The new visa policy of the United States for Bangladesh will not have a negative impact on the country's economy and banking sector in the short term, according to Selim RF Hussain, Chairman of the Association of Bankers, Bangladesh (ABB) and Managing Director/CEO of Brac Bank.
Speaking at a press briefing “Banking on Digital Transformation” organized by the ABB, Hussain emphasized that the credit rating of the country plays a crucial role.
“If the credit rating is negatively affected, it could lead to additional expenses and increased reliance on money changers for foreign trade,” he said.
Highlighting the importance of foreign trade, export, and import for the economy, Hussain emphasized that maintaining a positive image is crucial for improving the credit rating.
He also stressed the significance of digital banking transformation, stating that banks that fail to invest in improving their digital banking platforms will struggle to sustain themselves in the coming years.
Hussain pointed out that the rise in smartphone usage in Bangladesh will contribute to the growth of digital banking. However, he also highlighted the need to decrease internet prices to further facilitate digital banking adoption.
Contrary to the misconception that senior citizens may face challenges in using banking apps, Hussain clarified that many seniors are already using Brac Bank's app, and with proper assistance, they can easily avail digital banking services.
Additionally, Hussain mentioned that technology will play a significant role in mobilizing remittances from abroad, and the central bank is encouraging banks in this regard. To strengthen digital banking platforms, it is crucial for banks to increase profitability and contain default loans.
“Many lenders will create mobile banking apps to mobilize remittances, which will help remitters send their hard-earned money through the platform.
“Expatriate Bangladeshis will also be able to send their money through the apps in real-time from abroad.
“If banks can't increase their profitability, they will be unable to invest in strengthening digital banking platforms, which is why default loans will have to be contained.
“Digital literacy is also important to make technology-based banking popular,” Selim RF Hussain added.
Hussain concluded by emphasizing the importance of digital literacy to promote technology-based banking and ensure its widespread popularity among the population.