How does BRAC Bank achieve outstanding deposit growth?

BRAC Bank PLC has achieved impressive deposit growth, recording a 35 per cent compound annual growth rate over the past three years-significantly outperforming the industry average of 7.5 per cent. Notably, branches contributed 75 per cent of this growth, said Sheikh Mohammad Ashfaque, deputy managing director (DMD) and head of branches distribution network of the bank, in an exclusive interview with The Financial Express (FE)'s Siddique Islam recently, where he shared insights into the bank's current performance and future goals.

Q. BRAC Bank's deposit growth has made it the envy of many in the banking industry. We've heard that your branch network alone has achieved a remarkable deposit growth of over Tk 270 billion in the past three years. What core strengths or strategies have contributed most significantly to this impressive performance?

A. The branches have consistently achieved more than Tk 270 billion in the past three years, which is a strong signal to the growing confidence of customers in BRAC Bank. We've strategically positioned our branches in high-potential locations and extended our reach by setting up sub-branches in emerging economic zones. Additionally, we've built dedicated teams to cater specifically to the diverse needs of retail customers, SMEs, and corporate clients. Our 'phygital' strategy - expanding physical branches while integrating advanced digital solutions -has proven highly effective. The cumulative impact of these efforts is clearly reflected in BRAC Bank's strong financial performance.

Q. Could you elaborate on the strategies, initiatives, and best practices implemented across BRAC Bank's branches to drive and sustain consistent deposit growth?

A. Approximately 80 per cent of our recent deposit growth has come from the Retail and SME segments, reflecting our strong emphasis on relationship-driven banking. Key strategic drivers include enhancing the overall banking experience and ensuring convenient access to accounts through customers' preferred channels. In addition, building a diverse talent pool and consistently nurturing female talent across our network-through targeted programmes and dedicated initiatives-has been a vital component of our growth strategy.

In addition to prioritizing customer satisfaction and offering innovative services, strategic initiatives-such as branch employees' efforts in promoting digital literacy, engaging with local communities, and strengthening the brand's positive image -have played a crucial role in sustaining consistent deposit growth and driving continued success at the branch level.

Q. How has BRAC Bank balanced customer satisfaction while managing the volume of approximately 40,000 account openings per month? Could you highlight the key strategies or practices implemented at the branch level to enhance the overall customer experience?

A. Managing approximately one million monthly footfalls presents a significant operational challenge. With around 40,000 new accounts being opened each month, continuous innovation is essential. We actively promote alternative banking channels to route frequent transactions and reduce pressure on branch operations. To support this, 'Digital Ambassadors' are stationed to assist customers in adopting digital solutions. Furthermore, branch staff are equipped with comprehensive training and advanced tools-such as Queue Management systems and the 'At Your Service' platform-which enable them to deliver efficient and seamless service, particularly during peak hours.

However, we are actively working to make further improvements by having specific segmental analysis of footfall. It's not rational why the young, digital native demographic group would come to take services at branches. They want convenient digital solutions, and we are on it. However, the choice is always with customers to pick their preferred channels especially those who need extra care. Careful segmentation even for servicing is essential for effectively managing branch operations.

Q. What strategies has BRAC Bank implemented to effectively manage and serve its high-net-worth client base?

A. Delivering substantial value to high-net-worth customers is the key, not just expensive gifts and propositions. The foundation lies in building trust and nurturing strong, long-term relationships. To achieve this, we focus on recruiting experienced relationship managers who possess a deep understanding of client needs. These professionals are further empowered through comprehensive training and equipped with effective tools to consistently deliver personalized and high-quality service.

Regular engagement events with high-net-worth customers are a fundamental basis of keeping abreast with the clients. We also conduct regular FGD (Focused Group Discussions) with them. Ultimately, our emphasis on delivering exceptional service and fostering long-term relationships has resulted in building one of the most distinguished premium banking portfolios in the industry.

Q. In your view, how critical has the integration of technology at the branch level been to BRAC Bank's success in deposit mobilization? What specific technological implementations have had the most significant impact?

A. Technology integration across all aspects of our business, service delivery, and fulfillment has been a critical enabler of efficiency. Automation of routine tasks allows our staff to dedicate more time to meaningful customer interactions, ultimately enhancing the overall customer experience. Key technological implementations include our digital platforms such as the Astha app, as well as eKYC tools that simplify accounts on boarding and servicing.

Our capability to connect with partner organizations through globally standardized API connectivity has significantly enhanced our relevance and responsiveness to the evolving needs of our institutional depositors. We have an agile technology team aligned with business goals which has been vital in realizing market opportunities.

Q. How is BRAC Bank leveraging its extensive network of branches and sub-branches to sustain and accelerate deposit growth? Will sub-branches replace agent banking in the near future?

A. Our network of branches and sub-branches is a strategic asset, thoughtfully designed to ensure accessibility where needed. Sub-branches help us to extend our footprint into growing areas efficiently. It's important to note that sub-branches and agent banking serve complementary roles.

Agent Banking provides critical access in more remote locations and offers operational flexibility. They are designed to work together within our 'phygital' approach, blending physical presence with digital convenience, rather than one replacing the other. This allows us to effectively serve the diverse and evolving needs of customers across Bangladesh.

Q. What does the future roadmap look like for BRAC Bank's branch network in terms of sustaining its impressive deposit growth, deepening customer-centricity, and advancing financial inclusion over the next three to five years?

A. Our roadmap for the next three to five years focuses on building on our current strengths while making meaningful enhancements across key areas. A core focus will be gaining deeper insights into customer needs and delivering timely, tailored solutions that add real value. Our phygital strategy will continue to be leveraged to improve efficiency and enhance our ability. In a nutshell, we remain centered on strong customer focus, integrity, and a commitment to accessible banking for all.

siddique.islam@gmail.com