Page 25 - Banking Finance May 2022

ARTICLE

devastated pandemic. BB circulated 'Sustainable Banking
Policy' and newer approach to the intended expansion of
health-related CSR activities during 2020 and 2021. The
central bank issued new CSR guidelines emphasizing health
sector in the context of Covid-19. BB's policy approach to
sustainable banking during the period intended to encourage
the banking industry to undertake green financing activities
and to handle environmental risks in the banking operation.

Since the beginning of Covid-19, most banks have used digital
channels such as telephone, SMS, and e-mail services instead
of actual meetings with clients for communication purposes.
Furthermore, some banks have launched various initiatives to
aware consumers how to use applications and digital services. With their existing products, certain banks have integrated
Virtual platforms for corporate meetings, as well as digitized features such as Debit Card, SMS Banking, Internet Banking,
process automation to prevent direct interaction and people Bangladesh Automated Cheque Processing System (BACPS),
gatherings, are being emphasized increasingly. Despite the Bangladesh Electronic Fund Transfer Network (BEFTN), Real
risks, several banks use in-person communication due to their Time Gross Settlement (RTGS), and others. Some banks have
large customer base and capacity limitations. Furthermore, also implemented digital loan processing systems, i.e.
rural bank locations were unable to implement alternative paperless loans. Practically, digitalization efforts were
digital channels for client connections. initiated much before the outbreak of the Covid-19
devastation, however, the initiatives received momentum
The majority of banks have decided to operate physical and several new digital ventures were undertaken in the
banking on a restricted scale instead of complete digitalized context of the pandemic.
banking; however, most banks took initiative for improving
internal technology infrastructure and alternative delivery During the pandemic, banks placed a strong emphasis on
methods. Increased emphasis has been placed on using sending soft copies (scanned copies) of needed documents
smart banking apps, online banking, and other digital by email. Traders in foreign trade submitted their soft copy
platforms to carry out banking transactions, including for LC opening via email. In addition, during the early stages
customer onboarding. Banks have offered online account of Covid-19, when physical presentation of documents was
opening, automated challan system for fee-based difficult, certain banks worked on scanned documents and
transactions, and online transactions for payment of shipping guarantees to release items. Furthermore, several
installments and other banking charges for clients as part banks brought Non-Authorized Dealer branches under trade
of the digital transformation. Adoption of technology centralization to help traders by ensuring smooth
impacted account opening arrangement of most of the transactions and lowering costs. In trade service operations,
banking institutions in the country. certain banks have used a 'Hub System' for document
distribution and submission. Banks later acquired hardcopy
Banks shifted their perspective, exploring innovative and compared it with data as necessary. Block-chain might
methods to serve consumers efficiently in the context of be game-changers in trade facilitation in near future, and a
Covid-19. There are several efforts to reach out to clients few banks are already engaged in piloting blockchain-based
online through process automation. They have chosen to trade facilitation. As a move toward sustainable digital
serve customers remotely through digital platforms for transformation, some banks implemented the engineering
internal processes as well as customer service support. of a Digital Documentation Management System (DMS) to
Various app-based banking products were provided through gradually replace manual file processing.
the web and Internet by some banks. Several banks have
started offering easy and speedy loans via internet banking. Using of e-KYC is already contributing to the banking

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