Social Islami Bank now offers digital experience
Social Islami Bank has moved fast to transform its traditional banking services into digital kinds amidst the ongoing economical hardship due to the coronavirus pandemic, said its top rated executive.
"In the past, quite a few clientele had to come to branches to avail retail banking services," explained Managing Director Quazi Osman Ali.
"Now they can like a good number of financial services sitting back at their homes thanks to our latest digital initiatives."
On the occasion of its 25th founding anniversary, the Shariah-based lender has decided to digitalise its banking activities on a wide scale to cater financial services to tech-savvy consumers in keeping pace with times.
Within its initiatives to create a vibrant digital banking sphere, Social Islami Bank, which started its banking operations in November 1995, introduced e-account opening services in October in a way that clientele can smoothly open accounts with the bank.
Anyone from anywhere in the country is now able to open an account through "SIBL NOW"--a mobile application of the lending company which offers internet banking services all the time, said Ali within an exclusive interview with The Daily Star the other day.
Clients do not even have to come into a branch to ink their signatures for opening accounts because they are allowed to stick it through the digital app.
They are also able to settle both intra- and inter-bank retail transactions in real-period through the app, that was rolled out this past year.
"We have been working towards developing another software that will allow clientele to withdraw funds from branches without necessitating the submission of a good cheque," stated Ali, who became a member of the lending company as managing director on October 2017.
Beneath the upcoming system, a customer must scan a QR (quick response) code utilizing the lender's mobile iphone app to withdraw funds from the required account.
The digital system will be launched within December, Ali said.
To be able to smoothly provide banking offerings to clients during the ongoing coronavirus pandemic, the lending company launched a full-fledged call centre in September.
This helps clients keep the deadly flu away by sidestepping the necessity to come to branches.
The call centre now responds to all or any types of queries located by clients, at any hour.
In addition, Social Islami Lender has taken several initiatives to give a boost to paperless banking.
Approval processes for opening and settling of letters of credit rating are being conveyed working with digital means.
For instance, once clients submit their applications, every branch now sends the docs required for opening of LCs to the top office through the digital mode.
The senior management then gives a decision on it and sends the instructions to the branch for the required measures to be studied. All of these procedures are now carried out through the web platform without the use of any paper.
The web process for settling foreign trade in addition has commenced in August.
Social Islami Lender has introduced a dual prepaid credit card, helping clients purchase products from domestic and global markets by building use of both regional and foreign currency.
The lender has recently rolled out two mortgage products titled "Probashi Agrojatra" and "Probasi Uddog" so that they can come to aid from migrant workers, who've been forced to come back on being terminated from their jobs because of the ongoing economic hardship.
Under the products, such personnel will be permitted to get loans of Tk 5 lakh without needing to manufacture collateral and, with a home loan, Tk 20 lakh.
The two products are anticipated to help generate employment in the united states and alleviate the woes of the unemployed expatriate Bangladeshis.
The lender, which operates its business through 161 branches, 54 sub-branches and 140 ATMs in the united states, has placed the most importance on accelerating financial inclusion to provide unbanked persons under the formal financial system.
"But we can do it not by opening branches as the branch-led banking model isn't effective anymore, offered the huge establishment cost of the outlets," said Ali, who started his banking career in 1984.
The lender will create progressively more sub-branches rather than establishing branches.
Clients of sub-branches is now able to enjoy nearly the entire range of banking solutions, all except for foreign exchange related businesses.
The Shariah-based loan company has so far create 54 sub-branches, and 20 more will be opened within December.
The initiative will almost remove the need for opening more full-fledged branches.
"The bank is only going to open a limited quantity of branches in the remotest places in the days in advance," said Ali, who served as the excess managing director initially Security Islami Lender before joining Social Islami Bank.
Three years ago Social Islami Bank had only 49 agent outlets and a collective deposit of Tk 1.80 crore beneath the agent banking programme of the central lender.
However the number of agent outlets of the lender is now around 150 and it has mobilised a lot more than Tk 200 crore in deposits utilizing the window.
"We will open extra agent outlets."
The bank also plays a essential role in the field of education, medicine, sports, disaster management and rehabilitation under its corporate social responsibility programme, Ali said.
The lender has taken up a joint programme with UCEP (Underprivileged Children's Educational Programmes) Bangladesh to provide skill development training to physically challenged and underprivileged youth.
Beneath the SIBL-UCEP Skill Training Project, 100 students are receiving trained in Dhaka and Chattogram, which include job placement opportunities in several institutions.
Twenty-fivestudents have already joined various industries, Ali said.
The lender had earlier rolled out several Shariah-based mortgage loan and deposit products, which gave a jumpstart to it, making it the most reputed Islamic lenders in the country, Ali said.
Among all Islamic lenders in the united states, Social Islami Bank pioneered cash waqf.
By opening a dollars waqf deposit account, clientele can get an opportunity to bring about welfare for humanity through Sadaka-e-Jariah.
Social Islami Lender urges all religious and affluent folks of society to come forwards to mobilise money waqf deposits so that the profit could be utilised for the well-being of humanity.
The total amount deposited in the cash waqf account will be invested according to the bank's own decision in conformity with the Shariah laws.
The money waqf amount will earn profit at the best rate offered by the lender every once in awhile.
The waqf amount will remain intact, and only the profit amount will be spent for the purposes specified by the depositors.
The bank has introduced another savings product, specifically "Sonali Kabin - Mudaraba Mohorana Cost savings Scheme" - so that you can help unmarried people, Ali said.
"Denmohor", or money or perhaps possessions paid by the groom to the bride at the time of marriage, is considered one of the rights of the wives which is enforceable by the Shariah laws.
This product is targeted at creating consciousness among married along with unmarried men over the necessity to pay "Denmohor".
The scheme holders can operate the account predicated on Mudaraba policy of Islamic Shariah.
By depositing monthly instalments, the beneficiaries pays "Denmohor" to their wives after a particular period.
"Proshanti - Mudaraba Zakat Savings Account", another deposit merchandise, has been rolled away by the lender to help clients in a way that they are able to pay zakat smoothly, explained Ali, who attained equally his graduate and postgraduate degrees in general management from the University of Chittagong.
Zakat is the most crucial foundation of a good Shariah-based economy, which is Farz for each capable Muslim as well, he said.
In some cases, those intending to spend zakat face difficulties in calculating the actual amount.
Keeping this at heart, the checking account has been launched like a exceptional deposit scheme, Ali explained.
The depositors will receive a profit for a price of 10 % on the daily balance.
Those spending the zakat or the lender on their behalf can withdraw the zakat amount from the full total financial savings, including profit, following the month of December and use it on select sectors as per the directions of Al Quran.
The bank in addition has decided to expand its business in the global arena.
It has recently got approval from Bangladesh Lender to set up a branch found in the Kingdom of Saudi Arabia.
An application was submitted this past year with the Saudi Arabian Monetary Authority (SAMA), the central bank of the KSA, to create the branch.
If the SAMA approves, the migrant personnel in the Gulf country will be able to send remittance and take loans from the branch within an effortless manner.
"We are also thinking of establishing representative offices in different countries to strengthen our global presence."
Ali also touched upon some pressing issues in the banking sector.
The cap of 9 % interest rate on lending has put an adverse effect on the profitability of the lender since it had earlier mobilised funds offering high-interest rates on long-term deposits.
"Banks now keep lower provisioning than the required amount place by the central lender because of the moratorium facility proposed by the central bank," Ali said.
But Public Islami Bank will need up initiatives to strengthen its provisioning base such that its harmony sheet is with the capacity of fighting difficulties in case any crisis stemming from the ongoing business slowdown.
"Furthermore, we will restructure the loans to greatly help borrowers after December when the moratorium service will never be available such that our clients should be able to operate their businesses sweeping apart the business slowdown," he said.
