“Already the cash has been replaced by plastic in many parts of the world and the wave is eventually coming to this region! “
Being one of the most versatile bankers with 32 years of experience from reputed foreign and local banks, Muklesur Rahman has played a pioneering role in every area of banking, ranging from retail banking to risk-management. Through his dynamic leadership, NRB Bank Limited has been recognized as one of the most advanced, techno centric and compliant banks within a very short span of time.
How do you assess about potentiality of foreign investment in Bangladesh?
Bangladesh is classified as a ‘Next Eleven’ emerging market and one of the ‘Frontier Five’. According to a recent opinion poll, Bangladesh has the second most pro-capitalist population in the developing world. Also the next Asian tiger for it’s geographical location and demographical status with immense potential.
But we need to ensure political stability, adequate energy supply and infrastructure support. More importantly sector wise investments like RMG, health, leather, agro-based and infrastructure development and public private partnership (PPP) is required.
Bangladeshi economy is in a transformation stage where the use of IT is huge and Mobile Banking and Agent banking is growing larger day by day. In that respect what are the new plans and innovations which you are brining for your Bank?
IT sector is growing as the vital factor of Bangladesh economy where it came around 15% of total GDP now. Banking is now based on technology and Mobile/Agent Banking are part of it. So doesn’t matter whether we want it or not, it is the demand of time!
Already 15 banks have launched Mobile Banking, 2 are operating Agent Banking and more are coming up.
As a new and techno-centric bank we are planning for Mobile/Agent Banking too cover up the network, where the biometric and NFC technology to be introduced. We have already introduced most modern version of core banking and card management system, VISA EMV Debit & Credit cards, Call Center and Internet Banking.
Word has it that in time plastic money along with other transactional methods will entirely replace cash transactions. What are your thoughts in this regard?
Already the cash has been replaced by plastic in many partS of the world and the wave is eventually coming to this region! Due to convenience and security, it is spreading widely. It is also a very big business for both the issuer and acquirer.
But simultaneously, the Mobile money is coming up as the competitor of plastic money in our country. Plastic money also would be a big tool to prevent money laundering.
Why and how retail sector & local Lifestyle is improving in Bangladesh?
Highly consistent 6+ GDP growth for last ten years, 55% [highest in the world] youth population, 4% urbanization rate, highly consistent remittance [above USD 14 bn for last three years] & disposable income growth, 105 million mobile user, availability of tangible international consumer products, technology and desire to improve lifestyle – these are reasons behind improving retail sector and local lifestyle in Bangladesh.
How do you see the retail & electronic banking future in Bangladesh?
A country with 160 million people, where 60% are still unbanked – there is no question about the future of retail and electronic banking! Presently, almost all banks are online; most of the banks have ATM, Debit/Credit card, Internet banking and phone banking services. To be very optimistic, I see the future is not only the cashless but also to enable plastic less transactions worldwide, where e-commerce and mobile money are the next era of Retail Banking.
What are your thoughts regarding risk management? What are the challenges in this respect?
As technology is more acquainted with the banking, the risk parameters are getting more complex. So, any loophole in technology or process can trigger a big risk anytime!
Credit risk, balance sheet risk, internal control & compliance Risk, money laundering risk, foreign exchange risk, IT & communication risk and reputational risk – these are the core risk areas any bank has to manage.
But I think, the lack of monitoring, supervision, MIS analysis, and risk based approach and knowledge and people skill are the big challenges in these area.
How can you enhance the skill development of your employees? Do you think that you are getting proper manpower from the labor market?
My motto is always ‘Employee First’; so I believe in employee development through mentoring, coaching, brainstorming, motivation, in-house training, external and overseas training as appropriate.
To get right people in right place is the biggest challenge in the industry, there are 56 banks – but there not adequate right people in the market, moreover this is a big challenge for the HR and head hunting companies too in Bangladesh particularly for banking industry.
What are your plans regarding improving Financial Inclusion and Green Banking?
The mobile financial services (MFS) and national payment switch gateway (NPSB) are the revolutionary steps taken by the Bangladesh Bank towards financial inclusion. Towards it, we have already joined in NPSB, launched Tk 10 account and started Mobile & Agent Banking project for financial inclusion.
As a new bank we have already started Green financing and Green banking products like e-Statement, paperless banking through Internet Banking and many more are coming.
How is your bank dealing with cyber security issues?
Cyber security is the biggest challenge for the banks in 21st century. Mainly secure configuration, data security; firewall and monitoring deviations are the key tools for us to protect potential cyber threats. As a techno-centric bank we have established good IT governance through risk assessment, identify and prioritize gaps then update and test accordingly. We are also in the process to PSI DSS certification for payment industry.
