BRAC Bank has become the largest in the Bangladesh banking sector in Consumer Loans

 We have learnt that BRAC Bank has become the largest in the Bangladesh banking sector in Consumer Loans (including credit cards), crossing the milestone of BDT 10,000 crore. What was the secret behind its success, and what was its strategy?

Achieving a BDT 10,000 crore portfolio in Consumer Loans marks a significant milestone for BRAC Bank—especially in a competitive sector with over 60 banks.

This achievement reflects our customer-centric product offerings, robust digital capabilities, and strength of human resources. BRAC Bank offers a comprehensive suite of Consumer Loan products encompassing personal loans, car loans, home loans and credit cards with innovative features and faster processing time. Specialized banking services tailored to various customer segments—such as 'TARA' for financial inclusion of female clients, 'Kalyan' for doctors, 'Dishari' for teachers, 'Agami' for students and strong focus on Employee Banking (payroll) clients—have contributed to our consumer loan growth.

Additionally, 'Instant Loan', our flagship digital personal loan has significantly contributed to business traction as more than 36,000 Instant loans have been disbursed till date. Customers can avail this loan through the loan processing platform of Astha app (BRAC Bank's online banking app), within just a few minutes.

Besides our digital facilities, our strong distribution channel comprising 189 branches, 74 sub-branches, 1,114 agent banking outlets, 446 SME units and a team of 700+ sales personnel throughout Bangladesh enabled us to maximize our Consumer Loan acquisition and portfolio. 

On the deposit side, Retail Banking crossed BDT 30,000 crore in 2024. What has played a role in this deposit growth, and how do you maintain the stickiness of Retail deposits?

Our relentless focus on customer-centric digital banking solutions, and the continuous expansion of our distribution channels have significantly contributed to our deposit growth. Notably, our branches have played a pivotal role, contributing the lion's share of retail deposit accumulation.

Besides, we have extended our deposit services across multiple alternate delivery channels—agent banking outlets, ATMs, online banking (Astha app), and call centre—providing customers with seamless omnichannel experience. Our digital account opening platform 'e-KYC' and a variety of deposit related services through Astha app have enabled customers to avail deposit solutions conveniently in minutes. So far, nearly 150,000 accounts have been opened through e-KYC. e-KYC account opening comprises 80% of all retail accounts opened every month. Moreover, we continue to enhance the capabilities of Astha app beyond financial transactions, making it the best lifestyle app in the country.

Our wide array of products and services, seamless services amid challenges in the banking sector, strong international credit ratings, and commitment to good governance make BRAC Bank a trusted institution for safeguarding the hard-earned money of people, leading to continuous acquisition of new-to-bank customers.

How are you leveraging technology to introduce new customer-centric products and elevate the convenience of Retail Banking customers? 

The digital transformation of Retail Banking continues at pace, creating the most significant competitive edge for BRAC Bank. Our Astha app is central to the bank's digital transformation journey. Customers can now open bank accounts in minutes through eKYC and open DPS and FDR accounts digitally through Astha app, making savings simpler and more convenient. Moreover, sole proprietors can open SME accounts and NRB customers can open Probashi accounts through eKYC.

Customers can also avail Instant Personal Loan of up to BDT 5 Lac digitally through Astha app, starting from application till disbursement, within 10 to 15 minutes from anywhere in Bangladesh, all in a few clicks. Soon, we will extend this loan limit to BDT 20 Lac and introduce digital processing of credit cards through this platform.

We have also implemented 'Credit Scorecard' for assessment of Personal Loan applications to enhance efficiency of loan processing, and 'Early Warning System' for signaling potential default risks of customers ahead. We provide automated salary disbursement facility to our Employee Banking customers through the Bank's corporate payment platform, 'CorpNet'. As a customer-centric bank, BRAC Bank is continually exploring new, cutting-edge technology to enhance process efficiency and uplift the convenience of Retail Banking customers.

What traction has your Instant Digital loan achieved so far? What is the customer feedback on Digital Loan?

After an overwhelming response from coworkers and selected Employee Banking customers, BRAC Bank has expanded its Digital Instant Loan facility to all Employee Banking customers. As of now, more than 36,000 loans have been disbursed, and the number continues to grow significantly, which reflects the acceptance of this product among our client base as it champions fast processing and convenience.

The unique aspect of this loan is end-to-end digital processing, giving customers numerous conveniences. This loan facility has significantly reduced the loan processing time and opened a new gateway for the bank to reach many untapped customers who need urgent loans from the comfort of their own homes.

What role does 'Astha' App play in Retail Banking and roping in more customers? What new features are you adding to 'Astha' App?

Astha is key to BRAC Bank's digital transformation journey. It serves more than 9 lac Retail and SME customers through convenient transaction and lifestyle solutions. The average number of monthly transactions reaches as high as 3 million worth BDT 19,000 Crore. The rapid growth of the user base proves how much people love this app and how it has become a part of their lives.

Customers can choose from NPSB, BEFTN, and RTGS options while conveniently transferring funds to other banks without charge. Astha app has set a new precedent in the digital banking landscape by introducing many firsts, including Astha Lifestyle- an iconic feature offering a range of banking and lifestyle services, including entertainment, music, Islamic services, learning, and travel, all accessible in a single platform. Moreover, customers can enjoy Astha cashout without ATM, Digital Rewards, opening and encashment of fixed deposits and DPS, automated statements and certification generation, tax return submission, debit card activation, nominee change, travel quota activation, and many more convenient services.

How can Retail Banking be a part of everyday life, lifestyle and partner in financial well-being?

BRAC Bank offers a wide range of financial and investment products, including Savings accounts, Fixed Deposit Receipts (FDR), Deposit Pension Scheme (DPS), Retail Loans and Credit Cards designed to meet the diverse needs of customers. Whether it is to facilitate a big expenditure, to buy one's dream car or home, customers can empower themselves financially with our loan products and credit cards with exclusive features and benefits.

BRAC Bank's customer-segment specific strategies have taken Retail Banking to greater heights. For instance, our 'TARA' Women Banking is Bangladesh's first dedicated and comprehensive women banking solution to maximize financial inclusion of female customers. Our 'Employee Banking' and 'Premium Banking' propositions offer customized and convenient banking solutions to our payroll customers and high net-worth customers respectively. The solutions include customized deposit and lending products and exclusive ancillary benefits. Non-resident Bangladeshis (NRBs) can fulfill their banking needs through our Probashi Banking.

BRAC Bank's strategic alliances with renowned dining, lifestyle, medical, travel, hotel and many more partners have added significant value to our customers' daily lives through attractive offers and conveniences. The bank also offers life and general insurance services via its Bancassurance partners. With these service offerings, BRAC Bank has become a partner of customers in everyday banking needs and financial well-being.

How is the Retail Banking landscape evolving, and what role does BRAC Bank play in shaping and leading this transformation?

The Retail Banking landscape is rapidly evolving, driven by digital innovation, changing customer expectations, and the push for financial inclusion. Customers now demand seamless, personalized, and accessible banking experiences integrated into their daily lives. In response, banks are becoming more customer-centric every day, offering comprehensive, one-stop solutions for customers. Our Digital Banking App 'Ástha' and Instant Personal Loan are ideal examples of such. Apart from banking services, the customers can avail of entertainment, education, travel, and information all in one app - 'Ástha'.

Besides offering customer-facing digital solutions, BRAC Bank focuses on assisting customers with their banking needs through Relationship Managers (RMs). Customers also demand personalized banking suited to their specific needs, which is addressed by BRAC Bank's customer segment-specific strategies through customized product offerings. 

What is the future roadmap for BRAC Bank's Retail Banking to further advance its leading position in deposits, assets and innovative products and propositions?

BRAC Bank's Retail Banking future roadmap focuses on accelerating digital transformation, relationship-based banking, innovative and customer-centric products and maximization of customers' wallet shares. The bank aims to enhance its digital platforms for convenient experiences while introducing tailored savings schemes, lending solutions, and lifestyle-linked propositions. It is committed to deepening customer engagement to grow deposits and expanding its asset portfolio through customized, risk-managed retail loans, including home, car and personal financing and credit cards.