FSIBL to bring cutting-edge tech for customers

First Security Islami Bank Ltd will ensure cutting-edge technology in cloud-based banking to extend better and safer customer services along with going the extra mile for wider financial inclusion on the occasion of its 25th anniversary in 2024.

Syed Waseque Md Ali, managing director of FSIBL, made the comment in a recent interview with The Daily Star.

The technological development the FSIBL has achieved so far has paid off for the bank during the Covid-19 pandemic period also, he said.

"To ensure health and financial safety, we took several initiatives during the Covid time and we promoted our FSIBL Cloud Apps so that our customers can do their banking activities from home effectively."

To offer Islami Shariah-based banking services, First Security is being operated with 200 full branches, 152 sub-branches, 84 agent banking outlets and over 210 own automated teller machines across the country, he said.

"We have also achieved the ISO certification for ICT development, stood first in three consecutive years for Dhaka WASA Bill Collection and were awarded with the Bangladesh Excellence Award-2022 in 'Shariah-Compliant Modern Bank of the Year' category."

In 2022, FSIBL introduced some mentionable deposit and investment products for its customers across the country.

For example, the bank brought 'Sanchaye Shukh' to safeguard the retirement period of the service-holders and introduced 'Merchant' as the saving scheme for corporate institutions.

A short-term scheme was also launched with attractive profit rate called 'Utshob', which has gained huge positive response from the people across the country.

In the same year, the bank came up with four new and innovative investment products for different professionals and all income groups.

"We have also introduced Shabolombi for women entrepreneurs, Prochesta for young entrepreneurs, Shonali Swapno for village agricultural people and Uddyami for small and cottage industry.

These new four products are helping their respective category people in expanding their businesses, said the managing director.

First Security Islami Bank started its journey on October 25 in 1999 under the name of 'First Security Bank Ltd', which was later transformed into a full-fledged Islamic bank on January 1 in 2009.

"We all know that one of the fundamental pillars of a country's economy is banking sector and FSIBL, being one of the Islami shariah-based banks, is also playing a significant role in Bangladesh's economic progress."

The bank has been successful in continuously progressing in 2022 as well, he said.

At present, the bank's deposit schemes include Al Wadiyah current account, Mudaraba savings account, Ankur and Alo for school going students, Projonmo and Uddipon for college and university students, Mehonoti for working people, Shwdesh for expatriates, Mahiyasi for women, Grihini for housewives, Deposit scheme Murobbi and Probin for senior citizens.

At the end of 2021, total deposits at the bank stood at Tk 46,903 crore, which fell a bit short of the target because of the economic fallouts of the second wave of the coronavirus pandemic in the country and the world as well.

"But, we are happy to let you know that the total deposits are now Tk 48,081 crore (approximately as of September 2022), which is a reflection of the confidence of our valued customers as well as the strong growth trend of the bank."

At the end of the Covid-19 pandemic in 2020 and 2021, the country's banking industry started to recover and grow faster thanks to the initiatives taken by government, Bangladesh Bank as well as the scheduled banks.

In 2021, deposit and investment outlook of FSIBL witnessed a significant positive growth, which is seeming to get far better this year, Ali said.

"During Covid, we downsized our operating cost by arranging all kinds of meetings, trainings, conferences through online video conferencing platforms like Zoom, Webinar, Sisco etc., which also contributed to our growth."

The FSIBL has been continuously making profits in the last few years, which is a testament to the strength the bank has as an institution, he said.

But the bank had to keep the amount of dividend constant in recent years because of the increased number of shareholders and the efforts to comply with other financial issues, he said.

"As our business is expanding and the profit growth is continuous, we hope we will be able to declare more dividends in the near future."

Keeping pace with the ongoing demand, the bank is also providing first-hand banking services to the unbanked population living in remote areas through the agent banking outlets.

First Security Islami Bank started its agent banking activities on May 29 in 2016, Ali said.

"As per guidelines of Bangladesh Bank, our all agent outlets are providing banking services like opening of deposit accounts, small value cash deposits and withdrawals, inward foreign remittance disbursement, small value loan disbursement and recovery, utility bill payments and so on."

At present, FSIBL has 84 agent banking outlets which are fully operational across the country.

Loan repayment situation has worsened worldwide thanks to some global phenomena like the Covid-19 pandemic, the Russia-Ukraine war and excessive inflation.

The banking sector in Bangladesh is also facing the same situations.

As per Bangladesh Bank data, the gross non-performing loan (NPL) of scheduled commercial banks rose by Tk 26,063 crore in a year to June 2022.

"Although our bank had to experience a bit upward trend in NPL last year, we are strictly monitoring the issue now."

"We are taking various initiatives like regular follow-ups, taking legal actions against the defaulters, extending repayment terms, extending default repayment time from two years to five years as per Bangladesh Bank's guidelines."

FSIBL's branches and head office's monitoring cell are also actively involved in the monitoring work so that the NPL can be reduced, he said. 

"At FSIBL, we are hopeful that we will be able to reduce our NPL soon."