Targeted campaigns required to inform expatriates

Mohammad Abu Jafar
Managing Director & CEO
Premier Bank

In 1985, offshore banking was introduced in Bangladesh, contributing to the enhancement of overall banking functions and broadening our bank's exposure to foreign exchange. Premier Bank's offshore banking operations have made significant progress since the establishment of its initial Offshore Banking Unit (OBU) at DEPZ, Savar, and the commencement of offshore business activities in 2009. Subsequently, the OBU was relocated to Banani on June 26, 2011. In response to the growing offshore business, the bank established another OBU at the Gulshan Branch in 2024.

Our bank prioritizes developing enduring connections with our customers by catering to their varied requirements and preferences. We promote capital investment, employment generation, and rapid industrialization through our investments in EPZ clients, as well as by providing services to our domestic clients within the scope of OBU policy. We offer attractive interest rates on deposit accounts and have introduced digital banking options for both individual and corporate customers.

Offshore banking services have the potential to greatly improve Bangladesh's financial sector. OBUs can streamline international trade by providing services such as letters of credit, guarantees, and bill discounting, making it easier for local businesses to participate in global commerce, thereby reducing transaction costs and simplifying financial operations.

The Offshore Banking Act 2024 allows non-resident Bangladeshis (NRBs) and foreign entities to open offshore bank accounts and utilize the deposits for domestic investments and financial requirements, potentially attracting and boosting foreign investment. This could lead to the development of a stronger and more competitive financial landscape in Bangladesh, fostering economic expansion and safeguarding stability in the foreign currency balance.

Many expatriates may not be familiar with the new offshore banking regulations, products, and services, which can lead to hesitation in using these offerings. Additionally, fund transfers through official channels pose significant challenges. To address this, banks can conduct targeted campaigns to educate expatriates about the benefits and features of offshore banking services. Webinars, informational brochures, and dedicated helplines can help build familiarity and trust. We have also established a dedicated helpdesk offering 24/7 customer support for offshore banking.

By proactively addressing these challenges, banks can build a strong foundation of trust with expatriate Bangladeshis, encouraging them to take advantage of offshore banking services.

Ensuring that the offshore banking sector is well-regulated and that these regulations are communicated effectively to expatriates can enhance confidence in the measures our central bank is implementing. Highlighting the role of regulatory bodies in protecting customer interests can also contribute to this trust.