Maintaining the success over many years after establishment and being in tune with the times is a real challenge for any institution and any sound system. In this context, the issue becomes particularly pressing when a well-established institution runs its business in a highly competitive environment. And this is when а rebranding carried out at the right time and in a competent manner provides the desired result. Within the framework of the UBA TALKS project, we talked to Gevorg Tarumyan, the Chairman of ARMBUSINESSBANK Executive Board about the importance of the process, the risks, and particularly, about the specific aspects of rebranding of banking companies.

Mr. Tarumyam, before we turn to the topic of our interview, please accept my congratulations on your appointment as a Chairman of ARMBUSINESSBANK Executive Board and let me wish you fruitful work, new achievements and major success. As a new Chairman of the Bank’s Executive Board, have you already outlined the main issues and plans that will be a priority for the running year?

Thanks for congratulations and warm wishes. Coming to your question, I would like to mention that the pressing issues related both to the Bank and the overall system are well defined, the plans and steps focusing on their solution and regulation being also quite distinct. In this context, there are still certain outstanding issues that have emerged in the system due to the challenges of the recent few years. In case of the Bank, our task is to make it more up-to-date and equipped with digital platforms, ensuring access for our customers anywhere and anytime.

Coming to rebranding, let us try to introduce its essence in the manner most comprehensible for the general public. Basically, what are the reasons for companies’ rebrand, what issues are being addressed and what is the ultimate goal behind it? What are the particularities of banking companies’ rebrand?

In general, it is desirable, and for our sector it is even а must to update regularly the policy of not only banking, but also non-banking companies to appear in a new light, since the market has become more vigorous and dynamic. Banking sector is the most dynamically changing one in the market in view of technological development, digitalization of services, tough competition. Customer expectations in terms of user-friendliness, diversity of services and products also undergo certain changes. I think that those banks rebranded have been successful, which were able to associate the new corporate identity not only with upgraded services, but also with reliability, stability and transparency. In my opinion, there is just one ultimate goal behind any change: to improve financial services and means of their provision making them accessible for a wider range of customers.

Mr. Tarumyan, what do you think is the current public perception of the Armenian banking system and what impact can rebranding have on perception change?

It should be admitted that the public perception of the Armenian banking system is not at the desired level yet, but this is not the case only with the Armenian banking system; the trend is the same in many countries. From this point of view, a well-designed rebranding and subsequent customer-centered activities can indeed have an impact on the change of perception. After all, rebranding is not only about a change in visual appearance, logo or quality of services rendered. I am confident that in our case as well, rebranding will have a positive effect on the overall perception of the system.

The general public is aware of the Bank embarking on a new phase and turning to a large-scale rebranding. How the decision to rebrand was made? Are there any approximate dates when the bank will appear before the partners and customers in a new light?

That’s absolutely right, our Bank is embarking on a new, interesting phase and will appear under a new brand, new name and logo in the near future. ARMBUSINESSBANK is one of the oldest and most experienced banks in the Armenian financial sector, which has retained its name for many years. Neither the visual appearance, nor the main line of business and functions have undergone any changes, meanwhile we are currently witnessing the fast changes taking place in the world, digitalization processes with unlimited possibilities, and thus certain changes are required to appear in the market in a novel way. With the new policy that we have adopted, changes are going to be fundamental. In our case, the decision to undergo rebranding was made a year ago, as a result of the change in the policy of new shareholders. As you might be aware, the Bank so far has been known as one of the largest banks rendering services to legal entities. Now development of retail business sector has become the main focus in the Bank’s profile. The choice of the Bank strategy is not accidental, since we have all preconditions for dynamic development of retail sector and, most importantly, a large database of customers in wait of new offers. New digital products will appear soon making the boldest and most innovative ambitions of our customers a reality. We want to be seen as advanced, digitalized and innovative at the same time, combining this with our strengths. We will appear in a novel way before our clients that have come a long way with us and those who are new by the end of this year.

Like any other process, rebranding, along with the aspiration to motivate and upgrade, contains also certain risks. What do you think are the main risks the financial organizations may face in implementation of such process and what are the steps to neutralize them?

You are right indeed. Any process contains several risks related to acceptance of the new brand, maintenance of the position in the market as a result of changes as well as many other factors. Rebranding of the Bank requires extensive work to appear before the partners and clients with a new ideology and values. In our case, as the Bank is changing its strategy focusing on retail business, it is important to give particular attention to legal entities, our corporate clients currently using the services of our Bank. At present, programs are being developed for enterprises, our loyal clients, so that along with their employees they should not only continue to enjoy our services, but should also take an interest in attractive offers provided to individuals. The next risk is associated indeed with the public perception. We wish everyone to see that the fundamentals, and not just the visual appearance is being changed. I believe that the general public, our customers will notice and appreciate our efforts.

As you mentioned, the decision on rebranding was made due to the change in the new shareholders’ policy. What are the expectations of the new owners of the Bank in terms of development of the RA banking system and the efficiency of investments made in our country?

Any organization, without doubt, is implementing new investment projects within the scope its prospective development plan. The new shareholders’ interest is associated with the favourable business environment existing in our country and the legislative framework stipulating the legal regulation of corporate relations. The corporate sector in Armenia is most accessible and attractive both for local and foreign investors, while effective mechanisms for protection of shareholders' rights are also provided. Thus, it is expected that as a result of reforms and rebranding, the Bank will not only maintain and strengthen its leading position in the RA banking system, but will also implement prospective development plans with fresh, up-to-date solutions.

Mr. Tarumyan, you have about 30 years of professional experience in the RA banking system. Have you ever wished to change your work profile?

To be honest, such a desire was arising from time to time. There was a time when I had a strong wish to work in a large production. However, since there was no such opportunity in Armenia and I did not have an intention to leave my country, I continued working in the dynamically developing banking system.

What do you think should be the image of the representative of modern banking system? What skills and qualities are required to become a successful professional?

Being a banker is a difficult task as such, which requires professionalism and high sense of responsibility. In particular, one of the keys to become a successful specialist in the banking system is the ability to navigate in the competitive environment and make effective decisions. And of course, continuous education is essential.

What would be your advice to those young people, who see their professional career in the banking system?

Firstly, I would like to mention that we continue to cooperate with the leading educational institutions striving to improve the quality of education and training high-quality specialists. As of now, a program for final-year students in IT sector has already kicked off, giving a chance to take an internship in our Bank, receive remuneration with a prospect of permanent employment. I would recommend the young people enrolled in education in finances to constantly deepen their professional knowledge, regardless of whether they are still a student or are already employed in the banking system. This is a field where there is always a need for continuous education, which in turn is the key to professional growth and success. As a firm proof of the above-stated is seen the competitiveness of Armenian specialists in this area not only in Armenia, but also in the banking systems of developed European countries. I strongly believe that the new generation having received quality education and continuously enhancing its professional skills plays a great role in the development of the banking system, and hence in the growth of the country's economy. And in general, to have a powerful country, one needs an educated and hardworking society.