Mercantile Bank puts sustainability at heart for growth
Mercantile Bank Ltd has targeted sustainable long-term business growth as part of its plans to become the top financial institution in Bangladesh in terms of sustainability, said its top executive.
The third-generation bank has aimed to strengthen the overall risk management and corporate governance system and improve the operational efficiency and productivity of resources and customer services, said Md Quamrul Islam Chowdhury, managing director of the bank.
Ensuring lower cost of deposits, lower lending rate, improving the quality of assets, rationalising operating costs, expanding branches, and offering new products in retail banking, SME financing and card services are priorities for the bank as it celebrated its 23rd anniversary yesterday.
The bank started its journey on June 2, 1999, with the core objective of becoming one of the top three financial institutions in Bangladesh in terms of efficiency.
It now serves a large customer base, comprising individuals and businesses, through a network of 151 branches, supplemented by 188 ATM (automated teller machine) booths, 20 cash deposit machines, 45 Islamic banking windows, 21 sub-branches, and 173 agent banking outlets.
"Our operation is powered by the combination of a team of skilled human resources and state-of-the-art technologies to serve the unbanked and underbanked sections of society," said Chowdhury.
In addition to providing all ranges of banking services, MBL is also providing other services through its three subsidiaries, two offshore banking units, internet banking and mobile banking.
From the beginning, the bank has adopted modern technologies to provide fast-track customer-centric services to clients. It has introduced real-time banking services across the country.
Chowdhury said the bank's endeavours towards the incremental improvement of tech-savvy modules continue and will bring efficiency and quality to its operations for ensuring superior value service to attract tech-savvy youths.
The private commercial bank launched a digital platform, MBL Rainbow, to make banking more customer-friendly and digitalised. Besides, the core banking software, Temenos T24, has been upgraded from R10 to R19.
"With this new version, we will be more protected against various cyber threats," said Chowdhury, who joined Mercantile Bank in 2001.
The bank has rolled out the mobile banking service MyCash.
"As a result, we would be able to serve our customers better," the managing director said.
The bank will continue its focus on both branch-led banking and online banking as it moves forward.
"We continue to invest significantly in modernising and improving our digital capabilities. But that does not mean the bank will lose its personal touch."
"Will continue to expand our branch, sub-branch and agent banking networks as these provide a more personal touch to our customers. For us, it is not one or the other. We intend to provide both cutting-edge digital banking options as well as a strong branch network to our customers."
According to Chowdhury, MBL has made differences in the banking industry through efficient manpower, better customer service, deployment of modern technologies, the balance between digitalisation and personal touch, and strong corporate governance.
Mercantile Bank's Founder Chairman Abdul Jalil also always emphasised the well-being of the marginal people of the society.
"MBL believes that true success does not lie in profit maximisation, but in doing something good for the less privileged," said Chowdhury.
The noted banker also touched upon the financial health of the country's banking sector.
He pointed out that the regulatory authorities of Bangladesh have taken new initiatives to build up and strengthen the foreign exchange market through increasing exports and attracting inward remittances.
The government and regulatory authorities are monitoring financial institutions to minimise the risk that have emerged from the Russia-Ukraine war, which has a worldwide impact on economic development.
"Bangladesh is not an exception. Still, Bangladesh's economy is stronger than many other countries."
The bank set up the Mercantile Bank Foundation (MBF) with a view to carrying out broader corporate social responsibility (CSR) activities under the Bangladesh Bank's guidelines.
The foundation has undertaken a range of activities over the past 23 years with the sole purpose of helping its targeted people to improve their quality of life. It is also contributing to creating a quality workforce.
MBL has been awarded various times by the Institute of Chartered Accountants of Bangladesh for the best presented annual reports.
"This testifies to our commitment to promoting transparency," said Chowdhury, who obtained master's degree in marketing from the University of Dhaka.
The bank was awarded the "National Productivity and Quality Excellence Award-2016" by the government, the "US Dollar Clearing MT202 Elite Quality Recognition Award" by JPMorgan Chase, and the Amcham CSR Excellence Award in 2021.
In 2018, it introduced the 'MBL Young Bankers Appreciation Award' to inspire young bankers and make them more professional.
"The bank is well-positioned for the future and has the ability to continue to deliver superior and long-term performance to customers, shareholders, people and the communities," said Chowdhury.
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