“Bank Asia is exploring partnerships with fintech companies for innovative solutions”

TDS: What is the current status of digitalization within your organization?

ANM Mahfuz (ANMM): Our primary goal in undertaking digital transformations is to highlight and optimize customer satisfaction and intimacy.

In a recent development, we introduced 'Digital Nano Loans Apps' to extend financial services to individuals who are traditionally excluded from the formal banking sector.

Supply chain finance serves as a potent tool for fortifying the SME segment of the bank's business. Bank Asia has proactively launched an automated Supply Chain Finance (SCF) system, a robust API-integrated system that seamlessly connects VEEFIN, a supply chain management system, with iStelar-CBS.

We have launched an Online Loan Application system called 'Ghore Boshe Rin Nei,' offering unsecured personal loans up to Taka 20 Lac.

"Ghore Boshe Hishab Khulun," another platform, has been developed for depositors to open accounts online. We introduced the Bank Asia Smart App to facilitate customers for online banking.

To reach the marginally unbanked people and provide Social Safety Net payments in rural areas of Bangladesh through a sustainable financial channel, Bank Asia has come up with a Mobile App-based banking solution called 'Micro Merchant'

TDS: What challenges do you see in implementing digital transformation within the financial sector?

ANMM: Limited digital literacy and skills exist among the population, including both the workforce and end-users. We need to implement education and training programs to enhance digital literacy and skills.

We need to invest in a robust cybersecurity infrastructure, develop and enforce cybersecurity regulations, and raise awareness about safe online practices.

Additionally, we should develop and enforce data protection regulations, educate the public about their rights regarding data privacy, and implement transparent data practices. Moreover, establishing mechanisms for individuals to have control over their personal data will help overcome this challenge.

TDS: How does your organization guarantee security, encompassing cybersecurity, prevention of forgery, and the safety of data?

ANMM:  We use firewalls to monitor and control incoming and outgoing network traffic. Intrusion detection and prevention systems help us identify and respond to potential threats. Sensitive data (both in transit and at rest) is often encrypted to prevent unauthorized access.

We conduct regular security audits and vulnerability assessments to identify and address potential weaknesses in our system.

To educate employees about potential threats, the importance of secure practices, and how to recognize and respond to phishing attempts or other social engineering attacks, we provide regular cybersecurity training.

We have well-defined incident response plans to detect, respond to, and recover from security incidents. Additionally, disaster recovery plans are in place to ensure business continuity in the event of a cyber-attack or other emergencies. Compliance with regulations like PCI DSS and ISO certifications helps our bank maintain a high level of security.

TDS: How does digitalization contribute to addressing sustainability and the inclusion of unbanked individuals in the banking sector?

ANMM: Digitalization plays a vital role in bringing about positive change in the banking sector, contributing to sustainability, improving access to loans, and fostering financial inclusion for unbanked individuals. Digitization allows for the implementation of paperless and eco-friendly banking processes.

Digitization streamlines the loan application and approval process, making it faster, more transparent, and accessible. Automated systems can analyze vast amounts of data to assess creditworthiness, expanding opportunities for individuals who may have limited traditional credit histories.

For unbanked and remote-area customers, such as our agent banking customers, digitization serves as a bridge to financial inclusion, fulfilling their financial needs without the need for large physical branches.

TDS: What future plans does your organization have to enhance digitalization?

ANMM: We are planning for a Business Process Improvement (BPI) and Business Process Re-engineering (BPR) project in the organization. BPR is the act of changing an organization's major functions and recreating a core business process with the goal of improving product quality, increasing efficiency, and reducing costs.

Moreover, we are exploring partnerships with Fin-Tech companies using an Open Banking Platform to leverage innovative solutions. To align with the 4th Industrial Revolution (4IR), we have plans to incorporate cloud-based technologies, more robotic process automation (RPA), and an AI-based loan approval system.