In an interview with the Business Magazine of the American Chamber of Commerce in Armenia ahead of the 15th anniversary of Byblos Bank Armenia, CEO Hayk Stepanyan has shared his views on responsible banking practices, the Bank's values and long-term development goals, as well as his vision for the future of the Armenian banking industry.

Mr. Stepanyan, this year Byblos Bank Armenia is celebrating its 15th anniversary. What’s the story behind the establishment of the Bank, and what was its purpose?

Byblos Bank Armenia was established as a subsidiary of the international Byblos Bank Group. The main purpose was to provide quality banking services based on the best international standards to the local economy as well as to service and support economic ties between Armenia and countries with a large diaspora and Byblos Bank Group presence. Our shareholder believes that Armenia has a good business environment and is a forward-looking country with promising prospects.

The motto "Your Bank for Life" is at the heart of the Bank's philosophy. What are the Bank's values and vision, and what challenges do you face during that journey?

We as a bank are committed to the principles of responsible and conservative banking. We always prioritize long-term value over short-term profits, and we believe that sustainable growth with prudent risk management practices is the key to long-term success. Within our team, we cultivate a high level of integrity, teamwork, performance and customer focus. Obviously, conservative banking has its limitations, especially in a competitive market such as the one in Armenia. But I am glad to say that clients and the market overall are starting to gradually appreciate and understand the value of sound banking practices, the value of stability and the financial health of the bank.

How would you describe the role of Byblos Bank Armenia in the development of the banking sector in the country?

Our share in the Armenian market is quite modest in terms of the size of the Bank, and we don’t pursue the goal of securing a large share in the market. I believe, however, that since 2008 Byblos Bank Armenia has been making significant contributions to the development of the industry by introducing new standards for customer service and product design. The international practices we brought to the market have had a positive impact on the overall banking competition and created new value for the economy. I would also like to mention the value of Byblos Bank Armenia as an employer. Right from the beginning, the Bank has been a responsible employer with a true quality culture within the team, which I believe is also an important contribution to the banking sector. We really cherish our culture and invest a lot not only in the provision of the best services to our clients but also in the development and well-being of our staff.

What is the Bank's current strategy in providing long-term banking services to the business community, which would help develop a coordinated innovative and entrepreneurial business culture in Armenia?

In general, our policy is to design banking products in a way that supports the financial health of the clients and contributes to the growth of personal wealth and the growth of companies. In this regard we are not inclined towards risky financing because not only does this have a negative impact on the bank itself, but it also poses additional risks for the client and can damage the financial health of the customer. Particularly at this stage, our strategy is the harmonization of new IT solutions with traditional conservative banking policies. We seek to improve customer experiences through mobile technologies, without compromising our low-risk appetite and compliance standards. In terms of contributing to the business environment in Armenia, we are concentrating on two directions: firstly, our investments in universities and educational projects, and secondly, the continuous work with clients to ensure the development of corporate culture, financial discipline etc.

Mr. Stepanyan, what problems is the banking system of our country facing now?

We are currently going through quite turbulent times in terms of geopolitical changes, rapid technological changes, shifting customer preferences, to name but a few. And I believe that the biggest challenge of the Armenian banking sector is to sustain risks arising from high levels of uncertainty and at the same time invest in technological development. This is very important since prudent risk management and the use of new technologies will allow us to navigate through the situation we have found ourselves in. Overall we have to admit that the Armenian economy is a small economy, highly exposed to external shocks, with not much room for extensive growth, therefore the improvement of the internal efficiency is the main source of growth. We have to be faster, more technologically advanced, more knowledgeable and rely on clear values and high ethical standards. And by external shocks I mean not only negative shocks, but also positive ones, since only said factors can allow us to sustainably absorb positive shocks and convert them into long-term trends and long-term values.

What is Byblos Bank Armenia's biggest achievement in 15 years?

Without a doubt, I have to mention two things here. First of all, our loyal clientele. We really appreciate the loyalty of our clients, the quality of our clients. We really value our relationship which was built through continuous work. The second major achievement we have is our team. We have managed to build a team with very high ethical and professional standards, each member of which shares the values of the Bank.

The bank regularly unveils new offers for SMEs, large businesses and individuals. What principles are you guided by when developing such offers?

For commercial clients, whether big corporations or small businesses, we offer products that are designed for the financial needs, business strategy and current financial standing of that particular client. As I said earlier, our approach is to support the financial health of the company rather than gain short-term profits. In commercial lending the primary factor for us is the financial standing, financial discipline and internal culture of the company. The collateral is secondary, although it is also a very important factor. In this regard, I’d like to mention our newly-launched Small Business Loan product which allows small companies with sound business practices and a good financial discipline to benefit from AMD 25mln credit lines without collateral.

Surely, Byblos Bank Armenia is celebrating its 15th anniversary with the joy of new victories and achievements. What developments can we expect in the next five years?

We are working on the introduction of new mobile solutions for our clients and the continuous improvement of our service quality. We believe that the next 5 years for Byblos Bank Armenia will be years of sustainable growth and a more active presence in the Armenian market.

Mr. Stepanyan, what is your message to the AmCham community?

AmCham community includes companies and organizations that represent the elite of the Armenian business community. And the only message I have is that we all need to spread the knowledge and culture throughout the entire economy. We should not get tired of upholding our values, best business practices and sharing them with our partners, clients, regulators, state authorities and other actors. My belief is that only values-based and responsible businesses can bring long-term development to our country.

Source: AmCham Business Magazine