MTB fast-tracks digital shift, eyes 'voice banking' for tech-savvy clients

Mutual Trust Bank (MTB) PLC has intensified its focus on digital transformation to meet the banking needs of the rapidly expanding, technologically adept population more conveniently.

As part of the bank's 'physital' (physical and digital) banking approach, the bank has been partnering with fintech companies to bring in innovative products or technology-driven banking solutions, specially targeting the bottom end clients.

Since its inception in 1999, MTB has already emerged as one of the leading banks with digital setup or network, leveraging its strengths riding on a vibrant board of directors, robust governance and digital transformation.

"We keep working to bring in innovative banking solutions in our innovation lab. We're going to introduce voice banking soon. It means our valued clients will be able to access banking services through using their voice in our MTB Neo platform," Syed Mahbubur Rahman, managing director and chief executive officer of MTB, told the FE in an exclusive interview ahead of the bank's 26th founding anniversary being celebrated today.

Under the digital transformation approach, he said, the commercial bank has been partnering with fintech companies to reach out the bottom end clients with offering more convenient banking solutions.

MTB is the first bank that introduced virtual debit card, Bangla QR facility and micro-merchant loan in the country. "That's why MTB is one of the leading frontline banks of the country as far as digital transformation is concerned. But it does not mean we're giving less importance to our physical presence. Our approach is physital," he said.

Terming the current banking scenario highly challenging for the industry, the seasoned banker said calculative and structured banking, with serious attention to governance, is essential to overcome the challenge.

Citing the example of his own bank, he said a group of iconic businesspeople in the country had decided to establish an institution that will be based on trust - which is why the bank was named Mutual Trust Bank.

Mr. Rahman, having 36 years of banking experience, said members of the MTB's board are well aware of their roles and never interfere in the management activities, with a clear instruction to uphold good governance in banking practices. "That is why the bank's strength has continued to grow over the past 15 challenging years when many banks have financially weakened," he said.

Responding to a question, he termed liquidity management the most challenging task for the banks under the current banking context. Since second half in 2022, many lenders suffered to meet their overseas payment obligations amid forex crunch, but MTB did not fail to clear any single payment.

Sharing some indicators, the bank's top executive said the ADR (advance deposit ratio) is ranging between 79-80 per cent while LCR (liquidity coverage ratio) is hovering in between 150 per cent and

160 per cent. "So, we have been working proactively on both local and foreign

currency management. Some banks failed to maintain it and fell into severe crisis," he said.

About the bank's priority areas, he said they intend to expand their banking coverage to the cottage, micro and small enterprise segments to bring vibrancy in the economy.

The MTB is providing services through 122 branches, 58 sub-branches, 190 agent banking outlets, 291 ATMs (Automated Teller Machines), 57 CRMs (Customer Relationship Management) and 4800 POS (point of sale) across the country. The deposit portfolio of the bank rose to Tk 328.84 billion in 2024 from Tk 262.54 billion in 2023.

The loans and advances portfolio of the bank enhanced to Tk 300.78 billion in 2024 from Tk 261.02 billion recorded in 2023. The bank's net profit after tax stood at Tk 3.17 billion until December 2024.

The bank has received numerous accolades, including being recognised as 'One of the top ten sustainable banks of Bangladesh' by Bangladesh Bank (BB) for its 2020 performance, and a letter of appreciation from the BB in 2021 for its outstanding role in disbursing 100 per cent of the Covid-19 CMSME stimulus package.

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