Meghna Bank to introduce chip-based mobile banking

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Siddique Islam | Published: May 09, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

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Privately-owned Meghna Bank is set to introduce chip card-based mobile financial services for the first time in Bangladesh by July this year, the bank's top executive said.
"We're now working to introduce the card-based (EMV-enabled) mobile financial services shortly  draw more unbanked people into the banking network," Mohammed Nurul Amin, managing director and chief executive officer (CEO) of the fourth generation bank, told the FE in an exclusive interview Sunday just a day before the bank's third anniversary.
On May 9, 2013, the bank commenced its commercial operation towards materialising its mission: "To be among the best financial service provider in the industry by ensuring complete customer satisfaction through the application of technology and professionalism."
Such mobile financial services will be more secure and cheaper, according to the CEO.
He also said Meghna Bank has already launched VISA-branded debit and credit cards in order to compete in the digital world.
The new private commercial bank (PCB) has also installed several ATMs (Automated Teller Machine) throughout the country, including rural Shathibari - for providing outreach services to its customers, the CEO added.
"We've planned to open 10 new branches in different parts of the country by the end of December 31 this year," Mr. Amin said.
Currently, Meghna is running its businesses with 26 branches across the country.
The CEO also said the bank has been trying to meet the financial needs of present and potential customers through introducing various financial products and services in all the segments of banking since its inception.
"We're investing in different sectors and services including SME, agriculture and retail banking to help achieve maximum economic growth of the country," he explained.
He also said Meghna Bank has a specific loan product for women entrepreneurs-branded as NABARUPA. "In order to encourage savings by women-a value packed savings account for women has been introduced, which is branded as SREYOSHI."
The bank's overall performance is improving gradually despite tough competition in the banking sector, according to the CEO.
"Our net profit rose to more than Tk 317 million in 2015 from Tk 20 million a year ago," Mr. Amin noted.
Total loan portfolio of the Meghna Bank rose to Tk 14.38 billion in 2015 from only Tk 7.19 billion of the previous calendar year, while total deposits reached at Tk 16.07 billion from Tk 8.95 billion.
"In 2016, we are looking forward to sustainable growth and success. As we say, ensuring all sorts of compliances, we are ready to contribute and move forward with a slogan 'Service above and beyond' and take Meghna Bank to a position where it should belong."
Mr. Amin, also former chairman of the Association of Bankers, Bangladesh (ABB), talked about the latest performance on nine new PCBs, saying that the new banks are enhancing their businesses gradually across the country despite some limitations.
"We're now boosting our businesses taking the advantage of cost-free paid up capital and free from the burden of non-performing loans (NPLs)," he explained.
The new banks get a minimum of Tk 4.0 billion to a maximum Tk 4.50 billion as paid up capital as part of regulatory requirement for running their banks, he added. "It's an advantage of the new PCBs."
He also indentified excess liquidity and rising trend of NPLs as the main problems in the banking sector.
The former ABB chief urged the regulators to monitor the overall activities of all banks, particularly new ones closely to ensure good governance. "The bankers will have to improve their internal control and compliance (ICC) for ensuring safety and soundness in the country's banking sector," he said.
Mr. Amin, also chairman of the BAFEDA (Bangladesh Foreign Exchange Dealers' Association), urged the regulators to take policy measures considering the interests of exporters, importers and remitters. "We're now doing foreign exchange business under a managed floating regime."   
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