It Is Time to Encourage-Innovation: Thought Process of a Banker/ Financial Specialist


Now a day’s more than 30+ Financial Institutions and 50+ Banks are playing in the market of Bangladesh which has only 160 billion dollar of Consumer Financing Market, 1 lac and 67 Thousand+ SME Businesses and only 3,800+ Large Corporate Entities to finance and out of them 57% market has been tapped belongs to Consumer Banking where SME Banking is growing geometrically.

On the contrary, the sister concerns of these large Corporates’ have un-cleaned CIB to finance in a prudent manner. Thus, no other option left instead of focusing on Retail and SME market by the financial organizations. Even though by seeing these opportunities for fee-based and margin-oriented income segment; all the FIs and Banks are playing with the homogeneous product and services though some of them are incorporating value and unique selling propositions in their product segment without doing market forecasting and customer modeling to know the targeted consumers behavior, where and how to promote their product and services being an innovative organization.

Therefore, we can recall the history of NOKIA (A Global Cellular Brand) for analyzing failure history not for adopting new move of market viz a viz their competitors. Since we are talking about the Service Industry, Luftahnsa Airways shall be another bright-example of differentiation and positioning in the market by telling-between the stories of blue-ocean and red-ocean strategy to grasp industry share.

In this regard, brand, marketing communication, R&D and business development plays a pivotal role to make any sinking ship as a floating one. It is not an expense rather investment to raise organizations brand equity and increase the EPS (Earning Per Share) for the stakeholders.

In this 21st century, contemporary glass door financing has turned into Door to Door Financing to reach maximum level of customer segment and generating revenue for the Banks and FIs’. It seems like a paradigm shift within the total pyramid of supply chain of financial industry. Having the blessings of ICT; Banking and Finance industry must go for value based financing approach (VBFA) and embrace the Alternative Dispute Resolution (ADR) process to minimize the nonperforming loans as well as drop down the Turn Around Time (TAT) for the sake of customer service excellence.

Macro economy oriented studies, regular commodity market watch and business process re-engineering shall optimize the probability of sustainable financing initiatives and also to build a livable world considering the well-being of people, planet and process. It reveals a holistic approach for the entire financial industry. Therefore, it’s time to re-think and draw a detail process flow and encourage innovation in this disruptive market where big opportunities are lies-in for growth for the new entrants as well.

Financial organizations opening their representative offices shall also be focused on diversified market in Bangladesh besides their correspondent banking to get the economies of scale- benefit from their return on investment (RoI) in this country. As we do know that the GDP growth rate of Bangladesh is about to be 5.78% (forecasted by WB) in 2017, CPI index has increased 230 points (opined by the BBS), remittance-inflow growth rate is higher than the previous year (declared by BB); it’s time to consider the Financial Institutes from 360 degree angle. So, now let’s start connecting the dots to fill up the gaps in our business life cycle, promote self leadership, and craft the frame work of design thinking.

In fact, those who are enthusiastic enough to think that they can change the SYSTEM are those who really do. We must call them up to accelerate the engine of growth, hold the business steering, allow them to work independently and to flourish their latent potential.

-Hossain-Al-Safeer Chowdhury
Dedicated To: My Daughter, Fatiqua Binte Safeer Chowdhury

‘The Author Is Working For First Finance Limited As Senior Vice President’