Regional Post sat down with Mher Abrahamyan, the Chairman of IDBank’s Management Board, to explore the transformation of Armenia’s banking landscape and IDBank’s pioneering role in digital innovation.
Interview : Margarit Mirzoyan
Photo : IDBank
How would you assess the key developments in Armenia’s banking sector over the last couple of years, particularly in terms of digital banking evolution?
— The Armenian banking sector has shown remarkable dynamics, achieving unprecedented results in recent years due to both internal and external favorable conditions. The banking system has been a pioneer in our country’s economy, particularly in digitalization and innovative technologies, supported by our strong professional workforce. When you look at banking services today versus the past, they’re much higher quality, faster, and more accessible—customers rarely need to visit branches anymore as everything can be done remotely and easily. This digitalization has increased productivity and helped banks minimize operational costs while becoming more effective for customers. I believe this positive trend will continue, and within 5-10 years, banking will become the most digitalized sector in Armenia’s economy. Of course, this isn’t just an Armenian phenomenon—digitalization and new technologies are transforming banking worldwide.
So can we say that digitalization has benefited both parties?
— Absolutely. Previously we had to consider the geographical placement of branches carefully since services required face-to-face communication. While we still welcome customers who prefer in-person interactions, the geographical barriers have essentially disappeared. A customer can now manage their banking needs through a mobile app, even from abroad. This has dramatically expanded our reach beyond what’s possible with physical branches alone.
As a pioneer in digital payments through your partnership with Idram, how has this synergy influenced IDBank’s overall approach, and how has it transformed the customer experience within the banking sector in general?
— Our partnership with Idram began in 2018, as we were among the first to recognize the potential of digital banking. After significant investment in human and financial resources, we launched the platform in 2020, coinciding with COVID-19. This timing proved advantageous, as our established online banking system allowed us to continue serving clients seamlessly when face-to-face interactions were restricted. Today, our digital platform serves 100,000 active clients, validating our early vision and investment.
Looking back at the bank’s journey over the decades, what key milestones would you highlight?
The bank has a 34-year history with distinctive phases. While it was a leading institution in the 90s, followed by a quieter period, the most significant turning point came with the 2016 shareholder restructuring. This led to a complete strategy revision, resulting in our best performance to date across all indicators—profitability, assets, and customer base. Though this has been our most successful era yet, we have ambitious plans both locally and internationally that will further strengthen our position.
What sets IDBank apart from others in terms of philosophy, strategy, execution, etc, and how does your “Bank of the Present” motto reflect your philosophy?
— Our competitive advantage lies in our innovative nature and our exceptional team, who deeply believe in the bank’s future. We build our strategy around two key pillars: our customers and employees. While many institutions focus solely on future planning, we balance both present and future needs. Our “Bank of the Present” philosophy means creating immediate value for clients while also solving their long-term challenges. This approach, combined with our customer-centric attitude, has proven especially effective in the digital payments space.
Transparency is a crucial value in today’s banking sector. How does your commitment to transparency manifest in your relationships with stakeholders, customers, and partners?
— Speaking from a broader perspective, transparency has various metrics and expressions in banking. The banking system is actually the most transparent industry in Armenia, with almost all banks ranking among the country’s major taxpayers. At IDBank, transparency is woven into every aspect of our operations, from our client communications to our internal corporate culture. We’ve built our decision-making processes on principles of openness, fostering collaborations based on mutual trust and transparency with all our stakeholders.
We’ve seen banks increasingly prioritizing CSR projects. Why are these initiatives important for IDBank?
— Being one of the most active banks in social responsibility, we view it as integral to our philosophy and strategy. As a successful institution, we believe we must support other spheres. Our initiatives span multiple directions: ESG and environmental protection, healthcare, education, military support, and assistance to our Artsakh compatriots. Our flagship program, the Power of One Dram Initiative, exemplifies our approach—IDBank and Idram direct one dram from each transaction toward important causes, demonstrating that small steps can lead to significant achievements. I firmly believe such social responsibility should be a priority for all successful businesses and institutions.
With regional changes and the Dram’s stability in mind, what role do you envision for Armenian banks in the region’s economic future, and how will IDBank contribute?
— The Armenian banking system has proven remarkably resilient over three decades. Consider this, our last bank bankruptcy was 25 years ago, and we’ve endured various global crises, COVID-19, and wars while maintaining stability. Much credit goes to the Central Bank’s effective oversight and coordination with banks.
While our system has proven competitive, we’ve learned that predictability is rare in banking – success comes from making sound decisions amid uncertainty. This stability we see today is the direct result of those right decisions.
The pace of change is accelerating, and survival will depend on quick adaptation and effective decision-making. Competition is no longer just local; we’re entering a global playing field. That’s why our strategy extends beyond Armenia’s borders. While we can’t predict the future precisely, our five-year vision is clear: we aim to strengthen our local position while establishing ourselves as an international player. It may sound ambitious, but with proper execution, we believe this goal is achievable, ultimately leading to enhanced service quality for our customers.
Join us on Telegram
