Regional Post spoke to Byblos Bank Armenia CEO Hayk Stepanyan about the Bank’s commitment to offering personalized customer experiences both online and offline, based on the clients’ preferences, behaviors, and financial needs.
Interview : Margarit Mirzoyan
Photo : mediamax
Mr. Stepanyan, why is digital transformation critical for banks today, and what competitive advantages does it offer financial institutions?
— Digital transformation has become essential across all sectors of the economy and in our lives in general. This shift is an inevitable wave created by technological advancement. In case of banks, first of all, customer expectations are rapidly changing, and especially after the pandemic, the demand for digital services has significantly increased. Meanwhile, digital banking offers banks substantial opportunities in terms of cost efficiency, more precise and data-driven product development, decision making, and risk management. Moreover, embracing digital tools enables banks to streamline operations and offer personalized customer experiences, all of which contribute to a stronger competitive edge in an increasingly digital marketplace.
Digital banking offers banks substantial opportunities in terms of cost efficiency, more precise and data-driven product development, decision making, and risk management.
How do you envision the global banking industry evolving over the next 5-10 years, and what role will digital transformation play in this shift? What is your outlook on the future of the Armenian banking sector in particular, and how significant is digital transformation for its growth and competitiveness?
— I believe the concept of Open Banking will gradually spread through the entire world, and the use of AI in banking will continue to grow. According to one development scenario, Open Banking could enable many fintech companies to serve as intermediaries between banks and customers, shifting the role of traditional banks more towards risk management and wholesale business-to-business banking, rather than focusing on retail services. Such a development could enhance competition by allowing fintech companies to offer services that were traditionally only available through banks, such as budgeting tools, payment processing, or even lending. The question is how quickly these changes will take place in the Armenian banking sector. It will likely depend on a variety of factors, including regulatory changes, technological infrastructure, and the readiness of both banks and customers. But, of course, there is also a huge chance that Armenian banks will be more adaptive and stronger compared to emerging local fintechs and maintain control over the entire digital banking ecosystem.
Abovyan Branch of Byblos Bank Armenia
I expect to see even more significant changes in the next five years, and it’s not far off when we could see fully digital banks operating side by side with traditional brick-and-mortar banks in Armenia.
How has digital banking reshaped customer experience globally and in Armenia, and how are banks adapting to meet the growing demands?
— Recent studies indicate that mobile banking services and their quality are increasingly important factors for customers when selecting a bank, both globally and in Armenia. The convenience and user-friendliness of digital tools play a key role in customer satisfaction. Although banking is generally considered a conservative industry, Armenian banks are making surprising strides in this area, developing quickly in response to these demands. This shift could be compared to an entity slowly but surely modernizing its infrastructure—new, more efficient digital tools are being localized and introduced, and the pace of change is accelerating faster than anticipated. I expect to see even more significant changes in the next five years, and it’s not far off when we could see fully digital banks operating side by side with traditional brick-and-mortar banks in Armenia. There is also a growing interest in mobile-only services. These attract younger, tech-savvy customers who prefer managing their finances exclusively through their mobile devices.
How important is customer feedback in shaping digital banking services in general, and your bank’s services, in particular?
— Actually, it is very important, and fortunately, digital services offer valuable data that reveal customer preferences. We are heavily investing in customer surveys to gain a thorough understanding of customer needs and expectations and ensure that we capture as comprehensive a view as possible. Analyzing survey data is a great way to ensure that we continuously adapt our services based on customer feedback. And this is something on which we place considerable focus. These examples highlight how mobile banking services, from app functionality to customer support, digital payments, security, and account management, are becoming key considerations for customers choosing a bank in both global and local markets.
What digital transformation initiatives has Byblos Bank Armenia implemented to improve service quality and efficiency?
— Over the past two years, we have really concentrated our efforts on digital transformation and the development of our digital strategy. We have made significant upgrades to our mobile app, introducing new products and enhancing the overall customer experience. With the Byblos Mobile app too, we strive to offer personalized services while maintaining the convenience and security of digital banking. We’ve also expanded our partnerships with third-party service providers, enabling our clients to use the Byblos Mobile app for a wide range of services beyond banking, including payments for various external services. While these improvements are already in place, we expect even greater changes in 2025 and are excited about what’s to come.
The user-friendly Byblos Mobile app
What measures is Byblos Bank Armenia taking to ensure cybersecurity and data privacy, especially with the rise in online transactions?
— A key aspect of digital transformation is the increasing threat of cybersecurity risks, given the growing value of personal and financial data. And inevitably we are investing in our capacities to minimize these risks. Our investments focus on human resources, building expertise, and upgrading our technical infrastructure. To further strengthen our security measures, we are also conducting regular security audits, employee training sessions, and real-time monitoring. We are adopting industry best practices, and acquiring the best technologies to ensure a highly secure environment for our clients.
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