two countries in the region – Turkey and Armenia. In 1995, how was the decision made to establish a presence in a newly independent country that lacked a developed financial system?

- After the collapse of the USSR, when several countries gained independence, Iran’s policy was to establish banks or branches in these newly independent countries. Mellat was fortunate to be chosen as the representative bank. To this day, I tell both our board members and the leadership of Iran’s Mellat Bank that it was both a success and an honor for us to have our bank in Armenia - and it is the best of all.

[[gallery1]]
Yes, the financial market of the newly independent Republic of Armenia was unstable back then, but the aim of establishing a bank here was not just about profit; it was about simplifying trade relations between the two countries. From the outset, the bank was not driven by profit. Believe me, if profit had been the primary goal, Mellat would have simply opened another branch in Tehran, particularly given the challenges the bank faced in its early years in Armenia.

- What challenges are you referring to, and how did you overcome them?

- In the process of building legal and financial systems in newly independent countries, a number of issues emerged, often accompanied by economic instability. In the early years, Mellat Bank encountered difficulties related to the loans it issued, arising from legislative gaps and insufficient control mechanisms. However, the bank managed to overcome these challenges, recover losses, attract new investments, and maintain its position.

The Russian crisis of 2014 affected Armenia as well, causing fluctuations in the ruble that reached the country. The Central Bank of Armenia raised the minimum capital requirement for banks, with a deadline set for 2017. It was at that time that I assumed the role of CEO, and we needed to increase capital from 10 billion to 30 billion dram. By mid-2016, we had already reached 32 billion, and an investment from Iran’s parent bank, totaling around 50 million dollars, proved to be a successful strategy amid the strengthening of the Armenian dram.

Of course, the biggest challenge was the international sanctions. After 2018, Mellat’s foreign currency accounts were suspended. Today, despite all the challenges, it is remarkable that the bank continues to operate in Armenia with just one dram account. I believe the bank’s resilience and flexible management are now well-established facts.

- What successes would you highlight after such a challenging journey?

- One of the significant achievements of recent years was obtaining international certification in information security, and investments in this area are ongoing. In 2021, we began operating from our own premises. This is a clear indication that we have long-term plans and are committed to continuing our operations in Armenia’s financial market with a stable and solid foundation.

A key success is that more than 50% of trade between Iran and Armenia is facilitated through Mellat Bank, which was one of our strategic goals. We have also participated in one of the largest infrastructure projects under the Iran-Armenia cooperation framework: the North-South highway construction project, providing financial guarantees to companies. We are prepared to contribute to the second phase of the project and are confident that we will further strengthen the role of the Iran-Armenia financial bridge.

- What values did the bank adopt from the beginning that it continues to uphold today?

- In business, the goal is indeed profit, but we have always emphasized the importance of human relationships - within the team, with partner banks, and in our interactions with customers. From loan approvals to daily communication with employees and partners, we have consistently focused on trust and respect. The cornerstone of Iran Mellat Bank’s motto has always been the principle “the customer is always right.” Both in Iran and Armenia, we believe that the key to success in modern banking is not just innovative technologies and financial tools, but also fostering an atmosphere of trust and providing honest service.

[[gallery2]]
- How does Mellat adapt to the changing demands and needs of its customers?

- To be honest, it’s often challenging. One of our main difficulties is that, due to sanctions, we are still unable to offer banking cards. However, we make up for this gap with extra care. Our employees work longer hours and with more patience. For example, when providing loan services, we make sure that the borrower feels supported by the bank from day one. We don’t limit ourselves to simply granting loans and generating profit - especially in the case of borrowers involved in economic activities in Armenia. Our core principle is that the customer should feel the bank is by their side, not only in good times but also during difficult times.

- Today, the financial market in Armenia has matured, and competition has increased. How do you cope with the competition from partner banks?

- We are genuinely pleased with the stability of Armenia’s financial market and its economic growth, as they positively impact the financial performance of banks. Unfortunately, the sanctions imposed on Iran prevent us from implementing all of our ideas, but we are constantly improving the services we offer. We also celebrate the success of our partners, as we believe that strengthening the banking system contributes to the development of the entire country. Along this path of development, we too will be able to contribute to ensuring Armenia’s financial stability.

- You are part of a huge team; how would you describe the team you’ve built, and what principles do you follow in your leadership that make employees stay at Mellat for many years?

- The most important principle of leadership for me has always been and remains honesty and team spirit. When a leader is honest with their team, that honesty becomes mutual over time, fostering relationships based on trust. At our bank, we don’t attribute successes solely to the leader and failures to the employees; success belongs to everyone. When difficulties arise, and these are brought to my attention, I never blame anyone or say, “It’s your mistake, you fix it.” On the contrary, I first look for a solution myself. I am confident that all our employees have felt this approach. If there is one thing I want to preserve in the years ahead, it’s the human, honest, and united team spirit.

- Your experience shows that the number of customers is only increasing. You started with about 100 customers, and now you’re approaching 5,000. What plans do you have for the coming years?

- One of our key projects is the implementation of a new mobile banking system. Our main goal is for the system not only to meet modern requirements but also to enhance the quality and efficiency of our services for the benefit of our customers. Due to some challenges, the project has been delayed, but we are working hard to have the system fully operational by mid-2026. We are continually developing and making our loan portfolio more flexible, and the growth in our customer base is proof that we are succeeding.

[[gallery3]]
- How do you envision Mellat Bank in the next 10 years?

- I am hopeful and confident that the international sanctions will be lifted, enabling us to operate fully. I believe that soon we will reach the point where our foreign currency accounts will be reopened, we will have branches, and gain access to the SWIFT system. One day, we will look back at our conversation about these challenges with a smile, and I’m sure that day is not far off.

- What does Mellat Bank personally mean to you?

- Mellat Bank is like my second home, and honestly, it is very close to my first. I’ve been with the bank for 27 years, 15 of which have been in Armenia. To be honest, there are not just employees here; I’ve shared a challenging journey with them, full of both tough times and great successes. ]]> Tue, 20 May 2025 10:27:00 +0400