Mohammed Monirul Moula Islami Bank Bangladesh Limited (IBBL) has planned to launch full digitisation using the latest financial technology (FinTech) within the next five years, the bank's top executive said.
"We want to be a 100 per cent digital bank within the next five years," Mohammed Monirul Moula, managing director (MD) and chief executive officer (CEO) of IBBL, disclosed while sharing his future business strategies in an exclusive interview with the Financial Express (FE) on Tuesday just one day before the bank's stepping into 40 years.
IBBL started its journey on March 30, 1983 aiming to ensure equality and justice in all economic activities for achieving a sustainable and balanced growth and equitable socio-economic development of Bangladesh.
FinTech is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services using smartphones or internet.
As part of the strategies, the country's leading private commercial bank (PCB) has introduced different FinTech-based services including CellFin recently to attract a major segment of people, whose age limit are ranging between 18 and 40 years.
"Our board has given necessary approvals to procure both hardware and software as early as possible for developing information and communications technology (ICT) infrastructure," the CEO said while explaining the latest initiatives of the bank.
The Shariah-based bank has also taken initiatives to upgrade its core banking software (CBS) aiming to provide world-class services to the clients.
IBBL is also working to ensure its cyber security, according to Mr Moula, who obtained a post-graduate degree from the University of Chittagong.
He has been serving as MD & CEO of IBBL since January 2021. He embraces a long banking career with multidimensional capacities since his joining in the Sharia-based leading bank on March 06, 1986.
"IBBL has already emerged as a systematically important bank of Bangladesh," the CEO said while describing the achievements in the last 40 years of the bank.
The CEO also said IBBL is now the largest bank in Bangladesh considering all the parameters.
Bahrain-based the General Council for Islamic Banks and Financial Institutions (CIBAFI) has already awarded IBBL as the world's best Islamic bank.
"It's a big achievement for us," the CEO said, adding that such recognition helped IBBL to improve its image globally.
IBBL has once again secured its position for the last ten consecutive years as the only bank of Bangladesh in the list of the world's best 1000 banks.
In 2012, IBBL became the first bank of the country to be included in the list of the world's best banks.
Besides, IBBL has already secured its top position among ten banks on sustainable rating of the central bank of Bangladesh, the CEO added.
"We're also trying to convert IBBL into a FinTech-based world ranking bank in terms of compliance, products and services in the near future from the existing level," Mr Moula said while replying to a query.
Replying to another query, the CEO said quality human assets, technology-based advancement and good corporate governance have been IBBL's focus since its inception.
The senior banker also spoke on different issues including the possible flow of inward remittances and new investment opportunities particularly for Islamic banks of Bangladesh.
The CEO expected that the inflow of remittance will increase in the coming months ahead of the Holy Ramadan and the Eid-ul-Fitr festival.
"The remitters may encourage further remitting their hard-earned money through official channels as the government has increased the incentive for remittance receipts," Mr. Moula predicted.
The government has already raised the cash incentive on inward remittance to 2.5 per cent from 2.0 per cent earlier, aiming to encourage the remitters for sending their money through official channels instead of the illegal "hundi" system.
Effective from January 01 this calendar year, the new rate is a New Year's gift to the remitters from the Prime Minister, according to a statement issued by the finance ministry earlier.
IBBL secured the number one position on collection of inward remittances since 2009 following dedication of top management as well as widening networks both domestic and globally.
The senior banker also urged the authorities concerned to issue more Sukuk bonds to bring dynamism in the country's Islamic financial market.
"We'll invest a portion of our excess liquidity in the upcoming Sukuk bonds," the CEO said while replying to a query relating to fresh investment of the bank's excess fund.
The central bank is now working to issue Istisna Sukuk instead of Ijarah Sukuk to raise another Tk 50 billion shortly for financing in a rural infrastructure development project.
Sukuk is an Islamic financial certificate, similar to a treasury bond and structured to generate returns in compliance with Islamic finance principles.
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