Working with the WZEB, Visa will stimulate UMBAs, women's empowerment, and digital payments in Armenia

Banks.am's exclusive interview with Visa regional manager Diana Kiguradze in the Caucasus about the signing of the agreement with the WZEB.

- What are the main outcomes of this agreement that will affect Armenia's digital future?

- We expect this partnership to benefit Armenian society, not just our partners and customers, but also the country, stimulating economic progress. The memorandum of understanding focuses on our overall strategic sphere on UMBAs, stimulating economic and financial inclusion, and developing infrastructure and the public sector.

In this partnership, we will share knowledge and experience to develop financial literacy, to help digitize less advanced businesses, communities, districts and sectors, as well as promote service digitization, including GovTech and public transport.

We strive to accelerate the digital transformation and sustainable and inclusive economic growth of Armenia and other countries in the WZEB region.

- Visa is working with the WZEB to strengthen and promote women's entrepreneurship through the She's Next Powered by Visa.

- In Visa, we believe in the development of inclusive economies where all communities can contribute equally and maximize their potential. The world bank's latest report shows a steady gap in opportunities between women and men in all countries, which, if bridged, can increase global GDP by 20 percent.

Small and medium-sized enterprises, which make up about 90 percent of the global business and more than 50 percent of employment, In developing countries such as Armenia, their division can reach 40 percent in the country's GDP. This statistic emphasizes the importance of supporting UMBAs, especially women-owned companies. The initiative, She's Next Empowered by Visa. This campaign, launched in 2019, has had an important significance with the knowledge needed by thousands of female entrepreneurs, in terms of arming skills as well as making investments available.

Because of the empowerment of women at the core of the memorandum, the partnership between Visa and WZEB will greatly increase our efforts to help Armenian female entrepreneurs. In March, marking the launch of our partnership, Visa and WZEB held a panel discussion entitled "Women in Armenia's Business" in Armenia, which focused on women's participation in the country's economy.

Based on WZEB's extensive experience in investing in emerging markets, accompanied by payment technology and UMBA needs Visa with experience, we aim to support Armenian female entrepreneurs in the acquisition of digital and financial literacy and financing that is necessary to start their businesses, to work and develop.

- How will cooperation between such prominent organizations contribute to the process?

- Digital transformation is a priority for Visa in all its presence markets Together with WZEB, our partnership aims to provide digital enhancement for small and medium-sized businesses. We expect digital payments to revolutionize opportunities for UMBAs to make and receive payments, reach new markets, and grow. Statistics show that digitization contributes not only to economic transparency, According to a global study conducted in 2021, the wider spread of electronic transactions increased real GDP by $245 billion between 2015 and 2019.

Every 1% increase in the use of bank cards in the 70 countries and territories studied has led to an increase of about $67 billion a year in consumption of goods and services. As of 2024, Armenia's non-formal economy is estimated to be approximately 39 percent, equivalent to approximately $27 billion in GDP, the potential for economic growth is significant.

GovTech and the infrastructure of intelligent cities will be the other main areas of our partnership. This includes efficient and transparent maintenance incentives for electronic payments, as well as through the investment of digital solutions to the public transport route.

I am confident that this government-private partnership will significantly accelerate Armenia's digital transformation. The public sector gives confidence to this initiative, while private provides progress through technology and testing.

- Given Visa's significant role in the development of Armenia's unconditional and digital economy, Can you mention areas or strategies that Visa currently focuses on in Armenia?

- For more than two decades, Visa played an important role in Armenia. It played a key role in promoting payment innovation and digital transformation. our commitment to stimulating financial inclusion in Armenia remains unchanged. Significantly, Visa has surpassed its 2020 goal of digitally empowering 50 million small and medium-sized enterprises worldwide, to 67 million. Moreover, we pay strategic attention to the empowerment of women and UMBAs.

With the launch of the She's Next campaign, we aim to further expand our efforts to arm Armenian female entrepreneurs with the necessary tools and skills. with the government and the Central Bank, paving the way for an unconditional future of Armenia.