Mohammed Sami Al Hafiz, a freethinking spirit, a poet, an academic, and a spokesperson for the Mutual Trust Bank, shares his take with Dhaka Tribune.
How did you come to this point of your career in the banking industry?
I started my career at Holcim Cement Bangladesh Ltd. Later, I joined the Marketing department of HSBC to start my career in banking. In the course of the next eight years, I have gained the understanding of marketing practices and operations of a multinational bank. To make a difference and implement my understanding of service excellence, I opted for a local bank to transmit the knowledge gained from an MNC, and enhance the customer experience that prevails in local banks. Since Mutual Trust Bank (MTB) is a reputed local bank with a strong board, it seemed like a viable option.
How are local banks different from multinational banks?
The existing trend of service differentiates local banks from multinational banks. Even though multinational banks provide lower rates, the service excellence delivered keeps customers flocking to them. Also, multinational banks believe that engaged staffs are committed staffs. Hence, they engage their staff more through various activities and programmes.
How is communication in banking sector different from other industries?
Communication in the banking industry is quite regulated. Unlike FMCGs, there is no “Buy one get one free” or “x% extra.” Then again, it’s all public money and it needs to be handled carefully as security and trust aspects are paramount. The objective is to amplify that “You can trust us with your money. We will keep it safe and invest it so that it grows and you grow as your money grows.”
All the banks are regulated by the Central Bank through set guidelines about who, what, how and where we can communicate. Also, internal guidelines rectify all the information that is to be communicated. Every statement that is communicated has to be numerically, statistically and scientifically proven.
What are some factors a bank should consider to succeed in Bangladesh?
Banks should consider accessibility, money-laundering prevention, fraudulent activities, and reaching out to the grassroots. However, recently there has been concern about vast amounts of idle money in banks, partly due to the global economic downturn and slower than expected economic growth. To a certain extent Bangladesh is feeling the after effects of the global economic crisis.
As a result, rules are stricter, and the use of public money for loans is regulated. The government insists on thorough checks and proper “KYC (Know Your Customer).” Nonetheless, there are some people trying to prise open gaps within and beyond regulations for personal interests. However, banks are taking increased precautions than before, trying to make it safer day-by-day.
How important is Corporate Social Responsiblity (CSR) for a bank?
Banks are doing a lot of CSR for the people. Recently, all the banks jointly donated Tk800m for people affected by the Rana Plaza tragedy. CSR is one way of using idle money to serve public interests.
What is the scenario of bankable or potential customers? What percentage has been reached so far?
50% of the population is bankable, and 5% or less of them are banking. There is huge possibility, but accessibility and mindset of people in keeping money to themselves are issues.
What is the level of competitiveness in the banking industry?
There are almost 53 banks, so the competition is high. It provides customers with many options and varieties to choose from, however market size is limited. Thus, all banks are pushing to gain market share.
Is there capacity for more banks to start operating?
Due to accessibility and reach, market size is relatively small. Incoming banks focus on the same market, and stretch it. The emphasis is shifting to retaining existing customers rather than getting new businesses.
There has been talk about introducing agent banking. What are your thoughts?
Bangladesh Bank is working on the criteria for agent banking, and have sent a regulatory framework to the banks for their feedback. It may take a while to figure out issues requiring consideration. Agent banking will be the future wherever accessibility is an issue.
What is the current scenario of money laundering and how are banks opposing?
Money laundering in financial institutes has decreased to around 50% due to recent initiatives taken by the central bank and banks themselves. The high strictness in foreign banks is transiting down to local banks and eventually to nationalised banks.
MTB has its own money-laundering department where we have periodic trainings. We were recently chosen to be a part of Egmont Group for the initiatives and activities we undertook resulting in 0% money laundering in our bank.
What are core focus service areas of MTB? What differentiates your bank from competitors?
MTB provides banking services of all kinds, which includes retail banking, wholesale banking, trade services, 24/7 contact centre, and SMS banking. We recently reintroduced internet banking, which is one of the best services compared to some multinational banks. Besides doing regular or normal transaction you can pay your mobile bill. In addition, we are talking to utility suppliers to fit utility bills to our list as well. We have a two-phase security service for our Internet banking, ensuring security to confirm and verify transactions.
Everyone is providing similar services, but to differentiate MTB focuses on service excellence.
What are your tips for people starting a career in the banking industry?
Have good command in English, be a good speaker, be humble, be polished, and when going to an interview, research the organisation.
What’s next in your career plan?
Be somewhere where I will directly get to deal with the banks’ customers.
Do you have any favourite quote for our readers?
“Be yourself. Who else is qualified?”
