MTB expanding retail banking portfolio

Mutual Trust Bank Limited (MTB) is expanding its retail banking portfolio to diversify the business, said Shafquat Hossain, head of retail banking of the lender.

"The growth of our retail banking is quite good and the market is also growing, which is why we are focusing more on this," he said while speaking to The Daily Star to mark the beginning of the seven-day Retail Fest on the occasion of the 24th anniversary of MTB.

In 2019, 93 percent of the MTB banking activities were focused on corporate banking.

"It's quite risky for any bank. The more diversified the portfolio, the better for the bank," he said.

"We would like to inform our customers ‍and people about the various activities that have taken place in our retail banking through Retail Fest," Hossain said.

Since these issues have never been communicated to consumers in this way before, the fest was organised. "So, this is the right time to promote," he added.

He said MTB started their retail banking journey in 2010. At that time, car, home and personal loans were given. Now more products have been added to the basket.

If a consumer applies for a loan now, he is informed within 72 hours whether he will get the loan or not. It used to take up to one month in the past, he added.

Around 15-20 years ago, people in Bangladesh did not take loans barring urgent needs. But at present, due to urbanisation and rising purchasing power, people are going on vacations with loans, buying expensive watches, refurnishing kitchens and taking home and car loans, he added.

Retail banking, also known as consumer banking or personal banking, is banking that provides financial services to individual consumers rather than businesses, according to Investopedia.

Western countries embraced this form of banking back in the 1980s, but it took a while for Bangladesh to adopt the trend.

"In Bangladesh, 50 percent of banks are now conducting retail banking activities," Shafquat added.

Standard Chartered was the pioneer of this type of banking in Bangladesh because of its global presence and know-how.

Shafquat ‍said if even five crore of the 18 crore people in the country were potential customers of retail banking, it is a huge market.

On the occasion of Retail Fest, MTB yesterday launched a weeklong event featuring numerous offers for customers and the public, he informed.

MTB Privilege Banking will launch United Hospital and Medix healthcare vouchers. The inauguration of revamped MTB Dhanmondi Privilege Banking Centre and MTB Uttara Privilege Banking Centre will also take place during this time.

MTB Agent Banking Centers will be opened as well. MTB Cards will introduce a new co-branded card. Meetings with remittance partners in Bangladesh and MTB Auto Vendors will also be held during this period.

An induction programme titled "aspiring women for graphic design training" will be held during this festive week by the Creative IT Institute under "MTB Swanirvor Angona".

The festival will also offer a variety of promotional offers and discounts to customers, such as offers for Mastercard World and Visa Signature users, cashback offers for MTB cardholders, promotional offers for home and auto loans and free subscription to Chorki on MTB Internet Banking activation.

There will also be customised travel packages from Wander Woman and rewards for 20 beneficiaries of cash over the counter remittance alongside others offers.