Ameriabank introduces online lending system for legal entities
21.11.2018,
17:55
Ameriabank has introduced an online lending system designed for legal entities that will raise the level of availability of financial resources for small and medium-sized businesses in Armenia.
YEREVAN, November 21. /ARKA/. Ameriabank has introduced an online lending system designed for legal entities that will raise the level of availability of financial resources for small and medium-sized businesses in Armenia.
“The availability of financial resources is one of the most serious problems, when it comes to SME development in Armenia,” Aram Baloyan, the head of Ameriabank Business Banking and Consumer Lending Division, told a November 20 plenary discussion on the obstacles to SME development and ways to overcome them.
According to him, there are two groups of reasons why availability of financial resources for SMEs is low. The first group of reasons is conditioned by the behavior of representatives of SMEs, in particular, by their choice of carrying out transactions in cash.
"SME entrepreneurs rarely use bank accounts, banking cards and other banking products, and do not create their banking history. As a result, the bank’s confidence in them is low," he said.
Besides, he said, the level of internal reporting and analyses in SMEs is low. “Many business representatives find it difficult to present their figures to the bank and investors,” he said. Baloyan noted that the second group of reasons includes internal processes in banks, such as large document flows, collateral requirements, etc.
“The loan processing requires a lot of actions and contacts between the bank and a businessman. In most cases, SME is represented by one person, who doesn’t have time and resources for communication with the bank,” he added. According to Baloyan, Ameriabank looked into these reasons and the above-said in mind introduced the new product and has already provided the first loans.
In particular, for the first time in Armenia, the bank introduced an automated scoring system for SMEs with the full cycle of digital solutions.
“This system allows, on the basis of the collected information, to make a decision on loan approval and provide it in a matter of minutes. The system also gives businesses the opportunity to file a loan application online and sign the loan agreement in the same way,” he explained.
Baloyan specified that legal entities can receive the amount at any branch of Ameriabank. He added that by the end of the year the bank will introduce a service for receiving funds online.
The loan is provided to legal entities, including those without a credit history, in a matter of minutes to the tune of up to 10 million drams, without collateral and at the rate of 13.5%. Today, the SME credit portfolio of Ameriabank stands at 86 billion drams.
The November 20 discussion was attended by Ameriabank Retail Banking Services Director Arman Barseghyan, Head of Business Banking and Consumer Lending Aram Baloyan, BDO ACCOUNTING representative Aharon Chilingaryan, Head of the Office for the Promotion of Entrepreneurship Gevorg Poghosyan, Co-Founder of Tropika Company, Founder of the Sukhoi Marketing Educational Center Vahram Mirakyan and Director and Co-founder of Triada Studio Ara Aghamyan. ($ 1 - 484.29 drams) -0-
“The availability of financial resources is one of the most serious problems, when it comes to SME development in Armenia,” Aram Baloyan, the head of Ameriabank Business Banking and Consumer Lending Division, told a November 20 plenary discussion on the obstacles to SME development and ways to overcome them.
According to him, there are two groups of reasons why availability of financial resources for SMEs is low. The first group of reasons is conditioned by the behavior of representatives of SMEs, in particular, by their choice of carrying out transactions in cash.
"SME entrepreneurs rarely use bank accounts, banking cards and other banking products, and do not create their banking history. As a result, the bank’s confidence in them is low," he said.
Besides, he said, the level of internal reporting and analyses in SMEs is low. “Many business representatives find it difficult to present their figures to the bank and investors,” he said. Baloyan noted that the second group of reasons includes internal processes in banks, such as large document flows, collateral requirements, etc.
“The loan processing requires a lot of actions and contacts between the bank and a businessman. In most cases, SME is represented by one person, who doesn’t have time and resources for communication with the bank,” he added. According to Baloyan, Ameriabank looked into these reasons and the above-said in mind introduced the new product and has already provided the first loans.
In particular, for the first time in Armenia, the bank introduced an automated scoring system for SMEs with the full cycle of digital solutions.
“This system allows, on the basis of the collected information, to make a decision on loan approval and provide it in a matter of minutes. The system also gives businesses the opportunity to file a loan application online and sign the loan agreement in the same way,” he explained.
Baloyan specified that legal entities can receive the amount at any branch of Ameriabank. He added that by the end of the year the bank will introduce a service for receiving funds online.
The loan is provided to legal entities, including those without a credit history, in a matter of minutes to the tune of up to 10 million drams, without collateral and at the rate of 13.5%. Today, the SME credit portfolio of Ameriabank stands at 86 billion drams.
The November 20 discussion was attended by Ameriabank Retail Banking Services Director Arman Barseghyan, Head of Business Banking and Consumer Lending Aram Baloyan, BDO ACCOUNTING representative Aharon Chilingaryan, Head of the Office for the Promotion of Entrepreneurship Gevorg Poghosyan, Co-Founder of Tropika Company, Founder of the Sukhoi Marketing Educational Center Vahram Mirakyan and Director and Co-founder of Triada Studio Ara Aghamyan. ($ 1 - 484.29 drams) -0-
