ArmInfo.Flow of bank clients to online mode suggests digital transformation of business. The players of the Armenian banking sector have followed the new rules by actively transferring to the digital format firstly corporate and retail services, which are in the greatest demand.
For now, only large banks and subsidiaries of foreign financial institutions can afford comprehensive digitalization of business. HSBC Bank Armenia CJSC (HSBC Armenia) is one of the banks, which has launched phased digitalization of its retail services focusing first and foremost on the products that are in high demand. Over time, all the banking transactions will be transferred to digital environment, which envisages constant update of security levels for ensuring the most up-to-date criteria of safe remote customer service. Head of Retail Banking and Wealth Management of HSBC Armenia, Mihran Muradyan told about the digitalization of services in HSBC Armenia in an interview to ArmInfo's correspondent.
How are things going with digital banking? How popular is it among Armenian clients of HSBC Bank?
As of today, more than half of our customers use digital services. Meanwhile, 79% of customers carry out daily banking transactions in digital mode through mobile and internet banking. At the moment, the number of mobile banking users increases rapidly.
Could you name the remote retail services of HSBC Bank Armenia? And why these services have been switched to online mode? How high is the level of protection for remote customer service?
The list of digital services provided by HSBC Armenia includes the most demanded and non-cash financial transactions, in particular transfers, opening of term deposits and safe communication with the bank. All transactions that can be carried out in digital mode and are not forbidden by legislation will be eventually digitalized.
As for the security it should be noted that HSBC Armenia constantly works on updating the protection levels for maintaining the most up-to-date criteria of safe remote servicing of clients. In particular, in the framework of the digital banking services development strategy HSBC Armenia implements large-scale investment projects. Soon our clients will be able to use more customized and convenient mobile and internet banking services. The bank stays committed to its policy of ensuring maximum security to protect its customers from fraud.
Which retail services provided by the HSBC Armenia are the most demanded among clients? What are the reasons for that?
The retail banking services of HSBC Armenia are aimed at meeting the daily banking needs of people at the same time ensuring high level of security, uninterrupted customer service, and compliance with the international standards of corporate ethics. Among the targeted products and services such as mortgage loans, the ones that are most popular are current accounts, savings accounts, card products, online and digital service packages - Internet, mobile and telephone banking.
Retail loan portfolio of HSBC Armenia demonstrates more significant growth than the dominant corporate one. What were the reasons for the bank's decision to activate retail lending?
Relatively high growth of retail lown portfolio of HSBC Armenia in 2018 is determined by two key factors. The first one is a noticeable activation of real estate market, especially in the second half of the year. The second factor is more competitive and transparent price policy along with more efficient lending mechanisms implemented by the bank. In 2019, HSBC Armenia also plans to introduce more attractive offers that cater to the constantly changing needs of customers.
Judging from the diversification of HSBC Armenia's loan portfolio it can be concluded that the investments are mainly concentrated on corporate clients of the industrial sector, trade, public catering and services, and SMEs, while the share of retail lending is about 22% with a focus on mortgage. What is the reason for this approach?
Being a member of HSBC Holdings plc., HSBC Armenia, actively contributes to sustainable and balanced development of Armenia's economy. Within the framework of its development strategy, the Bank will continue expanding its activities in three main directions. Along with corporate banking services and financial market operations, we provide a wide array of banking services to customers including young individuals, newlyweds and professionals supporting them in purchasing an apartment or a house and improving their living conditions.