Karen Nalbandyan, Business Development Director and Management Board Member, IDBank

What are the key factors behind IDBank’s success in Armenia’s banking sector?

The bank is one of the leaders of digital banking in Armenia. The main criteria for our success are the strategy of digitization and partnerships with fintechs—particularly our cooperation with Idram, one of the leading e-wallets in the country—and the creation of an open banking system. We combine banking and e-wallet solutions on the same platform.

How does IDBank innovate and influence market trends?

We often create trends ourselves, at least in our market, and we can proudly say that the solutions we’ve implemented don’t even have analogs elsewhere. There are similar solutions, but only on a limited scale and for limited client services. For example, our BNPL (Buy Now, Pay Later) works both offline, in-store and with e-commerce. Our solutions for instant payments and transfers are also unique to the market. Now, many others replicate what we’ve done. Naturally, everyone wants to mimic successful experiences.

How do you view the competition imitating your services?

We are glad that our examples and innovations help others create products that are useful for both clients and merchants.

What are your main services and the current direction of IDBank’s activities?

IDBank is a universal bank that provides all services related to payments, transfers, account opening, lending, deposits, LLC services, etc. Much of this is offered digitally via mobile applications. What sets us apart is our development of an alternative payment system alongside card payments. We focus on QR payments, Direct Debit, and Instant Transfers via phone numbers domestically, and we are trying to expand this internationally. Our client base is large—we’re among the biggest digital banking platforms in Armenia. Our corporate focus is on micro, small and medium-sized businesses, to whom we provide 360-degree package solutions, including lending, payment receipts, installments and loyalty systems.

How does IDBank stand out in Armenia’s competitive financial landscape?

Our goal is to create an ecosystem around merchants and clients that provides all financial and loyalty-related services. We offer installment products and a fully remote service. Clients can go through onboarding, compliance and account opening entirely online without visiting a bank office.

How do you ensure a smooth remote client experience?

We integrate with various state agencies and use both our own and third-party verification tools. All of this works seamlessly in the background—clients only need to take a few steps to open an account.

What is the scale of IDBank’s development and your plans for future growth?

We currently serve around 750,000 clients, about 60 percent of Armenia’s bankable population. While not all are exclusive clients, many are active and hold accounts with us. We are often the main bank for our clients, but even clients of other banks use our digital platform for its convenience. 

With over seven years of experience developing our digital platform, we are looking to expand beyond Armenia. We want to offer services to the Armenian diaspora, especially in the U.S. and Europe, with convenient, daily-use financial solutions. We are in the final stages of launching a representative office in the U.S., which we hope will be operational by October. This office will focus on consultations. 

We’re also exploring using our licenses in Europe and Armenia to facilitate transfers and payments. If the U.S. expansion is successful, we aim to build a financial bridge for users there. Additionally, we’re seeing demand for our solutions in the Middle East and Asia—especially for QR-based loyalty systems and BNPL platforms. These could evolve into software-as-a-service offerings.

How does IDBank attract and serve its clients and business partners?

We carefully study the needs of our clients and design products to meet them. Listening to and serving our clients is vital in Armenia’s competitive market. This includes both digital and branch services. We’ve launched new flagship offices that combine banking with cafés and co-working spaces, offering services for privilege banking, private banking and the mass affluent segment. We aim to create a welcoming atmosphere and prove that banking doesn’t have to be boring.

How do you view recent changes in the banking industry?

It’s been a huge breakthrough. We were the first to introduce many of these service formats in our market, and we’re happy that others are following. This elevates the overall customer experience. When customers are satisfied, it results in long-term partnerships. We see our clients not only as sources of income but also as partners. We share our successes through bonuses, cashbacks and additional services.

What message would you like to share with the broader community, especially in the U.S.?

We want readers, especially in the U.S., to know that modern banking in Armenia is progressing rapidly. If they have an interest or business in Armenia, we are ready to be a reliable partner. Our range of corporate services is detailed on our website. We also offer services comparable—and in some cases more advanced—than those available in the U.S., such as remote onboarding. For individuals with connections to Armenia, IDBank should be considered the first choice.

Is there anything else you’d like to add that we haven’t discussed?

You’ve covered most topics, but I’d like to add that we’re also successful as a business based on our financial performance. Beyond business, we’re deeply committed to corporate social responsibility. We support charitable projects that empower communities in Armenia—helping people access financial tools and develop their own ideas. 

We’re serious about financial literacy, too. We created Idram Junior, a mobile app for children and teens that teaches them to manage money through saving, spending and rewards. It links to their parents’ accounts for oversight. The app also includes educational content on topics like money, loans, savings and the economy. We also run financial literacy programs in schools across Armenia and engage in environmental efforts like tree planting.

Could you elaborate on the services offered by your U.S. representative office?

The U.S. office is a representative office, not a licensed service provider. It will consult potential clients about our services, explain our products and serve a presentation role. We believe this direct engagement will help clients better understand the opportunities IDBank and Armenia’s banking sector can offer.

Would you like to highlight any other programs, such as charity initiatives?

Yes, we have a unique initiative called “The Power of 1 Dram.” For every payment transaction made through Idram and IDBank, we donate one dram to a charity fund—at our own expense, not the client’s. Clients contribute simply by using our services. This model has been in place for five years and has gamified charity. It’s just one part of our broader CSR work. While this gamification doesn’t cover all our initiatives, it fosters greater customer loyalty and a sense of shared purpose in doing good.