In an Interview with Ceramic Bangladesh, the Brac Bank MD & CEO says the growing industry can help fulfill Bangladesh’s sustainable development goals.
Selim RF Hussain is a Bangladeshi career banker with over 35 years of diversified local and international banking experience. He is currently heading Brac Bank Limited, one of the country’s leading full service commercial banks, with an asset base of approximately US$ 5 billion, and one that is known for its particular focus on the SME segment. Mr. Selim joined Brac Bank in November 2015, and within a relatively short period, has led the bank to the top tier of the 60 odd scheduled banks in Bangladesh. He has been elected Chairman of the Association of Bankers, Bangladesh (ABB) for the period 2022-23. He is a member of the Governing Board of the SME Foundation, an apex semi-government institution spearheading SME development. He is a member of the Governing Board of the Financial Alliance for Women, an international network of financial institutions dedicated to championing the female economy. Mr. Selim is also on the Board of the Global Alliance for Banking on Values (GABV), an international network of banks that use finance to serve people and the planet. Mr. Selim also represents Brac Bank in multiple Brac Bank subsidiaries through board directorship – at Brac EPL Investments Ltd, Brac EPL Stock Brokerage Ltd, Brac Saajan Exchange Ltd and Brac IT Services Limited. He is the Chairman of the Board Audit Committee of bKash, Bangladesh’s largest mobile financial service company, and also the Vice-Chairman of the Industrial Infrastructure Development Finance Company (IIDFC), a non-banking financial institute.
Ceramic Bangladesh (CB): Would you please tell us something about Brac Bank and its inception?
Selim RF Hussain: Brac Bank started its journey in 2001 as a private commercial bank focussing on small and medium enterprises (SMEs). Our visionary founder – Sir Fazle Hasan Abed KCMG established the bank to facilitate easy access to formal f inancing for the grassroots SME entrepreneurs who are usually left out in the traditional banking system. The bank has pioneered small-ticket unsecured loans to bring the unbanked missing middle under the banking umbrella. Over the years, it has emerged as the country’s largest financier of collateral-free SME loans. With a dynamic network of 187 branches, 456 SME unit offices, 373 ATMs, and 800 Agent Banking outlets across the country, Brac Bank offers seamless banking services for Retail, SME, and Corporate segments serving 1.3 million customers. The majority shareholding of the bank belongs to Brac, the largest non-government organisation in the world.
CB: What has actually enabled the bank to rise to the top?
Selim Hussain: Brac Bank is a different bank altogether in the banking sector. It is the only bank in the country, with most shareholdings belonging to institutional investors. Its Board is comprised of independent directors who are expert professionals in their f ield. This organisational structure gives the bank a solid foundation to become a standard bearer in governance, transparency, ethics and compliance. Brac Bank’s superior performance indicators in the Bangladesh Banking Sector are reflected in the highest market capitalisation, the highest international investor shareholding in the local banking sector, and the highest bank credit.rating of all banks in the country from both international rating agencies, S&P and Moody’s. The bank leads the local banking industry in nearly all financial metrics and is a benchmark for corporate governance and values-based banking.
CB: How is Brac Bank different from other banks?
Selim Hussain: Brac Bank focusses on SME banking. It provides small-ticket and collateral-free loans to SME entrepreneurs, an attribute that sets the bank apart in Bangladeshi banking sector. The bank plays a vital role in bringing the unbanked missing middle under the banking system. With its SME Banking, Agent Banking and Women Banking propositions, Brac Bank contributes significantly to financial inclusion in the country.
CB: What are the services you provide to your premium customers?
Selim Hussain: We bring exclusive perks to our high-value customer segment. Premium Banking customers enjoy a host of benefits and privileges, including Dedicated Relationship Managers, Luxurious Lounges, One-Stop Service, Preferential Fees and Charges, Doorstep Service, Lifestyle Benefits, Exclusive Card Privileges, Customer Value Propositions, Priority at Call Centre Service. The customers are entitled to exclusive deals on shopping, dining, entertainment, healthcare, and special Infinite, Signature and Platinum credit card special offers.
CB: What facilities are you providing to the local manufacturing industries?
Selim Hussain: In its 21 years of operations, Brac Bank contributed significantly to industrialisation in Bangladesh. Our Corporate Banking provides Working Capital, Capital Machinery, Project Financing and Lease Financing, Cash Management and Transaction Banking for large and emerging corporate organisations. Under SME Banking, the bank extends Unsecured Loan, Secured Loan, Women Entrepreneur Loan, and Secured Convenience Loan, leading to small-scale industries’ growth.
CB: How do you see yourself as a partner in the growth of Bangladesh’s ceramic industry?
Selim Hussain: The ceramic industry has high growth potential. Apart from meeting domestic demand, our ceramic manufacturers also export and earn precious foreign currency. This potential has led to renowned corporates making big investments in this manufacturing sector. Brac Bank provides banking and financing support to large-scale ceramic industries and small-scale ventures with customised solutions. CB: Do you have plans for more investments and providing more facilities to the ceramic industry?
Selim Hussain: Being an SME-focussed bank, Brac Bank patronises grassroots entrepreneurs. We have already financed many small-scale ceramic industries and witnessed remarkable success. For example, our finance to Clay Image has created many jobs, especially for women artisans. We know that the growing ceramic industry can help fulfill sustainable development goals of No Poverty, Decent Work and Economic Growth, Industry, Innovation and Infrastructure. So, we stand for this vibrant and potential sector, helping it to flourish further. CB: Where would Brac Bank be in 10 years down the line? Selim Hussain: With modern technology, the banking sector is changing fast. We reckon, in a decade’s time, banking infrastructure will see radical change. The country will go cashless. with the dominance of card payment and digital transaction. Brick and mortar model will not be viable then. The banks will cater service mostly through digital platforms. Account opening, loan sanction and other banking service will be performed in the blink of an eye. However, we, at Brac Bank, will adopt digital banking with a human touch, which we call phygital strategy. Brac Bank plans to double its business in the next four years. The bank, which has invested heavily in technology in the last four years, will reap from the investment by expanding digital services across the country.
CB: What do you expect from your human resource? Do you have any tips for the youth who may choose banking as a career?
Selim Hussain: To keep it short and simple – I want my recruits to be caring to the customers, intelligent, adaptive to change, hardworking and passionate about their job. They must be aligned with the company’s purpose and long-term goal. They have to be super professional and truly committed to the company. They must be ready to take any challenge and willing to get posted anywhere in the country. The banking sector is a promising sector for young talents. They can contribute significantly to the industry with their innovative thinking. They can challenge the status quo and change how customer service to a new level as cherished by the customers.
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