Pubali Bank Limited aspires to be a leading technology-driven financial institution within this year by offering its customers services that would go with the spirit of 4IR (Fourth Industrial Revolution).
Established in 1959, the country's largest private commercial bank in terms of its network has already procured 4IR-supported infrastructure of Oracle to introduce easier, faster and the most convenient services.
"It's a part of our continuous and intensified focus in embracing latest technology to make the bank a globally competitive one," managing director and chief executive officer of the bank Mohammad Ali told the FE in an exclusive interview recently.
"Now our main target is to convert all our banking activities into 4IR-based ones."
The bank has formed a 4IR preparedness committee to look after the proceedings.
Under the initiative, the bank has taken four projects - a complete payment modality through e-KYC in integration with the bank's dedicated mobile apps, consumers' loan-related application and approval facility, developing content to facilitate corporate loan proposal renewal and enhancement, and LC (letter of credit)-related services for the corporate houses.
"We're expecting these projects to be completed within the next three months. Initially, we'll start on a small scale and all aspects of banking will gradually come under the purview of the latest technology," said the MD.
The bank wants to create a complete virtual ecosystem - the banking system would become branchless with less human interaction while their clients would perform banking activities on their own.
The infrastructure includes artificial intelligence, data mining and warehouses. The bank will make a wallet account system that would be available in their dedicated apps 'PI Banking'.
Once opening the account, the clients will be able to enjoy services like fund transfer, add money, merchant payment, send money and many more.
"Opening this wallet, people will not only get all privileges of branch banking but also their personal income, expenditure and wealth management," Mr Ali said. "It will help ensure instant delivery of services."
Simultaneously, he added, the customers can submit loan requests without visiting any branch. For instance, if someone is interested in getting funds for buying a flat, the client would submit a request and in response the bank will seek necessary particulars like location, size and income statement.
The bank's system will have location-wise rough pricing of apartments. Once the information is given virtually, the bank authorities will consider the information authentic before placing those in artificial intelligence (AI) and the AI will tell them how much loan the loan-seeking individual can get based on the information.
Then the bank's relationship officer will make an appointment for meeting the client in his/her place to collect required documents, counter-checking the original ones.
"Our relationship officers will be empowering enough to issue the letter of disbursement from the spot once everything is matched. So, the clients don't need to visit the branch," said the bank's top executive, adding that the major concern of the banking system is reducing the operational costs.
"If we can do it, we will be able to offer loans and advances at lower rates. This will give us the competitive advantage. So, we need to adopt technological advantages. We will make a team of 300 technologically-sound people who will be assigned to deal with the technology-driven banking services," he said.
Giving an example, he said the size of the portfolio of the bank was Tk 8.50 billion during its privatisation in 1984 when around 9,000 people were working. By now, the bank's portfolio rose to Tk.720 billion but its manpower remains the same.
"It is possible only because of technology. Our target is to provide more robust services with the same expenses," said Mr Ali.
Talking about the existing lending rate ceiling, he said the rate in developed economies range between 6.0 per cent and 7.0 per cent. "We need to reach that level if we really want to be a developed economy. We will not be able to achieve it unless and until we take technological advantage."
The bank initially emerged in the banking landscape of the then East Pakistan as Eastern Mercantile Bank Limited at the initiative of some Bangalee entrepreneurs in 1959 for providing credit to the Bangalee entrepreneurs who had limited access to credit in those days from other financial institutions.
After the independence of Bangladesh, the bank was nationalised in 1972 under the name of Pubali Bank. Later it was denationalised in 1983 as a private bank and renamed as Pubali Bank Limited.
Now Pubali Bank becomes the largest private commercial bank in Bangladesh in terms of branch networking. It is providing its banking services across the country through 498 branches, 132 sub-branches and 17 Islamic windows.
Its deposit portfolio rose to over Tk.511 billion until the immediate past calendar year of 2022. In terms of sector-wise loans and advances, trade and commerce accounted for 17.81 per cent of its total loan, followed by textile (10.13 per cent), readymade garment (7.29 per cent) and food and allied (6.68 per cent).
The bank's classified loans came down to 2.41 per cent thanks to its dedication towards customer services and upholding corporate governance and compliance with all aspects in the banking sector.
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