Client as our development’s engine

An exclusive interview of Arthur Hambardzumyan, Head of Innovations and quality division at Ameriabank, with ARKA News Agency. 

A. Hambardzumyan – A legendary hockey player Wayne Gretzky once said, “I skate to where the puck is going to be, not where it has been.” The same refers to Ameriabank that heads to where a client is going to be tomorrow. Keeping that in mind, the bank is designing and implementing innovative development program that aims for meeting the existing and future demands of the clients in financial sphere. 

A. Hambardzumyan- We focus on innovations and prioritize applying to the most modern technologies in our banking business. That is why, I can ensure you that our activity is penetrated with novelties. We try to design not only innovative and new services and products, but also business models, processes, technologies and management systems. While launching new products and services to the market, we, at the same time, work on introducing the systems which will set infrastructure and expand opportunities of cooperation within the bank as well as raise efficiency of business processes. 

I would like to highlight two principal motivational vectors for our innovative activities. The first is our intention to stay appropriate with the time tendencies. Development of modern technologies, social websites, penetration of Internet to many social spheres change the behavior and life style of our clients. And it makes us change in parallel with them as well in order to meet the growing demands of our customers. Today we feel the necessity to implement the projects that can provide our clients with more convenient banking services. 

The second vector is our work to outpace the others in order to get privileges at the market. It gives us an opportunity to prepare for changes, more specifically in the issues related to banking services, implementation of more long-term plans and projects, and using the most modern technologies. 

For instance, if the world speculates that a plastic card is on the way of being outdated, and mobile or contactless payments are becoming more and more popular, we should take it into account already today, even if our local market is currently not ready for that.

A. Hambardzumyan- There are three principles the bank follows to develop its innovative policy. The first and the most important one is being client-oriented that continues boosting our success at the market. Even in the retail banking business, dominated by standard products, we are able to keep some individual approach to each customer and offer what is most demanded and dictated by life style and preferences. 

The second important principle is applying to the world best experience and modern technologies. We always focus on introducing the services and proposals which meet the international standards. The globalization process expands, and banking competitiveness gains a global character. Thus, our bank’s clients are not only those who live in Armenia, but also the ones fr om abroad, including Armenian Diaspora. That’s why in order to be appreciated and competitive we should introduce the services that will correspond to those of the local markets of our foreign clients. 

And the third principles is staying committed to our strategy implementation. In other words, our innovative policy as a whole and some separate innovative projects are targeted at implementing the strategy and setting a base for the bank’s further development. Whenever we change our products we change our innovative strategy either. 

For example, last year we were involved in expanding retail products, thus our 2011 innovative policy was conducted mainly in this context. We presented nearly 15 new proposals to the market. 

These three principles enable us to develop and implement the innovative policy that puts us in top banks list.

A. Hambardzumyan – I can name three main sources. First of all , our clients are our source for ideas. Today Ameriabank’s clients are the engines for our development. The clients sometimes express interesting ideas. It is very important for us, and we have a special group that considers and evolves the ideas given by our clients. Very frequently, our clients, being satisfied with our services, propose some improvements for our products and services. It shows that our loyal clients want to make us even better.

First of all, it enables us to establish interactive connection with our clients, and secondly, while realizing their offers we gain more trust from our them.

As of now we receive ideas from our customers on a rolling basis, however, in the future we will try to set the structure to make it easier for them to introduce their offers and ideas and stay upd ated. 

The second source for us is our employees. As it is known, today the so-called open innovations, formed within the close cooperation between professional community, are becoming more popular. 

And our innovative policy prioritizes applying to the huge intellectual potential of our employees regardless of their positions and responsibilities. I mean staff crowdsourcing. 

And today the bank has all conditions for the employees to express their viewpoints and new ideas related to problems’ solution and thus contribute to the further development of the bank. 

As a result sometimes we receive the ideas which even our special group would have some difficulties to give. This sense of complicity motivates many people, and we consider it to be a reliable method for encouraging our workers who know how to be heard. 

That is why the biggest number of our innovative and new offers are implemented due to our employees. In 2011 we have received and evolved nearly 300 proposals from the workers, most of which have already been practiced.

We have designed an electronic system wh ere one can post an idea in the general database and stay upd ated on its processing. The system is open for anyone. 

Moreover, the bank has a special team, innovation department, that coordinates the process of idea evolution. Our bank was among the first ones in Armenia to form such kind of the structure coordinating the mentioned process. 

And finally, the third source is our Board of Directors. The members of the Board are people, well- known in the international business community, who have a global overview on the market and learn first hand about new developments and global trends.

A. Hambardzumyan- As I have already said we introduced a number of services for retail clients in 2011. Of such services there were unallocated metal accounts, investment loans for individuals for purchasing business or shares, mortgage schemes with more attractive conditions. 

For example, mortgage loan with deposit use instead of pre-payment. The deposit serves as a payment source if a client faces some temporary issues with the loan payment. We have already se t an option for individuals who want to buy real estate abroad ( standard mortgage loans do not refer to this). Our option enables the clients to pledge their housing in Armenia in order to buy property abroad. 

In other words we try to segment our services in line with our client’s demands and preferences. Currently, we are working on several large scale projects related to payment cards. I mean co-branded projects jointly with several other retail market participants. This will give privileges to our clients. 

In parallel, we will put a stress on consumer loans and will create some special options for our customers to purchase goods, for instance cars, at more favorable conditions.

To achieve success and differ at the market, we mainly focus on non-price factors of competition. They can’t be assessed, but the clients can value their effect while using our services. Our rates are not the lowest , but using our services one receives something more than just a credit, deposit or card. 

We also continue attaching great importance to small business products. We have projects that provide small businesses with interesting services, meeting their financial demands and ensuring the efficiency. For example, grace periods for loan payments. 

Last year we introduced brokerage terminals that allow to process operations at 80 largest stock exchanges in 19 countries. This year we intend to expand the range of these services, ensure access to larger number of the world markets for purchase of shares and securities via our platform. Moreover, we are now implementing an interesting project related to cards for premium clients. We will announce about it in the nearest future. 

All the mentioned plans are projected for 2012. Moreover, we have a number of special offers for our clients. We will announce about that soon too. 

A. Hambardzumyan- The important thing is that we don’t focus on short-term goals. Of course, while introducing each product we expect some concrete outcomes, however, we have some more global goal- to make the bank universal at the market. We consider strengthening our positions at the market and se tting base for the further development as more important than short-term effects of these products. 

That’s why our projects are targeted at creating preconditions for enhancing our positions and fostering development in this direction. -0-