Byblos Bank Armenia is just a year away from celebrating two decades of consistent success in the market. We spoke to CEO Hayk Stepanyan about the values of the bank and his vision for banking in Armenia today and in the future.
- Byblos Bank Armenia has been operating in the country for more than 17 years and innovation is listed as one of the bank’s five core values, alongside integrity and customer focus. What does innovation mean specifically at Byblos Bank Armenia?
- At Byblos Bank Armenia, innovation is not limited to technology or digital products. For us, innovation means continuously improving the way we serve people, make decisions and create value for customers and society. Concretely, this includes investing in digital banking platforms, simplifying customer journeys, improving internal processes through automation and using data more intelligently to better understand customer needs.
In a market like Armenia, where customer expectations are evolving rapidly, banks must become more agile, accessible and educational. We also see innovation in our human capital and partnerships. Supporting educational initiatives, entrepreneurship and financial literacy programs is part of building a more innovative financial ecosystem overall. A bank cannot innovate sustainably if the environment around it is not progressing as well. Most importantly, innovation must always remain connected to trust. In banking, customers value reliability and security above all else. Therefore, true innovation is about creating smarter, safer and more meaningful solutions for people.
- Financial literacy is increasingly part of the national conversation in Armenia, with the Financial Capability Index rising from 44% to 56.5% over the past decade. How do you see the banking sector’s role in this progress, and what are the most significant gaps that still need attention?
- The improvement in Armenia’s Financial Capability Index is encouraging and reflects years of coordinated effort between regulators, educational institutions, banks and civil society. The banking sector has played an important role because banks are often the primary interface between citizens and the financial system. Banks today are no longer only service providers. They are educators, advisors and long-term partners in people’s financial lives. Through transparent communication, responsible lending practices, digital education tools and community programs, banks can help individuals make more informed financial decisions. At the same time, significant gaps remain. Many people may understand financial concepts theoretically, but still struggle with budgeting, long-term savings, investment planning or responsible borrowing. Another important gap is inclusion. Financial literacy efforts must reach rural communities, young people, small business owners and vulnerable groups more effectively. Digitalization creates enormous opportunities, but it also creates risks if people are not adequately prepared to navigate increasingly complex financial products and online environments. In the coming years, financial literacy will become even more important as Armenia’s economy grows more sophisticated and interconnected with global markets.
- Financial literacy is often described as a foundation for economic participation. As someone leading a financial institution in Armenia, what do you personally think about the relationship between a literate society and a healthy banking sector?
- A financially literate society creates stronger households, stronger businesses and ultimately a stronger banking sector. The relationship is deeply interconnected. When people understand financial principles, they tend to make more sustainable decisions, manage risk more effectively and participate more confidently in the formal economy. For banks, this creates healthier long-term relationships with customers. Financial literacy improves trust, transparency and resilience across the system.
Importantly, financial literacy should begin early. It should not be treated as a specialized subject only for adults or professionals. It must become part of the educational mindset from childhood onward. Achieving this requires long-term collaboration between regulators, banks, universities, schools, media and private sector organizations.
- Within your CSR activity you support many educational projects, such as the CaseKey competition, the scholarship program for YSU students, translation of financial literature into Armenian, and more. What is the philosophy that connects all of these efforts, and how would you describe the impact of the programs you support?
- The common philosophy behind all these initiatives is empowerment through knowledge. We believe sustainable development begins with education and opportunity. Our goal is ultimately to help individuals develop the skills and confidence needed to participate fully in economic and social life.
We particularly value initiatives that create long-term impact rather than short-term visibility. For example, translating business literature into Armenian contributes to the development of local professional knowledge and accessibility. Supporting competitions like CaseKey encourages analytical thinking, teamwork and innovation among young people who may become future business and financial leaders.
The impact of these programs is not always immediately measurable in numbers alone. Sometimes the most meaningful impact is cultural, helping shape a generation that is more informed, ambitious, entrepreneurial and globally connected. For us, CSR is not separate from business strategy. A stronger society ultimately creates a stronger economy and a healthier banking environment.
- In terms of corporate social responsibility and community investment, what other focus areas or initiatives should the public expect in the near future? Is there something the bank has not yet done that you would like to pursue?
- Going forward, we are increasingly interested in initiatives that combine education, technology and social impact. One important direction is supporting the development of digital and financial skills, particularly among youth and underserved communities. As financial services become more technology-driven, digital literacy and financial literacy are becoming inseparable.
We also see growing importance in entrepreneurship support, especially for small and medium-sized businesses. Armenia has significant entrepreneurial potential, and banks can play a meaningful role not only through financing, but also through mentorship, partnerships and ecosystem development.
- Looking beyond the immediate competitive landscape, what is your broader vision for what banking should look like in Armenia in the next decade? Are there models from other markets where Armenia could learn, or even leapfrog?
- I believe the Armenian banking sector has the potential to become one of the most advanced and customer-oriented systems in the region. The future of banking will be defined by simplicity, accessibility, personalization and trust. Customers increasingly expect seamless digital experiences, but they also want human understanding and reliability. The institutions that succeed will combine technological efficiency with strong relationship-based banking.
Armenia has an interesting advantage because, as a relatively small and agile market, it can adopt modern solutions faster than many larger economies burdened by legacy systems. In some areas, we may even be able to leapfrog traditional development stages. I believe the future banking ecosystem will involve much closer collaboration between banks, fintech companies, educational institutions and regulators.
- Where do you see the Armenian market five years from now, and what role does Byblos Bank Armenia intend to play in that future?
- Over the next five years, I expect Armenia’s financial market to become more digital, more competitive and more integrated with international economic systems. Customer expectations will continue to evolve rapidly, especially among younger generations. Convenience, speed, transparency and personalized service will become even more important. At the same time, businesses will increasingly require more sophisticated financial solutions as the economy diversifies.
In that environment, Byblos Bank Armenia intends to continue positioning itself as a stable, innovative and relationship-oriented institution. Our objective is not only to grow financially, but also to contribute meaningfully to the development of Armenia’s economic ecosystem. We want to remain a bank that combines international standards with strong local understanding, supporting individuals, entrepreneurs, businesses and communities through periods of transformation and growth.
- How should the Armenian banking sector prepare for upcoming changes to support a high Financial Capability Index?
- The banking sector should approach financial capability as a strategic national priority rather than a narrow educational topic. First, banks must continue investing in transparency and customer education. Financial products are becoming more sophisticated, and institutions have a responsibility to communicate clearly and responsibly. Second, digital transformation must be accompanied by digital literacy. As online banking, digital payments and AI-driven financial tools expand, customers need the skills to use them safely and confidently. Third, collaboration is essential. Sustainable progress will require coordinated efforts between banks, regulators, schools, universities and media organizations. Finally, the sector must focus on long-term trust. Financial capability grows in environments where people feel secure, informed and respected. Building that trust consistently is one of the most important responsibilities of any banking institution.
A high Financial Capability Index is not only a social achievement but also an economic advantage for the country as a whole.
