Dutch-Bangla Bank in Bangladesh was the first to fully automate and implement Electronic Banking. The automation process was completed in 2003, but continuous improvements are regularly incorporated. DBBL has chosen the same automation solution used by many global banking leaders, despite its higher cost. However, the additional expense is negligible when considering the reassurance it offers to clients.
DBBL offers its clients unparalleled access to banking services through any DBBL branch, ATM, and POS. What sets DBBL apart is that all of these services are free-of-charge and remarkably affordable for all individuals. While it is true that DBBL has invested significantly in Electronic Banking compared to other banks, the motivation behind this division was never profit-driven. Rather, it was undertaken with the same approach DBBL applies to its Corporate Social Responsibility initiatives. As a result, you are not required to pay anything for these services that would cost much more in other countries or with other banks. No other bank has ever provided such extensive services without any cost.
DBBL is the largest bank in Bangladesh with the largest ATM network in the country, allowing clients to access banking services anytime and anywhere nationwide. Many international and local banks rely on DBBL’s ATM network for their own clients. DBBL has over 800 ATMs installed across the country, providing unlimited and free access to all DBBL clients. However, if a client from a member bank other than DBBL uses a DBBL ATM, the member bank may impose a transaction charge. DBBL also boasts the largest IT budget in Bangladesh and maintains a cutting-edge Electronic-Banking Division.
The Electronic-Banking Division oversees and manages DBBL’s investment and implementation of future projects. DBBL is the only local bank with a Data Recovery Site (DRS), which ensures the protection, backup, and currency of customer records in case of a significant disaster at the headquarters of the Electronic-Banking Division. Since 2004, DBBL has introduced mobile and SMS banking, which enables customers to perform various banking activities using their mobile phones. Additionally, DBBL possesses primary licenses for both VISA and MasterCard, allowing them to issue and accept payments from these organizations.
The Bank plays a crucial role in the economic and social progress of a nation with its diverse range of products and services. These offerings greatly impact savings, investments, production, trade, employment, consumption, and overall welfare. The Bank’s objective is to enhance these aspects for the benefit of the economy and society. Being a responsible corporation, it relies on stakeholders for guidance, support, and oversight to ensure efficient operations and maximize value.
The Bank’s operations involve multiple stakeholders. Shareholders, depositors, and lenders contribute equity capital and money while borrowers use these funds for production, trading, or consumption. Employees provide services to customers. The government, Bangladesh Bank, and Securities and Exchange Commission establish a legal and regulatory framework along with necessary infrastructure and economic environment. Together, these components ensure transparent and accountable banking operations.
DBBL operates with the support and resources of various stakeholders. Its objective is to offer services to customers and society while simultaneously generating and maximizing value for all stakeholders in an equitable, transparent, and ethical manner. The Bank acknowledges that its primary goal should not solely revolve around profitability. Rather, it strives to optimize advantages and value for all stakeholders fairly and justly, thereby contributing to the overall welfare of both the economy and society.
Recognizing the significance of profit, it is essential to satisfy stakeholders and uphold sustainable operations, growth, and long-term solvency of the Bank. This enables the Bank to exert a greater impact on both the economy and society. DBBL relies on its stakeholders for operational support and wealth generation, ensuring that generated wealth is distributed among various stakeholders.
DBBL guarantees that all its stakeholders, including shareholders, depositors, employees, and the government, receive their rightful benefits such as dividends, interest, salaries, tax and VAT. In a sustainable approach to contribute to the economy and society, the bank has implemented measures to enhance value for these parties. As a responsible corporate entity, DBBL takes effective actions to ensure the long-term sustainability of its operations and amplify its impact on the economy and society.
DBBL has implemented measures in corporate governance, risk management, regulatory compliance, environmental concerns, staff well-being, customer service, and business operations to enhance its ability to serve stakeholders and society.
DBBL adheres to industry standards and regulatory guidelines to uphold good corporate governance, guaranteeing transparency, accountability, and fairness in its business operations. The company’s primary focus lies in efficiently managing risks to safeguard assets and ensure uninterrupted operations. These risks encompass credit, operational, and market risks which are integral to all business transactions.
The aim of implementing risk management systems is to guarantee the quality and worth of assets, as well as streamline banking operations and services sustainably. This is done to protect the interests of shareholders, depositors, and all stakeholders. DBBL’s risk management system also adheres to Bangladesh Bank’s core risk management guidelines. For more detailed information about these systems, please see pages 43-51 of this Annual Report. One aspect of the risk management system involves maintaining sufficient capital and a strong capital adequacy ratio. This acts as a buffer against any unexpected shocks that may arise from potential risks. DBBL’s policy prioritizes the long-term solvency of the bank and strives for sustainable business growth and profit, ultimately maximizing value for stakeholders.
Dutch-Bangla Bank, the first joint venture bank in Bangladesh, was created through collaboration between local shareholders led by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO. Since its establishment, the bank has been committed to providing financial support to high-growth manufacturing industries in Bangladesh. The bank believes that these industries are essential for exporting Bangladeshi products worldwide and contributing to the country’s desired growth. Additionally, DBBL has taken a leading role in Corporate Social Responsibility (CSR), now widely referred to as “social responsibility.”
DBBL has become one of the largest donors and the biggest bank donor in Bangladesh as a result of its investment in this field. The bank has received numerous international awards for its unique approach as a socially conscious bank. It was also the first bank in Bangladesh to be fully automated, establishing the Electronic-Banking Division in 2002 to introduce modern banking services into this industry. Full automation was completed by 2003, bringing plastic money to the Bangladeshi population. Moreover, DBBL operates the nation’s largest ATM fleet, reducing consumer costs and fees by 80%. Additionally, opting for low profitability in this sector has surprised many critics.
DBBL focused on implementing mass automation in the Banking sector as part of its CSR activities, rather than aiming for profitability. As a result, it offers unparalleled banking technology services to its customers. Local banks have opted to join DBBL’s banking infrastructure instead of developing their own, thanks to this approach. Despite substantial investments in technology and significant donations, consumer and investor trust remains unwavering. In 2008, Dutch-Bangla Bank stock achieved the highest share price ever recorded on the Dhaka Stock Exchange.
