Mercantile Bank beefs up digital platforms

Mercantile Bank Ltd (MBL) has taken a set of initiatives to widen its businesses by way of strengthening its different digital platforms, sidestepping the ongoing business slowdown caused by the coronavirus pandemic.

The third generation bank has already implemented some of its long-term goals amid the ongoing crisis, which has fortified its confidence to materialise the rest, said Md Quamrul Islam Chowdhury, managing director of the lender.

Its strong financial base along with confidence has given an additional boost to the bank to celebrate its 22nd anniversary today.

MBL has been adopting concerted efforts to serve its clients during the pandemic, he said in an interview with The Daily Star.

DS: What are the plans the bank has to widen its banking services in the days ahead?

Chowdhury: The bank's main business plan is to concentrate on sustainable long-term growth of business, better deposit mix, improving the quality of assets and rationalising operating cost.

On top of that, it will improve operational efficiency and productivity of resources, ensure better and faster customer service and offer a number of new products in the field of retail banking, SME financing and card services.

DS: What are the crore strengths of the bank in doing business?

Chowdhury: "Efficiency is our strength" with this slogan, MBL started its journey in June 1999.

From the beginning, the bank has created a credible brand impression and achieved its customers trust and loyalty.

The bank has a corporate mission that is bigger than just making profit through bringing a positive impact on society.

It will help MBL face any challenges like this pandemic or other disaster.

DS: What are the major achievements of the bank during its journey?

Chowdhury: MBL is rated by international credit rating agency Moody's, which reflects the bank's good profitability, modest asset quality and solvency profile.

The bank serves a large customer base comprising individuals and institutions through a network of 150 branches supplemented by 186 ATM booths and 20 cash deposit machines.

The initiatives are helping unbanked and under banked section of the society to enjoy financial services smoothly.

In addition to providing all ranges of banking services, MBL is also providing other services through its four subsidiary companies, two offshore banking units, internet banking and mobile banking.

MBL has started its agent banking and 'Islamic Banking Window Operation' in the name of Taqwa.

Mercantile Bank Foundation (MBF) has begun operations in 2000 with a view to enforce Bangladesh Bank's guidelines for carrying out broader corporate social responsibility (CSR) activity through the Foundation.

MBF has been undertaking a range of activities over the past 21 years with the sole purpose of helping its target people improve the quality of life.

MBL has been awarded various times by the Institute of Chartered Accountants of Bangladesh (ICAB) for best presented annual reports, which testifies to our commitment for promoting transparency.

DS: Could you share some of your digital initiatives to attract tech savvy youths?

Chowdhury: The bank has already taken different steps to serve tech savvy clients and it will roll out different products to this end in the days to come. We are continuously putting due emphasis on strengthening our IT platform.

We recently launched a digital platform named 'MBL Rainbow', which would make banking more customer friendly and digitalised, which is in the line with the country's goal of becoming 'Digital Bangladesh'.

DS: What are your next plans to give a boost to both retail and wholesale banking?

Chowdhury: We have already taken many initiatives to boost both retail and wholesale banking.

The bank has made a separate wing named 'Liability Sales Wing' which consists of a total of 150 trained members, who are attached with different branches across the country; hunting current account and savings account (CASA) from individual customers.

DS: Will you continue your branch-led banking model in the future as many global lenders now shy away from the model riding on the technology based banking means?

Chowdhury: From the beginning, MBL has adopted modern technologies to provide fast track customer-centric services to clients.

We have introduced on-line real time banking services to our clients through our ATM booths across the country.

The lender has recently launched internet banking service 'MBL Rainbow', which would bring banking services to customers' door steps.

We have a plan to continue both branch banking and on-line technology based banking simultaneously.

DS: Is there any possibility to escalate default loans in the bank in the coming months due to ongoing business slowdown?

Chowdhury: The bank always focuses on providing maximum returns while ensuring sustainability. It has registered a profit that is competitive, built a strong base for itself for any future turmoil, improved its' capital base at a level which is quite higher than required by the regulators.

So, despite the tough situations posed, we hope that there is no possibility to escalate default loans in the coming months.

Loans and advances of MBL increased to Tk 24,899 crore in 2020 from Tk 23,689 crore in 2019, marking a 5.11 per cent increase from last year.

In spite of the increase in loan, the ratio of non-performing loans decreased to 4.72 per cent in 2020 from 4.86 per cent a year ago.

DS: What are the major challenges for the country's banking sector for this year?

Chowdhury: Our banking industry is facing unprecedented challenges in managing the ever-bulging defaulted loans. The pandemic has slowed down the country's overall business activities.

But, the government and the central bank undertook a range of coordinated fiscal, monetary, and macro-prudential policy actions, which included stimulus packages and easy credit availability in order to cushion Bangladesh's economy from the pandemic fallout.

The overriding objectives of these policy measures are to minimise the negative impacts of the pandemic and to bring economic activities back to the pre-Covid-19 level.

These policy measures are expected to make financing conditions easy for investors, entrepreneurs, and corporate bodies who now can access more favourable financing sources to resume their business in full swing.