Mercantile Bank booms with customer-centric products, services

The Mercantile Bank PLC, a leading local privately-owned commercial bank, has created considerable vibes in the financial market and achieved customer trust and loyalty since its inception in 1999.

"Since our inception, we've created a credible brand impression in the market and earned customer trust and loyalty," said Md Quamrul Islam Chowdhury, managing director and CEO of the Mercantile Bank PLC or MBPLC.

Mr Chowdhury talked to the FE exclusively on the occasion of the bank's 25-year journey in the domestic financial market.

"The MBPLC is rated by Moody's that reflects its good profitability, well-matched maturity profile, modest asset quality and solvency profile."

However, amid multiple obstacles, the MBPLC has grown sustainably year on year and delivered consistent financial performance since its birth.

Compared to year-end 2022, total assets grew by 5.19 per cent or Tk 19,844.57 million and reached Tk 402,173.04 million on 31 December 2023.

On the other hand, MBPLC loan portfolio grew by Tk 3,940 million and reached Tk 284,830.98 million on 31 December 2023.

As the bank has prudent risk management, so has its non-performing loan (NPL) much lower.

"We contained the NPL ratio at 6.08 per cent only in December 2023 (7.09 per cent in December 2023), which is far below than the industry average of 9.0 per cent in December 2023," the CEO said having more than four decades' banking experience.

The MBPLC is a visionary brand, which contributes to the overall financial market, values customer satisfaction, stakeholder confidence, community engagement, regulatory compliance and good governance.

"Our visionary strategies and dynamic leadership have paved the way for a resilient platform that thrives on seizing new opportunities," said Mr Chowdhury.

"We've a clean image, excellent reputation, firm structure, and a proficient and committed team."

Currently, the bank has a deposit portfolio of Tk 306,947.95 million and a loans and advances portfolio worth Tk 284,830.98 million.

"As a corporate entity, MBPLC pays taxes and VAT on its income by existing laws, making a significant contribution to the government's revenue collection effort."

In the past year, the bank contributed Tk 4,781.93 million to the national exchequer in the form of taxes and VAT on its earnings.

Additionally, it deducts taxes, VAT, excise duties and other charges from various payments and deposits them in the coffers.

For a quarter of a century, the MBPLC has been at the forefront of economic growth, fostering sustainable development since its inception on 02 June 1999, according to Mr Chowdhury.

"With a steadfast commitment to excellence, MBPLC has cultivated a reputation for reliability, earning the enduring trust and loyalty of its clientele."

The bank has technology-driven services through an extensive network, including 152 branches, 42 sub-branches, 196 ATMs and 187 agent banking outlets.

"Our professional team is dedicated to driving innovation, crafting banking products and services that cater to the evolving needs of our customers. From corporate banking to SME and retail businesses, advanced card services to comprehensive digital banking solutions, MBPLC stands as a beacon of customer-centric banking in Bangladesh."

On the bank's role in adapting to changes in technology and innovation to stay competitive, the CEO said his bank was committed to placing cutting-edge technology at the forefront of their delivery channels and operations.

"From the beginning, MBPLC has adopted modern technologies to provide fast-track customer-centric services to clients. We've introduced online real-time banking, SMS and internet banking services… and are providing 24/7 banking services to our clients through ATM booths across the country and telephonic services by MBPLC Contact Centre."

On core banking software, the CEO said it has implemented "TEMENOS T24", a world-class proven technology platform that ensures real-time integrated smart banking software.

It provides various alternative delivery channels like ATMs, debit card/credit cards, mobile banking and internet banking services, and many new customer-centric products.

Added to these is a digital platform named 'MBL Rainbow', which made the banking more customer-friendly and digitalised, which is in line with the country's goal of becoming "Cashless Bangladesh".

In 2016, the Mercantile Bank established the 'Financial Inclusion Department' under the Agriculture Credit Division at the head office.

"This department aims to improve the living standards of marginalised individuals and bring them under the formal financial system."

On keeping growth competitive amidst digital banking in the coming years, the CEO said the Covid-19 pandemic accelerated the adoption of digital banking, as customers increasingly turned to online services.

"Recognising this shift, we enhanced our outreach and service capabilities, including upgrading our core banking system."

In November 2020, the MBPLC established the Digital Banking and Innovation Department to ensure the smooth operation of digital services like 'MBL Rainbow' and 'MBPLC e-KYC' round the clock.

"Committed to continuous improvement, we acknowledge that achieving comprehensive digital transformation requires a long-term, strategic commitment," Mr Chowdhury told the FE.

"Our customers, employees and shareholders are equally important to us. We want to achieve strong corporate growth through financial inclusion."

"We never forget our shareholders to make them pleased with financial well-being and increase the value of their shares. This has given us a path towards growth and progress."

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