The rapidly changing economic environment requires banks to possess not only agility but also strategic approaches. The role of financial management has long transcended the mere boundaries of recording numerical metrics, evolving into the primary engine of stability and growth.
Ruben Badalyan, Deputy CEO of Armeconombank on Finance, shared insights on effective mechanisms for mitigating financial risks, the impact of automating and digitalizing internal processes, as well as reinforcing long-standing market trust and the Bank’s mission directed toward raising public financial literacy.
Mr. Badalyan, today global financial markets continue to operate in a highly volatile and unstable environment. How does Armeconombank manage to maintain stability amid economic uncertainties, and what steps are being taken toward mitigating financial risks?
In recent years, financial markets have indeed been characterized by high volatility. Geopolitical developments and economic challenges demand flexibility, rapid response capabilities, and, at the same time, the capacity for long-term planning from banks.
Our priority remains the preservation of financial stability, high levels of liquidity, and customer trust. To that end, we constantly monitor the structure of our assets and liabilities, maintain adequate liquidity buffers, and closely monitor interest rate, foreign exchange, and liquidity risks with particular attention.
Simultaneously, we regularly conduct stress testing and various scenario analyses, which allow us to be prepared for potential challenges well in advance. We also place great emphasis on diversifying funding sources, ensuring the stability of our deposit base, and maintaining adequate capital levels.
Financial stability is not an achieved by chance; it is the result of disciplined day-to-day work, prudent risk management, and strategic thinking.
It is no longer possible to imagine a modern bank without technological solutions. What impact does digitalization have on your day-to-day operations, and does the customer experience these changes directly?
Today, it is already difficult to envision effective financial management without digitalization. While years ago many processes were carried out manually by employees using separate systems, automated solutions now enable these processes to be carried out significantly faster and more accurately – reducing operational risks and enhancing the quality of reporting. As a result, our team can allocate more time to deep analysis, financial planning, and strategic decision-making.
These improvements also have a direct impact on our customersWhen internal processes are more efficient, the bank can flexibly manage its expenses, accelerate service delivery, and offer more competitive terms to its clients.
The main objective of digitalization is not solely cost reduction; first and foremost, it elevates service speed, security, and convenience.
It is no secret that the banking deposit market is highly competitive. In your view, what drives customer trust today, and what financial toolkit does Armeconombank use to ensure customer loyalty?
Our experience shows that customers have long ceased making their choices based solely on interest rates. A bank’s reliability, history, service quality, and digital capabilities are of no less importance.
Our objective is not merely to attract funds, but to build long-term relationships rooted in predictability. To achieve this, we offer deposits with varying maturities and currencies, issue bonds, maintain a market-aligned interest rate policy, and continuously develop our digital platforms so that each customer can manage their finances easily and conveniently.
Trust is not shaped by a single offer, but by years of consistent performance, transparent operations, and a responsible approach to serving our customers.
In your opinion, what role does financial literacy play in fostering responsible customer behavior, and how can banks contribute to this process?
Financial literacy is no longer just supplementary knowledge today; it is a vital prerequisite for financial stability. The greater the public awareness regarding financial instruments, risks, and opportunities, the more well-founded and forward-looking their decisions become – whether it relates to managing savings, making investments, or undertaking credit obligations.
An informed customer not only manages their own budget effectively but also contributes to the healthy development of the entire financial system, and banks bear a major educational and informational mission in this regard.
The role of a Chief Financial Officer in the modern world has long expanded beyond simply recording figures; it carries a distinct strategic significance. In this context, what key benchmarks have you set for your team in the coming years?
The strategic progress of the Bank is impossible without the effective management of internal processes.
We remain focused on advancing process automation, expanding data analytics capabilities, strengthening risk management and financial resilience, and further diversifying our funding sources.These are the directions that define our agenda today and provide a solid foundation for the Bank’s sustainable growth in the years ahead.
Financial stability and growth are never achieved by chance; they are the result of daily, systemized work and responsible management. This is the very foundation that shapes the long-standing trust toward Armeconombank and reinforces our position in the market as a reliable and forward-looking partner for every customer.
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Armeconombank is supervised by the Central Bank of Armenia.
