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

Selim R.F. Hussain (SRFH): BRAC Bank initiated its digital transformation in 2018 to enhance customer experience across all segments. The initial phase focused on upgrading core systems like banking, card management, and call centres, followed by process streamlining and automation. This phase significantly improved customer convenience, service speed, revenue, and control.

The second phase focuses on differentiating customer experiences and developing data-driven decision-making and prediction models.

We prioritize advanced digital solutions. Our super-app Astha offers over 120 services, including Astha Lifestyle, instant fixed deposits, and digital partnerships like bKash. CorpNet, our internet banking service for corporate clients, has gained substantial popularity. Our Astha App users get free internet while using it.

Central to the bank's ethos is its SME focus, for which it has developed a scalable loan origination system for faster processing. Digital loan services like Baki, Shafollo, Jibika for SMEs, and Saddho for Retail customers have been introduced. We are also working on numerous digital projects to further elevate our banking services.

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

SRFH: Cybersecurity is a major concern when implementing digital solutions, given the prevalence of cyber threats. Banks are investing significantly in cybersecurity, and there is a trend towards collaborative Security Operations Centres (SoCs) to address these threats collectively.

Digital literacy is another significant aspect. While people are familiar with social media, they often lack interest and understanding in using financial apps securely, including the importance of password confidentiality.

With digital banking evolving, there is a growing demand for new skills to reimagine banking digitally. This requires individuals capable of developing disruptive strategies and innovative products.

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

SRFH: We dedicate substantial capital and human resources to ensure the security of our digital services, aiming to provide customers with a worry-free digital experience. Before deploying any digital service, we engage third-party cybersecurity experts for thorough vetting, ensuring we launch with no security vulnerabilities.

We regularly update our cybersecurity team's skills to keep them abreast of evolving cyber threats and countermeasures. We have established Bangladesh's first Security Operation Centre (SOC) for continuous network monitoring, detecting potential threats in real-time.

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

SRFH: Sir Fazle Hasan Abed founded BRAC Bank to integrate the 'missing middle' into the financial system, embodying his vision of financial inclusion and values-based banking. Digital banking plays a crucial role in extending services beyond the traditional banking reach, simultaneously promoting sustainability.

We incorporate sustainability in everything from small initiatives to large projects. For instance, we have replaced physical statements with an SMS containing links for statement downloads, significantly reducing paper use. Our Astha App allows customers to manage accounts, transfer funds, pay bills, and access various services, reducing our carbon footprint.

Digital banking accelerates financial inclusion across Bangladesh. With tools like Astha and biometric-powered Agent Banking, remote areas can access banking services outside standard hours.

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

SRFH: BRAC Bank is keen to enhance customer experience with new products and services. We aim to provide a consistent experience across digital and physical channels through an omni-channel approach. Customer Relationship Management (CRM) systems will deliver this seamless experience.

Adopting a "segment of 1" approach, similar to methodologies used by social media platforms, we plan to tailor our products and services to individual customer needs, moving away from the one-size-fits-all model.

We recognize the significant role of Artificial Intelligence (AI) in shaping the future of banking. AI's rapid advancement presents an opportunity to improve customer experiences and optimize our internal processes and systems.