Vakhtang Abrahamyan: Lead in Your Own Role and Be Open to Change

As part of the No Tie interview series, we sat down with Vakhtang Abrahamyan, Chairman of the Executive Board and Chief Executive Officer at AraratBank.

- Mr. Abrahamyan, before taking the helm of AraratBank, you built nearly three decades of experience in the financial sector, holding various senior leadership positions. What was it like to join a commercial bank after such a long career in the financial sector? In what ways does your current position differ from your previous leadership experience?  

- I have only recently assumed the role of CEO at AraratBank. It is an exciting period, filled with expectations, as it presents a new opportunity. AraratBank is built on a strong foundation of values, expertise, and trust that has been cultivated over the years. I believe that one of the key responsibilities of a leader is to preserve and strengthen this foundation while guiding the organization towards a more efficient, modern, and rapidly evolving future. Leading a commercial bank involves navigating a highly dynamic environment, where decisions can have a direct impact on customer trust, operational performance, and long-term growth.

The Bank has built a strong market presence over many years, supported by a loyal customer base and well-established business practices. At the same time, a commitment to continuous improvement should remain embedded in our culture and reflected in our daily operations.

Today, the banking sector is evolving at a rapid pace. Customer expectations, technologies, and the competitive landscape are constantly changing, and banks must be able not only to respond to these shifts but, in some cases, to help shape them.

What is particularly important to me is that our shareholders, the Board of Directors, and the management team share a common vision for the Bank’s future, development priorities, and core values. I also believe that the team plays a critical role in this journey, and that this shared vision is one of the key prerequisites for success. Mutual trust, a shared vision, and a readiness to drive change create the foundation for building a stronger, more agile, and forward-thinking bank.

- Every leader brings a new culture of management and certain adjustments to the business model. Are there likely to be any major changes in the Bank’s strategic direction in this regard? 

– The 21st century is characterised by a high degree of uncertainty and an exceptionally fast pace of change. Under such conditions, for any organization, and particularly for a bank, the ability to adapt to changes is essential. Those that fail to change will gradually lose their competitiveness and, eventually, their ability to remain viable.

There is another simple reason behind this uncertainty: rapidly changing customer expectations. I have already had the opportunity to share my approach with both the staff and the management team, and my message remains the same: we must remain customer-centric, focus on understanding our customers’ needs and meet them in the best possible way.

This means going beyond standard, traditional products and services and adopting a more tailored approach identifying the specific needs of each customer.

-You completed advanced studies at The Fletcher School of Law and Diplomacy at Tufts University. Should we assume that the diplomatic skills you acquired there will contribute to your role in banking, particularly in fostering effective teamwork?

– While education plays a vital role in building managerial capabilities, modern organizations require more than technical expertise. Today’s leaders are expected to provide vision, influence outcomes, and guide organizations through constant change rather than simply perform functional roles.

In this regard, it is important to work effectively with staff, understand interpersonal dynamics, and navigate conflicts in a way that serves the best interests of the organization. At the same time, it is important to encourage employees to view challenges from new perspectives, support their personal and professional development, help them see change as an opportunity for growth and new challenges, while recognizing that the risk of making mistakes is a natural part of the process.  

I believe all of this reflects best international practice in management. And when we speak of a technologically advanced bank, such rapid changes will inevitably bring a degree of uncertainty. In such an environment, success will belong to those who are not afraid to experiment with new ideas, continuously learn, and acquire new knowledge along the way.

– What is your view of leadership, and do you consider yourself a leader?

– I believe in the power of dialogue, the courage to pursue new ideas, and the ability to challenge conventional thinking. My goal is to nurture or help uncover these qualities in every employee.

From this perspective, I believe that everyone should lead in their own role: willing to embrace new ideas, operate in uncertainty, and, why not, not be afraid of making mistakes.

These are the core principles that guide me personally, and naturally, these are the qualities I encourage and value in every member of the team.

– Do you share the view that widespread digitalization is increasingly blurring the boundaries between work and personal life, thereby disrupting the balance between work and family?

– This is one of the key challenges of our time, and it is essential that this transformation be managed in a conscious and responsible manner. Technology should support our work, rather than dictate how we live and work.

Let me give a simple example: before going on vacation, almost all of us tend to write in group chats that we are “available.” In other words, the culture of constant availability is already blurring the boundary between work and personal life. I do not believe that the notion of “being a good employee means being available at all times” serves the best interests of either organizations or employees. Of course, I am not referring to exceptional situations. In urgent cases, we can always respond when necessary. But being continuously available at night, during evenings, or while on vacation is a different matter altogether.

In this regard, one of a leader’s key responsibilities is to organize work in a way that ensures continuity of operations and effective delegation and backup arrangements. At the same time, it is important to understand employees’ needs outside of work and create opportunities for them to meet those needs. 

Therefore, while the challenge exists, it is important to manage it in a way that ensures technology works for us, rather than the other way around.

- Artificial intelligence (AI) has become one of the most trending topics of our time. What is your view on the integration of AI in the banking sector, also taking into account your experience in digital finance?

- Artificial intelligence has already become part of our everyday lives, and the financial sector is no exception. AI is already embedded in financial services, ranging from customer support solutions such as standard Q&A chatbots to advanced analytical platforms.

In this regard, there are two important issues that require attention. The first is data quality, which is a critical factor, as it remains an unresolved issue both locally and globally. Data governance plays a key role in enabling the effective deployment of artificial intelligence models based on reliable and high-quality data.

On the other hand, the role of artificial intelligence should not be overestimated. I often emphasize the “artificial” component here. It is not a substitute for human intelligence. In other words, AI is primarily about overcoming human physical and analytical limitations, enabling us to work faster and more effectively, as well as enhancing our ability to identify patterns and work with large volumes of data. However, the creative component—the element that distinguishes humans from machines—has not yet been replicated and, in my view, is unlikely to be fully replicated for a very long time, if ever.

- How can companies move forward amid ongoing challenges?

- Perhaps one of the greatest challenges today is uncertainty. In the past, it was possible to plan three years ahead, and crises were considered exceptions. Today, however, we are moving from one crisis to another. This should also be viewed in an international context, as these developments have a significant impact on the financial world.

Therefore, one of the key prerequisites for moving forward is a commitment to continuous improvement. The ability to operate effectively under uncertainty, maintain flexibility, and apply non-linear thinking are equally important.

- Money either rules its owner or serves them. How would you comment on this statement?

- I don’t fully share this statement. Just as you need a hammer to drive a nail, money is necessary to achieve certain goals. If a person allows money to become an end in itself rather than a means, I cannot accept that perspective, although, unfortunately, we do sometimes witness such cases.

In my view, money, like any tool, has its own role and purpose, whether you carry out projects or achieve objectives. However, it should never dictate how you behave.

I believe this principle and clear distinction should be accepted as a guiding foundation.

- Outside of work, everyone has activities that help them recharge and regain energy. What about you?

- I don't think I would differ much from others in this regard. Family is undoubtedly an important place where one can step away from the daily work routine and be in a calmer, more emotionally positive space.

Traveling is also very important to me as a way to recharge. It allows me to engage with different cultures and continuously discover new perspectives.

I am also passionate about reading, especially books on personal development. I particularly enjoy Adam Grant’s works. I also often find insightful analyses and thought-provoking materials on personal development in the top 10 bestseller lists of The New York Times and The Wall Street Journal.

- Mr. Abrahamyan, within this interview you also have the opportunity to address the employees and customers of AraratBank. 

- I have already had the opportunity to address our employees (laughs, ed.). Thanks to technology, we now have communication tools that allow us to interact with every employee, and each employee also has the opportunity to reach out to me directly. I have already shared my vision and key principles with the team, and I am already receiving valuable feedback. This is an ongoing process, where we grow by learning from one another.

In short, the main idea is that everyone has their place and role in the organization’s development, and every initiative is welcome, as ideas can emerge at any level.

As for the Bank’s customers, it is important for me to ensure that every customer’s voice is heard - whether it comes in the form of feedback, a complaint, or an idea for improvement. 

Customer-centricity will remain a cornerstone of our strategy, and in this regard, the development and delivery of personalized financial services is one of our top priorities.

Arpi Jilavyan

Photos: Emin Aristakesyan