NRB Bank plans to introduce neo-banking services

NRB Bank is planning and working to onboard digital banking facilities as well as introduce neo-banking services for its customers, according to the top official of the private bank.

The new digital banking platform will be introduced in conjunction with telecom operators and mobile financial services, and this will make it simpler for clients to do banking online and on mobile devices, said NRB Bank Managing Director and CEO Mamoon Mahmood Shah.

"We are focusing on integration and partnering with front-end-focused neo-banks to create exclusive and innovative banking offerings," Mamoon said in an interview with The Daily Star marking the bank's 10th anniversary.

"The neo-bank service will provide more features and facilities while being easier to use. We are constantly exploring new approaches to better serve our clients," he added.

Mamoon Mahmood Shah

Mamoon also said NRB Bank has plans to expand its branches and ATM networks in the near future.

NRB Bank began its journey on August 4, 2013 with a vision to be the leading financial institution for non-resident Bangladeshis (NRBs) to invest in Bangladesh, and for Bangladeshi individuals and corporates to access international markets.

"The journey has been exciting and we have travelled a long way. We have come up with a lot of products with a lot of innovation," he added.

Today, the private bank has 50 branches, 27 sub-branches and 308 agent outlets. It has plans to open 12 more sub-branches to reach the doorsteps of customers.

Over the last 10 years, NRB Bank's total assets increased to Tk 7,467 crore in 2022 from nearly Tk 600 crore in 2013.

NRB Bank also registered a surge in deposit growth. The lender, which attracted Tk 188 crore deposits by the end of 2013, had around Tk 6,500 crore deposits by the end of last year, according to its annual reports.

Mamoon said customer satisfaction is the priority of NRB Bank and it has introduced a wide range of financial products tailored to the requirements of its customers.

"Our bank continuously develops new and innovative financial products to cater to evolving customer needs and preferences," he said. "We opened home loans for NRBs and fine-tuned our consumer banking products in line with customer demand."

Besides, NRB Bank will continue increasing its range of products and services to better serve a wider spectrum of clients, Mamoon added.

He said the banking industry is changing and gradually moving towards the digital platform.

"We have started this much ahead. We are closely linked with Bangladesh Bank to attain the goal of making 75 percent of transactions cashless by 2027," he added.

Mamoon said the ambitious project, driven by Bangladesh Bank, aims to revolutionise payment systems, enhance convenience, and promote financial inclusion throughout the country.

It will revolutionise the payment landscape and bring forth a host of benefits for individuals, businesses, and the economy as a whole, according to the banker.

"We will keep investing in digital transformation so that we can provide consumers with a larger selection of products and services via online and mobile channels," he said.

"We want to facilitate financial inclusion through basic banking solutions online and through mobile," Mamoon added.

As a part of its focus on financial inclusion, NRB Bank's financing to small-and-medium enterprises (SMEs) accounts for almost 33 percent of its portfolio, said the CEO. Besides, the lender is setting up desks for SME and women entrepreneurs in its branches so that it can cater to their demand.

Responding to a question regarding the performance of new banks, Mamoon said there is a shortage of good governance in the overall banking sector.

"In our case, there might be initial hiccups. Now, we are trying our best to make good governance and good management prevail. Every decision is taken here at the management level. There is no interference," he said. "We have been able to establish good governance."

"Also, we have been able to properly manage our balance sheet, portfolio and risks to ensure sustainable finance. The result of this is reflected through the recognitions we get," he said, citing how NRB Bank was recognised as a sustainable bank by the central bank.

"It is not only that we are doing business and our NPL (non- performing loans) is rising," added Mamoon.

NRB Bank's NPLs dropped to 3.22 percent by the end of 2022 from 3.39 percent a year ago.

"We managed to lower the NPL by conducting thorough credit assessments, implementing effective collection strategies, regular and effective credit monitoring, and maintaining prudent underwriting standards," he said.

Mamoon also said he aims to take the bank to "a new height by providing the best services to customers at all times and ensuring sustainability through green and environment-friendly financing".

"We will invest a substantial part -- 50 to 60 percent -- under sustainable finance. Though we are a commercial bank, we have some social obligations as well. So, we will go for green finance to ensure that," he added.