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“MTB aims for universal embrace of digital transformation”

In conversation with Khalid Hossin, Head of Digital Banking Division, Mutual Trust Bank (MTB)
TDS: What is the current status of digitalization within your organization?
Khalid Hossin (KH): MTB demonstrated strategic intelligence by setting the goal of digitalization, considering market maturity, digital public infrastructure, digital public goods, and effective digital literacy, as well as meaningful digital inclusion. Currently operating at a semi-digitalized level, MTB has articulated a clear path towards full digitalization. The digitalization scope is defined across three key areas: Backend, covering core banking systems, platforms, and applications; Connectivity, fostering relationships with ecosystems and other stakeholders; and Front End, enabling direct customer interaction with MTB.
MTB has pioneered a cutting-edge retail customer digital onboarding platform in Bangladesh, named ‘MEasy.’ This platform offers a seamless onboarding experience for retail and Personal Retail Account (PRA) applicants.
As a strong proponent and first-adopter of the ‘Open Banking’ principle, MTB became the first bank to offer both savings and lending through open banking APIs. The successful onboarding of around 55,000 Bangla QR Merchants via API connectivity has established a noteworthy model of Banking as a Service (BaaS).
MTB’s commitment to innovation is evident in the recent launch of LaaS (Loan as a Service), providing digital SME loans for micro-merchants in collaboration with a fintech partner. For retail customers, MTB introduced ‘torit Loan,’ facilitating quick loans for any payroll customer, instantly granting loans of up to 50,000 BDT within the maximum cap set by BB.
MTB has also pioneered numerous API-based automated digital solutions, enabling Service Remittance as low as BDT 50 (less than half a dollar) in real time and in a cost-effective manner.
TDS: What challenges do you see in implementing digital transformation within the financial sector?
KH: The main challenges in introducing digital transformation in Bangladesh include conventional thinking, fear of accepting changes, a shortage of skilled human resources, poor digital literacy, insufficient digital public goods, and non-fulfillment of regulatory policies such as using wet signatures and lack of policy support or incentives to encourage people to embrace transformation.
MTB has adopted a strategy aligned with its goal to ensure that digital transformation is embraced by all, creating more value with convenience, reducing costs, and enhancing the overall experience. MTB follows a testing Minimum Viable Product (MVP) approach and utilizes sandboxing, avoiding a big bang approach. If successful, MTB proceeds to scale the transformation.
TDS: How does your organization guarantee security, encompassing cybersecurity, prevention of forgery, and the safety of data?
KH: We proactively surveil our security systems, continuously monitor the Security Operations Center (SOC) and Network Operations Center (NOC), and periodically conduct security audits, updating security patches. Additionally, we prioritize creating awareness among clients about the non-negotiable security of credentials such as login IDs, passwords, OTPs, and PINs. MTB enforces stringent integrity guidelines for employees and follows strict documentation procedures to prevent fraud and forgery, addressing both employee motives and oversight lapses.
TDS: How does digitalization contribute to addressing sustainability and the inclusion of unbanked individuals in the banking sector?
KH: MTB approaches banking and sustainability with a unique perspective, utilizing the MTB Smart Banking App to provide 2 million services in the past year, saving 4 million hours of customer time and approximately 2 million liters of octane. We have digitally onboarded 55 thousand Bangla QR Micro-merchants, thereby saving at least 5 lakh pages of paper.
Through complete API integration with various fintechs, customers can now access MTB services without visiting an MTB branch or even using the MTB app. Applying for MTB e-Loan is possible through our partners’ apps. By leveraging our partner network, we aim to reach the last mile of outreach.
TDS: What future plans does your organization have to enhance digitalization?
KH:
• Secure board and top management buy-in for digital transformation.
• Implement a bottom-up and trickle-down management approach to facilitate transformation.
• Ensure the proper re-skilling, upskilling, and training of manpower.
• Conduct culture transformation alongside digital transformation.