Global Finance (GF): Converse Bank has recently received a ratings upgrade from Moody’s. How will this improved rating impact the bank’s strategic initiatives and your ability to attract foreign capital and business?
Andranik Grigoryan (AG): A ratings upgrade enhances our credibility with International Financial Institution partners, which is a well-known axiom. However, for us, it’s more than just a means to secure cheaper financing or boost partner credibility. It’s an acknowledgement of our hard work. We consistently strive for excellence every day, not specifically to achieve a rating upgrade, but because it’s inherent to what we do.
This upgrade not only unlocks greater credibility and opportunities with international partners like IFIs but, more importantly, validates to our employees that their efforts are recognized by the international organizations and institutions that rely on us, and our valued customers.
GF: As a “young bank” that prefers “speed and convenience,” can you elaborate on how you differentiate Converse Bank from larger, more traditional players in the Armenian market?
AG: Our uniqueness comes from internal focus, not external replication. We don’t analyse competitors to imitate them; instead, we constantly innovate upon our own existing practices. This approach positions us as a disruptive force in the banking sector, prompting larger, more established banks to react to our initiatives, as evidenced by their attempts to replicate our marketing efforts and mobile applications. This dynamic is a source of pride for us, especially given the inherent difficulty for these larger institutions to pivot when their primary focus is on mirroring other banks.
We are actively striving for agility, with a vision for banking to be as seamless and immediate as a WhatsApp message. While this endeavour presents challenges for a bank with a 30-year history of conventional operations, we are confident in our shared vision and the significant progress we are making.
GF: How does your rebranding and focus on a new era of development align with Converse Bank’s long-term goals for growth and market share?
AG: Regarding our “rebranding,” it wasn’t a full rebranding but rather a brand refreshing. Converse Bank remains Converse Bank; nothing has fundamentally changed. The key addition to our identity is “Converse Bank: trusted by Generations.” Previously, this tagline was absent.
The public perception of Converse Bank was that of a very traditional institution, heavily reliant on national and family traditions. We wanted to build upon this perception, emphasizing that we are not exclusively a bank for young people, as many contemporary banks claim to be. We are a bank for everyone: for the elderly, parents, grandparents, children, and university students. We cater to all generations, passing on our values and services from one to the next, which solidifies our position as a bank “trusted by Generations.” This brand refreshing aims to reassure people that they can continue to rely on us, just as they have for decades.
Beyond trust, we also offer modern convenience. Our mobile application is flexible and intuitive, appealing to younger users, yet simultaneously straightforward enough for the elderly to use with ease. Once they try it, they tend to use it consistently. This is how we position ourselves within the market and among our competitors.
GF: What are the key ways you are leveraging AI and automation to improve internal efficiency, and how does that translate into a better customer experience?
AG: We are not an AI bank, but we leverage AI to enhance our efficiency. While we aim to automate and increase efficiency, we haven’t been entirely successful, largely due to language barriers. AI is more easily applied to widely spoken languages like English, making it challenging for languages that are less prevalent.
Despite these challenges, we achieved a significant milestone by becoming the first bank in Armenia to use machine learning for optimizing cash management in our branch and ATM networks. This was a crucial step, leading to over a 30% increase in efficiency. We also plan to integrate AI into all aspects of our scoring systems, where it will play a vital role.
GF: What are the biggest economic opportunities and challenges for Armenian banking in the next 3-5 years?
AG: Armenia’s banking system, despite operating in a challenging environment with 17 banks serving a population of only 3 million, is highly competitive and flexible. This competition drives significant investment in technology.
Looking ahead, Armenia has the potential to become a regional hub for international transactions and money transfers, leveraging its geographical position at the crossroads of Asia and Europe. Furthermore, if new government policies succeed in opening borders with neighbouring countries, Armenia could become a very attractive market for investment, facilitating increased flows of goods and capital. I am quite optimistic about these prospects.
