Gerard Hofmann ARMBUSINESSBAN CJSC, Supervisory Board Member

What do you think are the main assets of Armenia? – I believe that the main asset of Armenia are the people with their intellectual potential and great passion for work. Our goal is to hit the right path to endorse their inner perceptions and aspirations. As loans are granted and other banking services are rendered in different regions of the country, our first priority, without doubt, is the individual and overall well-being. It is likewise important for the Bank to introduce to employees properly the essence of changes. I mean, it is sometimes a big challenge for people to change the usual course of life, work routine, especially when the expectations are ambiguous. We started the reforms that kicked off over a year ago with ourselves. We introduced a new culture in internal communication since it was important for every employee to be updated, to feel part of the team throughout the long journey to changes. Online meetings were organized to keep every employee informed about the Bank's gradual development bringing forth a broad response.

There are various investment possibilities globally and the associated investment risks are also different. Why Armenia? – Our interest was fuelled by the considerable role of Armenia in the region. For foreign investors Armenia is quite attractive with its favourable business environment and applicable legal framework. We expect, moreover, we are even convinced that the investments in Armenia will create major opportunities to introduce the Armenian financial sector in the international market in a different format. Taking this opportunity, I would like to add that Armenia is a fantastic and marvellously beautiful country.

Number of geopolitical events have created new challenges for various industries, including the banks. How would you assess the Armenian banking investment environment and possible developments? – In our ever-changing reality the financial sector faces new challenges on a daily basis. Conflicts, the amount of currency debt as well as other factors are the causes behind risks emerging in the country. One of the priorities for any country is the stability of the financial system. To be more precise, a favourable investment environment is crucial for the development of Armenia's economy, this being in fact provided. In recent years, the government itself has been providing considerable support subsidizing various sectors of economy. All this is seen as another incentive for foreign businessmen to consider investment opportunities. It should be noted that Armenian banks have invested considerable efforts also in overcoming the overall challenges faced by the system. The competition has become more intense, the volume of lending has increased, each trying to offer more favourable terms to their customers, due to which the sector shows overall growing trend. Of key importance is also the stability of the country's legal framework. In this regard, I will highly appreciate the possible developments in the Armenian banking investment environment because Armenia has created all the conditions necessary for development and growing stronger.

What prevents Armenian banks from becoming an international brand? – It would be more appropriate to talk about the factors that can contribute to becoming an international brand. Today, there are Armenian banks investing best of their efforts in the local market, working on brand recognition and reliability having also services to meet the international demand. What I believe is required to enter the international market is professionalism, large investments and a huge amount of effort, focusing first of all on innovations, provision of state-of-the art digital services.

How would you assess the dynamics in internationalization of the banking industry, and what does ARMBUSINESSBANK have to do in this regard? – Here again, we need to consider the growth of foreign investments since it is an important precondition for internationalization of banking industry. Just imagine having to provide a full package of services to a customer in a foreign country, in other words, traveling to another country for your client. This implies not only modernization and adjustment of all services but also competition with other actors providing financial services in the country concerned. One should be prepared to that. Use of innovative technologies and digital solutions is also essential. As for ARMBUSINESSBANK, one of the priorities in a long-term perspective is to be represented abroad, rendering services also to other countries apart from Armenia. I think there are many opportunities to appear with new services and a strong position outside the country as well. ARMBUSINESSBANK has a long way to go. We have already prepared a wide range of activities, which should be carried out sequentially, with due care and without haste.