ICE Business Times, December 2017 by ICE Media Ltd.

ALARMING FORECAST

Contents TIMES

06 From the Editor

WORD OF MOUTH 08 State of Affairs 10 Banking Corner 103 Happening

SPECIAL REPORT 84 Reforming Education for an Engaged Learner INTERVIEWS 30 Rtd. Major General Md Abdur Rashid Executive Director, Institute of Conflict, Law and Development Studies (ICLDS)

34 A.K.M. Shaheed Reza

Chairman, Mercantile Bank Limited

COLUMN 16 Shamsul Huq Zahid 20 Dave McCaughan

38 Muklesur Rahman

PHOTO STORY 89 Capturing A Changing Landscape: Din Muhammad Shibly

68 Rajkumar Bhattacharya

Managing Director and CEO, Shimanto Bank Limited

42 M. Nazeem A. Choudhury

Head of Consumer Banking, Eastern Bank Limited Country Manager, Jet Airways Bangladesh

Contents TIMES

a global business magazine from bangladesh

TIMES

Vol. 8 No. 04 | December 2017

Publisher & Editor Director, International Publications Executive Director Managing Editor Assistant Editor Sub Editor Business Development Manager Designer Business Development

Finance & Accounts Sales & Distribution

a global business magazine from bangladesh

TIMES

: : : : : : : : : : : : :

Abul Khair Zeenat Chowdhury Nawshin Khair Tawhidur Rashid Shaikh Ashfaque Zaman Ishrat Jahan Asaduzzaman Sk. Yeahhia Md. Nizam Uddin Forhad Mohammad Imran Rezaul Haque Heron Md. Abdul Alim Md. Rubel Khan

TURBULENT TECHNOSPECTIVE OF 2017 Looking back at a few moments from a fantastic year of technological progress

TK. 100 | dec 2017

WWW.IBTBD.NET

$ $

BANKING IN THE DIGITAL AGE

$ APPROVED

$ MUKLESUR RAHMAN

A.K.M. SHAHEED REZA

Managing Director and CEO Shimanto Bank Limited

Chairman Mercantile Bank Limited

behavioral science

IMPLICATIONS OF RICHARD THALER’S NUDGE THEORY IN FINANCE engaged learning

HOW TO REFORM THE CURRENT EDUCATION SYSTEM inside out

BETTING ON THE BRANDS

Khandaker Anwar Ehtesham

Head of Communication & Branding Division Dhaka Bank Limited

Mahzabin Ferdous

Head of Corporate Communication IPDC Finance Limited

Md. Sarwar Matin

Head of PR & Brand Communication Division Jamuna Bank Limited

This issue’s Photographs by Din M Shibly Kazi Mukul

Editorial & Marketing Queries FEATURES 22 44 48 52 56 62 64 80 88 93 94 97 99

Beyond the Business Betting on the Brand The Tech-Over- Lesson Learned from the World’s Best Digital Banks Different Perspective: Tax for Thought Banking Trends: Beyonce the Balance Financing Your Dream Venture Reaching New Heights: A Closer Look at Aviation The Frugal Factor Young Minds Ideas for Innovation: How the HULT Prize Engages the Youth to Create Change Agro Award A Progressive Playhouse: How One Theater is Spreading Important Knowledge Cryptocurrency: Are Blockchain Creating Links or Lags? Tech: A Year of Turbulent Technospective

tawhidur.rashid@ibtbd.net or send us a note at www.facebook.com/icebusinesstimes www.twitter.com/BusinessTimesBD

Be sure to visit our website www.ibtbd.net

Published by Abul Khair on behalf of ICE Media Limited Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230 and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208 Editorial and Commercial office: 3rd Floor, House: 4, Block: B, Road: 23 A, Banani, Dhaka 1213 Advertising, Sales, Subscription and Distribution: 01812656961, 01615732425, 01759391168, 01850824294, 01711311256, 01726738970 Tel: 02 55035336-8, 09666773313

* Not all the views expressed in the columns and interviews are the views of the magazine.

FROM THE EDITOR As we started to brainstorm the banking issue, we found a series of numbers that caught our attention. In a nation of 160 million people, only 1 in 5 adults have a bank account. 5% of the rural population has access to a bank account, a stark contrast from the 40% in urban areas. This illustrates the need for inclusiveness and connectedness in the financial industry. In this issue of ICE Business Times, we highlight how proper growth and development of the banking sector will be a critical driving force that will take the country to reach new heights. Advancing the industry starts with including the general population. Banks must extend their services to the rural community. Though the effects of the global financial crisis 2008-2009 are still reverberating, banks in Bangladesh are learning to live in the changing environment. Adapting to the rapidly changing landscape where everything is succumbing to automation, banking is no exception to the certain phenomena of digitalization. Digital banking is not only the future of banking; it is the solution to integrating the unbanked population. As predicted in a report published by McKinsey & Company, in the most progressive geographies and customer segments, about 40% of the total revenue inflow will be conducted through digital banking in the next five years. Digital banking comes with the convenience of mobile banking wherever you are, customized services, and immediate solutions, all of which are ideal for the new fast-paced generation. On the other hand, this raises the matter of cyber-heist. A.K.M. Shaheed Reza, the Chairman of Mercantile Bank Limited, has mentioned that a cyber attack occurred every 39 seconds in 2016 (p. 34). The heist that took place at Bangladesh Bank shook the entire nation to the core; it also provided us with a much-needed clarion call: to amp up our cyber security game. While adding more innovative and interactive products to their existing baskets, any bank willing to remain immune to the cyber theft must educate not only its employees but also the customers. Besides creating their offers more secured, the banks have been facing the challenge of creating more meaningful campaigns. The critical job is to develop or in some cases curate experiences for customers, instead of just bombarding them with a plethora of offers via SMS or email marketing. We have talked with three successful banking professionals who shed lights on how innovation and marketing have become extremely important for not only the growth of banks but also for their survivals (p. 44). As the year ends with reports on the irregularities and utter failure of a few banks, we came to know about the prevailing culture of disbursing nonperforming loans. It reminds us once again that we must combat internal corruption and establish good governance to create an environment for this mass population to accept the dynamics of banking. It was a proud moment for Bangladesh Bank this year when it won Global Money Week Award, at the Global Inclusion Awards 2017 for its sustainable and innovative financial inclusion and financial education initiatives. The central bank must continue its journey towards forming a banking nation while guiding banks in times of need with more time-appropriate regulation. Ensuring zero tolerance to any fraudulent activities is extremely important to keep the confidence of millions of depositorsâ&#x20AC;&#x2122; intact on the banking system.In the coming years, we hope our banking sector will leap forward with more digitalized and inclusive product basket while remaining faithful to the promises of trustworthiness to their customers.

S TAT E O F A F FA I R S

Word of mouth Prime Minister Sheikh Hasina attending the Envoyâ&#x20AC;&#x2122;s Conference organized by the Ministry of Foreign Affairs

Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi formally launching the Dhaka-Kolkata Maitree Expressâ&#x20AC;&#x2122;s end-to-end immigration and customs services and flagging off the Khulna-Kolkata Bandhan Express service.

Prime Minister Sheikh Hasina opening the main construction work of Rooppur Nuclear Power Plant, the first ever nuclear plant of Bangladesh

Prime Minister Sheikh Hasina inaugurating Bangladesh Leather Footwear and Leather goods International Sourcing Show (BLLISS)-2017

BANKING CORNER

Word of mouth Citibank, N.A., Bangladesh honoured eminent artist Ferdous Wahid for his lifetime contribution in Bengali music and culture, in its annual event “Gaane Gaane Gunijon Shongbordhona” for the 13th year on the 17 November 2017

The Hongkong and Shanghai Banking Corporation Limited in Bangladesh has recognised five Bangladeshi exporters at the award ceremony of the ‘7th HSBC Export Excellence Awards’. The exporters were awarded with ‘Exporter of the Year’ trophies for their leadership in promoting the country and contributing to the nation’s sustainable growth

Standard Chartered Bank has launched the new Signature Lounge at Hazrat Shahjalal International Airport, Dhaka on November 25. This is the bank’s first dedicated airport lounge facility for its clients.

Sayeed H. Chowdhury, Chairman and CEO of HRC Family of Companies and Chairman of ONE Bank Limited as Chief Guest and A.B.M Fazle Karim Chowdhury, MP attended the scholarship distribution and orientation program at Raozan Government University College

NRB Commercial Bank Ltd. donated 15,000 (Fifteen thousand) Blankets to the Honorable Prime Minister’s Relief Fund to facilitate winter affected people. National Bank Limited donated 75,000 blankets to the Honorable Prime Minister’s Relief Fund under its CSR activities to support the cold affected distressed people of the country Mastercard recently announced the launch of ‘Roman Holiday with Mastercard’ campaign in Dhaka. As part of this campaign, Mastercard users can win exciting gifts on ‘everyday spends’ through their Mastercard-Branded Debit, Credit or Prepaid Card for overseas retail transactions. The grand prize of the ‘Roman Holiday with Mastercard campaign is an all-expenses paid trip of 4 nights and 5 days for a couple to Rome BRAC Bank Limited has secured the ‘First Position’ in the ICAB Best Published Annual Reports 2016. BRAC Bank’s Annual Report 2016 has been ranked as the best among the private sector commercial banks in the country.

Jamuna Bank Opens its 114th Branch at Jamalpur. Golam Dastagir Gazi, Bir Protik, MP inaugurated The Branch as the chief guest. Al-Haj Nur Mohammed, chairman Jamuna Bank Foundation was present as special guest. Jamuna Bank Managing Director and CEO Shafqul Alam was presided over the program.

Institute of Chartered Accountants of Bangladesh accolades LankaBangla Finance Limited '17th ICAB National Award for Best Presented Annual Report 2016 in Financial Institution Category. LBFL was also awarded 'Certificate of Merit' in the corporate governance category as a mark of excellence in corporate reporting for the year 2016

A subscription closing ceremony to raise capital through issuance of Preference Shares worth Tk. 1,000 Million ($12.50 Million) for Summit Barisal Power Limited & Summit Narayanganj Power Unit II Limited, concerns of Summit Group was held on November 9, 2017 at Pan Pacific Sonargaon Dhaka. LankaBangla Finance Limited has acted as the Mandated Arranger, LankaBangla Investments Limited acted as the Issue Manager and the City Bank Limited acted as the Agent, Account Bank & Custodian Bank to raise the fund.

Prime Minister Sheikh Hasina receving donation for her relief fund. Dignitaries from a number of banks. BRAC Bank Limited signed an Employee Banking Service Agreement with Paradise Group.

Under this agreement BRAC Bank will provide salary disbursement and all sort of retail loan facilities, i.e. credit card, personal loan to the employees of Paradise Groupsited her to handover the donation.

Column

BANKING SECTOR:

THE GAPING FAULT LINE By Shamsul Huq Zahid ‘Nothing is going right in the country’s banking sector’, stated former Bangladesh Bank deputy governor, Khandaker Ibrahim Khaled, at a discussion meeting in Dhaka recently. The observation of the veteran banker, in reality, sums up the current state of the banking industry. The crisis is multifaceted. But the true manifestation of the trouble comes through the banks’ pile of bad loans or stressed assets worth over Tk. 800 billion as of September 30, 2017. The amount represents 10.67% of the total outstanding loans in the banking industry. The share of the soured assets, in the case of the public sector banks, is now nearly 27% of the money they have lent until the third quarter of the current calendar year. The statistics are compiled by the central bank. But some people tend to take the data concerning the stressed assets of the commercial banks with a grain a salt. They suspect that a section of private sector banks resort to window dressing in a bid to hide facts about their financial health and soured assets in particular.

THE WRITER

I S A S E N I O R J O U R N A L I S T. H E C A N B E R E A C H E D AT ZAHIDMAR10@GMAIL.COM

The industry is yet to overcome the setbacks caused by a number of loan scams involving both state-owned and public sector banks. The public image of the banks was greatly tarnished by the scams. Everybody expected some major steps, including reform measures, from both the government and the central bank to restore discipline and ensure good governance in the banking industry. Nevertheless, that did not happen. Instead, events that have been taking place since then rather given rise to more frustration. Despite opposition from the experts and industry insiders, the government allowed a few more banks in the private sector coming under political influence. A section of people having strong connections with the ruling political party got permission to open banks. However, few had any idea about the source of funds of their sponsors. The relevant government agencies also did not bother to know the secrets of the sponsors. Unfortunately this is nothing new. Such a lapse, deliberate or otherwise, did happen in the past also while granting permission to open new private banks. The government, as the owner of the state-owned banks, has also been performing poorly and allowing the banks to become sick. Reluctant to put these banks under the central bank’s regulatory control, the government, from time to time, has interfered in the loan as well as administrative decisions of these banks, leading to huge accumulation of non-performing assets in those. The obvious consequence has been their frequent recapitalization at the expense of taxpayers. The rot also has been transmitted to the private sector banks. A section of sponsors of these banks with tacit blessings from the powers-that-be has

C O L U M N S H A M S U L H U Q Z A H I D

developed a tendency to turn a blind eye to regulatory measures, rules and regulations. The central bank, on occasions, is also found to be indulgent to such defiance, for reasons best known to it. A few recent instances have only strengthened the popular perception about its growing weakness. Besides, a couple of disturbing developments has gripped the sector. The first one relates to tenure and presence of members of a single family on the bank boards. A bill now awaiting approval of the lawmakers intends to allow four of a single family to be on the bank boards. The same bill, if passed, would also a sponsor to continue as director for long nine years in a row. The second one shows the signs of ‘business groups’ capture’ of banks. One particular group has, allegedly, taken control over three private banks, already. The style of the takeover has drawn people’s attention both at home and abroad. Even the first takeover being bizarre in nature had hit the headlines of a prestigious international weekly magazine, The Economist. The Finance Minister has, lately, promised to look into the sources of funds of a particular business group that has been, allegedly, behind the takeover of a few private banks. It is widely believed that the amendments to the 1991 Bank Company Act would further aggravate the weak governance in the banking system. The results of weak governance are clearly visible all around. Out of 48 private banks, the financial health of at least 13 is dismal. The appointment of ‘observers’ by the central bank in these banks has failed to improve the situation. The situation prevailing in

Out of 48 private banks, the financial health of at least 13 is dismal. The appointment of ‘observers’ by the central bank in these banks has failed to improve the situation. The situation prevailing in these banks and the recent developments involving the ownership of a few others have given rise to a sort of ‘crisis of confidence’ among the bank clients.”

these banks and the recent developments involving the ownership of a few others have given rise to a sort of ‘crisis of confidence’ among the bank clients. The non-performing loan (NPL) ratio of the private commercial banks (nearly 6%) though far less than that of the public sector banks is by no means negligible. Moreover, it is widely believed that a few of them play with the numbers of their financials. The day-to-day reporting to the central bank also by these banks is suspected to be not up to the mark. The government has tried quite many options, homegrown and beyond since the early 1990s to streamline the situation prevailing in the public sector banks, but none of those has finally worked. However, it is none but the government itself is to blame for the failure. By its actions, on many occasions, the government nullified the possible gains from such reforms. The worst came following the decision to place the political appointees on the boards of the public sector banks in the recent past. Scam after scam had hit a number of public sector banks following such appointments. The credibility of the banking sector has largely been eroded by the dominance of some big defaulters who have the power to bring things in their favor. These people do often secure loan rescheduling unduly and even ‘restructuring’ when no option is left to save their skin. They have the power to manage funds from one bank to repay debts to another or even buy ownership of one or two banks. They are also seen often rubbing their shoulders with the top notches of the administration. But as far as the state of affairs with the country’s banking industry is concerned, it is time to act decisively. In our neighboring country, India, where public sector banks hold 70% of the banking sector assets, the situation is even worse. Things are lately changing for the better as the Reserve Bank of India (RBI) has taken a tough stance. Many big corporate houses there have been forced to repay defaulted bank loans by selling off their prime assets. Bangladesh should do so by ensuring corporate governance, transparency and accountability in the banking sector that has become a sore point for an otherwise economy. However, prior to that what is all the more essential is the improvement of the quality of overall governance in the country. Once that is done, transparency and accountability would automatically travel to other areas of economy and society as well.

Lessons Learned

“Looking Forward and Back Get’s Us Through” DAVE MCCAUGHAN Co-Founder & Chairman Marketing Futures

LESSON 3 : BE PART OF PEOPLE’S LIVES AND ALL THE THINGS THEY LOOK FORWARD TOO AND WANT TO REMEMBER AND GET A PLAN FOR ALL FIVE STAGES. “can’t wait for the weekend”, “only 23 days till we get on that plane”, “remember when we saw that movie two weeks ago …. “ Here is a simple rule for marketers to keep in mind : people ( real people ) do not frame their lives around the experience of consuming your brand or service, they do focus their lives around events. Big events like vacations and annual family get togethers, weekly ritualized events like having the weekend off, that special trip to a concert, the short term planned lunch with friends. The daily events like sitting at your desk motivating yourself to just get through till an appropriate time to go have a coffee. We, people, like to have something to look forward too. And we like to have things to remember. Special things. Like weddings and the arrival of babies and that once in a decade holiday and that first big business trip and the time you went with your two best friends to see your first Test match. Looking forward, and looking back are such important avenues for connection for marketers. Of course you are probably aware of that. The whole selfie phenomenon of the last ten years and the ability to share special occasions on digital social platforms is something I am sure all good marketers have tried to leverage. But let’s think a little deeper. All special events, whether the annual or the daily are ways in which we create news for ourselves. We use them to set goals, and soften out the ordinariness of the everyday. And we do it in five stages : Stage 1 The Planning : the time you spend thinking about, gathering information, making a decision. As in a holiday when you might take weeks or months to get everything booked. Or buying a car and taking months to decide on what you want, where to buy it etc. And then you do book, decide, make up

your mind. Which leads to … Stage 2 The Tension : or the period between making the decision and actually getting there. Like when you and friends have bought the tickets to that new movie and you have 5 days of waiting, sharing expectations, getting excited, thinking about whether you will have dinner afterwards, where, what will you wear. Of course there is … Stage 3 The Thing Itself : that time you spend doing the thing you were sooooo looking forward to. That lunch with the guy from the office you had planned since yesterday. Or the actual boarding a plane, travelling, having your overseas meetings, enjoying a different city, flying home. But then … Stage 4 The Review : that first period after the event when you are either reviewing yourself or more likely letting others know what you thought. “ I am sharing my photos of our great lunch ” or the Monday morning gossip about what a terrible time you had on that date, how let down you were by Manchester United’s performance, how you found a great new ice cream shop. This will last an hour, a day maybe a week for a holiday. And then it becomes less immediate. But something else becomes important… Stage 5 The Memory : the period that could go on for days, weeks, months when you look back and wish you could do it again. The times you occasionally drag out your FB memories to distract you again. The times you look at the guy at the next desk and say “ hey remember when we wnet out after work a few weeks ago, want to do that again? ” Most marketers do a good job of stage 1. It’s obvious. Get people interested and excited and help them plan a purchase, an event, a special occasion, a coffee break. And of course most marketers do a good job of

stage 3, the delivery of the event, the product, the service. Few pay any attention to stage 2, the time between decision and payment and delivery. And yet that is perhaps the time people are most involved. They have made a decision and paid the tickets, ordered the product, are waiting, counting down the minutes, hours , days till they can collect. That is the time when marketers need to really strike. Build on that expectation, offer extra services, create opportunities for more memories. And as for stages 4 and 5 … well sending a follow-up survey asking “ please tell us about our service ” does not count. Instead think about how and what you can do to help people share their review, enhance their review. And then as time passes think about how you can help re-live the memory. Not sell more, just help remind people of the great experience. Do that and they will come back to you for more. Use all these stages as tactical guidelines and make sure they are all part of a strategy built on what people want. Do not ask them to rate you, share you, talk about you. Help them plan, feel the excited tension, have a great experience, create great reviews of their good time ( not you ) and keep building memories. Then you will be helping them live lives they enjoy.

LESSONS LEARNED IS A SERIES FROM MARKETING FUTURES WHERE CO-CHAIRMAN DAVE MCCAUGHAN SHARES SOME OF HIS EXPERIENCE FROM THREE DECADES LEADING THE MARKETING COMMUNICATIONS FOR MAJOR INTERNATIONAL BRANDS ACROSS ASIA. For more information regarding Marketing Futures please email us at marketingfuturesbd@gmail.com follow us at www.facebook.com/marketingfuturesbd Marketing Futures is an Inititaive of Ideamax Creatives Limited

Beyond the Business This October, Netflix debuted a new psychological thriller. Mindhunter is a 10-episode drama heavily based on the book of one of the founding fathers of criminal profiling. ‘Mindhunter: Inside the FBI’s Elite Serial Crime Unit’ written by John E. Douglas and Mark Olshaker recounts the harrowing crimes faced by real-life FBI agent-turned-author during his time with the bureau. The show, produced and partially directed by David Fincher, follows FBI agents Holden Ford and Bill Tench, played by Jonathan Groff and Holt McCallany respectively, from the Behavioral Science Unit as they travel around the U.S. to interview psychopathic serial killers. They are eventually joined by a psychologist from Boston University by the name of Wendy Carr, played by Anna Torv, who helps Ford and Tench develop a system to categorize these renowned killers in order to possibly predict and somewhat prevent similar crimes from taking place in the future. What sets this show apart from the plethora of true crime shows being created every year is the mere fact that it isn’t solely focused on convenient new cases in every episode. Instead, the entirety of the plot is about the psychology behind deadly criminals and what kind of logic governs them. Mindhunter is not particularly interested in the grisly details of the cases they explore, but rather the minds behind them. The series offers a great way to dismantle the cult of the serial killer by breaking them down to their psychological characteristics. While a few fresh cases needing Ford and Tench’s attention are casually thrown into the mix, the principal attraction of this show is its deep roots in reality. The series features some famous psychopaths throughout modern history. Among these portrayals, the most notable performance is surely that of Edmund Kemper (also known as the Co-Ed Killer) who murdered several women in the ‘70s as well as his mother and paternal grandparents. Kemper is portrayed by Cameron Britton, and his incredulously spot-on performance as the articulate and intelligent

a journey into the mind of the most ruthless predators By Syed Apanuba Puhama

criminal is nothing short of eerie. What makes it more unsettling is the fact that the show quoted directly from the actual interviews conducted with the real-life Kemper in prison. Other renowned psychopaths featured in the show include Jerry Brudos and Richard Speck, and Charles Manson is name-dropped throughout the series a number of times. Unlike many shows in this genre, Mindhunter largely refuses to glorify and obsess over the gory technicalities of the crimes. The show does an incredible job of keeping its audience intrigued and at the edge of their seats – not with blood, gore, and gunfights, but with tortuous dialogues, complex characters and dark revelations. The show devotes a good part of its time to build the characters in depth without derailing from the story. While they are busy analyzing the core psychological traits and profiles of deviant murderers, the show offers a great insight into the psyche of the protagonists

themselves, almost as if they were being psychology analyzed as well. This, in turn, helps the audience apprehend and understand the thought process that drives their actions and behavior better throughout the duration of the show. Another major component of this psychological thriller is its realism and attention to detail. Although, that is hardly shocking considering it is partially directed by David Fincher and Asif Kapadia. The man behind movies like ‘Seven’, ‘Gone Girl’ and ‘Zodiac’, David Fincher incorporates just the perfect amount of ominous tone to the show with his familiar dingy settings and dark hues. He continues to hijack the eyes of the viewers by taking them on a journey alongside the characters. However, the show finds its creative groove in Episode 3 when Asif Kapadia steps in, infusing things with the appropriate amount of zipping necessary to traverse through the calamity. Netflix has started to excel in the aspect of miniseries and movie-esque plots. Mindhunter, like Stranger Things and various recent Netflix Originals, unfolds like an extended film rather than a series of distinct episodes. The cinematography and complexity of the story make it look like a worthy Oscar nominee. “In movies, there’s almost no room for characterization anymore, and in television, there’s no money for plot”, said director David Fincher in an interview with Esquire magazine. It has been implied that the show will be getting a new season, making the end of the first season feel like an intermission. Mindhunter proves to be a visceral excavation of the ways misogyny and toxic masculinity festers. The first two or three episodes of this outstanding show is enough for one to begin reflecting on their lives and that of those around them, as it highlights the dark corners of the human mind. Overall, this show reminds its audience that investigators are not life’s best friends, things do not miraculously resolve at the last minute, and that bureaucracy exists in all branches of the government.

Books For Banking Brains By Nazneen Zoya Murshed

The Black Swan

Nassim Nicholas Taleb showcased his absolute brilliance in this 400-page e-book (can also be purchased as a hard copy). The book highlights how unpredictable events may have an impact on financial firms and banks. It reinvents risk and how we should look for it in places we don't even expect it. The 'Black Swan' represents a rare and unexpected event, a prime example would be the incident that took place on July 1st. The book helps us understand the various components of the economy and how each and everything is correlated.

There are a plethora of books available for financiers to feast on. However, most investment junkies don't exactly have the time to search for books that belong to a certain caliber so they end up reading something along the

The Ascent of Money

This book, written by Harvard professor, Niall Ferguson, gives us an outlook of why the financial world is the way it is today. It beautifully illustrates the history of the economy of the world, from the Inca Empire to the modern era. It explores how money rose as a powerful trade form and how it has progressed through the ages to have made its impact on the society of the 21st century. The Ascent of Money is not only entertaining, it is also an easy read.

lines of 'Banking for Dummies'. But don't you worry, I've made your life easier for you. Here are 4 books that all bankers must read:

Fooled by Randomness: The Hidden The Snowball: Role of Chance in Life Warren Buffett and and in the the Business Markets of Life Warren Buffett is one of the richest and respected men on this earth and now you can know how he came to become the man he is. Alice Schroeder's biography gives us a very personal view of his private life. Never before has this philanthropist ever opened up to a writer this way. This book tells us about his legacy, his opinions, his principals, struggles, achievements and how he became one of the greatest men in American history.

Another classic book by Nassim Nicholas Taleb, Fooled by Randomness, emphasizes on how people frequently mistake luck for skill. This book, like 'The Black Swan', criticizes how the financial community always seems to be unconscious of things that may affect them. It came to spotlight when the Lebanese-American writer speculated a crisis in his book, three months before a real market crash. The book is an enjoyable read and can be understood by bankers and students alike.

Event

A New Look at Retail By Ishrat Jahan ased on the theme, ‘Redefining Retail in Bangladesh,’ the second edition of Bangladesh Retail Congress took place on Saturday, 18th November, 2017. The event was organized by Bangladesh Brand Forum and presented by SHWAPNO. Powered by Monno Ceramics and Lotto Bangladesh, the event engaged the retail community of the country with experts from home and abroad via four keynote sessions, three-panel discussions, and a case study presentation. The Congress commenced with an opening speech, delivered by Shariful Islam Founder and Managing Director of Bangladesh Brand Forum. The welcome speech given by Kazi Jamil Islam, Managing Director, Express Leather Products Ltd.

There were 3 panel discussions titled, ‘Future of Retail for Bangladesh’,‘Technology in Retail’ and ‘Skill Development in Retail Sector’ and ‘Building Blocks of The Future How Technology Can Help in Retail Business Growth’ gave an overview on how technology can be utilize to drive growth in the retail industry and what reforms is the retail industry expected to go through in the near future. The later part of the event covered keynote sessions namely, ‘A Walk With Supermarketwala: Shopkeeper Or Agent Of Modernity?’, ‘Jump Starting The Retail Industry’, ‘Brewing a Great Customer Experience-The Café Coffee Day Way.’ and ‘Building Blocks of The Future - How Technology Can Help in Retail Business Growth.’ Arijit Chakraborti (Partner, PwC) presented a talk on how the retail industry can advance and the role of technology in this matter. ICE Business Times gained more insight from the man himself.

performing quite well in terms of adopting such technological advancements. Sometimes, implementing technology becomes a critical task as new changes are brought forward every year, and at times, every six months. Fortunately, South Asian countries are quite agile in adapting to such rapid changes.

are increasingly concerned about the raw materials being used and where they are being sourced from. The good news is that newer technologies and scientific advancements bring capabilities that help address all these concerns. In the years to come, we expect to see successful businesses embracing such technologies as part of their core business.

The Business Battle: Challenges ahead Directing Desh: One megatrend that I can How Bangladesh identify is rapid Can Keep Up urbanization; some cities,

ARIJIT CHAKRABORTI PARTNER, PwC

Decades of Demand: A Change in the Retail Industry

From a technology perspective, the retail market has undergone a sea of change. It is entirely different from what it was 20 years ago. If we look into consumer preferences and buying patterns, we see that, nowadays, people prefer buying products online rather than visiting physical stores. This illustrates that the market has changed to the extent that having an online store for specific products has become a better option for companies. Technology has also

disrupted the industry in many ways and has had both positive and negative influences on existing businesses.

On Track with Technology

I think there has been commendable progress. There are certain businesses that are considered the leaders in every industry. These frontrunners are always the ones to take initiatives and often transform their businesses by implementing new technology. This part of the world is more like a follower of global technology trends, where businesses are

including Dhaka, are expected to see a significant increase in their population. We often see that people who live in urban areas are more inclined towards buying processed food. Retailers selling such items should focus on maintaining quality to remain in the business in the long run. When talking about climate change and resource scarcity, we see that the traditional use of fossil fuel is still very rampant. What retail businesses can do is opt for more environment-friendly options like using more renewable energy such as solar power instead of using traditional fossil fuel. Furthermore, there are a number of other challenges, particularly when retailers deal with food safety and integrity. I think trust is going to play a very important role as safety and integrity will always be a buyerâ&#x20AC;&#x2122;s first concern. So, the growth of businesses would, to some extent, depend on how much trust they can build in the minds of their consumers. Similarly, there are also non-perishable items that are sold by retailers. Customers today

I think the retail business in Bangladesh is currently going through a very exciting phase. The organized retail industry has grown significantly in the last few years, and since the economy is growing the retail business will thrive alongside. I think this is the right time to adopt new technologies and implement them in decision making to serve consumers in a better way. This will help such businesses meet the benchmarks set by bigger players.

E-commerce: The New Essential

E-commerce has already changed how the retail industry works in the Western world and is significantly changing business operations in South Asia as well. With the help of e-commerce, the retail industry will grow rapidly as the buying patterns of consumers change. More specifically, e-commerce will have a greater impact on the new generation of customers â&#x20AC;&#x201C; as example, the youth, who are more comfortable in using gadgets and mobile phones for online shopping.

Interview

A CLOSER LOOK AT THE CRISIS By Rubab Nayeem Khan

In conversation with Rtd. Major General Md Abdur Rashid.

THE SECURITY CONCERNS OF A MASS EXODUS

Rohingya is the fastest-growing refugee crisis in the world; within two months of time, more than 600,000 people have come, and it is difficult to provide, shelter, food, water, health, and sanitation for them. It is managed by the Bangladesh government as well as international communities and the Bangladesh army is doing the local management. While we are providing basic amenities for the Rohingyas, it seems that along with the threat of terrorism. There is an

Rtd. Major General Md Abdur Rashid Executive Director Institute of Conflict, Law and Development Studies (ICLDS)

Rohingya families escaping the persecution of the Rakhine State.

The present circumstances, and matters of concern behind the largest humanitarian crisis in recent times.

emanating threat of arms and drug smuggling; another potential danger that comes with housing them is that it puts pressure on the community as the number of Rohingyas is three times higher than the local population. This threat affects local cultivation, culture, environment, and education. Human trafficking of children and girls is another pressing issue that comes into view given their arrival. In addition to that, there are a lot of local people who are espousing extremist ideologies and trying to establish contact with the refugees in order to lure them into the global violent extremism. This act will not only destabilize Bangladesh but also lead to a regional chaos with

Earlier this year in August, the world had witnessed a ‘systematic’ process of driving out hundreds of thousands of Rohingyas from their homestead in the Northern Rakhine state of Myanmar following the simultaneous attack on Myanmar security outposts by Arakan Rohingya Salvation Army (ARSA). According to the Mission report of OHCHR Rapid Mission to Cox’s Bazar, Bangladesh (13-24 September 2017), the destruction of Rohingya villages in the Rakhine state along with other serious human rights violations depicts that it was a state patronized deliberately planned violence committed in the aftermath of 25 August attacks. Chief of the UN Human Rights has blatantly termed it as “Textbook ethnic cleansing.” It’s now, December and the violence against the Rohingyas in Rakhine have not yet ceased, causing an alarming number of Rohingyas to flee to neighboring Bangladesh. It was within six weeks that Bangladesh experienced an influx of half a million Rohingyas, more than half of them are children. With the arrival of this new entity into an already densely populated country of one hundred and sixty-three million people, much of its resources are now being diverted for the Rohingyas. Our country has extended a helping hand towards their plight, it leaves us to ponder whether this humanitarian act will lead to a security threat within Bangladesh. Addressing this issue, ICE Business Times converses with Retired Major General Md Abdur Rashid, Executive Director, Institute of Conflict, Law and Development Studies (ICLDS) to know whether or not the relief operations in facilitating Rohingya refugees would pose any specific threats to our nation.

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neighboring countries like India, China as well as Thailand. As a whole, we’re up against a Jihadi threat; besides for economic pressure, if you combine the rest, there’s indeed a significant threat to security.

Refugees of Today, Residents of Tomorrow?

Since they’ve been persecuted by the military and ousted from their land, Bangladesh is not much of attraction for them as they are only availing the bare necessities here. We have discussed the matter with more than thousand of Rohingyas, and from there we gathered that if they get a guaranteed security of life and citizen’s right in Myanmar, they are willing to return to their homes. So I believe that they will go

back unless they are offered new provisions. I rule out the possibility of them staying back here as international communities are working very hard to rescue these people. It requires a global consensus on the modalities of their safe return, Myanmar is under tremendous international pressure to take them back. However, if they are to stay, new provisions such as health, accommodation, and education needs to be factored along with the integration with the local people.

Illegal Activities amongst an Influx

Law and order are controlled through Ministry of Home Affairs by Bangladesh Police, Border Guard Bangladesh (BGB) and other law enforcing agencies. I’ve noticed that Bangladesh has developed specific strategies to keep the Rohingyas separated from the locals and they have a definite area for them. Also,

There is an emanating threat of arms and drug smuggling; another potential danger that comes with housing them is that it puts pressure on the local population as the number of Rohingyas is three times higher than the community.”

additional police posts and check-posts have been created so that they cannot get out and merge with the local people. Three months have passed, and the operations have been commendable so far; we’ve encountered some small isolated cases of drug and weapon smuggling, but those have not gone to the extent of causing mayhem. If strong surveillance and monitoring are maintained continuously, we can reduce the threats and keep it manageable.

relationship has not been severed from either end. Border trade has been affected, but import, export, and trade between the two countries have not been stopped. So neither country is involving their military to produce tensions along the borders. In these circumstances, China is playing an active role to mediate the crisis. In fact, in the total global scenario, it has been perceived that it is China who can better persuade and influence the decisions of Myanmar.

Security Measure: Maintaining Safety at the Border

Technology, the Solution to Border Management?

The security measures at the border are under the supervision of BGB; for humanitarian reasons, a cross-border movement is somewhat allowed. So people are coming into the country and eager to maintain backward linkage. However, every action near the border needs to be monitored thoroughly. We haven’t faced any danger so far, but there’s no room for complacency right now. Being proactive and vigilant during these times at the border is vital, and this can only be done if sufficient manpower is employed there. Only then can border activities be monitored more efficiently.

A Rift in Economic Development

Yes, there is some level of mistrust between the two countries; however, policy-wise, Bangladesh is still maintaining a cordial relationship with Myanmar to mitigate the crisis peacefully. They have resentments on the issue of Rohingyas, but the economic

Border management requires cooperation from both sides; Bangladesh and India were successful in developing an effective mechanism for border management. But we could not develop such measures for our Eastern borders with Myanmar. Bangladesh has taken a lot of diplomatic initiatives, but Myanmar response was sluggish. It is under consideration to have a joint border management. When Rohingya crisis finds a solution, the border management agreement will also find its place along with that.

Interview

A.K.M. Shaheed Reza

Chairman Mercantile Bank Limited

A.K.M. Shaheed Reza is the Chairman of Mercantile Bank Limited; he devoutly allied himself in business in 1993 and over the last 25 years, he became a successful business entrepreneur in Textile and Readymade Garments Industry in Bangladesh. He has expertise in mass media and plays a praiseworthy role in social services with benevolent works for the society. A.K.M. Shaheed Reza after completion of post-graduation in management started his career as a Banker in 1986. But creative aptitude did not allow him to confine in the regular job. Ultimately he quit and started his journey towards the business world. With versatile experience in various business segments, he holds the Chairmanship of Reza Group. He is the sole proprietor of Bangla Radio FM 95.2, Director of National Credit Rating Agency and Director of the reputed English Daily "The Daily Observer". Even with his conglomerate life, Reza never has forgotten the people of his soil. To associate himself more closely with his people, Reza took the responsibility as the

INSIGHT INTO THE BANKING INDUSTRY BY ASADUZZAMAN

President of Feni Chambers of Commerce and Industry. He is also director of The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and Chairman of Global Insurance Limited. Previously he also served as a Chairman of Board Executive Committee & Audit Committee of Mercantile Bank Limited. Mr. Reza is attached to a number of educational and social institutions. His dedication to the overall development of rural education system is notable. Presently he serves as the Chairman of the Managing Committee of Dhalia High School, Bagerhat High School and Thakurhat Government Primary School of Feni district. Apart from these, he is the founder of Progati Balika Bidda Niketan and Nurul-Rawnak Diabetics health care center, Rajnagor, Feni. He is the life member of Feni Diabetic Association and Vice President of Heart Foundation and also the Trustee Member and Vice President of Feni University. Many meritorious underprivileged students are getting financial assistance for higher education through his philanthropic acts. Throughout his life, he truly believes commitment, work ethic, and positive attitude could lead a person towards a success.

There are 58 banks, among them NCB, Islami Banks, Privately owned Commercial Banks, Development Financial Institutions and Foreign Banks are working. Although we have a huge unbanked population, what are the prospects of the banking industry? With a population of more than 166 million, the adult banking population remains low (less than 60%). Banks have taken strong initiatives in the last few years to widen the coverage of banking services, especially by including the unbanked and disadvantaged section of the society in the formal financial system as an initiative of financial inclusion. Initiatives, such as the provision for 2.5% credit for agriculture, opening of more rural banking branches, agent banking, mobile banking

ensures access of the underprivileged population to different types of financial services. As a bank of Bangladesh, our objective is to bring the poor and underprivileged groups such as farmers, landless laborers, small enterprises, urban slum dwellers, migrants, women under the purview of financial inclusion and financial literacy. With our wide variety of deposit and loan products, Mercantile Bank is contributing positively towards the stable and equitable growth of the countryâ&#x20AC;&#x2122;s GDP.

The use of IT is huge and Mobile Banking and Agent banking is growing larger day by day; at the same time, there are rising chances of the cyberheist. How big is the threat of cybersecurity? How is your bank dealing with cybersecurity issues? Recently, cybercrime is an alarming issue what keeps the bankersâ&#x20AC;&#x2122; up at night. Not only Bangladesh, globally it is an increasing anxiety to keep customer data safe from hackers and fraudsters. A recent report reveals that banks and financial institutions worldwide came under cyber attack every 39 www.ibtbd.net

seconds in 2016. The study stated that 64% of the cyber attacks occurred in 2016 were web-based, 62% were due to phishing and social engineering, 59% for malware and botnets and 51% as a denial of service. We have to keep in mind that as banks are continuing to expand through online and mobile services, they are becoming prime targets for cyber attacks. In Bangladesh, agent banking accounts reached over 8.73 lakh and approx. 40% adults have access to mobile financial services. Since Mobile Banking and Agent banking are growing wider gradually, it is obvious to put an emphasis on formulating cybersecurity guidelines. Mercantile Bank is emphasizing very much on the need to improve the skills of its bankers so that any possible cyber threat could be prevented keeping our customers feel comfortable using our banking services.

Plastic money is emerging globally; along with other transactional methods, it will entirely replace cash transactions. What are your thoughts in this regards?

Most people think of a cashless society as something of a distant future. Unfortunately, that is simply not the case. The reality is that a cashless society is much closer than most us think. Today, only 7% of all transactions in the United States are done with cash. In Sweden, only about 3% of all transactions still involve cash. Our financial system is dramatically changing, and cash is rapidly becoming less important. We live in a digital world and national governments and big banks are encouraging the move away from paper currency and coins. So accessing plastic money at every step of a transaction can help create a cashless society. Excessive cash can lead to suppression of the poor, tax evasion and corruption. But we need more homework before cashless initiative

Initiatives, such as the provision for 2.5% credit for agriculture, opening of more rural banking branches, agent banking, mobile banking ensures access of the underprivileged population to different types of financial services.”

approaching across the country. Accommodating with the principle of demonetization, our neighbor country India already has commenced to “jumpstart a transition’ to a cashless society. Using of plastic money: Travel Card, Debit Card and Credit card, could be an important step to move towards a digitalized economy.

What is your core banking policy and at this stage of globalization how do you on coping with changing banking policies?

In recent years, the financial industry has undergone rapid changes across the globe. In the digital era, consumers are becoming more and more accustomed to internet banking. At Mercantile Bank we are adopting latest technology in line with our business and day to day customer’s financial needs. We are also giving attention to our current generational clients by understanding their goals and preferences. We believe, a big part of the growth of core banking can be attributed to the surge in retail business in Bangladesh. Mercantile Bank is strengthening its foothold, both in terms of latest technology and need-based products for its clients.

What is your corporate social responsibility policy? How do you contribute through CSR in respect to Global Social Responsibility? As we believe Corporate Social Responsibility is not only charity but also a part of good corporate governance. Following the Sustainable Development Goals (SDG), we concentrate

on the cutting-edge issues such as Education, Environment, Sports, and Workplace and Community streams. Mercantile Bank Limited (MBL) sees that the amalgamation of corporate citizenship into its core business practice – using its employees, its products and services, and philanthropy – is a powerful tool for its cultural change. We believe this synergy reduces risk, increases revenue, intensify client relationships and, of course, has a positive impact on its corporate image.

There are NPLs (non-performing loans) and at the same time, the interest cap is very high. How will this affect the competition?

This is obvious that bad debt-fuelled growth in banking will force to come to a screeching halt at some point. And latterly, it turns to Non-Performing Loans (a zero yield asset) that puts the bank in a vulnerable situation. In this connection, MBL meticulously tries to conduct a quality lending process from loan origination to recovery. And as a result, our NPL rate is dropped by 5% this year. There are many reasons that cause to revolve a good loan into bad or default loan. In this regard, banks need favorable banking regulations to overcome the trauma. We also need to rethink about the monotonous tradition of deposit and loan lifespan in banks. We are getting the deposit for five years, on the contrary, how could we provide a loan to others for ten years? We might consider simple interest rate instead of the compound rate of interest in a

calculation. It is challenging to compete in the market with the evil trend of loan embezzlement and the same time we are exercising with the high-interest cap. But again, we are aware of to intercept any unhealthy competition in the market. In this regards, I believe an effective lending decision making process, monitoring the supervision systems and substantial resolution mechanisms along with an integrated Bangladesh Bank Guideline, could reduce NPLs rate gradually. And the panacea would certainly explore a healthy competition within the banking Industry.

MBL (Mercantile Bank Limited) is consistently unique and innovative. What new products are you introducing? We are a vision-driven

financial institution. As a chair of the board, my plan is to assimilate our bank with the state-of-the-art technology. Our focus is to provide innovative market-leading client experience. To ensure such measures, I believe we have to prepare our employees with mandatory knowledge of global regulatory framework so that they can be able to meet emerging needs of the clients. We are planning to form two new subsidiary companies. One of them is Venture Capital and under its umbrella, we have initiated a new product called ‘Udoyon’ for the startups, which have been designed to bring the young entrepreneurs into the business arena. We are also going to launch investment banking to expedite the growth of country’s capital market. We also associate ourselves to flourish our Merchant Banking wing.

A recent report reveals that banks and financial institutions worldwide came under cyber attack every 39 seconds in 2016. The study stated that 64% of the cyber attacks occurred in 2016 were web-based, 62% were due to phishing and social engineering, 59% for malware and botnets and 51% as a denial of service.”

What is the portion of retail banking in your revenue? What are your plans for proceeding in this regards?

As I mentioned earlier, there is a huge scope of retail banking in this highly dense country. Bangladesh is witnessing the positive growth in the uptake of retail loans for the past 10 years. Retail banking has been growing at double-digits for the past few years, riding on the growing middle class. Size of the consumer finance market (retail loan) is Tk. 1,582.6 billion now (June 2017). This has grown from Tk. 685 billion in 2015 (Dec) to Tk.1,041 billion in 2016 (Dec) with a year-on-year growth of 52%. Consumer finance market pie has grown to 13% of total commercial bank financing in 2017. Recent reports also project that consumer finance market would be 21% by 2020. With 121 branches along with agent banking, mobile financial services ‘My Cash’, Mercantile bank has already triggered its growth with its retail/consumer banking through various competitive products like personal loan, home loan, educational loan, deposits, credit card, mobile banking, agent banking and other depository services. Our skilled and trained bankers are working relentlessly in developing innovative retail banking product and services according to our customers’ day-to-day needs. Electronic banking has become one of the most demanded and latest technologies in the banking sector. We also ensure that

our customers are brought to the loop of using digital devices in their banking practices. Our customers’ interest gets the paramount importance at every desk of Mercantile Bank. We are and will remain very much candid for retail banking business in the market.

Banks are an important instrument of controlling macroeconomic balance. There are many banks in our country. What are your views on this situation?

I started my career in banking in the early years’ between 1986 and 1993. Over the years, I observed that Bangladesh’s economy is mainly driven by the banking sector. Among 170 million people, only 20% people have access to banking services through nine thousand bank branches across the country. Hence, we need to change the conventional model of banking and have to penetrate more in rural areas rather than queuing in urban or semi-urban area. We have to change our traditional approach in the banking system. In this regards, we can think of using solar power in remote branches situated in thousands of villages. Financial inclusion is an urgent need for our economy. Besides regular banking services, bankers may act as a financial advisors to create more entrepreneurs or investors.

Interview

Muklesur Rahman

Managing Director and CEO SHIMANTO BANK LIMITED

When did you start your career as a Banker?

Muklesur Rahman has a portfolio of 35 years of experience in reputed local and foreign banks. He played a pioneering role in every area of banking, ranging from retail banking to risk-management. He is now the Managing Director and CEO of Shimanto Bank Limited. His vision and mission is to create banks that are more techno centric, advanced and inclusive.

After completing Master Degree from the University Of Dhaka, I wanted to take up banking as my profession so I joined City Bank Ltd in the year 1983. After that, I joined United Commercial Bank Limited where I learned the basics of banking alongside a few other relatable practices and operations. Subsequently, I joined Standard Chartered Bank in 1995 and gained international experience while working there and later joined Citi NA. I worked for Eastern Bank Limited (EBL) as a Deputy Managing Director for six years starting from 2007. Besides, I was the first Managing Director and CEO of NRB Bank Ltd in 2013 when the bank was newly established. Finally in the year 2016, I joined Shimanto Bank as its first Managing Director and CEO and started contributing with a specific vision to boost

THE WAY FORWARD:

A BROADER PERSPECTIVE ON BANKING

the country in socio-economic development sector.

What is your vision towards this bank?

Shimanto Bank, owned by BGB Welfare Trust, started its operation on 9th Oct, 2016. As we move forward, our plan is to focus on retail and SME Banking. We want to bring the unbanked population of our country into the banking net through SME banking. We are building it as a Techno centric Bank while emphasizing on the Small and Medium Enterprise Banking to create Entrepreneurship and expansion. Besides, we even plan on introducing agent banking, and want to establish SME club financing. Approximately 500,000 students graduate

each year; the job market does not have enough vacancies to accommodate this influx. Thus, we want to create entrepreneurial opportunities for them by 2021.

You cite governance as one of the major issues in Bangladesh. Could you elaborate upon that?

The main issue with banks in our country is lack of governance. As mentioned in the Banking Companies Act 1991, one member from one family was allowed to be on the board of a bank for a term of three years; this is now going to change to four members from one family for a term of nine years, making it more family-centric. This isnâ&#x20AC;&#x2122;t a healthy step for the banking sector as it will make it harder for the future leaders

to run the banks. With the rising burden of the Non-Performing Loan (NPL), Bangladesh is currently facing an alarming situation. Besides, Bangladesh is now referred to as the emerging tiger of Asia. With a GDP growth rate of 6% plus, we have come quite far. Our per capita income has risen to $1,600 and helped us hit the $32 billion mark in the foreign exchange reserve. However, even if the economic indicators are leaning towards a positive direction, failure to have a proper governance system may hinder our sustainability in the long run.

What will be the scenario after the diminishing of fiat money?

As I mentioned earlier, we have a cash-based economy. Wide cash transaction still takes place in Khatunganj, Moulivi Bazar. The government and banking sector must work together to introduce digital / plastic money, implement E-Commerce and Mobile Banking across the country. This will make tracking of money easier and ensure Anti Money Laundering and Combating Terrorist financing taking place. Above all ethics and morality must be brushed upon to control corruption

from rising.

How important is financial inclusion for the development of rural areas in Bangladesh? What tools can be used to ensure its proper implementation?

Today, corporate banking requires a wider approach than to just have your operations in Dhaka and Chittagong. When the Prime Minister inaugurated Shimanto Bank, I proposed to use the potentials of Border Guard Bangladesh (BGB). I announced the idea of exploring the rural economy by establishing BGB outside the capital. Financial inclusion is imperative in this era and the right facilities need to be disseminated. With a rise in our per capita income, it has become important to recognize that the only forces behind the development of the rural economy are mostly NGOs and Micro Finance Institutions whose rate of interest has gone up to 25% or more. Thus, itâ&#x20AC;&#x2122;s time for us to step forward with agent banking. Moreover, the increasing number of smartphone users may lead to the success of such a concept. But, we must target another 20 years to effectively penetrate the rural economy of Bangladesh. Our current www.ibtbd.net

number of branches of these 57 banks is more than 9,000 in number, across the country, which are not sufficient enough to serve 1.6 billion people. Nonetheless, it is highly important to establish a good governance first before moving in that direction. Talking about the tools, we are currently relying on the agent and mobile banking for financial inclusion. Drastic developments have been brought to the Hill Tracks. Unfortunately, the facilities do not exist as of yet. As a BGB bank, we can explore that region by making further use of our tools.

What more are you offering your clients compared to other banks? We provide unlimited trust to our clients and this is ensured by strictly abiding to certain processes and rules. We want to reach out to more people by means of capitalizing. I have committed to achieving certain goals and providing certain amenities to clients within the next five years, and I hope to live by that. In addition, we are tailoring our products and services as per customerâ&#x20AC;&#x2122;s appetite. We are also focusing to provide our services through automation and technology. Being a BGB-owned Bank, we are providing services at very reasonable prices in the form of fees and interest Rate.

How does the existence of default loan hinder Bangladeshâ&#x20AC;&#x2122;s economic progress?

Presently as per a Bangladesh Bank report, the countryâ&#x20AC;&#x2122;s NPL is facing an upward trend and is now at 10.67%. This situation has to be controlled otherwise it will have

negative impact on our present economic growth and the depositors might end up losing confidence in the banking system. A combination of growing NPL and Assets concentration if unchecked will also bring negative growth in the economy. The nation has 57 banks, a majority of which is private. The only share of the defaulted loan is on the government banks, all of which are under the control of Banking Division of Ministry of Finance. The degree of autonomy granted to the Central Bank is an important indicator of good governance and continuous subject of matter in most developing countries. Therefore, our strategy must focus on establishing good governance, creating skilled human resources for the banking and financial institutions and establishing accountability.

What sort of default cultures can we observe in our country? Furthermore, the economy is suffering due to bad loans which are associated with the underlying default cultural practices. But this should not be the association made. There are three types of default culture: intentional, habitual, and situational. Somebody facing a loss in the business can be regarded as a situational default. While the habitual default is when someone repays a sum of Tk. 13,500,000 twenty days later than the day it is due. In this case, the person is traced continuously until the sum is repaid. However, the generic default is when there is no trace of who has the money and where it is invested; it is similar to that of Hallmark or

Bismillah. In such cases, our country lacks behind to establish accountability.

What measures can be taken to prevent default culture from taking place?

Bangladesh has 90 million smart card holders of which only 1.8 million credit card owners. Thus, it is very necessary to integrate our services with smart cards. Developed countries generally prevent it by socially and economically blacklisting such defaulters. For instance, if you are a credit card or loan defaulter in America, it is possible to find out your history using your ID. In the last ten years, Bangladesh Bank has facilitated the methods of automation by generating Credit Information Bureau (CIB) reports and software like Electronic Fund Transfer Network (EFTN) and Real Time Gross Settlement (RTGS). A change in culture is necessary to make such automation sustain. Strict laws must be ensured for breaking the rules. Besides, imprisonment of a defaulter cannot be the only solution rather one needs to cut the problem from the roots.

What leads to inefficient performance of the top management in the hierarchy of public banks?

A new regulation has been established, which requires other banks to seek consent from Bangladesh Bank in any decision such as removing a Managing Director from their post. The MD and CEO are appointed by the Board on a contractual basis gives rise to lack of commitment. The contracts of the Managing Directors are renewed obliging to the orders of

Directors. They can work until a certain age limit and are accountable for many things similarly like the divisional heads. However, when a Managing Director of a government bank faces a board, the uncertainty of the contract disables the person from performing well as at that moment one may feel that their contribution is not appreciated enough.

What are the possible challenges faced by the modern day banks?

The bank is a business of interest. We live in a cash based economy where we are getting the deposit from people and giving the loan to people. The only difference is that we are making money through 5% spread. On the other hand, the Government is offering Savings Certificate. The ceiling to make profit on these savings certificates (Sanchayapatra) is 11% or more. As a result, depositors are more interested in that deal and are asking for a higher rate of interest for their deposits. Thus, banks are facing challenges in pricing for deposit and lending. Apart from these, there is also a dearth of skilled manpower and good governance in their boards.

Where is Bangladesh heading next?

During the last ten years, our economic indicators are in right directions but we are yet to focus more on sustainable development. Achieving the goal of a middle-income country would require us to create good governance and skilled manpower in the economy.

Interview

BANKING ON BETTER QUALITY M. Nazeem A. Choudhury Head of Consumer Banking Eastern Bank Limited

M. Nazeem A. Chowdhury earned his MBA from IBA (Institute of Business Administration) Dhaka University. He is a very promising banker and a confident and concise communicator. He is now heading the consumer banking division of EBL (Eastern Bank Limited). Though he started his career in PC Quest Bangladesh a pathfinder magazine and joint venture with India. He later became a corporate executive by joining Beximco Pharmaceuticals then Alico and finally settled in EBL.

THE RETAIL ROUTE:

Focusing on the Greater Population “Retail banking is detail banking” – is the theme our Managing Director and CEO, Ali Reza Iftekhar postulates. I simply try to follow his ideology. It is the most befitting explanation to describe retail or consumer banking. There can be such a diverse and vast number of products and channels for so many segments of customers; yet “relationship” plays the core role to ensure sustained business growth. Individual Customers remain at the core of our space, whether their banking need is served through Corporate banking, SME banking or Consumer Banking; this dynamic makes everything intertwined. Retail banking is gradually becoming the centerpiece of banking. I believe that the risks in corporate banking are much higher because a few hundred people dominate the market. In retail banking, its disbursed amongst thousands of customers make the risk more distributed. This makes retail banking more dependable factor for the sustainable growth of banks. The Cost of Goods Sold (COGS) concept can also be applied here as well. Banks control the deposit and lending rates to ensure a sustainable profitability over a period of time. We manage our Asset and Liability portfolio based on approved and established fund

management policies. The core challenge is to keep sourcing low-cost funds while managing the core deposit to ensure healthy banking ratios. Eastern Bank Limited (EBL) aligns itself with the idea of quality. As our CEO always points out to us - We do not want to be the largest bank in the country, we strive to be the smartest one. INVESTING IN INNOVATION:

The Way Forward The days of single savings account serving every purpose, difficulty to obtain personal loans and use of debits cards solely for ATM cash withdrawal are long gone. Customers now want products and services that are tailored to his or her financial and societal needs. The digital age has ushered a time where the customer is very well informed about the digital banking. Technology has become quintessential and in this regard bankers need to move at a much faster rate to adapt to continuous advancements. We make tech savviness a priority. And we couple this idea with a passion to try to understand our customers’ psyches. This reflects the fact that our products cater to an individual’s financial life cycle. Products span from junior and student bank to senior citizens. We also have ones that are specifically for women, professional, businesspersons and executives as well. Our objective is to be a single shop for any customer, be it consumer, SME or corporate banking. Innovation is our strongest foray. We have introduced more than 30 new financial products and services to the market of Bangladesh in the last 7 years. This trend will always continue and expand in the future.

Pristine Portfolio: The EBL Difference Over the last decade, EBL has come up with products for every single customer segment and financial vertical. Their innovations allow them to continually grow.

DEPOSIT SCHEMES- EBL is the first bank to have such dedicated schemes for students. They also have wide-range of accounts designed to help women and senior citizens. LENDING PRODUCTS- From personal loan with insurance coverage, home loan, auto loan, professional loan and business loans, EBL has all kinds of loans. And their rates are highly competitive in the market. CASH ON COMMAND- With ATM machines serviced and monitored on a daily basis, access to cash at any EBL booth is guaranteed at any time. THE MOBILE MOVE- EBL launched its app in 2016, making it much easier to avail service and access payment methods. EBL Skybanking app is one of the most widely used banking apps in Bangladesh. CARD COLLECTION- Their attention to detail transcends into EBL’s personalized cards. They were the first bank to introduce Platinum, Signature, Airline Co-brand and Hospital Co-brand cards.

Tracking Trends:

A Change in Customer Dynamics The financial crisis in Europe creates a greater sense of mistrust between customers and banks. Furthermore, analysts have observed that changing banks frequently has a growing global dynamic; we are becoming an “instant” generation. The shift to this instant culture has created a culture in which a customer

will not hesitate to change banks if they find another with the desired product or service. Now the responsibilities of the bank involve predicting the future customer demands, understand banking trends, and introducing the right product at the right time. Customer data analysis is increasingly getting important in our decision-making processes. Though there is no formal study, we can sense the same behavior in our industry too. Most customers now prefer to maintain their core bank account relationship with one single bank, but their other banking needs like credit cards, personal loans etc. are mostly driven by offers and campaigns round the year. The trend of credit card closure, loan take over has increased manifold in last few years and that is a clear indication of the customer mind set. The digital future is connected and that involves looking beyond Dhaka and Chittagong. We are becoming a population that is constantly moving and banks need to bring solutions to their customers. Customers no longer wait to get banking solutions from one single bank. Thus, banks that offer interbank connectivity will prevail. Bangladesh Bank has initiated the national payment network concept that will connect banks seamlessly. Moreover, we must move to non-branch banking. It will not only save money but create much greater access to products and services through technology.

INCORPORATING THE UNBANKED: Towards Financial Inclusion The banking sector is still

focused on a corporate approach and we must start advancing by changing this mindset. I understand that the corporate banking sector is significant but the sheer number of customers and their individual and business banking potential makes retail and SME banking even more promising. We need to have a sizeable banked population and reduced dependency on cash in order to increase financial efficiency. Not enough banks are invested in retail banking. Most just have a few selective products for customers. Moreover, Bangladesh Bank has published guidelines for mobile banking and agent banking; this will help bridge the gap between the banked and unbanked.

KEY PERFORMANCE INDICATORS: Setting the Benchmark Our indicators vary within departments and business units. Nevertheless, we are unanimous in our desire to measure effectiveness through customer satisfaction. We do not strive to simply satisfy, we want them to be content with our services. We measure customer satisfaction at every point and ensure that professional behavior is rewarded or addressed. Furthermore, we conduct regular surveys with them and interview customers that are no longer with us. Our focus is primarily on innovation with customer retention at the core of all of our activities. We acknowledge when we have shortcomings with our customers and improve upon those matters right away. Customers want a bank that is responsive towards their needs and during their time of need. We strive to embody that. www.ibtbd.net

Inside Out

Brand As the world of banking continually changes, ushers an era of all things digital. ICE Business Times speaks with the successful brand professionals who are making their mark in the financial industry. They explain the dynamics of the new age, the challenges of the market, and their passion for the job.

“Customers are getting more powerful and demanding; the banking Industry is also experiencing the same. Innovation and marketing are therefore getting essential, not anymore for its growth only, but also for the survival.” Anwar Ehtesham

Head of Brand, Dhaka Bank Limited Bank Trade Cloud, Dhaka Bank BillsToCash, Dhaka Bank C Solution, etc. And we have plans to introduce more products in coming days. ‘Excellence in Banking’ end of the day is not a destination; it is the journey. Our core objective is to tap our products with everyday life which will mostly require technological advancement as well as customer need assessment.

Passion for the Profession

A Decade of Challenges and Changes

We are going through the most significant cultural shifts of our time. Attitude towards getting services, level of expectations from the service providers, service delivery/consumption process, media consumption patterns, information search methods, etc. are changing every day. Customers are getting more powerful and demanding; the banking Industry is also experiencing the same. Innovation and marketing are therefore getting essential not anymore for its growth only, but also for the survival.

Challenges in the Financial Industry

As per my understanding, the need of banks will reduce day by day, but the demand for banking (services) will increase at the highest possible pace. This dynamic indicates the rise of FinTech, payment gateways, more and more tech involvement into the banking system. So, banking industry must be in a position to embrace this shift and adapt accordingly. I think all banks should invest heavily in the technological capacity building. Dhaka Bank has already started addressing these issues. We have already introduced several technology-driven products/solutions namely, Dhaka Bank Go, Dhaka

Communications and Branding are perceived as support services in most Banks and NBFIs of Bangladesh (in banking terms, it is the ‘cost center’). However, it should have been one of the core areas. I enjoy my profession. It is because my profession involves dealing with people from diverse ideas as well as professions. I hardly find any monotony in my profession as every day is a new day; I don’t know what I’ll be dealing with in the next afternoon. Don’t get me wrong; we have preset marketing plans as well as budgets, individual and collective goals, activity calendar, etc. However, many unknown and unplanned agendas come to our priorities almost every month. I’ll say, this is the beauty of this profession and I love it. We collect market data from different sources, i.e., competitors’ activities, industry insights, global shifts, supply and demand trends, social media content consumption and feedbacks, etc. In this hyper-connected society, it is challenging to meet the expectations of every single

customer because the requirements and expectations are widely diverse. I think we are no longer in the era of generic banking; instead, we have already entered into the age of genetic banking. By genetic banking, I tried to mean that every customer is different (applicable to both retail and corporate customers) and needs to be treated differently. The more customization a bank can offer to its customer, the more success it will cherish in coming days.

Banking for the Win

There is a saying, ‘wherever there are customers to be reached; there is a need for a Marketer.' I came to this profession by choice. I am more of a ‘people person.' I love meeting new people; learn new things as well as share my thoughts with others. And I believe that marketing is the place that best matches my passion. There are more than just one winning sides in this profession. I think this trade allows me to communicate directly (and sometimes indirectly) with the stakeholders. It gives me immense opportunities to deal with creative works such as design, image, copy, colors and most importantly the ideas and strategies. The job is sometimes a bit stressful. Working for late hours and on holidays is an everyday norm. However, it brings smiles when I see that our creatives and campaigns are not only making our organization profitable but also changing the overall industry landscape.

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“The most important thing I like about my job is that I always have to stay ahead of the competition without sacrificing relevance with the market. Moreover, keeping the brand’s taste, voice, and language unique while continually innovating the message is another challenge I enjoy very much.” Md. Sarwar Matin

Head of PR & Brand Communication Division Jamuna Bank Limited

Customers are scattered across so many vehicles that you have to be present in all of them just to get noticed. So, for this profession, the challenge becomes understanding when and where your customer will be. So I have to keep an eye open for all recent trends and fads so that my brand always stays on top.

A Decade of Challenges and Changes

Yes, Banking industry in the last decade has changed a lot. Especially internet and mobile communication made it very accessible to everyone and expectation has gone higher. Now we have to be more customer-centric while designing our product. Whereas a few years back it was straightforward with four basic products, Savings, Current, Fixed Deposit, and DPS. From communication side, it is challenging for everyone.

Challenges in the Financial Industry

I think customers are getting a hard time choosing their desired product as almost every bank’s offerings are same. I think every bank should focus on conveying the idea that customers’ assets are safe with us and he or she will gain more with our products instead of putting a lot of percentage and zeroes on our communication. Moreover, understanding of which customer group will be most benefitted by a specific product and aligning communication, branding everything around the designated group's lifestyle should be the other proposition for every bank.

Passion for the Profession

I just love my profession; it is a multidimensional discipline. The most important thing I like about my job is that I always have to stay ahead of the competition without sacrificing relevance with the market. Moreover, keeping the brand’s taste, voice, and language unique while continually innovating the message is another challenge I enjoy very much.

Banking for the Win

I fell in love with this profession during my student life while working with an agency part-time. I have grown up in this industry and sat on both agency and client side of the table so for me it’s like living your passion. The winning side for any brand professional is seeing people talk about your brand everyday. Because only I know how much hard work I have to put on to make those Billboard/TVC a reality.

Challenges in the Financial Industry

Mahzabin Ferdous

Head of Corporate Communication IPDC Finance Limited.

“The relentless pursuit towards the unbound possibilities of marketing and communications drives the passion for my job.”

A Decade of Challenges and Changes

Well, I would state to differ. The dimensions of the branding and product launching in this industry have just started to take a flight in the recent years. Previously, we had seen that it was focused more on one to one communication based on relationship. Lately, we witness financial institutions making it rudimentary to fight regarding communication than merely the customer base in the lure to establish the brand. Fortunately, now the scope of branding has augmented from sheer promotion to earning credibility and advocacy of the products that eventually upshot the overall business. Over the years, IPDC Finance has reconstructed itself from its previous situation, built its capability and realigned its focus on youth, women and underserved areas. Steering its next phase with a magnificent relaunching event itself speaks louder of the unique dimension and power of branding in the financial sector today. I feel privileged to originate from a diverse background yet be one of the catalysts in the transformation that is taking place in the industry as well as the organization.

Unlike products of other industries, the financial industry does not limit its efforts on research and innovation within the development phase of its products. It perseveres to tailor make the experience of the service keeping in mind the convenience and stable livelihood of the customers. Thorough insights are to be extracted and adapted to build a perception of integrity and reliability of the financial institution among the potential clients. Contrary to immediate consumption of goods offered by other industries, financial institutions work with the highest involvement products and services which lasts for decades, which makes it very crucial for each beholder of the brand to provide extraordinary customer service for its clients to ease their journey. We are here to comfort the years of turmoil to envision one’s desire by giving them the financial assistance to break the inertia of living unbound. This belief is the rationale behind our pay- offline “Jaago Ucchashe.” We aspire to build stories together in the excitement of a new car, the serenity of your own home, stepping in your higher studies, unlocking your new startup or just relaxing on a beach during your retirement. The passion for exploring the unbound possibilities of our stakeholders drives the motivation in each one of us.

Passion for the Profession

I am absolutely in love with the consistency of change that keeps marketers like us hooked to the volatile environment. The relentless pursuit towards the unbound possibilities of marketing and communications drives the passion for my job. It is time to truly embrace the potentials of digitalization already than considering it as the new big bubble. I find my profession as a stepping stone of a mere opportunity to achieve the extraordinary. Since then, as the Head of Corporate Communication in IPDC Finance Limited, I along with my team have taken every brand campaign as a leap ahead from the customary wish post to a cause-driven theme apart from

regular distinctive product campaigns. But of course, merely goal-oriented activity is never justified without being able to assess its success. Therefore, we are in the process of a thorough brand health study as we are approaching towards our one-year completion of revamp. We expect the vibrancy, passion, and perseverance of the brand towards extraordinary customer service to play an extra edge in surpassing other financial solutions available in the market. The rebranding event embarked a new journey to unfold pleasant experiences at different stages of our customers’ life to let them live unbound. I am pleased with the customer response so far.

Banking for the Win

I wouldn’t hesitate once to proclaim; I was born to be a marketer. From being curious of the surrounding, spotting trends before others, ability to connect the dots between different things from the very beginning of my cognitive senses and amalgamate all for a more significant purpose have always kept me interested. From the very beginning of my career, I’ve learned about 360-degree marketing including brand building, brand revamping, executing strategies by working with different agencies for three years. But to have an end to end understanding of all efforts necessary to meet the business goals. I moved to the corporate sector with time, which helped me visualize the bigger picture of each decision taken. A daydreamer and a night thinker, above all a doer, I intend to make the best use of every experience I encounter in life, regardless of the positives or negatives connotation of the experience. We are on a constant lookout for innovative breakthroughs in the field of marketing. There are times when we revise the whole concept overnight to adapt to the sudden trends in social media. How precisely the nature of the field I work in compliments the view of myself fascinates me. Here at IPDC Finance, I can feed and calm the impulsive nature of myself and my job simultaneously. I believe, having a profession that fuels on my passion are undoubtedly the winning side here. www.ibtbd.net

Digital Trends

The Tech-Over: Lesson Learned from the Worldâ&#x20AC;&#x2122;s Best Digital Banks By Yousha Mohan We are living in an era where information regarding anything and everything is at the click of our fingertips. Our tech-based generation dependency on the Internet has propelled a digital approach to every scenario. Thus, it is no surprise that banks and financial institutions around the world are thinking of spreading their operations extensively in the virtual world as well.

P H O T O B Y W W W. S A M S U N G . C O M

PAY

Reputed banks from around the world are continually investing in digital banks as they believe that within the next few years digital banking will be the ultimate way to support the demands of this fast-paced generation. With the movement towards doing everything digitally, there is no reason why banking cannot be done online. There are some banks which provide some online banking experiences but are very limited in numbers. Most of the work needs to be done in physical locations. Experts and top officials from such banks believe that if they provide extensive online banking services, their customers might change their conventional ways of banking and carry out their activities online. It is expected that within

Reputed banks from around the world are continually investing in digital banks as they believe that within the next few years digital banking will be the ultimate way to support the demands of this fast-paced generation. the next five years, 40% of the total inflow of revenue for banks will be contributed via digital banking. In laymanâ&#x20AC;&#x2122;s terms, digital banking is going to see a massive growth in the coming years, and pretty soon, conventional banking may become obsolete. Out of all the global banks, geographically, banks in the Scandinavian region will

see the highest growth closely followed by the United Kingdom as well as Western Europe. While it may take the banks of the United States a little longer to adapt, they will also follow the trend of going digital in the upcoming years. Spainâ&#x20AC;&#x2122;s Banco Bilbao Vizcaya Argentaria (BBVA) bank, one of the leading

one in Europe, believes that the rise in digital banks would lead to a closure of the physical branches of banks. This would be advantageous as those properties could be used for other purposes and banks, in general, can cut down on costs related to the maintenances of office spaces. But therein lays another problem with this closure. People in the rural areas are somewhat not onboard with the idea of closing down banks. Some areas are not technologically well developed and closing down banks would leave them unable to access banking facilities. Despite these concerns, Spainâ&#x20AC;&#x2122;s BBVA bank still believes that digital banking is the way to move forward. They believe that sole reason for their success in the year www.ibtbd.net

2014 was largely due to shifting a bulk of their operations digitally. While the statement may be slightly exaggerated, this does show that a bank of BBVA’s stature believes that digital banking should be their priority to succeed in this field. BBVA’s chairman, Francisco Gonzalez has openly expressed his support for digital banking. He does not think that digital banking should just be limited to the online transaction and balance checking. He believes in more of a 360-degree approach to the usage of digital banking. This includes analyzing customer’s views and insights on banking and come up with “trigger” points for all the customers when it comes to purchasing financial products. Another popular bank in Spain, CaixaBank has gone on a different approach when it comes to digital banking. They have proceeded on to launching a home banking app that is run on Facebook. This was a smart move considering the number of hours people spend on Facebook each day. CaixaBank made themselves visible in a situation where most banks are clogged. The app is integrated with popular social media networks, and the clients can access their basic information and check their balance from there as well. Besides, they can make use of the app to make the purchase on Facebook and customize their user profiles by using their pictures. In short, CaixaBank has made banking easily accessed

and a fun thing to do for people. In other words, it has personalized the aspects of banking. Personally, the best bit of digital banking is being done by Turkey’s Aktif Bank. Most people believe that digital banking is limited to the transaction of withdrawing and depositing cash online or doing the occasional balance checks. Whereas, there are several other services that a bank can provide amongst which is the financial services of paying utility bills. According to Aktif, people living in Turkey often have to travel all the way to

downtown to pay their monthly utility bills and carry out other financial activities such as rechecking their travel cards and buying travel tickets. Aktif Bank has basically collaborated with the IT structure of these major retailers and dealers of the nation. They have gone on to own the transaction rights of the clients, and in return, they are bringing the banking facilities right to the doorsteps of the clients. Now, the clients can carry out their transactions such as paying bills and buying tickets online.

There is no doubt that digital banking is the right and most convenient way to do banking no matter how hard some people or banks resist from accepting this. Banks that are unwilling to make the transition to the virtual world of banking are going to be left behind in the long run.

The lesson that can be learned this is that Aktif Bank has capitalized on digital banking and made it extremely convenient for their clients to get their work done without having to do much as leave their homes. This kind of digital banking is a win-win situation for both clients as well for the major retailers and merchants. Not only do they get to benefit the banking transaction, but they also reap the benefits of cross-selling their products. Aktif Bank now has new clients who require the services of other merchants, and these merchants are gaining the already existing clients of Aktif Bank. The bottom line is that the whole banking sector is going through a revolution at the moment which started a couple of years back but has been gaining momentum recently. There is no doubt that digital banking is the right and most convenient way to do banking no matter how hard some people or banks resist from accepting this. Banks that are unwilling to make the transition to the virtual world of banking are going to be left behind in the long run. In fact, if they do not make the necessary changes then they risk the chance of losing their business and shutting down. The transition is happening as we speak and banks have a mere two to three years to make the necessary adjustments. Pretty soon we will have a whole new generation of clients who will grow up without having experienced the major roles of bank branches in their daily lives. For them, digital banking will be the norm.

DIFFERENT PERSPECTIVE

WORDS CREATING A WORLD OF ACTION

TAX FOR THOUGHT By Munira Fidai

The Notion Of Nudge

Man is a complex being that has been slowly deciphered over centuries. Behavioral science continually helps us find out more about what goes on in the human mind and how this can be influenced to bring about certain desired behaviors. One such theory, that gained much fame due to its popularity in the political sector, and the recent awarding of the Nobel Prize in Economics to Richard Thaler, is the Nudge Theory. To fully understand the magic of this theory which has been working on British taxpayers’ behaviors, it is important to know a little bit more about the theory itself. The concept of Nudge Theory is fairly simple, when in its watered-down version. The literal definition taken from Richard and Sunstein’s book Nudge- Improving decisions about health, wealth and happiness' is that the theory is “an approach to understanding and changing people's behavior, by analyzing, improving, designing, and offering free choices for people, so that their decisions are more likely to produce helpful outcomes for those people and society

generally.” Simply put, nudge theory is the use of certain subtle prompts, suggestions, or as the name suggests, nudges, to invoke a certain [positive] behavior. Nudges can be very small changes in the wording of sentences which subliminally change the way you look at a particular something. For instance, changing a specific numerical comparison into a more subjective comparison like “a vast majority” is one such prompt. Making people feel less competent as opposed to “more responsible public” can also work the same wonder. Increasing people’s anxiety about paying off their debts by sending repeated notices to clear outstanding dues right away is yet another example of a nudge. Doesn’t seem like much, does it? But that is exactly what seems to be the science of this intricate theory- the fact that such minuscule changes could garner such a varied public response.

APPLY WORDS TO WORK Now that we know a little bit about the theory itself, let us take a minute to understand how this could help with important political matters. While legislation cannot be changed or reworded, for the most part, legal and public notices can be changed to include prompts like the ones described above. Former President Barack Obama was a big fan of this theory and wanted to reap the benefits out of behavioral science for areas such as public health and improving the American job market. The UK quickly followed suit with a “Behavioral Insights Team” or Nudge Unit which was replicated in other parts of the world, with the understanding that it was only to be used for pro-social work. The “Behavioral Insights Team” carried out a few trials, in collaboration with the UK government, to try and see if nudge theory made a difference to taxpayers. What came out of the experiment was that minor changes to words and phrases sent out to the

general public really seemed to change their behaviors towards the policy. In a six-week exercise, Revenue and Customs, UK, sent out a bunch of letters to taxpayers. They used phrases which actively compared the letter recipients to other taxpayers, by saying others have already paid. This lends a little urgency to the matter and gets their mental clocks ticking. Comparisons to others also make people feel psychologically inferior to those who have “already paid”, nudging defensive behavior into action- usually though paying up. The nudges were also numeric in nature, saying things like “9 out of 10 people pay their taxes on time”, making people very subtly wanting to belong to that 90% instead of the late movers. Whether the words want to make people do something better than they were doing previously, or if it simply makes them want to one-up their family and friends isn’t known but it sure seemed to get the job done. Other nudges in taxation were set up in tax rebate forms for people wanting to claim single person

discounts on their council tax bills. The nudges required people to state directly if they were eligible for these discounts without providing the percentage they would be able to claim. It also issued a warning stating that falsifying information would be regarded as a fraudulent act. While not attacking anyone, in particular, the sentence implied that not updating details was also an offense, bringing down the percentage of rebate seekers by about 6%. A way to “scare” people into paying up was to let them know that their previous lapses were not hidden from the government but were seen as “oversight” for the first time, and would be considered as punishable offenses if repeated. It was also made visible to the taxpayers that the government agents were not shying away from using the third-party information against them to prove their offenses. Taking pictures of untaxed vehicles and sending text messages on personal phone numbers have been proven to work wonders. Experts say that the potential use of bold colors and mentioning

incentives the taxpayers would receive if they paid on time are also likely to be successful measures. People keeping money in offshore accounts were issued repeated notices to pay their legitimate taxes up on time or face a full tax inquiry. It was “reminded” in other notices that the tax enforcers held the right to visit homes and auction off untaxed goods if non-compliance was found out. Letting taxpayers know of the taxman’s power over them helped increase voluntary payments. Finally, companies which were under suspicion of trying to avoid taxes were also “put right” by using warning (knowing) questions like, “Are you still thinking of avoiding taxes?” Getting people to buy into green, socially helpful schemes was also a positive outcome of nudge theory. Despite pulling in an extra £210 million as taxes, the theory is controversial in nature, as taxpayers or others under the influence of the theory are unaware of the psychological prompts used on their subconscious. It is also entirely possible that practitioners of the theory, who are staunchly sticking to pro-social causes like getting more people to vape, as opposed to smoke, may choose to go commercial and start imparting this potentially dangerous technique to anyone with heavy wallets. While it is proving to be a great tool to elicit socially beneficial behaviors for governments, for now, it remains to be seen how the theory will gain acceptance from critics who feel people are being used as subjects for experiments, each time they are nudged.

Banking Trends

BEYOND THE BALANCE

By Nafeesa Sadeque

From the first prototype banks that were merchants who made grain loans to farmers and traders who carried goods between cities at around 2000 B.C., to the fundamental financial institution that banks are at modern times- technology has reformed banking. Globally, we are revolutionizing into a cashless society. Applications on our smartphones, robot force and many other technological advances are occurring around the world. From the first prototype banks that were merchants who made grain loans to farmers and traders who carried goods between cities at around 2000 B.C., to the fundamental financial institution that banks are at modern times- technology has reformed banking. Globally, we are revolutionizing into a cashless society. Applications on our smartphones, robot force and many other technological advances are occurring around the world.

www.ibtbd.net

BANKING: 1 VIRTUAL

Mastering the Mergers

To keep customers loyal and continue using their service, banks are trying to adopt innovative ways for providing simple, convenient banking solutions for their customers. Customers nowadays have high expectations, demanding a certain quality of service, making it harder for banks to keep a competitive edge. A solution to that is modernizing to meet the demands of such tech-savvy

customers, one of the steps being Augmented Reality(AR). AR is the real-time use of information and other virtual enhancements, integrated with real-world objects. The ability to merge digital and physical realities will transform customer experiences, integrating banking seamlessly into everyday interactions. Visually appealing applications of AR can enhance the customer experience by providing location-based oﬀers, ATM locators, talking to a relationship manager, do a property search, or make payments.

REALITIES OF TOMORROW

– Commonwealth Bank of Australia has developed an app that when pointed at a property can give its listing details and other information that can be used to make property decisions. – An AR app was launched by Standard Chartered China that provides location-based services like discount coupons – Westpac launched an AR app, which helps its customers to check card balances, make payments, and find the closest bank or ATM branches – Citibank traders have been testing Microsoft HoloLens as a virtual workstation to complement the bank’s existing devices and workflows

DIGITAL DRIFT 3 THE

THE ROBOT RULE:

Automated Services on the Rise

The growing number of private and PSBs introducing humanoid robots to answer basic customer questions cannot be denied. There are a few gimmicky robot services out there, particularly in Japan where robots replaced tellers. But it’s not just robo-advisors that are taking oﬀ. After all, UBS oﬀers real-time portfolio analytics services on a personalized basis to all of their high net worth clients through IBM’s Watson. In the age of the automaton, robots now have the ability to imitate the everyday business processes.

THE 5 BEYOND BOUNDARIES

Traditional Payments

Fully enabled digital customer platforms, where back-office cloud and analytics can deliver real-time experiences through APIs, are established in banks such as Idea Bank, Poland. They offer an entire financial ecosystem for their clients from cloud-based Internet banking to an Uber-styled ATM. You can summon an ATM using an app on your phone, then a car pulls up at the address. This is primarily aimed towards business owners who've got a large amount of cash to deposit into the company's accounts at the end of the business day, and presumably would rather not carry that amount of money into a branch or street ATM.

AT THE PALM OF YOUR HANDS: Anywhere, Anytime

The 24/7 bank is here, and surprisingly some banks have become more than just 24/7 by oﬀshoring. With banks such as Standard Bank in South Africa oﬀering a single dashboard to let relationship managers connect with their clients via any media the client prefers to use including WeChat, Facebook Messenger, Google Hangouts, Whatsapp, etc; communication has become faster, smoother and never before this easily accessible. Last year alone, 57% of smartphone do conduct their banking matters.

Data Monetization, another recent popular trend, is the organizational ability to turn data into cost savings and revenues in existing lines of business and to create new revenue streams. Banks are recognizing that their data analytics can leverage market opportunity, for example, NedBank in South Africa oﬀering merchants far more business insights through market intelligence services. These opportunities require providers to take advantage of distinctive data sets and apply advanced analytics techniques. In the states, PwC estimates that the incremental revenue from monetizing data could potentially be as high as US$ 300 billion every year beginning 2019, according to Vamsi Talks Tech. We live in a world awash with data, and with this new development, a new source of value in payments can be found.

6 CONNECTING ACROSS THE WORLD Social banking is used to refer to sustainable banking. Social value chain has evolved and nowadays it also covers banking activities conducted through social networking channels or social lending such as peer-to-peer (P2P) lending. Technological developments now allow people to connect online in order to do business with each other, resulting in a booming P2P sector. The global P2P lending market was valued at around $900 million last year and is expected to grow to about $1,600 million by 2020, according to IBIS World. Connecting people across the world for communication purposes or to carry out ﬁnancial transactions such as P2P has a huge untapped potential.

GUARDIANS 7 THE OF NATIONAL WEALTH The Guardians of National Wealth Increased adoption of web and mobile applications in the banking industry has made the industry prone to advanced cyber attacks. Cybersecurity has become a phenomenal concern across the globe as the hackers have become more professional and expert in breaking barriers established via traditional security measures. The Systemic Risk Barometer Survey of April 2016 noted cyber risk as the top threat in financial institutions by 25% of respondents, while 56% ranked cyber risk in their top five threats. In banking, new technologies increased digitization and connectivity have increased the number of touchpoints for customers and have also increased banks’ vulnerability to attacks. Cyber attacks have become more complex, data breaches are growing in size and frequency. Fortunately, the government has made cybersecurity one of their top priorities. The global cyber security market is expected to grow from $122.4 billion in 2016 to $202.3 billion at a CAGR of 10.6% by 2017, with the financial services industry set to witness the highest growth of 11.6% CAGR during the forecast period. Government and regulators have paved the way for increased sharing of information regarding cyber attacks and attempts within national borders. Banks are forced to respond to cyber attacks with huge investments in cybersecurity and in other security technologies such as biometric authentication. Regulators now expect multiple layers of security from banks.

BANKING FOR CHILDREN

We know the Internet of Things (IoT) is coming, and it will need BoT based upon the ValueWeb to support it, but excellently things are already emerging in this space. The US Bank offers a link to light bulbs to flash you when something is happening on one’s account whilst Bradesco offers a connection between one’s car and their bank account. But the example that I wish I had discovered sooner was a fun way to inform children about money called Clever Kash. It is an incredibly easy-to-use interactive tool that helps kids watch their saving balance grow and learn about financing from an early age. Unlike the urge to splurge that I had to suppress as a child, the cashless Clever Kash receives money digitally and sets goals to help kids remain motivated.

9 THE TOP TREND

The Financial Brand conducted a survey asking banks and credit unions globally to rank their top ten predicted trends in banking. The highest ranking prediction was that the industry was going to remove friction from the customer journey (54%) Several traditional banks fail to satisfy the expectations of consumers when it comes to digital banking. Only 30% of banks and credit unions market products within the mobile banking app and most ﬁnancial institutions can’t open a new account entirely online or on a mobile device. The consumer expects a simple and seamless digital experience. If this can be achieved, it will be reﬂected in improved satisfaction, loyalty and referral scores. If the digital consumer does not experience a positive end-to-end digital process, new account opening abandonment or existing relationship attrition is likely.

BEYOND THE TRADITIONAL: THE BANK EVOLUTION In this day and age, the emerging advancements continue to surprise us, the consumers, since technology is taking leaps instead of steps. A simple example would be the 4.5-feet tall body of wonderful intelligence named Mitra. Mitra is a Kannada-speaking robot who serves at the head oﬃce of Canara Bank in Bengaluru. The robot, with an HD camera in its head and the Canara Bank logo on its chest, answers close to 500 frequently asked questions while zipping around at 15 km/hr. Canara Bank isn't the only one experimenting with robots as customer assistants. A growing number of public and private sector players such as HDFC Bank and City Union Bank are introducing humanoid robots to provide basic information such as a bank's history, account details, lending rates, etc. There are also some added perks of deploying robots; for instance, they can be a surveillance machine at night for additional security. The thought of the next few generations seamlessly using modern technology and cashless banking instead of feeling the solid wrinkly notes in their wallets both brings about an uncanny feeling or one that of hope. What seemed impossible only a few years ago exist before our eyes, as we humans move forwards and enhance the world around us. Source: The Economic Times http://www.thedailystar.net/business/banking/ucb-steering-bangladesh-cashless-economy-1478431 https://www.asb.co.nz/banking-with-asb/clever-kash.html http://www.vamsitalkstech.com/?p=4397 https://economictimes.indiatimes.com/industry/banking/finance/banking/growing-number-of-public-and-psbs-introduci ng-humanoid-robots-to-answer-basic-customer-queries/articleshow/59344522.cms https://thefinanser.com/2016/02/the-top-ten-trends-in-banking-innovation.html/ https://www.enterpriseinnovation.net/article/basics-peer-peer-lending-797902581 https://thefinancialbrand.com/62858/2017-top-banking-trends-predictions-forecast-digital-fintech-data-api/all/ https://www.capgemini.com/wp-content/uploads/2017/07/banking_trends_2017_web_version.pdf

Enterprise

Small Entities Creating Big Change The role of Small and Medium Enterprises or SMEs for the overall economic development of a country, especially an LDC like Bangladesh, is irrefutable. As this sector is dubbed as â&#x20AC;&#x2DC;labor intensiveâ&#x20AC;&#x2122; with short gestation period it is capable of increasing the national income as well employment. Consequently, achieving Millennium Development Goals (MDGs) i.e. eradication of extreme poverty and hunger, gender

Financing Your Dream Venture Things you need to know before applying for SME loans. By Kazi Raihan Abser

equality, and women empowerment. SMEs seem to be the magical one stop solution for third world countries, but what exactly does this term mean? The term SME comprises of small enterprises and Medium enterprises. Small enterprises are those that have total asset at cost excluding land & building from Tk. 50,000 to Tk. 50 lac and employ less than 25 people. Similarly, Medium enterprises are those that have total asset at cost excluding land and building from Tk. 50 lac to Tk. 1 crore and employ 25 to 50 people.

Contribution and Significance of SMEs

The SME sector has played a key role in the economic development of the Asian giants and Bangladesh has been no exception. According to the 2013 National Economic Census conducted by the Bangladesh Bureau of Statistics, there are 7.81 million economic entities in our country, 88% of which are cottage enterprises, while 11% are SMEs. However, the truth is that about 99% of Bangladeshi formal business enterprises are SMEs (ADB Institute, 2016). These SMEs contribute about 75% of non-agricultural and consequently, 25% to the national GDP. A vital point to notice here is that this 25% contribution comes from just the manufacturing SMEs. If the contribution of the service sector SMEs of Bangladesh could be taken into account, then the contribution would be significantly higher than 25%. Our neighboring countries have also benefitted greatly from SMEs, so much so that they termed SMEs as ‘employment generating machine’ and rightly so. We can see the significance of SMEs with regard to contribution, employment and GDP in some specific Asian countries. We can see below exactly how much of the total enterprises are SMEs in the following countries: · 97.3% – China · 97.5%– Kazakhstan · 97.7% – Vietnam · 99.4% – Singapore · 99.5%– Sri Lanka · 99.6% – Philippines · 99.7% – Thailand · 99.7% – Japan · 99.9% – Republic of Korea The importance of SMEs doesn’t end there however.

For instance, they are the reason behind 87.7% of employment by enterprise in the Republic of Korea, 80.3% in Thailand, and 71.8% in Cambodia. On top of that SMEs generate 60% of GDP in Indonesia and China, 47.6% in the Republic of Korea, 45% in Singapore, and 43.7% in Japan.

Financing SMEs

Given that SMEs are such a huge driving force for the economy, financing such ventures become a concern of utmost importance. While some entrepreneurs do complain regarding high interest rates, getting ample fund to sustain the venture is more important. As a result, Bangladesh Bank has been committed to facilitate SME credit. To develop SME sector, the fund of BB, IDA and ADB has been channeled through refinance schemes. Currently, 47 banks and 29 Non-bank financial institutions play a major role in financing SMEs in Bangladesh under the supervision and regulation of Bangladesh Bank. While in the past banks generally did not finance any SME without

collateral, this has changed at least partially in recent times since the government of Bangladesh emphasized that the SME sector would be a major player for fostering economic growth of Bangladesh like it has in many developed countries in the past and like it is doing in many developing countries at present.

Bank loans defaulted

Surprisingly, since 2010, the SME sector’s loan default rose to nearly 8 times. The default loan in the small and medium enterprise sector was only Tk. 2,644 crore in 2010. It reached Tk. 11,061 crore in 2014 and Tk. 18,342 crore in 2015. As of last year default loans stand at Tk. 22,494 crore, the same year a total of Tk. 1,36,176 crore credit was disbursed to the SME sector. So why has this default been rising? What could cause this sector to garner such mammoth default on loans? In the words of Assistant Professor Md Masudul Haque, Bangladesh Institute of Bank Management

(BIBM) “The number of defaulters in SME sector has been increasing due to weak supervision process of the banks, inflation in raw materials of SME sector, increase in the cost of production and for using old technology which reduced the market competitiveness of the product.” Some other major factors leading to the high default rate on SME loans in Bangladesh could include general strikes and blockades, high competition, lack of business capital, slow seasonal sales, and issues such as fund diversion. However, since we have had political stability for the past few years’ general strikes and blockades can be safely ruled out as a contributing. Consequently, this gives more weight to the above mentioned factors as major contributors to the rising loan default of the SME sector. Two other factors are that bank officials have high credit-disbursement targets borrowers are ignorant of loan processing fees and charges. Many defaulters also had secondary loans from other sources.

Recommendation

Better or free flow of information sharing amongst lenders could prevent SMEs from taking multiple loans, consequently lowering default risks. A more efficient information system can also be established so that in the process of borrowing from multiple sources, one loan at a high rate of interest is not taken without the knowledge of the lender, in order to avoid borrowing from multiple sources and the ensuing debt traps. In spite of all these issues, given the significance of the SME sector in the economy and in employment generation, it is of utmost importance to create a supporting environment for SMEs to thrive and for banks to cater to the credit needs of SMEs. As mentioned above, the SME sector has the potential to drive our economy forward, and for that to happen they need to be financed and sustained perpetually. So, the factors that lead to the rising loan default need to be tackled individually so that finance never becomes a hindrance for SMEs in the future, keeping in mind that Bangladesh may even ride on the back of this sector and move up to a middle income country in the near future. References 1. https://www.bb.org.bd/sme/smepolicye.pdf 2. http://www.assignmentpoint.com/business/finance/term-paper-on-impact-of-sme-financing-by-commercial-banks.html 3. http://www.thedailystar.net/education-employment/smes-and-our-development-goals-1366591 4. http://www.dhakatribune.com/business/economy/2017/11/06/sme-defaulters-rising-disbursement/ 5. http://www.unescap.org/sites/default/files/polbrief41.pdf

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Sector Insight

Reaching New Heights:

A Closer Look At Aviation By Taposh Ghosh

Service and Reliability in the Industry

PHOTOGRAPH FROM UNSPLASH

With the growing economy and greater purchasing power of the population, consumer behavior is changing rapidly throughout the country. The preference for quality over price is becoming a constant amongst consumers as good, is no longer good enough. The

growing living standards amidst the economic growth is also reflected as more people are now opting for air travel over road transport, causing an upsurge in the domestic aviation industry. Despite a few mishaps and setbacks in the previous year is looking strong to capitalize on the potential growth the industry is looking forward to.

Currently, the booming domestic flight demand is only being catered by 4 airlines â&#x20AC;&#x201C; the state-owned Biman, and privately owned Regent Airways, Novo-Air, and US-Bangla Airlines. The Civil Aviation Authority, Bangladesh (CAAB) estimated the combined annual market size of 2014 to be worth at $440 million, which consisted of 5.8 million passengers transported and 230,000 tons of cargo. Comparing the growth in the number of passengers with the economyâ&#x20AC;&#x2122;s GDP growth rate, it can clearly be seen that there is a positive correlation between the two. The higher GDP often results in higher purchasing power for the consumers, which incentivizes many to travel by air within the country as an alternative to buses and trains. Businesses in Bangladesh are also growing rapidly, reaping benefits of the flourishing economy. And as businesses grow they spread out throughout the country, which means saving time in transiting between cities is quite crucial. The growth in domestic flights can hence also be traced back to numerous business executives traveling especially between the capital and the port cities of Chittagong and Khulna to save on time, as traveling by air saves as much as 70% of the travel time for a business executive. Apart from the flourishing economy, a myriad of other reasons has contributed to this growth. As it seems, political stability has a direct impact on demand. The growth rate in 2013 was much greater than that of

previous year, as possibly because 2012 was a much more politically turbulent year. However, contrary to expert opinions, the industry abnormally experiences a sharp increase in domestic flights during periods of prolonged strikes and blockades, as in such scenarios, the safest option for travel remains to be air transport. In addition, government spending on mega-projects such as the Padma Bridge, Rooppur Nuclear Power Plant, and Rampal Power Plant seems to be acting as an important factor facilitating the growth. Diversifying infrastructural development beyond the capital demands greater and more frequent inter-city travel for government officials and engineers, in which case, air travel is the most likely option. As per the Civil Aviation Authority, Bangladesh (CAAB), the Dhaka-Chittagong route, followed by the Dhaka-Jessore route, currently experience the highest air traffic.

Opportunity in International Flights

The Civil Aviation Authority, Bangladesh (CAAB) estimated the combined annual market size of 2014 to be worth at $440 million, which consisted of 5.8 million passengers transported and 2.3 lakh tons of cargo.

While local airlines have been dominating the domestic route, there is still a lot of ground to be made when it comes to competing with global aviation leaders. In addition to Bangladesh Biman, all three other private sector companies have already started operating in international routes, due to the greater earning potential that these flights have to offer. Regent, following its introduction of international flights, said that despite experiencing a 35% drop in domestic customers following the shift, their total number of passengers has increased four-fold. Furthermore, the increasing number of emigrants leaving to work abroad, mostly in the UK and the Middle-Eastern nations, poses a great opportunity for these local airline businesses. Also, given that these customers respond directly to price, the cheaper fare, which the local

PHOTOGRAPH FROM UNSPLASH

A Demand for Domestic

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companies are able to offer on international flights is a clear selling point. As of now, there is little or no threat in the domestic market from foreign companies. However, such foreign companies, with their superior service and reliability are taking away potential market share on international routes from the domestic companies. For example, conglomerates and multinational companies in Bangladesh often seem to prefer international premium brands as their carrier of choice; a market which over time can be penetrated into by local airlines, as the number of such businesses will continue to grow further with greater Foreign Direct Investment (FDI) flowing into the economy over the coming years.

Reliability and Quality of Service, a Constant Concern The domestic aviation industry, and more specifically Bangladesh Biman, have always been infamous for their unreliable service delivery. Delayed flights, shortage of staff, luggage clearances, and even onboard service have been issues of scrutiny and concern for customers, pushing them to pay a premium for competing airlines on similar routes. The worst of such cases occurred during November of last year, when the VVIP flight BBC-1011, carrying the Prime Minister, Sheikh Hasina from Dhaka to Budapest, was forced to make an emergency landing in Ashgabat as the supply of engine oil to the plane's left engine had been disrupted. It was later discovered that the technical problem could have been easily fixed by simply tightening a few screws, which should have

been taken care of prior to the scheduled flight. Another similar incident took place a few days following the prior event, on December 22, when another Biman Bangladesh flight was obligated to make an emergency landing at Hazrat Shahjalal International Airport when its nose wheel ruptured. The 149 passengers and seven crew members onboard the carrier were unharmed following the emergency landing. Despite having no casualties, such mishaps compel the passengers to lose consumer trust on the airlines completely. In light of such events, experts commented that at a time when Asiaâ&#x20AC;&#x2122;s airline industry is experiencing tremendous growth, Biman, on the contrary, is facing criticism regarding its management system and the quality of its service. Cargo Ban Further Heightening Tension The local aviation industry took a further setback when in June, Germany became the third country, following Australia and the UK, to place a restriction on direct cargo flights from Bangladesh owing to security concerns. While there was no embargo placed on the cargoes, the ban now requires all air cargo from Bangladesh bound for Germany to be re-screened at a third country before entering Germany, which is likely to bear a cost $0.42 per kilogram. As a result, the re-screening process drives up costs and makes Bangladesh a less competitive location.

fee, EU action suggest that instead of improvement, the security situation has only deteriorated further.

The Take-Off Trend

Germany is the second-largest buyer of readymade garments (RMG) for Bangladesh after the USA, with transactions worth at around $4.98 billion in the fiscal year of 2016. The restrictions from the three countries have hence caused heavy damage to the image of Bangladesh as an exporter. Despite the governmentâ&#x20AC;&#x2122;s attempt at taking sincere initiatives to ensure airport security, the restrictions are still in effect. Carriers flying cargo to the UK on direct flights from Hazrat Shahjalal International Airport have also been instructed to cease doing so until further notice. As a result, all cargo flights from or passing through Dhaka needs to be re-screened at a transit before entering the UK. As part of government initiatives to facilitate airport security, in March of last year, Bangladeshâ&#x20AC;&#x2122;s Civil Aviation Authority (CAA) had awarded a two-year contract costing $9.34 million to the UK security firm Redline Aviation Security for upgrading systems and procedures at the airport, following the UK CAA warnings. Despite Redline being at work for more than a year at a flat

The demand for flights and growth in passengers is evident and come complimentary with the booming economy. However, it is also meaningless to say that the local aviation industry will be able to fully capitalize this growth unless they manage to prioritize their service delivery and reliability. Numerous private sector firms entered the industry following great prospects, but have ceased to continue following their inability to deliver the promised service. After experiencing a five-year losing streak, Biman has finally declared a profit. Nevertheless, they too are not doing well in term of expansion and catering to a larger audience, with the termination of popular routes to the UK and USA, suffering from a shortage of carriers. Opportunity and prospect lie for these local airlines as now more people can afford to travel. Households and businessmen alike are making more money and are traveling more frequently, both for leisure and business. As a whole, the aviation business has grown and will continue to do so in the coming decade. If the local players fail to expand and capture this growing market, more international competitors will soon enter and perhaps even drive the local industry out of business.

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Interview

Rajkumar Bhattacharya Country Manager Jet Airways Bangladesh

You have extensively worked in the sales and marketing of Jet Airways. Could you elaborate upon the changing flight trends in the regions?

In terms of changing trends in the region, the outlook for Bangladesh aviation is indeed very positive. The number of air travelers and aviation-related jobs in Bangladesh is expected to double in the next 10 years, based on a recent study by International Air Transport Association (IATA). In the past decade, aviation industryâ&#x20AC;&#x2122;s contribution to Bangladesh's gross domestic product has expanded by more than 10% annually, and this robust expansion is expected to continue in the years ahead.

SUCCESS AT EVERY ALTITUDE

Bangladeshâ&#x20AC;&#x2122;s strong economic fundamentals, its fast-expanding middle-class population with rising incomes, are key drivers of growth in the aviation sector. The growth in Bangladeshâ&#x20AC;&#x2122;s aviation industry has delivered benefits in related sectors such as tourism, retail, and hotel industries. This, in turn, has generated new jobs in the country, particularly in the service and hospitality sectors. Aviation has been a key driver of economic success for this country. However, there is concern that the development of aviation infrastructure in Bangladesh may not be keeping pace with growth in air travel demand. This may derail the potential future economic benefits of aviation if the required investments in infrastructural upgrading are not forthcoming. Therefore, it is

imperative for government agencies and local authorities, along with its airline partners and private industry players, to continue investing in infrastructure improvements as well as upgrading of customer service levels in the country.

What has prompted you to expand your services in Dhaka? What future plans do you have in Bangladesh?

Jet Airways celebrates 10 years of operations in Dhaka, Bangladesh on 16th December 2017. This is a milestone achievement for us. The first Jet Airways flight 9W 274 landed at Dhaka International Airport exactly a decade ago. It was a special moment; a celebration for Jet Airways as we were the first privately owned Indian carrier to provide direct air connectivity between the two countries of Bangladesh and India back in 2007. In the span of 10 years, we have witnessed robust growth in passenger and cargo traffic in both directions. On an annualized basis, both

passenger and cargo revenue growth has exceeded more than 10% each year, which is a testament to the strong and growing trade and cultural links between our two countries. We started with just one daily flight on Dhaka-Kolkata and Dhaka-Delhi sectors, and over the past decade, has now expanded our operations to 21 weekly services covering three Indian metros of Mumbai, Delhi, and Kolkata, carrying on average more than 300,000 passengers per annum. The Indian Embassy in Dhaka has taken positive steps in liberalizing the issuance of visas for Bangladeshi nationals, which has led to a surge in visitor numbers into India. Today, Bangladesh has overtaken the USA as Indiaâ&#x20AC;&#x2122;s number one visitor market. One of the fastest growing segment is that of medical tourism, in particular, Bangladeshis traveling into Chennai for medical treatment. In terms of future expansion plans in Bangladesh, we are studying the possibility of starting direct services between Chennai to Dhaka to serve the growing needs of this segment traveling for medical purposes. We hope to be able to confirm our www.ibtbd.net

Chennai-Dhaka flights in the coming weeks, once our feasibility studies are completed.

Jet Airways has an exemplary reputation. How are its products and services unique?

At Jet Airways, our focus has always been on offering our customers a superior passenger experience. We have a strong brand reputation around the globe, has provided the highest level of customer service for over the past two decades. Our superior brand recognition, coupled with our superior flight schedule and network connectivity, have made Jet Airways the airline of choice for many customers here in Bangladesh. As an airline, we are continuously looking at ways to innovate, to provide a differentiated level of service to our customer. Our ability to provide differentiated level of customer service at affordable prices is important, particularly as market conditions get

increasingly more competitive with the proliferation of low-cost carriers (LCCs). In terms of recent product innovation, Jet Airways has introduced wireless streaming on its B737 aircraft. JetScreen, the name of our wireless streaming product, offers a wide range of in-flight entertainment options that can be enjoyed on customers’ own personal devices. It’s a simple 3-step process. Customers just have to download the app, connect to JetScreen, our wireless streaming system onboard our aircraft, and then launch the web browser to enjoy the latest movies. We have also introduced Pre-Order Duty-Free products online. Customers can now enjoy the convenience of duty-free shopping from the comforts of the home. In terms of product innovation in Bangladesh, Jet Airways became the first airline to offer co-branded credit card in partnership with Eastern Bank of Bangladesh (EBL) in 2016. Jet Privilege, our internationally acclaimed award-winning loyalty and

With Bangladesh emerging as a trading center and business hub in the SAARC region, it is also important to continue to provide a high degree of air connectivity with its neighbors, both in terms of passenger and cargo at its main airports across the country.”

rewards programme, has become more accessible to the traveling public through this EBL partnership.

In what ways will greater regional connectivity between neighboring countries improve communication between them? Why do you believe that establishing these relationships are important?

Aviation is indeed a key driver of economic success. The growth in regional connectivity promotes the expansion of two-way traffic flows between Bangladesh and India, boosting tourism numbers, economic and trade ties between the two countries. With Bangladesh emerging as a trading center and business hub in the SAARC region, it is also important to continue to provide a high degree of air connectivity with its neighbors, both in terms of passenger and cargo at its main airports across the country. Regional connectivity between the two countries of Bangladesh and India has certainly grown in recent years. Today, there are currently seven airlines operating between Dhaka and India, offering a total of 28 weekly flights with a total of 10,500 seats per week. The expansion in the number of seats on the Bangladesh-India routes is driven primarily by new private airline start-ups funded by Bangladeshi investors. The additional capacity introduced in recent years has been well received by the market. The overall passenger traffic between Bangladesh and India has grown sufficiently to cater to these new entrants, underpinned by

the robust economies of both countries. Jet Airways welcome fresh competition provided by these new startups as it is the traveling public who benefits from having healthy competition in the marketplace.

Could you elaborate on 3 pieces of advice on creating an excellent sales portfolio?

The first is to have a Clear Mission. For me, it is extremely important that every member of my team understands clearly the key commercial objectives. We compete in a difficult competitive environment in Bangladesh, hence, the importance of having every member of a team pulling in the same direction towards one common goal. The second is Respect. At Jet Airways, respect among employees is of highest priority. Senior management of our team treat all employees with the same level of respect across the entire organization. When employees feel respected by management, they tend to perform better and stay actively engaged in their jobs. The third is Open Communication. As a Country Manager, I have an open-door communication policy with my team members. For me, this is very important. I believe in having full transparency. By having open communication between employees, we often avoid conflict as employees can work through problems they may have. Companies that are not transparent and do not disseminate information well to everyone may have a hard time staying in business.

Aviation

SOARING HIGH WITH SUCCESS NOVOAIR was established in 2007 with a vision of “Excellence in Aviation” and the motto “Art of Aviation” which emanates from the conviction that the company shall endeavor to provide the best of service to valued clients. Starting its flight operations in January 2013, the company established as a Premium scheduled passenger Airline spreading wings in domestic and regional destinations. It is committed to upholding on-time performance, superior services, safety, comfort and aspires to reach the highest possible level of customer's satisfaction through an uncompromising commitment to safety, reliability, efficiency and stringent adherence to regulatory compliance. These attributes have helped NOVOAIR becoming passengers’ first choice for air travel in the domestic aviation market. Currently, NOVOAIR operates daily flights from Dhaka to Chittagong, Cox's Bazar, Jessore, Sylhet and Saidpur with 4 (four) aircrafts on ATR 72-500 aircraft, which is the best of its kind considering regional routes. The career is now connected with Kolkata on the international segment and soon will link to other local destinations to claim an expanding clientele. NOVOAIR offers most affordable fare for their valuable passengers. Lowest one-way fare to Chittagong is Tk. 2,500, while to Cox's

Bazar it is Tk. 3900; to Jessore Tk. 2700; to Saidpur Tk. 2700; to Sylhet Tk. 2700 and return fare to Kolkata is Tk. 9,999 only. To facilitate valued passengers, NOVOAIR is offering Equal Monthly Installment (EMI) for Cox’s Bazar package including airfare, 2-night 3-day hotel accommodation, and airport to hotel pick-drop at minimum Tk. 1,777. Similarly, Kolkata package stands at minimum Tk. 2,777 per month per person. To facilitate valued tourists, NOVOAIR has agreements with seventeen leading private banks and ten luxurious hotels in Cox’s Bazar and Hotel Hindustan International in Kolkata. According to the agreement, valued card members of those banks can enjoy this package with 0% interest, while paying the amount in installments in 6 months. A pathfinder in the aviation landscape of Bangladesh, the company, has introduced modern travel tools, paperless ticketing and the first frequent flyer program “Smiles” meaning Safe, Superb Satisfactory, Services through “Miles” with the conjuncture word “SMILES.”

Frequent flyer program is also there for its loyal customer to reward them with something extra and special. SMILES members will have the option to obtain the exclusive co-branded prepaid card. They can load the money on the EMV Prepaid Card from any EBL branch and will be able to make payments quickly when they shop, pay bills and dine out at home and abroad. The Co-branded Prepaid Card will allow the cardholders to manage their spending in a simple, more comfortable and efficient way that includes over 1,300 wide varieties of discounts and privileges on travel, dining, and shopping. Employees are treated as the most valuable asset of NOVOAIR. We believe that the success of the organization is linked with attracting talents, retaining and developing human resources to achieve the mission. NOVOAIR has already set the training and development benchmark in the airline's industry of Bangladesh. The training and development strategies are well accepted and praised by the governing

authorities. Our people policy is focused in a way to foster the learning environment. A safe and healthy working environment is a promised commitment to the company where employees enjoy a flexible working environment that helps them to maintain a right work-life balance. The management highly appreciates innovation in the workplace. The company ensures competitive salary, benefits, personal growth and career development. NOVOAIR also arranges different events to keep the employees motivated. The ultimate aim is to serve the best experience to its valued passengers through the excellent performance of the highly skilled employees. From the social responsibility perspective, NOVOAIR has always associated with various activities. Recently, NOVOAIR has distributed emergency medicines for the flood victims in Kurigram and Nilphamari districts. Moreover, the company has rendered its association for the improvement of sports in the country. With NOVOAIR’s direct patronization, various sports tournaments like Golf, Cricket, Football, Volleyball, Hockey, Surfing, etc. have been arranged. NOVOAIR’s vision is to serve the domestic passengers first, with a very professional attitude. Shortly, NOVOAIR will focus more to increase flights in local routes than to open up newer international destinations to fulfill its promise to the national travelers.

IBT PROMOTION

US-BANGLA AIRLINES

TAKING FLIGHTS TO A NEW HEIGHT

tarting with a domestic flights from Jessore to Dhaka in 2014, US Bangla Airlines has become a company that is synonymous with quality. With the motto. “Fly Fast-Fly Safe”, they assure that your flight will be of superior quality and make your time with them the utmost priority. Internationally, US-Bangla Airlines Operates to Kathmandu, Kolkata, Muscat, Doha, Kuala Lumpur, Singapore and Bangkok from Dhaka and to Muscat, and Doha and Kolkata from Chittagong. In the domestic region, it is operating from Dhaka to Chittagong, Cox’s Bazar, Jessore, Saidpur, Sylhet, Barisal and Rajshahi routes. US-Bangla Airlines operates 30 sales offices throughout the country. It maintains offices in Nepal, India, Malaysia, Singapore, Thailand, Oman, Bhutan, Qatar, USA and Canada as well. They operate 300 flights weekly through their dedicated workforce of 1,200. Their dedication to quality had made them the recipient of ‘Best Airline in Bangladesh-2016 by PATA, Best Airline of the Year-2015 in Domestic Sector’ by Bangladesh Monitor. US-Bangla also received ‘Best Domestic Airline of the Year-2014 and 2015’ by the Travelers Forum.

IBT PROMOTION

THE REGAL TREATMENT The Royal Tulip Sea Pearl Beach Resort & Spa treats you like royalty. You can unwind in their luxurious accommodations, which balance the tranquility of adulterated nature with amenities of a private holiday resort. The resort has 493 spectacular rooms and suites, 2 swimming pools, venues for delectable dining and grabbing a refreshing drink. The open amphitheater, private beach, gaming parlor, kids play area are ideal for beach sport, outdoor and indoor leisure activities.

Resort Address: Jaliapalong, Inani, Ukhia, Cox's Bazar-4750, Bangladesh. For Reservations: +88 01844016001 / 01970660066 Email: resv.coxsbazar@royaltulipbangladesh.com Website: www.royaltulipcoxsbazar.com

Fine Dining

A Test of Italy At Amaya At the beginning of November 2017, renowned Italian Chef Marco Bosciani visited Amari Dhaka to give food enthusiast a taste of authentic Italian cuisine. His rustic style of cooking was well received by all and offered something differentiated in terms of flavors. Subsequently, a little part of Italy was left behind at Amari’s flagship restaurant Amaya Food Gallery. Previously, Amaya served more than 100 cuisines from Thai, Japanese, Chinese and Indian styles. Now, there is an Italian corner at Amaya serving fresh, authentic Italian cuisines. The Italian corner at Amaya retains the spirit of Chef Marco Bosciani and his style of cooking. The live kitchen puts up an impressive display of Italian delicacies being cooked which adds to enriching the dining experience of the guests. Pasta, risottos, bruschetta, parmigiana, polenta, arancini and more than 100 other Italian dishes are served fresh in buffet style. Conveniently located in Dhaka's business and diplomatic district, Amari Dhaka is surrounded by major corporations, garment buying houses, United Nations bodies, banks, embassies, and consulates. The hotel is less than 20 minutes’ drive from the Hazrat Shahjalal International Airport. Within a short distance are the embassies of Vietnam, Spain, Sweden, Switzerland, Norway, Denmark and Poland. The hotel offers five-star facilities with an

array of services and amenities along with 134 contemporary guest rooms and suites. In-room features include free Wi-Fi connectivity, 40-inch LED TVs, rain showers, work desks, individual climate control systems, stunning lake views and all day in-room dining. The hotel also offers five separate meeting venues ranging from The Eden – Grand Ballroom for cocktail dinners of up to 350 people to the more intimate Karishma, Ankita and Doel Rooms, all

fully equipped with advanced audio-visual technology. Whether planning business meetings, social events, or conferences, our dedicated catering team will ensure that every detail is executed to perfection. In addition, Amari Dhaka offers three restaurants and bars headlined by the signature Amaya Food Gallery, a market-style restaurant featuring four open kitchens highlighting Indian, Japanese, Chinese and Thai cuisine. Deck 41 is a rooftop lounge offering unobstructed

views of the city, while Cascade Lobby Café offers a laid-back atmosphere for tea, coffee, and light snacks. Indulge and unwind at Breeze Spa, beat the heat with a swim or keep in shape at our fully-equipped Fit Center.

BUFFET PRICES ARE AS FOLLOWS: Tk.1600++ for breakfast, Tk. 1999++ for lunch and Tk. 2500++ for dinner. BOGO offers are applicable. For reservation, please call 01878422222.

Event

ICE Business Times spoke with some of the change makers of the education platform.

By Mahira Khan, Sheahan Bhuiyan and Ashfaque Zaman

I 80

n its 5th year, the Frugal Innovation Forum, organized by the Social Innovation Lab at BRAC, focused on scaling quality education. The event gathered development practitioners, researchers, leaders, and education experts under one platform to open the discussion on how access to education is not enough; the world must now focus on a standard of education. The 3-day event covered a wide array of topics that included how education and skill can lead to employment, the utilization of technology in education and Public-private partnerships. The forum took place in the BRAC CDM located in Savar Dhaka.

“Our coaches focus on building our children as human beings. We start with the C’s: character, courage, and curiosity.” JAMES CENTENERA

Co-founder and CEO, The Ultimate Learning Accelerator

The After-school Avenue: Connecting Skills and Education

I think when we talk a lot about skills, critical thinking, cognitive skills, social skills, organizational skill, a lot of that can be developed earlier on. And it’s much easier to develop earlier on. So the problem with higher education is that they are trying to do it too late. With our after schools programs, what we prioritize and address skill development that is not happening in schools. A combination of skills and education is essential for a holistic education.

Bridging the Gap between Skills and Traits

Our coaches focus on building our children as human beings. We start with

the C’s; character, courage, and curiosity. Character dictates how you act. Once you build it, working hard is a trait you can grip the most daunting tasks. Courage is the bravery to expand your horizon despite your fear of the task. Finally, curiosity is the ability to ask questions and learning begins with an inquisitive mind. We focus on social, thinking and organizational skills because all three of these are necessary for the job market. If you observe employees around the world, they possess these traits. And employers also look for these traits. The current curriculum needs to evolve and incorporate these ideas at a much earlier stage.

Curiosity and Activity: the New Learning Tools

We need to start by changing the method of learning. Even subjects such as math and science can be learned passively through a video, movie or talk. This interactive method is just as effective; essentially focusing on learning by doing and have a coach observe you and give you feedback. It’s just like learning how to play cricket. You need to have these practice stimulations, then you need to have a coach give you feedback, give you tips and tricks. We do this on a project-based learning approach. The combination is about investing. So they are playing a game, like Monopoly, over the span of 10 weeks and they learn about investing and the market at a young age. We do a similar project with health care, food and diet. For example, our children will boil down a bottle of soda so they can see how much sugar is it. While they are conducting the experiment, we talk about the effects of it on the body and the food pyramid.

“We decide on how much to invest based on the stage of development of an innovation or an idea.” NATALIA GAVRILITA Investment Partner Global Innovation Fund

Measuring Social Impact

We have a growing body of regress evidence that allows us to understand the causal mechanisms of the impact and to measure through the specific measure. For example, when we are talking about learning outcomes, we can measure what impact of an intervention on particularly reading or math. We can measure the improvement and then we can compare that to the cost to see if it more or less cost-efficient than existing solutions. It is really about the discipline of understanding what type of impact you are looking for; be it better test scores, better income or better health indicators and then progressively thinking about how you quantify that impact. www.ibtbd.net

Stage Funding: Putting a Number on an Investment

We decide on how much to invest based on the stage of development of an innovation or an idea. So let’s say if you are an innovator, who is just thinking about the operationalization of your model or you have a technology and you are trying to think about the take up of the technology, who are the users and so on, then this is a very early stage idea. If on the other hand, you are sort of thinking about you know what it would be to operate the model, reaching many people, thousands and millions then you are at a transition stage, and you are thinking about reaching. We also consider how your model can be adjusted and what are the challenges in that pathway that would be a transition investment. The final and largest investment would be if you are already stable, you are reaching many people and then just continuing and thinking about the sustainability of the impact. This stage is known as scale. The degree of funding depends on the type of funding that an organization provides and also the circumstances of the innovator.

Trials for Solutions

Randomized control trials are a regressive form of evaluating impact. And the idea is that by selecting a group of people and separating those people who will use the model or participate in the activity versus people who will not and comparing them through various statistical techniques. You can understand causal impact of that particular model or that particular activity from the outcomes of the participants. So it’s, the best example I can give, it’s like a medical trial, where you have like a group of people. You give the pill to some people and don’t give to others, and you compare what effect that had.

concept is taught, they then apply it at the learning lab where they interact with adapting software. Our flex model puts children under a rotation based on competencies; it combines online learning, independent work, and project design. The models play to each individual child’s strength. We collect data that lets us set micro objectives and fill in gaps. Our teachers are trained to read data in order read data and used to help the children.

Scaling as a Solution

“We have character development tools alongside a social and emotional learning curriculum that helped them develop emotionally and to be inclusive.” STACEY BREWER Co-founder and CEO SPARK Schools

The Integrated Learning Method

We use a blended learning model which basically means technology that’s integrated into the schooling system. This allows us to drive cost efficiencies in order for us to be affordable but at the same time, it creates a very day to environmental order for us to differentiate transaction. We use two models; our lab rotation model is for the far foundation phase which is from kindergarten to grade 3 and our flex model is for the intermediate phases which are grades 4 to 7. Our lab rotation model involves moving from one classroom to the next. Once the

Although we are a functioning in a developing country such as South Africa, our inspiration comes from the U.S.A. We adopted the concept according to our local context and under our constraints to make a model that works. I believe that you can adapt it to any country if the teachers are trained accordingly. Our schools are open to demonstrating what we do and how we do it. We have had people from India and Brazil come to visit and I encourage any form of collaboration. We want interested organization to see our work first hand so they understand our mission and our work to achieve it.

Inclusiveness: the Education of Emotion

We have character development tools alongside a social and emotional learning curriculum that helped them develop emotionally and be inclusive. Celebrating and being able to articulate their individuality is one of our core values. We promote diversity and the only instance that a child is recommended to another school is if we feel like they are not learning from our model. As a child becomes older they learn to become independent; we want to support that independence by teaching them responsibility. We use a toolbox that informs them about personal space, listening to other, and a culture of apology and forgiveness. We teach them how to

deal with real life situations and even get parents involved if necessary.

academies focused on private areas and it eventually made them change in conversations about what was possible. Even though the concept is new, it demonstrates the possibility to achieve noteworthy results through different programs. The learning lab is an example of innovation; though it did not work during the initial stage, it was a realization that there is a need for innovation and new approaches for a change. Administrative education in certain areas works on this through innovation labs that experiment and evaluate just how much it is working.

A Teacherâ&#x20AC;&#x2122;s Touch Against Underperforming Standards

Bringing the Government and Private Sectors Together

Financially, countries such as South Africa need to prioritize education. I believe that we do not believe that our children can achieve much and thus we have low expectations from them. In our country, people disregard the importance of the teacher. It becomes a backup career choice if the university does not help you earn enough points. We also need to increase every nation's individual accountability for the education of future generations. We emphasize training a teacher for at least 245 hours. This training and development are absolutely essential because a model is as effective as the educator who is administering it. Our principals are more than administrators, they are involved in coaching the academic team. We dedicate three hours every Monday to professional development; further training is also provided if necessary. Additionally, the teachers work with school leaders on lesson plans and one on one feedback. These methods ensure quality and assure that professionals are up to par in regards to their responsibility.

â&#x20AC;&#x153;The learning lab is an example of innovation; though it did not work during the initial stage, it was a realization that there is a need for innovation and new approaches for a change.â&#x20AC;?

Pakistan has interesting models throughout the nation. They have started adopting the contract school model in which the government contracts private operators to address the rates of failing students. In one year, they have contracted 4,000 schools (10% of all private schools). These schools are free as the government pays the private operator. They are overcoming the challenges by filling the gaps that the public sector may not necessarily be able to fill.

LEE CRAWFURD

Head of Research and Evaluation Ark Education Partnerships Group

Collaborative Models: Partnerships that Create Progress

The point of having Public- Private Partnerships (PPP) is that everyone has space for innovation and people are trying different things within a certain framework. It allows the concerned social entrepreneurs to try innovative ideas. It was very successful in the UK, actually, these

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Special Report

Reforming Education for an Engaged Learner By Rehnuma Karim

Knowledge and Nowhere to Go

PHOTOGRAPH FROM ASIAN DEVELOPMENT BANK

The current education system of Bangladesh seems to be afflicted with a debilitating disease that has locked the spirit of education responsible for exciting curiosity, critical thinking, creativity, and innovation.Among many other goals, education is thought to have the power to prepare the learners for

their roles in the society and infuse them with a good character, strong values, problem-solving abilities, thoughtfulness, and a strong sense of responsibility towards family, community and the world. However, with a majority of young minds facing a perplexing predicament concerning their roles and purpose, the primary goal of education seemed to have

diverted. Many students do not know how to utilize the knowledge they received through their institutional education and live a productive life based on that. The modern-day educational system in our country has fallen far short of the noble goals of schooling with its failure to foster a growth mindset in people. It has instead, employed untested, archaic and

“Don’t limit a child to your own learning, for he was born in another time.” -Tagore

formulaic methods to confine, restrict and ultimately mass-produce a citizenry which is driven by monetary aspects of having a profession, that too, of not their choice, always. Not only has the current education system crippled the expansion of creative thinking for learners, but may have also encouraged frustrated young learners to rebel and take extremist

approaches towards life. The essay further lets you explore few possible approaches that could play a role to steer the education system a bit away from the epidemic of disengaged, disillusioned and demotivated learners. Jean Piaget, a Swiss developmental psychologist, said, “The principal goal of education in the schools should be creating men and women

who are capable of doing new things, not simply repeating what other generations have done.” Unfortunately, apart from a few selected, upscale teaching institutions, most schools that cater to the needs of the lower-income and middle-income groups are handcuffed to only teacher-centered learning instead of taking a more student-centered approach. This has, in fact, created a vacuum in which the learners and the teachers are not engaging enough to build a dynamic two-way learning environment. It is disconcerting to see how the youth today lacks the spirit and motivation to engage in discussions about important issues of the world as past generations did. Employers have also discovered most recent graduates to be unemployable as they lack social and emotional intelligence to navigate effectively in through the different mazes of their economic, social, personal and cultural life.

Mapping out the Chalkboard: The Current Scenario and Solutions for Tomorrow Despite, the 61.49% increase in functional literacy rate in Bangladesh

(World Atlas, 2017), true education that equips learners to become productive, conscious and engaged citizens of the country- has not yet reached the stage of its fruition. Following are some of the many challenges and recommendations that could pave the way to the desired state of engaged learning.

“The function of education is to teach one to think intensively and to think critically. Intelligence plus character - that is the goal of true education” -Martin Luther King, Jr.

Please Take a Seat: How Many is too Many?

A growing body of research shows that reduced class size can build an environment where kids can efficiently involve in learning. It often becomes a daunting task for teachers to manage a class, build rapport with students, and provide personalized teaching based on individual student learning abilities when the class size is big. Furthermore, the stress of grading, and supervising a large number of students also affect the student-teacher relationship. The traditional class layout of a teacher standing in front of the class also contributes further to reduced class participation among students. Therefore, efforts should be undertaken, towards controlling the class sizes and redesigning the layout, to create an environment where interaction between the students and the teachers can be enhanced from the primary grade till at least 10th. www.ibtbd.net

Unreal Standards from Standard Test

A Standardized curriculum in the education system may meet the expectations of teachers, politicians, and communities while reporting data on the country’s performance at the different spectrums of literacy. However, in reality amidst this, the need of diverse types of learners get ignored alongside. It is quite unfortunate to be bound by a system that measures a student’s future success based on their performance on standardized tests. This closed approach, thus, ignores to accommodate a process of learning that can nurture the natural ability and skills of the young learners, to thrive beyond getting high scores in subjects. Moreover, the teachers and the administrations are often pressurized to complete the content on time to meet the standards which discourage deep and meaningful understanding of materials by students

Experiential and service learning opportunities could increase the chances of student engagement. Besides, failures and mistakes through these experiences should not be approached negatively instead be shown as a platform to learn and grow. resulting in demotivated learners Experiential and service learning opportunities could increase the chances of student engagement. Besides, failures and mistakes through these experiences should not be approached negatively instead be shown as a platform to learn and grow. Thus, the learners can realize the practical implications of education through an active partnership with communities and policymakers, formed with the help of hands-on learning, apprenticeship and outreach programs.

Assessing the Advisor: What are Teachers being Taught?

Personal and professional characteristics of a teacher can contribute largely to a student's’ success and learning. But the aspect of effective assessment to measure a teacher’s performance focused on skillful teaching strategies, enthusiasm in teaching, pedagogical knowledge, verbal ability and certification status are often neglected in a majority of schools and colleges. The effectiveness of curriculum on learning also has to be measured to assess the impact of learning not only through exams and tests but also through subjective methods such as

observation, reflection, and discussion with guardians. Assessment, when done effectively, can guide the instructors to become dynamic change makers, administrators and policymakers by identifying what works, what doesn’t and how to improve.

A Promotion Culture

Despite, recognizing the vital role of teachers in the early learning period of our lives very little appreciation is given to the primary and secondary school teachers by the society. Most administrators and policymakers have failed to develop a reward and motivation system to cultivate and support highly qualified teachers who are the cornerstone of building a nation. This indifference and lack of recognition often result in demotivating the instructors from giving their best to build active learners. Well-defined scopes in promotions, and continuous educational learning and training programs can ensure opportunities for advancement in the teaching profession and help recognize teaching as a high-status profession in the society.

The Gravitas of a Guardian

Lack of parenting skills often leads to over-scheduling children. The inadequate involvement of the parents in children’s life regarding every spectrum of activities from academics to non-academics makes them emotionally detached and burdens them with unrealistic expectations and stress which negatively affects their social, emotional and intellectual development. Research shows that parent involvement

significantly contributes to children’s academic success. One-on-one time at parent-teacher conferences can help parents to team up with the teachers to expand learning concepts at home. Parents can also help to build motivated learners by taking children to libraries, museums, parks and having an active discussion at home on global and national issues.

Absence of a Balanced Curriculum

Learning should be part of a child’s everyday experience beyond textbooks and classroom instructions. Robert Putnam strongly advocated for extra-curricular activities to be a part of a broader curriculum to diffuse “soft skills’ such as teamwork, self-discipline, leadership, work habits and sense of civic engagement amongst children. But the scenario of kids and youth participating in extracurricular activities in schools seems a little bleak nowadays. Initiatives should be undertaken through public and private support to build a balanced curriculum where students can explore their skills, interest, and abilities.

“Real education should educate us out of self into something far finer – into a selflessness which links us with all humanity.” -Nancy Astor

PHOTOGRAPH FROM ASIAN DEVELOPMENT BANK

Education for the Emerging Generation

The development of our nation lies on how we educate our future generation by designing a human-centric curriculum that can solve the ills of our world by building innovative and imaginative thinkers. It is high time we collectively join forces to rejuvenate the system of learning and build global citizens who can thrive intellectually, physically and socially by responding to their unique skills and potential. Echoing to one of Rumi’s quotes which stated, “Let the beauty of what you love to be what you do” – let us all allow our children to participate actively and grow up being engaged citizens by doing what they love and enjoy. www.ibtbd.net

Young Minds

Ideas for Innovation:

How the HULT Prize Engages the Youth to Create Change BRAC University has amassed in a stream of exceptionally brilliant minds who have come up with ideas envisioning a better future. The university recently organized three incubation programs and a briefing session for HULT Prize 2018, to give the participants an idea of how to tackle the future challenges that lay ahead. This year, the HULT Prize 2018 revolves around the theme ‘Harnessing the Power of Energy to Transform the Lives of 10 Million People’. The incubation sessions took place consecutively on both the Mohakhali and Savar campus of the university on the 8th,15th and 16th of November 2017 whereas the briefing session was held on the 14th of November. The incubation programs intended to give the participants a view of their work from a real-life perspective. The first incubation consisted of speakers namely Md. Adnan Hossain, Director, and Founder of its Humanity Foundation, Tasneem Omar Ava, the Campus Director of HULT Prize at BRAC University, and Mirza Tanzim

Sami, global finalist, HULT Prize 2016. The speakers explained the ideology behind the social business model and helped the participants to understand what different approaches should they have while planning. They also talked about various aspects like the importance of identifying the true potential of a case to come up with an impactful solution in the form of a business plan and also the feasibility of the plan itself. Furthermore, the impact and the far fetching effect on the initiators as well as the beneficiaries of the HULT Prize was also discussed in the event and suggestions were given on how participants can face the probable problems that may arise as they proceed. The second session of incubation program gave participants an opportunity to directly communicate with their target beneficiaries in the BRAC University campus. Four potential beneficiaries from two slums of Dhaka were invited to the session and helped participants closely relate to the challenges faced by their beneficiaries. The

participants received insights on the basic revenue generation, expenditure and other, day to day problems in the lives of the beneficiaries through this and aided them to have a better understanding of their target. The last incubation session was held at the Savar campus for the students attending Residential Semester to inform them about the ins and outs of the HULT Prize. Tasneem Omar Ava connected with 950 students to increase their enthusiasm about the competition. The incubations led to a successful registration of 65 teams amongst which 1team which will represent Bangladesh in the regional finale The Briefing session consisted of an opening speech given by Tasneem Omar Ava and Mahreen Mamoon, HULT Prize Coordinator and keynote sessions by Sajid Iqbal, recipient of the Queen’s Young Leader Award 2017 and Stawb Peter Halder, a BRAC Alumnus. The purpose of the briefing session was to ensure that this year’s participants are well-prepared about the

challenging theme. The keynote sessions gave an overview on the role of private sectors concerning innovation in the sustainable energy market and drawing inspiration from the surrounding. The speakers also encouraged the students to follow their passion and use the principle of 3 I’s – Immense, Innovative, Inspirational. Later, the session was taken forward by former HULT Prize Campus Director and HULT Prize 2014 Regional Finalist, Asif Chowdhury, who shared the lessons he had learned from the HULT journey emphasizing more on the significance of familiarizing oneself with the various issues faced by the slum dwellers to be able to initiate change in a better way. The concluding part of the event consisted of the crest giving ceremony to the previous regional winners who shared their experiences about the competition. A video featuring the accelerator program of HULT Prize 2016 Global Finalists that included Team Synergy from BRAC University, was also displayed. Later in this, a thoroughly informative session was conducted by Mirza Tanzim Sami, Co-Founder of Synergy conducted, answering queries and providing ideas on HULT Prize marking criteria. Finally, the session ended with the unveiling of the HULT Prize at BRACU app for the very first time in this year’s session of the competition at BRAC University.

Behind the Lens

CAPTURING A CHANGING LANDSCAPE

Din Muhammad Shibly

Documentary Photographer and Principal Chhaya Institute of Communication & Photography

ICE Business Times reflects on Din Muhammad Shibly’s 15 years of capturing Bangladesh's climate change.

By Ashfaque Zaman and Ishrat Jahan

Sometimes a teacher becomes the force that propels us to the direction that we had never seen for ourselves. And such is the marker of photographer Din M. Shibly’s passion for capturing the changing climate of Bangladesh, “The Principal of Pathshala asked me if I'd like to assist Peter Essick as he captured the effects on climate change on Bangladesh for National Geographic. I thought it was an opportunity to work with a photographer and nothing more.” Upon working with Essick, Shibly realized that the people of his country had no idea that they were one of the weakest nations to global warming, “I was stunned, and I turned my attention to raising awareness by writing articles on the matter. However, I found myself in a medium that did not suit me. I reflect on Essick’s work, and it was an epiphany.” He knew that he was at a vantage point to capture the progression of climate change in Bangladesh, “I had done some research, and the span of capturing climate change would take 30

The Mastermind and the Shutter

“Time Versus Life” will display 65 works that illustrate Shibly’s years of dedication to capturing a climate change prone Bangladesh. He takes ICE Business Times on a visual tour, detailing the logic, inspiration, and purpose of a few of his snaps.

The main artery of the river Padma flows across the Char Majar Diyar village of Rajshahi. As time passes, the river changes course and stays filled with water for a few months.The neighboring country India opens gates to the Farakka Dam and divert the flow of water into another direction to escape from major flooding in their land. I was born in Rajshahi, a land dedicated to the river Padma. The river has been an integral part of my life for the past 40 years. Unlike, other places in the world, carbon emissions did not induce the environmental condition in the Northern part of Bangladesh into the air. It was a repercussion caused by the diversion of water bodies into different directions by numerous nations. The devastating impact, the climate change had on the region and the lives of millions, made it the most crucial subject open to my interpretations.

years. Knowing that it would be such a long undertaking, I decided that photojournalism was the medium for me. The pictures would express the thousands of words that I could not.” However, he explains that his passion did not translate to picture right away, “It took me seven years to understand that there is not theoretical knowledge that would help me visualize climate change in Bangladesh.” Shibly understood that to give meaning to the landscapes that he was mastering, he would have to humanize it, “The land is constantly changing, but a single flood can impact a person for a lifetime. This phenomenon first came to my attention when I was documenting land erosion. We are people with deep attachments to the soil. I wanted to capture the stories of these people in my pictures.” For Shibly it was more than just capturing the people and their plights, he firmly believes in knowing their story, “Whether it was sitting down and having a meal, chatting over some chai or sitting in their one-room houses, I felt that I would have to get to know each person’s story. Only then would I be able to do justice to the story and comprehend the gravity of the matter. It has become a mission to capture their astounding stories within my tiny frame.”

Years in the Making: A Gallery of Ground Zero

Most of the rivers in the northern region of Bangladesh have their origins in India. The displacement of water from one river to a river by the neighboring country has caused severe drought in this area, exposing the farmers and other residents to extreme living conditions and food scarcity in the affected region.

Shibly’s 14th solo exhibition, ‘Time Versus Life” will showcase his 15 years of extensive work with climate change at Alliance Francaise in Chittagong from December 17 to 21. His work was made possible through the support of the COAST Trust. He wanted this exhibition to be in Chittagong after being approached by the Director of Alliance Francais there, “I brought to light that the most exhibition happens in Dhaka and the port city is often overlooked. It only made sense to hold the exhibition there because 75% of my work for the exhibit focuses on the coastal region.” He elaborates that his primary focus was on that region because it is most affected, “Global warming is causing the sea levels to rise and increase the risk of devastating cyclones. Therefore, my major focus was on those regions.” Nevertheless, the zealous photographer will also display his works from the northern region such as Rajshahi and Kurigram, where depletion of water levels of the Padma river is drastically affecting the area. www.ibtbd.net

The Satkhira region in Bangladesh is situated right across the outliers of Sundarban. The existence of the surrounding forests prevented the turbulence from cyclone such as “Sidr” and “Aila” from affecting the lives of many residing in this secluded part of the country. The “Gabura” union located in the Shamnagar Upazila of the Satkhira district is parallel to the sea level. As a measure to escape from the consequences of every day rising tide, a huge dam was built surrounding the region once. However, soon after that, the waters of the Aila broke havoc and submerged the most of the region in its wake. As an aftermath of the disaster, the clogging and dissemination of saline water severely deteriorated the lives of most people throughout that region. The Bay of Bengal has the most diverse ecosystem in Bangladesh. Nevertheless, increasing rates of cyclones pose a much greater threat now. Every year the sea’s surface temperature often increases to a level which creates severe depressions that soon take the form of cyclones.

My photographic journey has revolved around the ‘Dhalchar’ intersection of the Bhola district starting from the year 2003. I plan to observe this island every year till 2033. It is more likely the ‘Icon’ of this project. The island has reduced to a third of what it was. It is predicted that it will be underwater by 2033. I feel like the region will not exist in the five years. The population of 10, 000 people residing on the island has reduced to a few thousand. Bhola is such a remote area that the people there have a lifestyle, dialect, and culture that is unique to only that region. Leaving Bhola is like leaving behind a large part of their identity.

Climate Change

Dr. Joanne Jordan

Lecturer in Climate Change & Development The University of Manchester

A PROGRESSIVE PLAYHOUSE By Ishrat Jahan

How One Theater is Spreading Important Knowledge About Climate Change housands of stories remain untold because they are unable to voice their plight. However, Bangladesh is a nation where millions of people are displaced or uprooted as a result of climate change. “The Lived Experience of Climate Change” is a documentary that reveals the story of such another community, the magnitude of whose struggle, has still not been recognized. The documentary revolves around the research done on urban climate change resilience by Dr. Joanne Jordan, Lecturer in Climate Change & Development, The

University of Manchester, and shot by Ehsan Kabir, Founder, Green Ink. Ehsan was chosen by The University of Manchester to make this documentary and received the Arts and Humanities Research Council Award (AHRC) for directing it. The project focuses on finding the significant roots behind the susceptibility of the urban-poor class of the society exposed to climate change in Bangladesh. ICE Business Times discussed the documentary Dr.Joanne and Ehsan to find out more about the one of a kind documentary on environmental impact. When asked about the inspiration

behind this short film Ehsan mentions, “Working on a burning issue like global warming was in itself inspiring. The evident struggle of a large portion of the population residing in urban slums often goes unnoticed. Therefore, I was compelled to work with people who are often neglected.” After spending months in the slums of Dhaka and talking to over 600 people in their homes, workplaces, local teashops and on street corners. Dr. Jordan found out the link between climate change and the ‘everyday’ problems arising in the lives of the urban poor. This project made use of

indigenous forms of performance theatre to increase public engagement and awareness of the everyday realities of slum dwellers exposed to the threats of climate change in Dhaka. “The ‘Pot Gan,’ is a form of indigenous performance theatre that I developed with the University of Dhaka and the accompanying documentary is my attempt to raise some of the voices and stories from Duaripara. We must listen to those that had the most impact,” mentioned Joanne. This form of theatre has already been quite renowned but in a more communal aspect and is often practiced in the rural

Working on a burning issue like global warming was in itself inspiring. The evident struggle of a large portion of the population residing in urban slums often goes unnoticed. Therefore, I was compelled to work with people who are often neglected. areas where a social issue identified and transformed into a theatre form. This form is done to deliver the message using an arrangement of art creates a sense of understanding and reliability to the people of that particular region. However, “Pot Gan” is an entirely extended version of a theatre performance that has never been done with academics before. "Through this, we put forward the pertaining issue in front of various climate change experts and students by performing at the Independent University of Bangladesh and the British Council respectively. We also explained the depth of the matter to people in slums by putting up a show there as well. This performance gave the researchers an advantage

people from the other socio-economic classes find ways or places to move to when such calamities hit the country, but the informal settlements of the ‘urban poor’ often get flooded exposing them to life-threatening risks. The lack of administrative facilities in such areas, which is widely available to the other regions and classes of the society, also makes them more prone to risks. Centralization of services in the urban cities allure more people to look for shelter in such slums every passing day. Approximately 2,000 people are migrating to the city every day which increases the burden on such slums, further deteriorating the conditions. Upon asking about her observation on slums and what bare necessities are needed by these people to survive natural calamities, Dr. Joanne postulates, “We need to provide decent quality, affordable and well-located housing along with the provision of basic services and resilient infrastructure systems to reduce the poor’s vulnerability to climate change. However, in the long term,

of further dissemination,” expands Ehsan “Pot Gan” was a visual description of how such dynamics are happening all around, providing the most significant impression and was successful in alluring people’s attention as they are mostly used to reading and writing. The documentary revealed that the people residing in such urban areas do not have proper access to living facilities. Most of these areas are low-lying, and they often drown under water after hours of torrential rain. The residents of these slums are the most susceptible groups of the society who come under the whirlwind of such climate change disasters due to their inability to shift to an area with better living conditions. It common to see

PHOTOGRAPHS BY JASHIM SALAM, JOANNE JORDAN & MINNA ROSSI PHOTOGRAPHY

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systematic change increasingly needs to politicize urban adaptation to climate change, especially around tenure reform, the renegotiation of land rights and how policy infrastructure can sustain progressive forms of pro-poor adaptation.” These factors are likely to be shaped by critical questions like what reforms are required in land administration to respond to the constraints created by climate change adaptation. Joanna details the role of the government, “We need to identify which institutional functions need to be in place and the scale of these functions to effectively govern modifications to land administration. If we are going to build resilience to climate change, we need to ask ourselves these tough questions.” During the conversation, director Ehsan explained how people in urban slums are wholly uninformed about proper drainage and hygiene system, "The roads around the areas often are clogged for hours even when there is little rain." There is nothing that the residents could do, which leaves the children exposed to unhygienic water and water-borne diseases. They are often found to dispatch their excrements in open areas with no proper defecation facilities. He further mentions, “The

Ehsan Kabir government must support NGOs to come up with awareness campaigns that will educate them and create proper hygiene and drainage system for such informal settlements. Availing other public services near these slums may also do a great deal to make lives easier.” Dr. Jordan elaborated upon the extent to which slum dwellers tried to overcome the everyday challenges that are brought forth by climate change. She further mentioned, “The poor show a significant capacity to develop strategies to improve their resilience to climate change. However, these tend to be small-scale, ranging from cleaning drains to raising the height of furniture to deal with floods. While these measures are important for dealing with a whole raft of climate risks, their ability to build

Founder, Green Ink

long-term resilience is limited by the very fact they live in an informal settlement and a hazardous area, lacking basic infrastructure and services.” Bangladesh is at ground zero for climate change which has a significant effect on the people living in the slums, when talking about technologies or practices that they can implement to combat situations as such Joanne postulated, “Dhaka is exposed primarily to floods, waterlogging, overstretched drainage systems, and heat stress. My study in Duaripara in North-west Dhaka found that more than 80% of slum dwellers experience severe heat stress and almost 2 out of 5 faces severe flooding, waterlogging or drainage congestion. The poor are most at risk because they cannot afford to house in areas less vulnerable to climate risks, and there is a lack of government investment to protect at-risk regions. They also tend to live in low-lying areas and informal settlements with irregular land tenure, lacking adequate drainage and other public services." To create effective climate resilient strategies, engagement of the communities living on the

frontline to ensure that the policies and interventions fit with their everyday experiences and understanding of climate change. The lessons from the frontlines must play a central role in climate change action. The documentary also depicted that 40% of the slum dwellers out of the entire population grow up in a conservative culture. Considering the percentage when asked about the difficulties faced while making the documentary, Ehsan replied, “Whenever it comes to shooting such documentaries, a common problem we face is controlling the crowd. Apart from that, we were quite overwhelmed by the welcoming response of the slum dwellers despite a greater percentage of them belonging to the conservative culture. Joanne visited the slums to deliver the purpose of the documentary for a couple of months before it was shot which eased the situation further.” Ehsan is working with Plan International Bangladesh in the future. His work mostly revolves around addressing social issues. They have previously worked on health-related topics, and childbirth attendants and their current project involve spreading awareness about sexual health amongst adolescent girls and boys in rural areas. Thus, they plan to work more on issues that are not widely discussed due to societal barriers, and reach out to every part of the knowledge-deprived community.

FOR MORE UPDATES ON THE DOCUMENTARY, VISIT:

The documentary and video of the Pot Gan performance can be viewed at bit.ly/GDIpotgan For further information on the project Web: bit.ly/GDIpotgan Twitter: #GDIpotgan @JoanneCJordan Facebook: @GDIpotgan

CRYPTOCURRENCY:

Are Blockchain

Creating Links

or Lags? By Shama Shafiq

Cryptocurrencies have seen a surge in interest in recent years. Bitcoin (the first cryptocurrency) and Ethereum are among the most prominent online global payment networks that facilitate virtual currency and electronic payments. Bitcoinâ&#x20AC;&#x2122;s inception was in 2009 by an anonymous developer using the alias Satoshi Nakamoto. Since then millions of transactions have taken place with total dollar value in the billions.

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The appeal for these networks lies largely in their decentralization, intentionally relying on no single server to store transactions and also avoiding any single party that can discriminate participants or certain types of transactions. Therefore, instead of depending on for-profit companies like Visa or MasterCard, Bitcoin transactions are processed by thousands of computers around the world, in a peer-to-peer fashion. These transactions are shared and recorded in a public ledger, known as the “Blockchain”. The Bitcoin network has its own unit of value, called, unsurprisingly, the bitcoin. The value of one bitcoin fluctuates against other currencies in the same way the value of conventional currencies like dollar or euro fluctuates over time. However, in recent years the values of digital currencies have become exorbitant. Currently, 1 bitcoin is equal to approximately Tk. 6. This meteoric rise in the price of digital currencies has not only led to a worldwide deluge of amateur investors, commonly known as “miners” but has also sparked various speculations and discourse: is bitcoin a currency or commodity? Are digital currencies volatile or stable? Is this irrational increase in value an indication of an impending bubble? Although, mostly uncertainties are looming over the future of cryptocurrency, one certain and irrefutable issue is the extortionate energy consumptions by these networks. Ethereum’s energy consumption is now on a par with that of the

country of Sudan. The Ethereum Energy Consumption Index concludes that as much as 55 Kilowatt-hours (kWh) of electricity is approximately spent for each Ethereum transaction. According to the index, the energy consumed by a single transaction can power almost two average U.S. households for a day. Bitcoin, compared to Ethereum is one step ahead. The electricity spent for each bitcoin transaction averages out to be a staggering 253 Kilowatt-Hours (KWh). While Ethereum can power only two households per day, Bitcoin can power up to eight. Bitcoin’s latest rise in price has fuelled this surge in energy consumption and the inordinate electricity costs associated with “mining” the digital currency could prove to be its greatest drawback. Most of the electricity used by cryptocurrency networks is generated by burning fossil fuels and it is estimated that large cryptocurrency mines can emit around 8 to 13 tons of carbon dioxide per coin. To put that into perspective, mining three coins can be equivalent to a flying plane with 416 seats occupied, which would emit 38 tons of carbon dioxide per hour. Blockchain is of interest to economists in part for its potential to disrupt existing payment systems and perhaps monetary systems as well as for the wealth of data it provides. Although the blockchain technology has been deemed as the new “Wild West”, by removing any central authority, it has the potential to revolutionize financial services.

“THE BLOCKCHAIN IS AN INCORRUPTIBLE DIGITAL LEDGER OF ECONOMIC TRANSACTIONS THAT CAN BE PROGRAMMED TO RECORD NOT JUST FINANCIAL TRANSACTIONS BUT VIRTUALLY EVERYTHING OF VALUE.” DON & ALEX TAPSCOTT, AUTHORS BLOCKCHAIN REVOLUTION (2016)

However, this technology is also innately inefficient. For Bitcoin to function as a reliable, decentralized payment system, blockchain requires substantial energy consumption. If cryptocurrency is truly to revolutionize the economy, it is absolutely crucial that the issue of its carbon footprint is also addressed. While we are engaged in trying to find the role that digital currency plays in our economy, it has already taken a toll on our environment. In the context of global warming and climate change, it is essential that we take into account the environmental consequences of digital currencies. Despite being virtual, the physical impacts of cryptocurrencies have become tactile, now more than ever.

SOURCE: DIGICONOMIST WWW.BITCOIN.COM

Tech

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A Year of Turbulent Technospective Looking back at a few scenes from a fantastic year of technological progress

By Abhijit Asad

PC HARDWARE: THE UNHOLY TRINITY The fiercest of rivalries has arguably manifested this year in a tri-party standoff between three giant semiconductor companies which have shaped the face of modern computing with decades worth of contributions. Intel, AMD, and Nvidia – despite being competitors across the CPU

industry (Intel and AMD) and the GPU industry (Nvidia and AMD) – have now become embroiled in a bizarre three-way that is almost comparable to a thriller. AMD has long been known as the underdog of the microprocessor market, making lower-cost CPUs for buyers on a

budget. They were the only company standing in the way of Intel’s conquest of the CPU market, and their Athlon and Phenom CPUs were nothing less than phenomenal. In fact, the 64-bit microarchitectures of modern microprocessors owe their origins to AMD’s hallowed labs. However, subsequent www.ibtbd.net

offerings from AMD proved to be increasingly lackluster, and Intel’s improved CPUs didn’t help their case much either. For over a decade, AMD slogged through an existence of mediocrity, periodically releasing low-cost CPUs with a propensity toward inadequate performance and excessive thermal throughput (some of them ran hot enough to melt the motherboards they were mounted on). In fact, their attempts at recovery were so distressing that it caused Intel to sit back and relax their own efforts, with each new generation of their products proving to be not much more than a rehash of its immediate predecessor – a mistake that would cost them dearly. Had Intel struck a decisive blow against AMD during its weakened state with a proper next-generation microprocessor offering that would be as affordable as it would be high-performance, the CPU market would have been very different today. But their reluctance to innovate gave AMD the chance to do what Intel should have done, and they took the opportunity to finally strike back at Intel with a fresh new range of CPUs by the name of Ryzen. Extremely powerful and efficient, yet shockingly affordable, the AMD Ryzen CPUs were nothing more than a runaway success that took the market by storm and Intel by complete surprise. It could not have come at a worse time for Intel when they were already being criticized by reviewers and users alike for their existing market practices. As Ryzen’s market share continued to expand in leaps and bounds, AMD released a massive new processor called Threadripper, aimed at high-end enthusiasts looking to build powerhouse PCs. The turning of the tables was completed when Intel attempted to counter the rise

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of Ryzen and Threadripper with a rushed set of CPUs that were not only thermally inefficient but also overpriced to the point of being impractical to purchase. Intel’s fumble continued to worsen as they released a new range of mainstream CPUs, which, while possessing more cores than last-generation ones, were plagued by a plethora of issues, ranging from overheating to motherboard compatibility, as Intel had ploughed through no less than three different motherboard types for the same tier of CPU in a year, ensuring persistent confusion and annoyance among its users. Meanwhile, AMD has stalwartly stood by their hardy AM4 motherboards, promising years of compatibility, even for their upcoming range of CPUs. While Intel is still a long way from being dethroned, AMD has shown that they are back in the game, and they are playing it hard, without pulling any punches. However, things were not so rosy on the GPU (graphics processing unit) front. Nvidia, AMD’s longtime rivals, after releasing their new GTX 10xx range of graphics cards last year, continues to reign in the GPU market, with their new GTX 1080 Ti and GTX 1070 Ti cards achieving a massive degree of popularity among gamers and creative users alike. In a strange turn of events, AMD GPUs also saw a surge in popularity because of their effectiveness in mining cryptocurrency, but this caused their prices to

AMD has long been known as the underdog of the microprocessor market, making lower-cost CPUs for buyers on a budget. They were the only company standing in the way of Intel’s conquest of the CPU market, and their Athlon and Phenom CPUs were nothing less than phenomenal. shoot up globally, thus making them unaffordable for many. While it helped to sell quite a few cards, this price hike prevented the consumers from getting their money’s worth. AMD’s aging Polaris GPUs (the RX 4xx and 5xx range) from 2016 were adequate mid-range performers, but they could not hit nearly as hard as Nvidia’s best cards, so AMD devoted their resources to develop something that can compete with them. The end result – the AMD Vega 56 and Vega 64 GPUs – performed well, but they were still outperformed by Nvidia’s flagship cards. While the

Vega GPUs proved to be quite capable in case of certain games that used latest technologies such as DirectX 12 and Vulkan, the writing was on the wall – despite having some groundbreaking features, the Vega cards were not for everyone, and for most gamers and users, Nvidia was still the better choice. Then, in a shocking twist of events, AMD and Intel announced a collaborative venture to build a new set of high-end processors for laptops, with integrated Vega GPUs. While not as powerful as their desktop counterparts, the stripped-down build-in Vega units would still feature many of the full-sized Vega’s features, including its coveted HBM2 memory, which provides a massive boost of graphics performance. Most importantly, it is safe to say that the Vega GPUs would be miles ahead of Intel’s own range of integrated GPUs, and they would serve as amazing cost-effective all-rounder solutions for all but the pickiest users. It was clear that AMD and Intel both saw Nvidia as a threat, and they understood that an alliance would be mutually beneficial. Interestingly, this shrewd collaboration aims at the wider part of the market – the low-to-mid-tier one – instead of the narrow top end of it, thus ensuring that it is received on a much larger scale, by a much larger of OEMs and consumers alike. The announcement of the collaboration between AMD and Intel was followed by the news of AMD’s Senior VP Raja Koduri moving to Intel, presumably to facilitate the realization of this venture. Whether this would spell trouble for Nvidia, in the long run, remains to be seen, but it would bring in profits for AMD and Intel alike, from a market that Nvidia has only partially tapped into.

THE MOBILE FRONTIER On the mobile side of things, Apple released two new iPhones this year, both featuring the fastest mobile processor to grace the world, and very possibly one of the finest cameras to be ever featured on a smartphone. However, as the failings of the devices continue to prove, processing power isn’t everything, especially when coupled with the idiosyncrasies that come bundled with every Apple product as of late, such as the laughable choice of omitting the headphone jack, removing the fingerprint sensor from the new iPhone X and replacing it with a facial recognition-based security system that can easily be hoodwinked, and to add an ugly bump that eats into the top area of the device’s new OLED screen. Even the relatively more orthodox-looking iPhone 8 has developed a tendency to split open along the sides for no clear reason. While this is not as lethal as Samsung’s explosive (again, literally) Galaxy Note 7 debacle from last year, it’s still agonizing to see a prohibitively expensive flagship phone popping open along the seam like a cheap toy. It is interesting to note that the iPhone 8 is the first iPhone for which people did not bother to camp out and line up in front of Apple Stores, which is a clear indicator of how little people think of it. On the other hand, because of the novelty factor, if nothing else, the iPhone X sold out in record time. However, as a pleasant surprise, Apple has brought forth a new version of the iPad that is not only handy to use but also considerably more affordable (in Apple terms, at least) compared to the device’s previous iterations, with prices starting from as low as $330. It is a

SAMSUNG HAS MANAGED TO SHINE THROUGH WITH ITS NEW GALAXY S8 AND NOTE 8 HANDSETS, WHICH, WHILE RETAINING THE FORMIDABLE PEDIGREE OF THEIR (MOSTLY) NOBLE LINEAGE, HAVE UNDERGONE SOME MASSIVE CHANGES, ESPECIALLY ON THE SOFTWARE SIDE.

PHOTO BY AIDAN HANCOCK ON UNSPLASH

welcome step toward the right direction, and it shows that unlike the cabal within Apple that released the tragically low-specced touch bar-laden MacBook Pro of 2017, the iPad division seems to be awake at long last. Samsung has managed to shine through with its new Galaxy S8 and Note 8 handsets, which, while retaining the formidable pedigree of their (mostly) noble lineage, have undergone some massive changes, especially on the software side. The bloated TouchWiz interface has been ironed out, leaving a thin, lean abstraction layer that brings a great deal of user comfort with it. For many

people, this is the true flagship phone of 2017 and not the gimmicky iPhone X. The platform of Android has matured immensely, as have the manufacturers that use it, and it has long earned its rightful place as the world’s most popular operating system. www.ibtbd.net

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THIS IS NOT A GAME Microtransactions have become an inherent feature in many games released over the last few years. Initially popularized by mobile games such as Angry Birds and Candy Crush Saga, where the player has the option of paying real-life money to gain certain in-game advantages, perks and/or items that make the game more interesting and/or easier for them to play, even if it takes away the fun of achieving/discovering anything on their own. Soon enough, the microtransaction model turned out to be so profitable that even desktop games moved to it. While the DLC (downloadable content) model of video game content distribution has already been around for a while, with DLCs being offered by developers as expansions for the original game, whether to milk a highly profitable cash cow or to simply offer more

replay value to loyal players, the arrival of microtransactions to non-mobile games was not well-received at all, being criticized and looked down upon by serious gamers as a cash-grabbing opportunity. However, the biggest uproar was caused last month, when Electronic Arts, a major video game developer and publisher of the USA, took the idea of microtransactions even lower with the release of Star Wars: Battlefront II, one of their most eagerly anticipated titles. The game allowed players to buy ‘loot boxes’ containing a random assortment of in-game items and perks, while making actual unlockable parts of the game ridiculously tedious or hard to overcome,

thus necessitating the purchase of loot boxes for players who need the extra advantage offered by them to speed things up. Needless to say, the fanbase did not take kindly to the implementation of such an unfair system, and responded with ample vitriol, causing Electronic Arts, one of the most stubborn and apathetically unethical entities in the business, to actually step back on their decision and lower the achievable requirements for their unlockable items. It was then that Disney – the current owner of Star Wars and virtually everything to do with it – intervened and forced Electronic Arts to discontinue microtransactions altogether from the game. It remains to be seen whether this decision is temporary or permanent, but it does show that unethical business entities can still bend to the

INNOVATION HAS SHOWN ITS BRIGHT FACE QUITE A FEW TIMES, AND COMPETITION BETWEEN INDUSTRY RIVALS HAS BEEN AT AN ALL-TIME HIGH ACROSS THE BOARD, BUT THE CUSTOMERS ARE THE ONES WHO HAVE CONSISTENTLY EMERGED VICTORIOUS THIS YEAR.

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collective will of the internet, and the precedent this fiasco has set would continue to serve as a warning for any game developer choosing to follow the path of greed – or even the path of having no quality assessment, as demonstrated by the disastrous Mass Effect: Andromeda, a poorly produced high-budget game that effectively killed off the great franchise it was representing. On the other hand, some of the best games of 2017 were released by relatively smaller studios. The fantastic Hellblade: Senua’s Sacrifice was produced by a team of only twenty people, but its immersive world, astounding storyline and stunning graphics are enough to leave anyone gaping, gasping or both. And the gamers responded to it by turning it into a bestseller. There is still an appreciation for excellence in this brutal market, and 2017 has shown us that the worthy can indeed achieve it. It is safe to say that this year has been nothing short of astounding when it comes to technology. Innovation has shown its bright face quite a few times, and competition between industry rivals has been at an all-time high across the board, but the customers are the ones who have consistently emerged victorious this year. There has been no shortage of drama either, resulting from the formation of unlikely alliances or the disruptive and unexpected emergence of unexpected products and players alike, be it for software or hardware. It is our sincere hope that 2018 would continue this trend.

HAPPENING

Word of mouth Center for Zakat Management (CZM) launched its 3rd Genius Scholarship program for the poor but meritorious undergraduate students of the public universities and medical colleges in Dhaka on Friday 27 April 2012. Honorable Education Minister Nurul Islam Nahid was the chief guest of the event. Abdul Muyeed Chowdhury, former Advisor to Caretaker Government and Muhammad Abdul Mazid, former Chairman of NBR were present, among others, as guests of Honor in the program.

The award giving ceremony of the 8th Berger Award for Excellence in Architecture (BAEA) was held on November 23, 2017. This biannual competition, organized since 2003 by Berger Paints Bangladesh Limited, in association with Institute of Architects Bangladesh (IAB), has created the most prestigious national platform where the brilliant architectural projects are rewarded.

Chittagong Chamber of Commerce & Industry (CCCI) recently organized an IT fair in the port city

Launching of the new Monno Ceramic Products. From left Moynul Islam, Vice-Chairman of Monno Group, Rasheed Mymunul Islam, Deputy Managing Director of Monno Group, Huron Nahar Rashid, Chairperson of Monno Group and Afroza Khan Rita, Managing Director of Monno Group.

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CERAMIC EXPO Bangladesh-2017 organized by Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA) officially started on 30 November in Dhaka. Tofail Ahmed, M.P., Honorable Minister, Ministry of Commerce inaugurated the 3- day long exhibition.

Aftab Mahmud Khurshid, CMO of Bengal Group recently received Global Brand Excellence award 2017 for Linnex in electrical durable sector as emerging brand in World Brand Congress 2017, held in Sheraton Grand, Indonesia. He received the award from Indonesian Brand Pundit, Jeffrey Ng, CEO of Monex Investindo Futures.

A high official team from Marks & Spenser (M&S) paid a visit to the garments and textile units of Epyllion Group on 22 November 2017. Archibald John Norman, Chairman; Stephen Joseph Rowe, CEO; Gillian Clare McDonald, Managing Director; Stephen Michael Fitzgerald, Executive Assistant to CEO; Mark Lindsey, Sourcing Director including Shwapna Bhowmick, Country Manager, Marks and Spencer-Bangladesh were among the visitors. Reaz Uddin Al-Mamoon, Managing Director and Md. Junaid Abu Salay Musa, Director of Epyllion Group accompanied the team. Adeeba Rahman was recently appointed as the CEO of Delta Life Insurance Company Limited. In fact she is the First woman CEO among all the life insurers in Bangladesh. She is an Associate of Chartered Insurance Institute (ACII-Life) UK and Chartered Insurer. She did her MBA from Rochester, USA.

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As the first step for the implementation of a master plan, a two-day session of Asia-Pacific Information Superhighway (APIS) of UN Economic and Social Commission for Asia and the Pacific (ESCAP) took place in the city.

Four Points by Sheraton Dhaka is going to start the Pool Side BBQ at its signature restaurant “Panash”. “Panash” is a roof top restaurant with the magical open air Japanese Garden, swimming pool and beer garden style setting. It is going to spice up lazy Friday and Saturday evening at 6:30 pm onwards throughout the winter.

Nokia recently launched the most affordable and first ever 4G smartphone offering two-day long battery life with Airtel in Bangladesh.

A three-day international leathertech exhibition took place in the capital recently aiming at bringing global technology to the doorsteps of the local industry to help it grow and modernize. Tofail Ahmed, Honorable Commerce Minister, inaugurated the fair “LEATHERTECH Bangladesh 2017” fifth of its kind, while Nanda Gopal K, Director, ASK Trade & Exhibitions Pvt Ltd; Md. Saiful Islam, President of Leathergoods & Footwear Manufacturers & Exporters of Bangladesh (LFMEAB); Kazi Roushan Ara, Project Coordinator of Centre of Excellence for Leather Skill Bangladesh Ltd (COEL) and officials from the organizer were also present during the inauguration ceremony.

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Capital Market

BOURSE UPDATE

Fortnightly Report of DSE, 1st November To 15th November 2017 Top 10 securities by turnover value in Tk. Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of securities