Quazi Osman Ali Social Islami Bank Limited (SIBL) will expedite digital transformation aiming to provide unique services to its valued customers using modern technologies, the bank's top executive has said.
The second generation private commercial bank (PCB) is now working to establish a robust digital platform for offering worthy banking experience to its clients with the help of the latest financial technology (Fintech) in the near future.
Fintech is the technological innovation that aims to deliver banking services through using smartphones, internet and other modern delivery channels outdating the traditional service delivery in banking.
"We've already taken some initiatives like introduction of opening e-account through our mobile app SIBL NOW as a part of digitalization process," Quazi Osman Ali, managing director (MD) and chief executive officer (CEO) of SIBL, disclosed while sharing his future plans for boosting business activities of the bank in an exclusive interview with the Financial Express (FE) recently.
More measures will be implemented soon to boost the ongoing digital transformation process, the CEO added.
Digital transformation is the process of using digital technologies to create new - or modify existing - business processes, culture, and customer experiences to meet changing business and market requirements.
"We have already started giving approval for some categories of our investment and letter of credit proposals received from the branch level through online to encourage establishment of a paperless banking system as a part of our green banking initiative to save the planet. And gradually we will go for paperless banking in most part of our business activities." Mr. Ali said while explaining the digitization process.
The Shariah-based Islami bank has also immediate plan to introduce opening e-account for non-resident Bangladeshis (NRBs) using their mobile phones, he added.
He also said SIBL has been working towards developing software which will allow clients to receive funds from the cash counter of the branches without necessitating the submission of a cheque.
Under the new technological development, a client will have to scan a QR (quick response) code by using the Bank's mobile app to withdraw funds from the desired account.
"Such system will be launched within December this calendar year," Mr. Ali said while replying to another query.
SIBL has already introduced a two-factor authentication system for all transactions to minimize its cyber security risk, according to the CEO.
"We're committed to provide better services to our valued clients using the latest information and communications technology (ICT) infrastructure in the coming years," the senior banker said ahead of the bank's 25th anniversary.
"Actually, we want to attract depositors by providing quality services to our clients using modern technologies," the CEO explained.
As part of the move, the SIBL provides better services to their existing more than 1.50 million clients who are expected to act as brand ambassadors of the bank in future.
Moreover, SIBL has put emphasis on the expansion of setting up sub-branch as well as agent banking outlets aiming to bring more un-banked people within its network through boosting financial inclusion programmes across the country.
"We've already strengthened our activities of opening sub-branch to reduce our operational cost," the CEO explained.
He also said SIBL has already established 54 sub-branches with major banking facilities excepting foreign trade services and 20 more will be added to the list within this calendar year.
In December 2018, the central bank allowed all the scheduled banks to operate their 'sub-branch' to bring un-banked and underprivileged people under the banking network.
As of September 30, thirty-seven banks have got permission from the Bangladesh Bank (BB) to open sub-branches, and 30 are now running a total of 1,275 sub-branches in rural and industrial areas, according to the central bank's latest statistics.
Besides, the SIBL is now providing agent banking services through its 140 outlets across the country aiming to deliver banking services at the doorsteps of the people of the remotest areas of Bangladesh.
Deposit collection through agent banking jumped significantly in the last three years after Mr. Ali's assuming office of the managing director of the Bank on October 31, 2017.
Currently, collection of low-cost deposits with the agent bank rose to Tk. 2.17 billion from only Tk. 20 million three year ago, according to the CEO. "We will open more agent outlets in the coming months,"
He also said SIBL has also been able to collect more than Tk. 3.0 billion as low-cost or core-deposit from the bank's sub-branches operation.
Besides, SIBL is running microfinance and family empowerment programmes to provide collateral free investment to individuals or groups aiming to bring solvency in the ultra-poor families.
"We've already disbursed worth Tk. 1.80 billion as investment to around 34000 ultra-poor families who had no access to any financial institutions previously," the MD said while responding to another query.
The Shariah-based bank has recently introduced two investment products --ProbashiAgrojatra and ProbasiUddog - to facilitate migrant workers who have been forced to return Bangladesh on being terminated from their jobs due to the ongoing economic hardship.
Under these products facilities, such workers will be allowed to get a maximum investment of Tk. 0.5 million without having to produce collateral and, with a mortgage, Tk. 2.0 million.
"We expect that such products will help generate employment in the country and alleviate the woes of the unemployed expatriate Bangladeshis," the CEO noted.
The SIBL is now working to set up a full-fledged branch in the Saudi Arabian port city Jeddah to collect more remittance from the Middle East country, the hub of remittance for Bangladesh.
The second generation bank earlier submitted an application to the Saudi Arabian Monetary Authority (SAMA) seeking permission to establish a branch in the Kingdom of Saudi Arabia (KSA).
"We're still trying to set up our branch in the KSA," Mr. Ali, a 36-year experienced banker, said while replying to another query.
The senior banker also spoke on different issues including implementation of the government's announced stimulus packages particularly lending to the cottage, micro, small and medium enterprises(CMSMEs) to help revamping recovery of the pandemic-hit economy.
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