New Development Strategy, Green Finance and Effective Communication: Successful Collaboration between AREGAK and DSIK in Armenia
February 2024
In 2023, AREGAK universal credit organization faced a transformative year, marked by its acquisition of SEF International, one of Armenia's largest credit institutions. This acquisition was a significant event for Armenia’s financial market and an important and promising step for AREGAK. However, this move brought forth a series of challenges, particularly in effectively communicating to employees, clients, and the public. In navigating these challenges, AREGAK found invaluable support from Deutsche Sparkassenstiftung für Internationale Kooperation (DSIK).
AREGAK's strategic partnership with DSIK began in 2021, after the two organizations identified their similar mission, vision and areas of interest. Having participated in training programs organized by DSIK through the Association of Credit Organizations of Armenia, AREGAK was familiar with the capacity and expertise DSIK could offer.
‘We expected a lot from the collaboration with DSIK, but we received even more’
In 2006, AREGAK, originally a microcredit program of the Armenian branch of UMCOR (United Methodist Committee on Relief), was registered as a universal credit organization supervised by the Central Bank. The organization primarily focuses on agricultural loans, with services available through 30 branches and 6 representative offices in over 900 communities in Armenia.
‘Our vision is to be a dynamically developing and responsible financial organization that supports the population and businesses by providing affordable financial services, constantly expanding the network of branches, offering products that meet our customers’ needs, and modernizing and digitizing our services,’ says Mariam Yesayan, the CEO.
‘We expected a lot from the collaboration with DSIK. It’s one thing when a newly established organization is seeking for technical support, and another thing when it’s an organization with over 25 years of experience. But I must say that we received even more than we expected. And this is not just a compliment.’
Mariam Yesayan describes the previous years as highly productive, highlighting collaboration in two directions: working on a new development strategy for AREGAK and laying the foundation for the organization’s capacity in the field of green finance. ‘In both cases, highly qualified professionals from German Sparkassen worked with us. They visited us, a lot of work was done right on site, we had very useful workshops. DSIK conducted an external assessment of our organization’s work, helping us understand what was effective and what needed to be changed or improved.’
Regarding green finance, trainings were organized for employees at various levels, enabling AREGAK to assess the ecological impact of its activities and incorporate good practices into formal policies.
‘Uniting two operating financial organizations is not an easy task’
In 2023, the collaboration between AREGAK and DSIK marked a new phase. AREGAK's focus shifted to the intricate process of acquiring SEF International. How to ensure that an approximate number of 35,000 clients were thoroughly informed about the acquisition and its implications? Managing public perception and client expectations became paramount.
Mariam Yesayan emphasizes, ‘Uniting two operating financial organizations without interrupting their operations is not an easy task. Communication is critical for such a huge project. We wanted to ensure that the clients understood what was happening.’ DSIK played a pivotal role during this period. In a four-day workshop at AREGAK, DSIK’s regional coordinator supported department heads from AREGAK and SEF International to elaborate a detailed communication plan.
The CEO notes that this plan helped to avoid stressful situations, communicate AREGAK’s vision and plans for the future. It ensures a positive public response. ‘Thanks to competent communication, we expect that the number of our clients will increase,’ she says. ‘They can rely on modern financial services and an expanded geographical scope.’
‘The biggest room is the room for improvement’
Mariam Yesayan anticipates a continued collaboration between AREGAK and DSIK in 2024, featuring a range of mutual plans. Retaining clients and attracting new ones is an important strategic goal, necessitating a deep understanding of their needs and expectations. In collaboration with DSIK, AREGAK prepares an extensive market survey to assess client needs. Plans also include the expansion of cooperation with DSIK in developing green finance products and strategies.
Reflecting on her career, Mariam Yesayan notes, "I have communicated and collaborated with numerous experts. Working with DSIK’s experts is a special pleasure. We genuinely speak the same language, even though we are Armenians, and they are Germans. DSIK always strives to ensure that every project satisfies the partner organization's requirements. Nothing should be done just for show; everything should be executed at the highest level. Each joint activity becomes a stepping stone for a deeper understanding and paves the way for more productive future endeavors."
