First Security Islami Bank bets big on modern tech, Shariah-based services

The First Security Islami Bank Ltd is looking to widen its footprint, banking on modern technology and more accessible Islami Shariah-based banking services. To this end, it has launched its First Cash app and many other products and it is planning to introduce more.

It was disclosed by the bank's Managing Director Syed Waseque Md. Ali in an interview with The Financial Express, marking its stepping into the 25th year of operation today (Wednesday). Following are the full excerpts of the interview:

Question (Q): First Security Islami Bank PLC is entering the 25th year of operations. What have been the achievements of your bank since its journey?

Answer (A): First Security Islami Bank PLC. started its journey on the 25th of October of 1999 under the name "First Security Bank Ltd." It was later transformed into a full-fledged Islamic Bank on 1st of January 2009 and has continued its journey. We all know that one of the fundamental pillars of a country's economy is banking sector and the FSIB, being one of the Islami Shariah-based banks in this sector, is also playing a significant role like a frontline soldier in our country's economic progression. You will be happy to know that with the grace of Almighty Allah and with active support and cooperation of our valued customers, First Security Islami Bank has been continuing its progress in 2023 as well.

To ensure Modern Technology and Islami Shariah-based banking service to the people of Bangladesh, First Security Islami Bank is operating with 204 full branches, 170 sub-branches, 96 agent banking outlets and 246 own ATM and CRM network across the country.

You will be happy to know that we have achieved ISO Certification for ICT Development, secured 1st position for four consecutive years in Dhaka WASA Bill Collection, won Bangladesh Excellence Award-2022 in "Sharia-Compliant Modern Bank of the Year" category.

Q: Can you please tell us something about the banking sector of our country?

A: Banking operation is one of the core factors of a country's economic activities. It directly influences a country's economic outlook. Owing to various unstable situations worldwide in last few years, our banking industry had to face challenges, but now it has started to recover and grow faster, thanks to the initiatives taken by the government of Bangladesh, the Bangladesh Bank as well as all scheduled banks in the country. In 2022, the deposit and investment outlook of the overall banking sector witnessed a significant positive growth which seems to be far better this year.

Moreover, our export-import business has posted a substantial growth, although there has been a bit of crisis due to the US Dollar shortfall in recent time.

Nonetheless, technological development, security and more financial inclusion have accelerated our banking operations and made our customer services easier.

Now, if our banking sector can control and regularize the existing classified loans properly, it will start getting benefits and experience significant expansion of business in near future.

Q: What schemes do you currently have? What new features do you plan to introduce for your customers?

A: The deposit schemes includes Al Wadiyah current account, Mudaraba savings account, Ankur and Alo for school-going students, Projonmo and Uddipon for college and university students, Mehonoti for working people, Shwadesh for expatriates, Mahiyasi for women, Grihini for housewives, Deposit scheme Murobbi and Probin for senior citizens as per the need of the people from different walks of life.

FSIBL Investment Products include: Business-Commerce, SME, Agriculture, Bai-Murabaha, Bai-Muazzal, Bai-Salam, Bai-Istishna, Mudaraba, Musharaka and HPSM-based investment projects for women entrepreneurs and many more.

Q: What are the new products you have introduced for your customers in 2023?

A: We have launched five attractive new deposit products earlier this year. These are: FSIB Smart Account, Mudarabah Ehsaan, FSIB Century, Double Deposit Scheme -Samaniah and Mudarabah Monthly Deposit Scheme-Durbar.

On the other hand, in 2022 our bank introduced four new and innovative investment products concerning different groups of professionals and classes of people. For women entrepreneurs- Shabolombi, for young entrepreneurs- Prochesta, for village people in agriculture-Shonali Swapno, and for small and cottage industry-Uddyami. These four new products are helping their target groups of people expand their business.

Q: What is the new good news you are giving the people on the 24th anniversary of FSIBPLC?

A: You all will be glad to know that following our 24th anniversary, we are going to launch two attractive deposit products in view of our customers' interest across the country. We are going to launch a short-term scheme with attractive profit rate called "Utshob 24" which is expected to draw huge response from the people across the country. The other is "Mudarabah Smart Amanot Double Scheme" which will double your money in 5 years and 6 months (Probably).

We have recently launched our Mobile Banking Service "First Cash" with an eye to providing a greater extent of banking services to people across the country. Keeping pace with the existing mobile banking services available in the market, the FSIB Mobile Banking Service "First Cash" is going to be launched with utmost security, tech-based advancement and extensive mobile banking facilities.

Apart from that, I'm pleased to inform you that FSIB Shariah-based Credit Card "Tamin Credit Card" is going to be launched with a view to providing a greater extent of credit card banking services to all of our valued customers.

Q: What steps has your bank taken to increase customer service?

A: As part of our daily life and keeping pace with the growing demand, First Security Islami Bank PLC. is expanding its digital banking platform time to time. We have a round-the-clock internet banking facility for our customers in need of all types of banking activities. With the Freedom feature of FSIB 'Cloud Apps', a customer will be able to open his/her own bank account just sitting at his/her own home by filling up an E-KYC form. In addition, one can use this app for all types of mobile banking services, such as fund transfer to 'Nagad' and 'bKash' and DPDC, DESCO and Dhaka WASA bills can be paid as well.

We have recently launched Digital Financial Services (DFS) for less-cash or cashless banking services for our clients.

We have the opportunity to pay for a variety of goods and services on all types of e-commerce platforms through our Visa Debit Card. The cardholders will also get discounts on purchase of goods and services from different companies on different occasions.

With our CRM machine, customers can deposit and withdraw cash in the same machine in the fastest time. In addition, First Security Islami Bank is always committed to ensuring customer service by providing a variety of timely services.

Q: How is your bank contributing to import-export and remittances?

A: First Security Islami Bank PLC. is trying to play a leading role in the overall economic growth of the country by involving itself in the import-export business. In 2023, our bank's import trade volume stood at around Tk.2,124 crore up to September. The main items of import trade were sugar, edible oil, capital equipment, cotton, fabrics and accessories. On the other hand, First Security Islami Bank has successfully disposed of export documents involving a total of about Tk.2,099.84 crore during the period.

Exporters need to export under sales contracts with a credit period to importers. Importers will pay after the credit period. This seems to be a 'pay after you sell' situation. So, official trade facilitation does not lead to increase in exports. But it may be possible to be enhanced, provided that post-shipment financing including the arrangement for payment commitments is available from external financial/guarantee institutions.

The main sectors of export trade were readymade garments, knitwear, processed leather goods, agricultural products, etc. As one of the leading banks in Islamic banking, we provide various remittance services to our customers through almost all the top legal remittance institutions in the country such as Western Union, MoneyGram, Express Money, Placid NK Corporation, Transfast, Rhea Money Transfer, Prabhu Money Transfer, etc. Through them, our expatriate brothers and sisters can easily send their hard-earned money to their dear ones. In addition, the 2.5% cash incentive announced by the government for sending money legally continues. In 2023, we have so far received about Tk.1,501 crore in foreign remittances up to September.

Q: What is FSIBL's NPL condition? What is the situation during current year and what steps are being taken by FSIBL to control bad loans?

A: We all know, due to some unavoidable circumstances worldwide like Russia-Ukraine War, global oil price hike, excessive inflation trend, etc. the loan repayment situations are worsening worldwide. The banking sector in Bangladesh is also facing the same situation.

Although our bank had to experience a bit of upward trend in NPLs last year, we are carefully monitoring and taking various initiatives like regular follow-ups, taking legal actions against the defaulters, extending repayment terms, extending default repayment time from two years to five years as per Bangladesh Bank Guidelines and other monitoring and recovery steps have been taken by our branches and the head office's strong monitoring cell in reducing our NPLs.

So, I can assure you that we will minimize our NPL in future by our continuous recovery efforts.

Q: We know that every bank in the country is involved in Corporate Social responsibility or CSR activities. I would like to know about the CSR activities of FSIB under your leadership.

A: A significant activity in the banking sector in Bangladesh is Corporate Social Responsibility or CSR. First Security Islami Bank, since its inception, has been making significant contributions to the aid for helpless and distressed people and those suffering from any kind of disasters with the motto "Always for All".

In accordance with previous years, in 2022-23, FSIB contributed to various disaster relief activities, sports, scholarships and other relief activities along with the support for helpless and disaster-stricken people. Among them were the assistance to the Prime Minister's Relief Fund, assistance to the Bangladesh Disability Development Trust, assistance to the Bangladesh Eye Disability Welfare Trust and, distribution of blankets among the cold-stricken people. The bank has made significant contributions to various CSR activities throughout the year, including providing support to the Clean and Green Foundation and the Bangladesh Rugby Federation as well.

Q: How is the board of directors of the bank?

A: Alhamdulillah. Honorable Chairman of the Board of Directors of First Security Islami Bank' is the country's top industrialist Mr. Mohammad Saiful Alam under whose strong and impeccable leadership, our experienced and prudent Board of Directors has always strived to safeguard the interests of the bank. The Board of Directors of the Bank is very pious and generous so that the managing authorities can conduct their activities independently. We are proud to have such a board of directors.

Q: Would you please shed light on the activities of the Shariah Committee as a Shariah-based bank?

A: First Security Islami Bank is a full-fledged Islamic Shariah-based bank. And to ensure Shariah rules, all the activities of this bank are conducted in accordance with Islamic Shariah i.e. on the basis of Quran, Sunnah, Ijma and Ijtehad. Our Shariah Council consists of 5 members, specialising in Fiqhul Islamic Commercial Law as per the guidelines of Bangladesh Bank. In order to conduct all the activities of the bank in accordance with Shariah, the Shariah Council meets regularly and reviews the various functions of the bank including matters referred by the Board and the management authorities, and provides necessary advice and guidance on Shariah to the concerned authorities. These members of the Shariah Board, in all the meetings of the Shariah Council, advise all concerned in the bank to ensure proper compliance with Shariah in all activities of the bank and enhance the quality of customer services.

Q: What are your future plans for expansion of Islamic banking?

A: There is still a perception in people's minds that conventional and Islamic banking are the same but differ only in name. This is a very common idea because they do not have a complete idea about the Islamic banking system. We want to show the people how Islamic banks work on the basis of Shariah. We want to create a skilled workforce/human resource with necessary knowledge on Shariah-based banking.

In the meantime, we are organising various programmes for expansion of Islamic banking to give the people a complete message about Islamic banking. In addition, the bank is organizing training, workshops with participation of the bank's management, senior executives as well as people with experience in Islamic economy, including Bangladesh Bank, to create skilled human resources with full knowledge about Islamic banking.

Finally, I would like to express my sincere gratitude on behalf of the bank management to the experienced and prudent Board of Directors, committed colleagues, Bangladesh Bank and other stakeholders such as Bangladesh Security and Exchange Commission, Dhaka and Chittagong stock exchanges, esteemed shareholders and customers for their continuous support and patronage. I sincerely believe that with the infinite mercy of Almighty Allah and with your unwavering cooperation and support, First Security Islami Bank will continue on the path of progress and achieve excellence as a modern welfare-oriented Islamic bank in Bangladesh in near future, Insha Allah.