Business Model, Strength,

Weakness and Strategic Action

Banking Industries of Bangladesh

Presented By:
Sohaib H Chowdhury ZR2001026
Abu Saleh Yeasir Arafat ZR2001028
Md. Ashique Hasan ZR2001033
Md. Siam Hasan ZR2001039
Akil Afzal ZR2001040
Types of Scheduled Banks in Bangladesh

Islami Banks
Foreign States
Commercial owned
Banks Banks

Private Specialized
Scheduled
Commercial state owned
Banks
Banks Banks
Private Commercial bank
Brac Bank Limited
 Business Model Evolution of Brac Bank Limited

Started Retail banking client's

penetration in 2008 to
Focus on treasury products
capture low cost deposit
for generating investment
from premium clients 
income 

2001 2008 2010 Onwards

Established in 2001 to
serve with financing facility Started corporate banking
to SME clients only to wing in 2010 for making the
increase the volume ecosystem with employee
(balance sheet)  banking segment 
 Business Model of Brac BANK Limited
Key Partners Key Activities Value Propositions Relationships Customer Segmentation
• VISA, MASTERCARD • Deposit • Lifestyle financing, • Personalize Assistance • SME,
• INFOSYS for CBS • Financing, • working capital financing, • Care zone • Corporate Banking,
• SME foundation • Servicing • Term financing, • Toll free call center • Retail banking client
• Ministry of finance, • Trade financing , • Relationship based segment
Bangladesh Bank • Convenient service platform like banking to deepen client
mobile banking, call center etc. relationship, CRM Model

Key Resources Channels

• Human Resources • Branch network,
• Finance (deposit, debt, owners' equity), • Agent banking network,
• Physical (Real estate-office building, ATM/CDM • ATM network,
machines, Other infrastructure ) , • Alternate banking e.g. mobile banking, call center etc.
• Intellectual (people both in-source & outsource) ,
• Intangible (good will, software)
Cost Structure Revenue Streams
• Personnel Expenditure • Interest income
• Interest expense, • Investment income
• Supplier expense, • Fee income
• Overhead Expense
 Strength, Weakness and Strategic Actions
 Strong distribution network
across the country
 Skilled resource particularly
in SME segment.
STRE  Highly educated and
NGT competent board and senior
management
HS  Different products in shelf to
cater various financing need
of clients
 'BRAC' the brand behind
 High performing & Diversified
portfolio across SME, RETAIL
& CORPORATE client segment
 Too many resources (around
10,000 with few unskilled
resources in different pockets). 
 No clear succession plan for
STRA
WEA CEO  TEGI
 High-cost income ratio in SME
KNES segment C  Increase client penetration
 Too much focus on SME ,
S induces them to lose other
ACTI
opportunities in institutional ON
segment
 Customer service issue in few
instances
 Slow in adopting digital changes
i.e. their App based Mobile
Banking just rolled out in 2021
 Focus on recruiting skilled and
right resources for the business
they operate
 Have clear & implementable
digital strategy to cope the
change 
with retail banking products in
rural level
 Laying out the foundation for
regional/global bank
 Enhancing product suit e.g.
inclusion of wealth
management products for
priority/wealthy clients
 
Foreign Commercial bank
Standard Chartered Bank
Business Model Evolution of Standard Chartered Bank, Bangladesh
1905 – 1948
• ANZ Grindlays started operation in 1905 & Standard Chartered in 1948
• 1st branch was set up in port city Chittagong; focus on business and trading
• Core clients include multi national companies and large commodity traders

1972
• Introduced Letter of credit in Bangladesh to support the import of newborn country

Post 1980
• Focus on selective Retail Banking; establishing of new branches; number of branches
became 15+

Post 1990
• Introduction of breakthrough products in retail space; first ATM, Debit Card, Credit card,
international card, 24H call center, Shariah banking etc

Post 2000
• Increased focus on structured solutions as new avenue of business; Syndications, FX
Hedging, Bond issuance, Cash Management & Liquidity Management etc
• Synergy from merger & acquisition of ANZ Grindlays, SCB & AMEX

Post 2010
• Increased focus on Digital Banking- Internet Banking, Mobile App banking
• Reduction of Branches; Increased focus on Cost Management
 Business Model of Standard Chartered Bank
Key Partners Key Activities Value Propositions Relationships Customer
Segmentation
• SC GBS • Retail Deposit & • Priority & Preferred Banking • Personalize • Retail- Preferred,
• Custom Houses & Advances • Credit Card, Debit Card Assistance Priority etc.
NBR • Credit Card • Retail Deposit & Advances • Priority Lounges • Large Corporate
• 3rd Party Vendors • Cash Management • Working Capital Financing • Relationship based • Global Subsidiaries
for services • Trade Service • Term financing banking to deepen • Commercial
• Bangladesh Bank • Correspondent • Syndication client relationship, Banking
Banking • Trade Financing CRM Model • Financial
• Structured Finance • FX & Derivative Institutions
• FX & Treasury • Digital Cash Management • Public Sector
Market • Employee Banking • Development
• Convenient service platform like mobile banking, call center etc. Organizations &
MFIs
• Banks, NBFIs &
Insurances
Key Resources Channels
• Human Resources • Branch network,
• Finance (deposit, debt, owners' equity), • ATM network
• Physical (Real estate-office building, ATM/CDM machines, • Corporate Banking Offices
Other infrastructure ) , • Correspondent Banks
• Intellectual (people both in-source & outsource) , • 3rd party couriers
• Intangible (good will, software) • Alternate banking e.g. mobile banking, call center etc.

Cost Structure Revenue Streams

• Personnel Expenditure • Interest income
• Interest expense • Investment income
• Vendor expense • Fee income
• Overhead Expense • Exchange Gain
• Compliance Expense • Confirmation Charges
• CSR
 Strength, Weakness and Strategic Actions
 Strong Corporate and high
net worth retail client base
 Global footprint with
increased focus on Asia,
STRE Africa & ME
 Highly competent personnel
NGT & senior management
HS  Heavy investment in
digitization
 Limited Branch & personnel
with low operating cost
 Low cost of fund
 USD clearing License
 Strong Compliance & FCC and
AML operation
STRA  Focus on corridor business:
India, China, Korea etc
WEA TEGI  Increase presence in
 Limited branches
KNES  High-cost for banking in remote C sustainable & green financing
space
S locations
ACTI  Capture the eco system of
 Slow in adopting to changes as
clients
any changes in policy requires ON  Convert all transactions to
group vetting
digital within 2023
 
Islami Commercial bank
Al-Arafah Bank limited
 Business Model of Al-Arafah Bank limited
Key Partners Key Activities Value Propositions Relationships Customer
Segmentation
• MASTERCARD • Maintaining all deposits • Shariah based banking system • Personalize • Individuals
• SME foundation • Conducting foreign trades • Follow Quran and Sunnah Assistance preferring shariah
• Ministry of finance • Social welfare activities • Sharing of profit/loss and • Care zone based banking.
• Bangladesh Bank • Green financing prohibition of interest (Riba) • 24/7 Toll free • Organizations
among lendersvestors. customer service opting for
Key Resources Channels specialized
schemes.
• Human Resources • General Banking
• Finance • SME Banking
• Physical (Real estate-office building, ATM/CDM • Agent Banking
machines, Other infrastructure ) , • Debit Cards
• Intellectual (people both in-source & outsource) , • Institutional Banking
• Intangible (good will, software) • Treasury
• Foreign trade
• Internet Banking
Cost Structure Revenue Streams
• Personnel Expenditure • Trades
• Supplier expense, • Investment related to shariah compliant activities
• Overhead Expense (Al Wadia, Mudarabah)
 Strength, Weakness and Strategic Actions

 Introduce quality customer

 Lack of knowledge on Modern
oriented products in the
Banking.
 Lack of research on shariah industry.
STRA
banking to match the recent  Maintenance of Shariah
STRE  Satisfactory financial WEA TEGI
practices. Principles strictly.
performance
NGT KNES  The organization is not first C  High levels of customer
 Human Capital
HS  Good asset quality
S mover and fast follower. ACTI satisfaction and loyalty

 Good capital adequacy

 Dependence on high cost ON  Deeper relationships with
 Diversified product lines deposit existing
Countrywide branch network  IT infrastructure is in a stage
customers
of graduation
 New customer acquisition
 Dependence on paper-based
Be industry leader on customer
communication
base 
 Business Model Evolution of Bangladesh Krishi bank

Inception Joint Venture Evolution

Commercial
banking Special
Programs

1973 1977 1983 2003 1983-2021

Establishment of Commercial Joint venture with Establishment different micro credit program
Special credit program for
Bangladesh Krishi functioning to UNCDF to finance Establishment of commercial banking Along with
Rakhains & Tree
Bank generate more rural and cottage financing farmers.
plantation program
100% Govt. owned loanable fund industry Starting from field level officers, Krishi apps has
specialized bank been implemented.
Specialized State Owned
Bank
Bangladesh Krishi bank
 Business Model of Bangladesh Krishi Bank
Key Partners Key Activities Value Propositions Relationships Customer Segmentation
 Ministry of Agriculture  Deposit scheme  Providing loan  Call center and  Farmers
 Bangladesh Agricultural research  Credit programs for facilities for customer  People engaged in Agro
institute marginal farmers achieving self complaint cell business
 ICT (Agricultural Info cervices)  International banking sufficiency in food  Field level officers  SME & Agro based
 Govt. owned  Corporate financing production and  Programs or industry
 Micro credit program strengthening rural training to build  Corporate Banking
economy. skill farmers to
 Provide services to alleviate poverty
farmers and
agricultural
industry
Key Resources Channels
 Human Resources (9430 manpower)  Micro credit programs for the farmers/poor
 Finance (Fully Govt. financed)  Field level officers
 HO, Regional offices, Online Branches  Online branches
 Agricultural department of Bangladesh  Krishi apps
Cost Structure Revenue Streams
 Cost Structure  Revenue Streams
 Govt. financed SME & micro credit programs  Investment income from corporate
 Loan disbursement,  Interest income from loan
 Infrastructure expense (Braches, offices)  Fees from different regular banking services
 Overhead expense (Human resources)
 Intellectual cost ( Software/Online services)
 Strength, Weakness and Strategic Actions
 Wide operational network
with 54 regional and 1038
STRE branch offices.
 Well established
NGT infrastructure
HS  Experienced human
resources
 Lower interest rate than
private bank
 Micro credit programs under
poverty alleviation
WEA  Long and complex institutional
procedure
KNES  Lack of timely loan assistance
 Political influence as the board
S of directors and MD posts are
assigned by Govt.
 Competition with NGO
 Lack of digitalization
 BKB must go full ahead for
STRA automation or digitalization for
sustaining in competition.
TEGI  Development of new attractive
C products and services
 Development of skilled
ACTI workforce
 Recruitment of new employees
ON to overcome the shortage.
 Govt patronization to cater the
growing demand for
agricultural credit in personal
and corporate level.
State Owned Bank
Sonali Bank Limited
 Business Model Evolution of Sonali Bank Ltd.

1972 1972-2007 2007 2010 2019

• nation-building • Used for nation- • Converted to Public • Started Islami • Started Focusing on
responsibilities by building Limited Company Banking Digitization,
undertaking responsibilities by with 100% Launched Sonali
government undertaking Government Sheba, the Digital
entrusted different government Ownership. App with account
socio-economic entrusted different Autonomous opening and
schemes as well as socio-economic Capability achieved management
money market schemes as well as after conversion feature
activities of its own money market
volition, covering all activities of its own
spheres of the volition, covering all
economy spheres of the
economy
 Business Model of Sonali Bank Limited
Key Partners Key Activities Value Propositions Relationships Customer Segmentation
 Bangladesh Government (All  Branch Operations  Banking for All  Over the Counter  Non-Banking Populations
Ministries)  Financial Settlement (Irrespective of (OTC) Services  Walk-in Customers
 Bangladesh Bank  Cash Management age, income,  ATMs  Retail
 NBR  Fees & Bill Collection portfolio etc.)  Digital & Mobile  Payroll
 Finance Ministry  Remittance Disbursement  All Services at One Apps  Retail Personal
 Government, Semi-Government &  Allowance Disbursement place (Retail, SME,  Relationship  Agro-Professionals
Autonomous Organizations  Foreign Exchange Services Agro-Finance, Management for  SME
 VISA Inc.  Payments SME, Corporate, Corporate  Corporate Companies
 ITCL  Social Services Remittance etc.) Lending Services  Manufacturing and Service
 Remittance Companies Industries
Key Resources Channels  Financial Institutes
 Government of
 Human Resources  Branch Bangladesh
 Branch & Premises  Agent banking  All Ministries
 Expanded Network  ATMs  Government &
 Technology Infrastructure  Digital Banking e.g. mobile banking App Autonomous
Organizations
Cost Structure Revenue Streams
 Salary Expense  Interest income
 Interest Expense  Investment income
 Facility Expense  Commission & Brokerage
 IT Expenses  Exchange Gain (Mark-up)
 Legal Expenses  Service Charges
 CSR
 Strength, Weakness and Strategic Actions
STRE  Strongest Distribution
NGT Network Across all important
Financial points of
HS Bangladesh
 Diversified Business and
Service Model
 Liquidity & Asset
 Diversified Customer base
 Huge Retail Customer base
 No Established Strategic Process
 Lack of Strong Governance
Process
 Weak Credit Management Policy
 Weak Recovery and Special
Asset Management
WEA  Bureaucratic Official process
 Lack of Weak Technical Facilities
KNES in Operations
S  Lack of Digitization
 Absence of “Standard Operating
Procedure”
 Weak Information Security
 Dissatisfied Employee due to
Low Remuneration & Slower
Growth of Employee compared
to private banks
 De-engagement of employees
due to heavy job security and
complex disciplinary procedure
 Build a Strategic Plan for the
Bank & determine the Goal of
the Organization
 Build Strong Governance Plan
STRA for the company across all
operational area
TEGI  Strong Lending Recovery Unit
 Digitization in Customer Service
C and Internal Operations to
ACTI reduce time and Bring
Efficiency
ON  Build Adaptive Technology
Products for the customers
 Focus on Corporate Collections
with strong footprints
 More Focus on Syndication
Business
 Focus on Retail Digital Product
 Implement Performance based
Growths
Thank You