Technology-led banking, retail and sustainable finance at the heart of Pubali Bank's expansion

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• Technology-driven banking, wider financial inclusion and responsible lending are at the centre of Pubali Bank's plans as it seeks to support businesses and customers across different stages of their financial journeys. 

The role of a bank in an economy goes far beyond collecting deposits and providing loans. A bank should help businesses grow, create employment and generate wealth. At Pubali Bank, we believe our role is to finance that journey—not only when a business has already become large, but from the point where an entrepreneur is taking the first steps.

A business may begin as a cottage enterprise. With the right support, it can become a micro business, then a small or medium enterprise, and eventually a large industrial concern. Each stage requires a different kind of financing, and we want to be a partner throughout that journey.

This approach will remain central to our strategy in the coming years. At the same time, banking itself is changing rapidly. Technology, fintech and artificial intelligence are reshaping how customers interact with financial institutions, and we have to move with that change.

Over the next five years, we want to transform Pubali Bank into a much more technology-driven institution. AI will increasingly become part of our products, customer services and management systems. Services such as mobile banking, NPSB and RTGS will continue to become more convenient, but our ambition goes beyond these channels.

Corporate banking is one area where technology can make a particularly significant difference. We want customers to be able to conduct export-import transactions, receive loan disbursements and make loan repayments from their own premises. A customer should not always have to visit a branch simply to access a banking service.

Infographics: TBS

This also means rethinking the traditional branch model. Where necessary, we may reduce the size of some branches, while in certain cases providing banking services without a physical branch at all. The objective is simple: make banking faster, easier and more accessible.

Financial inclusion is closely connected to this transformation. Customers today have less time and less patience for lengthy procedures, paperwork and long waits. They want banking that fits into their daily lives. We therefore want to bring more young people into the formal banking system and connect them with different banking channels.

We also see considerable potential in QR-based transactions. Pubali Bank has ambitions to become a leading player in this segment, with a target of capturing around 30% of the QR transaction market.

Retail banking will be another important area of growth. More than 10% of our total loan portfolio is currently in retail banking, with the portfolio standing at around Tk8,000 crore. We provide personal, car, home and nano loans, while also financing needs that can directly improve people's lives.

For example, we provide housing loans of Tk3 lakh to Tk5 lakh for people building homes in rural areas. Our housing portfolio is around Tk1,000 crore. We also finance professionals such as dentists who need to purchase chairs, equipment and machinery for their practices. These may appear to be relatively small interventions, but together they can make a meaningful difference to households and businesses.

Quality lending, however, must remain at the heart of banking. Financial figures are important, but they cannot tell the whole story. When considering a loan, we look at management, the reputation and capabilities of the people running the company, their business mindset and their commitment to the enterprise.

We are cautious about lending to entrepreneurs whose attention is heavily divided by political, club or other organisational activities. Business requires commitment. We have seen cases in the past where companies eventually closed after their owners became too involved in activities outside the business, making loan recovery difficult.

Sustainable finance is another responsibility we take seriously. We have to think not only about today's returns but also about what kind of economy and environment we leave for the next generation. That is why we are giving greater attention to green buildings, green factories, renewable energy and energy-efficient equipment. Our performance in sustainable finance has also been recognised, with Pubali Bank ranking third and receiving an award in this area.

The banking sector nevertheless faces significant challenges. The rise in non-performing loans is one of the most pressing. The sector must find effective ways to bring these loans down and restore confidence. Bringing illicitly transferred funds back into the country is another major challenge.

These issues also have wider implications. Bangladesh's standing in anti-money-laundering assessments matters, and a deterioration in the country's AML rating could have serious consequences.

The way forward, therefore, requires a combination of technology, inclusion, responsible lending and stronger governance. For Pubali Bank, growth is not simply about increasing the size of our balance sheet. It is about financing businesses with potential, expanding access to banking and supporting sectors that can create a positive impact on the broader economy.

If we can help an entrepreneur move from a small beginning to a larger enterprise, while making banking more accessible to millions of customers, we will have played our part in Bangladesh's economic growth.

From small enterprises to a stronger economy

For Pubali Bank, growth is not confined to large corporate borrowers. The bank is increasingly positioning itself across a wider spectrum of the economy, financing businesses and individuals at different stages of their financial journey.

A key focus is the cottage, micro, small and medium enterprise segment. The bank's approach is to support businesses as they grow—from small beginnings towards larger and more established enterprises. This creates an opportunity for entrepreneurs to access financing as their needs evolve, rather than treating each stage of growth as a separate journey.

Retail banking is another expanding area. With a portfolio of around Tk8,000 crore, the bank offers personal, home, car and nano loans. Its housing finance also extends beyond urban borrowers, including smaller loans for people building homes in rural areas.

The bank is also focusing on financing professionals and businesses where relatively targeted funding can create a direct economic impact. From medical equipment for dentists to SME financing, the emphasis is on lending that supports productive activity.

Technology is becoming an increasingly important part of this strategy. Pubali Bank plans to expand digital services, strengthen mobile and electronic banking and make corporate transactions more accessible without requiring customers to visit branches. QR-based transactions are another major area of ambition, with the bank targeting a significant share of the market.

At the same time, the bank is expanding its focus on green and sustainable finance, supporting areas such as green buildings, renewable energy, energy-efficient equipment and environmentally responsible factories.

Taken together, these priorities reflect a broader vision of banking: not simply financing businesses that are already successful, but helping more businesses become successful. By connecting financial inclusion, retail banking, SME finance, technology and sustainable lending, Pubali Bank is seeking to make its growth more closely aligned with the growth of the wider economy.