White-collar job holders should be target for offshore marketing

White-collar expatriates hold the largest deposits in offshore banking. To significantly increase the collection of foreign funds in our country's offshore banking sector, extensive marketing should target these white-collar job holders.

Our initial focus should be on countries where expatriates can maintain deposits, especially where most of our remittances originate. Campaigns in countries without disposable income will not yield good results. Instead, we need to focus on developing economies with a significant presence of white-collar job holders.

The benefits provided by the country's banks should be prominently highlighted to these individuals.

Simultaneously, we should continuously promote these benefits in regions with high remittance rates. Even if expatriates cannot deposit now, they will be more likely to do so when the opportunity arises.

Super-rich customers typically deposit in offshore banks. I believe that the banks in our country can also attract these super-rich customers, especially if we offer competitive deposit interest rates.

The role of country rating is crucial in securing adequate funding for offshore banking. International credit rating agencies like Moody's, Fitch, and S&P have downgraded Bangladesh's rating. Since foreign institutions rely on these ratings for funding decisions, improving the country rating is essential to popularising offshore banking. In this regard, the government's role is significant.

Now, let me explain why foreigners should consider depositing at Mutual Trust Bank. Firstly, our bank enjoys a strong reputation both domestically and internationally. One of our biggest strengths was demonstrated in 2022 during the dollar crunch when many banks failed to pay import bills. In contrast, our bank faced no import obligations and was even able to pay ahead of schedule.

Liquidity management is another major strength of MTB bank. While many banks in the country struggle with local currency liquidity issues, its Advance Deposit Ratio (ADR) is around 82%. Effective liquidity management is crucial for a bank because it ensures that customers can access their funds when needed, thereby maintaining their trust and confidence.

Infograph: TBS

Our overall bank position is very strong. Investors should first assess the bank's liquidity. Even if a bank excels in various areas, negative cash flow can create concern among customers.

Our customers can conveniently open accounts online. Additionally, we have facilitated account creation for the relatives of non-residents in our country, allowing them to open accounts at any time. We are actively promoting offshore banking through our various networks.

We have recently launched this campaign and are continuing our promotional efforts. Promotion is essential, but it requires time and patience. Building capacity is crucial to ensure that our service meets expectations. If someone wants to open an account from abroad and faces difficulties, their confidence will be affected. Therefore, providing seamless service is paramount to maintaining trust and satisfaction. 

To attract customers, we need to focus on three key areas: First, ensuring the security of the customer's funds and safeguarding all their information. Second, providing the flexibility for customers to access or invest their funds wherever they choose. A bank that excels in these three aspects will attract significant deposits.

Recently, while deposits have decreased in various banks in the country, some banks have seen an increase. It is crucial to provide 100% security for our customers' funds. In offshore banking, most banks offer similar products, so trust becomes the differentiating factor. The more trust a bank earns, the more successful it will be.

Additionally, we should focus on assisting customers who keep their funds in offshore banking with their immigration or transportation needs. The trust we have built domestically will be reflected in our offshore banking services, ensuring that customers feel confident and secure in their choice to bank with us.

The governance of MTB is widely praised. Bangladesh has two banks with international shareholdings, and one of them is MTB. NORFUND holds a 9.7% stake in our bank, and they also have directors on our board. While there are governance concerns with some banks in our country, MTB's governance is very strong.

Our country has the opportunity to bring offshore foreign funds through nine different currencies. MTB will primarily promote the Euro and Dollar. 

It is essential to align these currencies with our needs. However, it would be unwise to bring in a currency with no investment opportunities, as customers need to be able to make payments in any currency at any time.

For example, if we attract a large sum of dollars through offshore banking, we must first create investment opportunities for those funds. Bringing in dollars without the ability to generate profit from them would be detrimental to our bank. Thus, strategic planning and investment avenues are crucial for leveraging these foreign funds effectively.