'Bank branches are key for promoting financial literacy among mass people'

Photo: Courtesy

Branch is the center point of banking from where customers get all services. Branch officials are those who maintain relationship with the valued customers. How branch network can add more value to the customers?

Due to 'Trust factor', "Gen X", who make up 42% of the population with higher incomes, prefer physical banking services. Physical banking services get preference in complex transactions that are handled by branches. I believe, bank branches-particularly in developing economy like Bangladesh, will go a long way if they can utilize digital technology for delivering the contemporary services and improve CX (Customer Experience). Branches will continue to be a crucial part of the customer journey of a Bank.

How branches are contributing to financial inclusion as branch has expanded to the nook and corner of the country?

Even though many banks are emphasizing digitalization of services to grow business, a large proportion of the population is still not financially or digitally literate. While it would be efficient to be able to cater to them digitally, the initial penetration into the unbanked segment can only be done effectively using physical channels.

Around 11 thousand Bank Branches are there with 50-50 urban rural ratio that serves 15 thousand populations from a Branch. 20 thousand Agent Banking outlets and three lac plus MFS agents are giving financial services too. All these financial hubs have direct or indirect influence on the inclusive development agenda of the country that are supported by bank branches.

Bangladesh Bank and different development organizations have been initiating financial inclusion schemes and education programs. The activities are mostly rolled out from bank branches covering the nation with a wide network.

How branch banking can create awareness about financial literacy and financial management and importance of savings among mass people?

Up until recently, there was no large concerted approach to promoting financial literacy, except from sporadic initiatives from a few organizations. Although Bangladesh Bank's school banking effort has been there for some time, it has recently received new life thanks to a practical orientation strategy for schoolchildren using bank accounts. Education institutions and commercial bank branches are leading this campaign.

Life cycle oriented financial solutions from banks are crucial to increasing the country's current gross savings rate of 36%. People will be able to manage their finances and save money more effectively as a result of such products. Bancassurance will be essential in creating the kinds of propositions that will contribute to the advancement of the mass population.

How a bank branch can help at the time of critical situations?

A branch officer has close bonds with the clients they serve. Customers always want to speak with the relationship officer during stressful situations and effective communication is necessary to handling the circumstances. By utilizing the connection, the branch officer can reassure the customer about the strengths of their bank and encourage them to keep their money. Apart from crisis management, motivating customers to send money through official channels, a branch officer's job is critical.

How branch banking is evolving in the age of digital banking?  How BRAC Bank is adopting digital banking for customer convenience in branch?

Customers really like to make the most favorable decision, and they will select the bank that shows its expertise to provide "High Touch with High Tech" solutions. Digital alternatives have supplemented branch banking's drawbacks and made banking services accessible around-the-clock. Transparency, compliance, speed, and ease of doing business in the economy are being steered by the digitalization of the banking infrastructure and branches are evolving with this pattern.

There is a long-term digital roadmap for Brac Bank. Brac Bank has developed a set of integrated action items to fully digitalize full-scale banking activities, indicating the bank's preparation for the future. Instead of confining to a small number of apps or applications, Brac Bank constantly searches for opportunities to automate manual operations that must result in one of the following: Better CX, more control, lower costs, or higher P/L or B/S growth.

In the process, shifting Bank's staff members' perspective is also taken care of. Carefully designed KPI and digital training ensure that staff members are tech-savvy and ready to embrace the changes. BRAC Bank, in my opinion, is moving in the right direction towards a productive digital transformation.

Has the pandemic changed the way branches catered service to the customers?

Obviously it did. COVID-19 has sped up the digital transition, especially with a setting where we were kind of forced to adopt new behaviors. Instead of using physical transactions, people now use digital ones. Therefore, branches are more concerned with fostering client relationships and providing them with financial advisory services.

Alongside branch, the customers now have option of availing banking services from Sub-Branch, Agent Banking, MFS. How this has changed branch network and what is its implication?

Sub-Branches are essentially branches that are managed by a full-fledged bank branch. On the other hand, Agent Banking locations are supervised by a branch too. MFS agents have a significant impact on how simple it is for marginalized people to access money. Only with the assistance of Bank Branches each of the distinct verticals (Sub-Branch/Agent/MFS) can be run. Consider the provision of cash services. Every alternative delivery channels will struggle to function without this one service ensured by the branches. Therefore, Branch's function will be essential to the financial industry's future development as long as fiat currency is around and will aid in the creation of innovative channels.

What role branches can play in promoting women banking?

Focused initiatives for women banking with the schedule banks has been launched by Bangladesh Bank. Bank branches have a specific responsibility to play in promoting women's banking by setting up a dedicated desk for them and educating at least three female entrepreneurs whereas on will receive a loan from the branch. In addition to the regulatory duties, branches hold seminars and training sessions to increase the capacity of women entrepreneurs and teach them the fundamentals of business management and financing. Few banks, including BRAC Bank, have departments specifically focused on the specific needs of the women segment. They have been pushing the market through its branches to meet financing needs in cooperation with other partners.

What will be your advice for the young bankers for their career development?

My advice to the young bankers would be:

1. Have at least one quality that will differentiate you from the crowd. The list can start with even from 'wearing good attire', 'attending meetings on time' and 'be a good listener'.
2. Select your fraternity with productive people who can add value to your career
3. Have a role model for your career and try to develop the qualities required for you
4. Be futuristic and not be short-sighted.