ICE Business Times, December 2016 by ICE Media Ltd.

Mobile-first population With mobile banking on the go, more and more people are depending on transactions, which are easy and require less time

Contents TIMES

06 From the Editor

Interviews

Word of Mouth

08 State of Affairs 107 Banking Corner 108 Happening

Columns by

10 Ferdaus Ara Begum 14 Shamsul Huq Zahid 118 Diplomat Mohammad Amjad Hossain

16 20 24 28 32 63 80 84

Cover Focus

H. E. Ma Mingqiang, Ambassador of the Peopleâ&#x20AC;&#x2122;s Republic of China in Bangladesh Dr. Mohammed Farashuddin Chairman, Board of Trustee, East West University Anis A. Khan, Managing Director & CEO, Mutual Trust Bank Limited Dr. Mohammad Haider Ali Miah, Managing Director and CEO, EXIM Bank Limited Sangita Ahmed, Director, Agrani Bank Limited Md. Muyeedur Rahman, Head of Mobile, Samsung Bangladesh Rezwanul Hoque, Senior Director, Symphony Mobile, Edison Group Dilip Madhok, General Manager, The Westin

OF CUSTOMER CENTRIC BANKING

a global business magazine from bangladesh

Contents TIMES

TIMES

Vol. 7 No. 04 | December 2016

Publisher & Editor Director, International Publications Executive Director Managing Editor Assistant Editor Sub Editor Staff Feature Writer Designer Business Development Finance & Accounts Sales & Distribution

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

Abul Khair Zeenat Chowdhury Nawshin Khair Tawhidur Rashid Irad Mustafa Shaikh Ashfaque Zaman Asaduzzaman Sk. Yeahhia Md. Nizam Uddin Forhad Mohammad Imran Md. Abdul Alim Md. Nazrul Islam Md. Rubel Khan

This issueâ&#x20AC;&#x2122;s Photographs by Din M Shibly Kazi Mukul Sakib Muhtasim

Editorial & Marketing Queries Digital Wallet

That day is not far when cash will become obsolete and people will opt for plastic money in every spehre of their lives

Features 36 48 54 56 64 70 76 88 92 94 98 104 114 116

A Tale of Game Changers Re-evaluating Retail Saving Grace World Wide Investment Working With Wisdom Graceful Exit Sponsored Photo Essay: CSRM Scouring Through Scarcity Breaching the Surface Beyond the Business: Travel & Leisure/ Work Ready A World Within A World Hot on Wheels A Vacated Vault Capital Market Update

editor@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, 01715732425, 01759391168, 01850824294, 01881925963, 01881925962, 01611227676 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 the financial center of any economy, banks are the most integral part of the fund management of a nation, company or entity. Therefore their advancement is a necessity for a growing nation such as ours. Bangladesh is economically equivalent to Vietnam, yet it has more than double the banks. This leads us to ask how efficiently we are providing banking services. Is the greater quantity meeting the standards of quality? For banks to gain any leverage in Bangladesh, they must meet the challenges of a customer-centric business model. With many option, consumers have a plethora of banks that will cater to their individual needs. Therefore, banks must cater to the demands of providing customized loans, having a strong social media footprint, facilitating money transfers, tapping the unbanked persons, while integrating technology for efficient data management and impenetrable cyber security. In the context of technology, mobile banking has revolutionized the mannerism of money transactions. As Anis A. Khan, Managing Director & CEO of Mutual Trust Bank Limited, has stated, â&#x20AC;&#x153;In a population of 160 million, over 100 million people have mobile SIM connections. This device allows the rickshaw puller and other blue-collar workers to send money to their families in rural areas.â&#x20AC;? Mobile phones are one of the many examples of how technology is creating efficiency in banking and integrating the banking population. The mass usage of smartphones has enabled the path for Fintech, a phenomena that our nation must take hold of in order to prosper. As the demographic of the nation evolves to that of a middle-class, the citizensâ&#x20AC;&#x2122; demands will change and the retail banking sectors must be ready to address this. ICE Business Times opened a dialogue with the retail heads of some leading banks namely, ONE Bank, Bank Asia and Dhaka Bank, regarding their initiative to address these modifications. These prominent figures have all emphasized the concept of creating services and loans for the growing agriculture workers, women and students who are becoming financially independent. As Bangladesh progresses towards becoming a global player, our banks must also make the greatest investment to become state-of-the-art financial institutions.

S TAT E O F A F FA I R S

Word of Mouth Prime Minister Sheikh Hasina attended the Armed Forces Day at the Senakunja

Prime Minister Sheikh Hasina giving her apeech at the Water Summit at Budapest

Prime Minister Sheikh Hasina deliverd National Statement in High Level Segment of Joint Conference at Marrakech

Prime Minister Sheikh Hasina at the first meeting of the Governing body of Bangladesh Investment Development Authority

Column

A Brighter Solution

LIGHT ENGINEERING SECTOR

Ferdaus Ara Begum The Light Engineering Sector (LES) has been recognized as a thrust sector in the Export Policy (2015-2018), termed as a high priority sector in the Industrial Policy (2016-2021) and acknowledged as a booster sector in SME policies. Its prioritization has also been mentioned in the Seventh Five Year Plan (SFYP) due to its employment generation capabilities which can lead to poverty alleviation, thus helping meet targets in the Sustainable Development Goals (SDGs). Studies indicate that more than 40,000 Light Engineering (LE) projects are in operation throughout the country. Currently,

around 10,000 types of different items are manufactured for local Bangladeshi industries. As demand grows for engineering and electronic goods, so does demand for light engineering products. The sector has been saving around $480 million for the country by producing import substitutes as per calculations from the past three years. However, the size of the global market is around $6 trillion as of 2013, which implies there is still a massive scope in this area for Bangladesh. The LES comprises of 1.5% of our export basket as of the financial year closing June 2016 and its growth can help further diversify the countryâ&#x20AC;&#x2122;s export mix. The export figure from these products stood at $510.08 million in FY 2015-16, a figure which was $447million in the previous year. If this gradual increasing trend can be maintained over the next 5 years, Bangladesh could eventually see exports rise above the $2 billion mark. Among its other prominent features, the LES helps create SME

Among its other prominent features, the LES helps create SME regional dispersion as they are mostly established in remote areas of the country. This helps it create a link between manufacturing industries and agricultural components within the country while reducing rural poverty at the same time.

regional dispersion as they are mostly established in remote areas of the country. This helps it create a link between manufacturing industries and agricultural components within the country while reducing rural poverty at the same time. It contributes to the industrial sectors of the country by producing spares parts for automobiles, marine tech, agriculture, textile, capital machineries, jute & tea processing, food processing, furniture, etc; thus, it is creating a silent revolution as an important labor intensive sector. Some of these LE products, such as bicycles, boilers, washing plants, and UPS batteries have gained recognition in the global markets. Bearing this in mind, it is important for the development of this sector that a level playing field is provided so its entrepreneurs can thrive and help the countryâ&#x20AC;&#x2122;s economy further. For this to happen, policy support from the government is essential so it can grow like other prominent sectors in the country like the RMG and leather industries.

Challenges Ahead This fascinating sector faces 4 major problems: i. Access to raw materials ii. Access to finances iii. Lack of innovation iv. Maintaining quality Although the operators in this sector are scattered throughout the country, they are all working using semi-modern or conventional machineries. The domestic market for these products is gradually growing with the increase in GNI per capita, and with the gradual increase of GDP. Concerned entrepreneurs believe that the technical expertise required for this sector is available within the country but it still requires a push

in order to involve a greater number of people. Maintenance of quality and standard is one of the prerequisites to establish it as an import substitute sector. However, for this to be achieved, quality infrastructure has to be developed. As a state organization, the Bangladesh Standards and Testing Institution (BSTI) with its limited capacities will be unable to provide the required services to help this sector grow. Therefore, the government along with the private sector must extend their combined support to help eradicate these sectoral hurdles. The basic raw materials required for the sector were available in the past but

recently due to the closure of some larger industries in areas such Chittagong, LES firms are faced with a resource crisis. This has forced them to import the required raw materials which obviously mounts further pressure on the cost side of their operations. In this regard, backward linkages with larger industries will be essential. This will this help facilitate their access to raw materials at lower costs. The access to finance for these firms is a critical issue. These SMEs are not very attractive customers for banks and financial institutions which makes it difficult for them to attain funds from these channels. The government has made its efforts to support SME financing, however, this process is still in its primary stages. In Bangladesh, the investment policies are favorable (on paper) and economic zones are in the offing. Nonetheless, the problems of most industries are not being addressed in a consolidating and systematic manner. Tax holidays are available, machineries are availing zero duty benefits and primary raw materials are supposed to enjoy the lowest tier of duties. Despite all these benefits, the manufacturing sector is facing serious uncertainty in the face of huge low quality imported goods, while LES entrepreneurs are confident that if the required policy support is available, they can meet the total domestic demand and even be ready for export. Continuity and consistency of policies is one of the priorities to attract domestic and foreign investment. The export of bicycle from Bangladesh is already close to the top 10 international exporters. Bangladeshâ&#x20AC;&#x2122;s export of bicycles was $105.08 million in 2012-13. Today it has further increased, reducing the gap with the top tier of exporters. Policies

The access to finance for these firms is a critical issue. These SMEs are not very attractive customers for banks and financial institutions which makes it difficult for them to attain funds from these channels.

The writer is the CEO of BUILD, a partnership organization of DCCI, MCCI and CCCI. She can be reached at ceo_build@outlook.com

would need to be framed in such a manner that will gradually allow domestic and export markets come closer to the required direction. According to our policies, the sector is supposed to receive the facilities to grow further but in practice, there is a lack of synchronization. Along with this, the gaps of understanding between the public and private sectors are hindering its progress. A strong Public-Private platform like BUILD can raise these issues in a systematic manner so they can be fixed. In doing so, we will see a thriving Light Engineering Sector in the country which can help fulfill the employment generation targets of the SFYP of more than a crore. www.ibtbd.net

Column

Inside an Overheated Market

THE BANK BOOM

The health of Bangladeshâ&#x20AC;&#x2122;s banking sector has never been in good shape. During the 15 years since the liberation of the country in 1971, the nationalized banks had a field day. But mismanagement, political interference, and corruption made these banks financially weak. That legacy is still continuing. In some cases, it has even become stronger. With the country gradually switching over to open economy, private banks had started entering the market from the latter part of the 1980s. And everybody hoped for an improvement in the situation. Their hope was not dashed as the private banks did show promising results. However, the problem surfaced at the time of granting licenses to a good number of third generation banks. Politics, and, allegedly, money came into play. The quality of sponsors does matter in the operations of banks or financial institutions. Any compromise with this issue does only invite trouble in the future. Due to regulatory slackness and management problems, the private banks also started showing signs of uneasiness with their classified loans. The size of classified loans

Shamsul Huq Zahid

bulged, but at rates much below that of state-owned banks. The crash of the stock market in December 2010 exposed the vulnerability of banks to imprudent investments. For a couple of years, a significant number of private banks reaped a good harvest out of a booming stock market. When the market collapsed, a few of them did suffer substantial loss; they had not publicized the extent of their loss at the time. Despite the fact that the economy has been growing at a decent rate, private sector investment continues to be sluggish. The private sector credit demand has been fluctuating since 2013 when there was a large drop in demand for bank credit from the private sectorâ&#x20AC;&#x201D;from a high of 20.3% from July 2012 to 10.8% on July 13. The low demand continued until January 15 and after that, it started to pick up albeit slowly. It is now hovering around 16%. The recent rise has been mainly due to the import of capital machinery for some large infrastructure projects by the private sector. Overall the private sector mood is subdued. Banks have gradually reduced both lending and deposit rates following demand from the businesses to narrow the spread. Nevertheless, in most cases, the spread has remained the same, at an average rate of nearly 5%. However, the demand for funds from businesses has not recorded a notable increase. Thus, the profitability of most banks has declined. The provisioning requirements have been taking a heavy toll on the banksâ&#x20AC;&#x2122; profitability. Most banks, both private and public, deliberately hide lots of facts as far as classification of their outstanding credits is concerned. They resort of all types of window-dressing to show their balance sheets relatively clean. Nonetheless, all these exercises have not been

When the third generation banks were having a tough time, the Ministry of Finance, coming under political pressure, very reluctantly allowed nine more private scheduled banks in 2013.

able to stem the rot. The loads of classified loans of banks increased by 28% or Tk 143 billion in the first nine months of the current calendar year. The volume of non-performing loans in the banking sector at the end of September 2016 stood at Tk 657.31 billion that accounted for 10.34% of total outstanding loans of the banking sector. The presence of non-performing loans (NPLs) in the public sector banks is very high compared to that in the private banks. The increase in NPLs is largely attributed to the failure to pay installments against many rescheduled loans by the borrowers. When the third generation banks were having a tough time, the Ministry of Finance, coming under political pressure, very reluctantly allowed nine more private scheduled banks in 2013. Most of these banks are burdened with a large volume of classified loans. The central bank honchos held a meeting with the chief executives of the nine new banks recently and asked them to stop ‘aggressive’ lending. The banking sector has lots of weaknesses and deficiencies. The presence of too many banks is one of those. Does Bangladesh need so many banks? Bangladesh with a nominal GDP of $210 billion has 56 banks while Vietnam having an economy of almost an equivalent size has 26 banks. China, the second-largest economy in the world (GDP size $11.4 trillion) has 128 banks and India (GDP size $2.5 trillion) has 88 banks. Malaysia, an economy of $300 billion, has 48 banks. There is no denying that still a large part of the population has remained unbanked and banks do need to reach them. But that could be done without allowing more banks in a small market. The old banks could do the job through the expansion of their network. In fact, the presence of too many banks has given rise to unfair competition among the banks to grab corporate clients in particular. In this competition, the corporate borrowers, of course, enjoy the upper hand. Moreover, Banks are left with no choice other than investing their funds they get from the depositors. When competition is fierce in a small market, it is natural for banks to relax a few conditions to hook the clients. Although, such deliberate relaxations only help the size of classified loans become bigger, thereby deteriorating the quality of banks’ assets. Unless the banks improve their asset quality with due earnestness, they might find

Unless the banks improve their asset quality with due earnestness, they might find themselves in real trouble as the Basel 3 capital regulations are scheduled to be fully implemented on January 01, 2019.

The writer is a senior journalist. He can be reached at zahidmar10@gmail.com

themselves in real trouble as the Basel 3 capital regulations are scheduled to be fully implemented on January 01, 2019. The state-owned banks do often ask the government to replenish their capital because of continuous erosion of the same due to high provisioning requirement. Even some listed private banks have recently failed to maintain their respective capital adequacy ratio of 10%. The central bank appeared to be a bit lenient on this issue. The prevailing situation in the country’s banking sector demands a few serious measures on the part of the central bank and the banks themselves. Otherwise, some unpalatable developments might take place. It is difficult to predict time. The deadline for meeting the Basel-3 capital requirement could be a potential time. So, the central bank and the banks might think loudly about the possibility of consolidation through merger and acquisition (M&A). In Bangladesh conditions, sponsors are unlikely to consider such a move. In that case, the central bank might consider using some regulatory power in this context, of course, with support from the government.

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Special Interview

CHINESE AMBASSADOR

H.E. Ma Mingqiang

Ambassador People’s Republic of China in Bangladesh

“We see the growth of Bangladesh not as a challenge but as an opportunity. We want to see a developed Bangladesh and we want to be a part of your efforts.”

Born in January 1965, Ma Mingqiang is the Ambassador of the Peopleâ&#x20AC;&#x2122;s Republic of China in Bangladesh. During his diplomatic career he has also worked as the Secretary-General of the ASEAN-China Centre (2011 to 2015) and Counsellor & Deputy Director General of the Department of Asian Affairs in the Ministry of Foreign Affairs of China (2008 to 2011).

It is considered by many that we are now in Asian age of development? What is your comment on Bangladesh and China?

partner for Bangladesh and Bangladesh is the third largest trading partner of China in South Asia after India and Pakistan. It is quite a phenomenon where in the wake of global slowing down, Chinaâ&#x20AC;&#x2122;s trade with other parts of the world is slowing down but its trade with Bangladesh is going up. The last year witnessed a growth of 18% which is very encouraging. China has a huge deficit in its trade with some countries and also surplus with some other countries. It is a part of a global supply chain, as is Bangladesh. Bangladesh imports more from China now, as there is a need for the local enterprises to import and the Chinese products are competitive. Of course, a balance is always preferable. The Chinese Embassy is trying very hard to introduce more products from Bangladesh to China and more Chinese investment to Bangladesh. The Chinese economy is now in a transition period from being export-driven to becoming domestic consumption and export driven. China will import $10 trillion worth of goods from abroad in the next few years. With cheap labor and further investment, Bangladesh will become a regional or global manufacturing hub and China's importance as an export destination for Bangladesh will grow. Currently, RMG export to China from Bangladesh is increasing 30% over a year-on-year basis.

In business terms, there is a huge gap between Bangladesh's export and import with China. How can this gap be minimized?

Where do you see Bangladesh in this global supply chain?

By looking back into history we can find that Asia is in the cradle of three ancient civilizations. The Ganges River valley in India, the Yangtze River valley in China and Euphrates river valley in Iraq nourished these civilizations. Thus, we have all the reason to believe that time will come for our region. I have read the unfinished memoir of Bangabandhu Sheikh Mujibur Rahman who visited China twice in 1952 and 1957. His autobiography contained a few pages where he described China and made detailed and interesting observations about our society, culture and the behavior of the Chinese people. These observations were very precise and specific and you could tell that the visit left a deep impression on Bangabandhu who was a firm believer in socialism. The Honorable Prime Minister Sheikh Hasina told me that Bangabandhu believed during his time that one day China would become a greater developed country. Bangladesh is now also on the fast track of economic development. By the year 2021, Bangladesh will become a middle-income country and China will become a moderately prosperous society. I firmly believe our dreams will be realized and we will have a better tomorrow.

The bilateral trade figures are very encouraging. China stands as the largest trading

In my view, both China and Bangladesh are in the middle of the supply chain. China is a little bit ahead of Bangladesh but the potential

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for Bangladesh is there. I once said at a seminar that China might eventually become the biggest export market for Bangladesh. At the moment the trade imbalance cannot be addressed simply by trading. This is where greater Chinese investment can make an impact. Our President, H.E. Xi Jinping, made a landmark state visit to Bangladesh recently and during his visit, a number of cooperation documents were signed. This gives me all the reason to believe that there will be more FDI from China. A few days ago I receive a 67-member Chinese delegation, comprised of many big textile companies who came to look for investment opportunities. Now there are three daily flights from China to Bangladesh, one from Beijing, one from Guangdong and another from Hong Kong.

Bangladesh is lagging behind in terms of preparedness. How can we overcome this problem? The first time I came to Bangladesh was six years ago. That was in June 2010 and I stayed for 2 days. I found Bangladesh, at first sight, very similar to how my hometown was some 30 years ago. At that time we were short of capital for investment, lacking the right technology and expertise, with poor management. China was closed to the outside world for many years and severely lagging behind. In 1978, when China initiated its reform, the per capita GDP was only $224. Mr. Deng Xiaoping started the process of reform and opened up the country for foreign investment. These reforms

unfolded through rural areas with land and ownership reforms. They gradually spread to the cities in a very systematic way. We tried to provide the best incentive packages to attract foreign investment. However, we also had to overcome our bottlenecks which included poor infrastructure and transportation. The fast increasing foreign investment brought in new technology and created jobs. This plan helped China grow but it might not be suitable for Bangladesh. It can still offer a good reference point as a lot can be learned from how we overcame our difficulties.

our two nations started thousands of years back. FA-HIEN (399-414), a Chinese Buddhist monk and pilgrim traveler came here to learn Buddhism. Also, Atish Dipankar Srijnan, (980-1053) a Buddhist scholar, religious preceptor, and philosopher from Bangladesh was invited to China to deliver lectures on Buddhism. There was also an old trade route. We see the growth of Bangladesh not as a challenge but as an opportunity. We want to see a developed Bangladesh and we want to be a part of your efforts.

Is it altogether a strategic partnership with Bangladesh?

One of the most important outcomes of the historic visit to Bangladesh by the Chinese President H.E. Xi Jinping is the elevation of bilateral relations from comprehensive cooperation partnership to a strategic partnership. The word "strategic" has nothing to do with alliance or coalition. In my view, it is more of a mentality, a way of thinking or doing. It means that we are now not just focusing on individual issues but all the issues, which include long-term issues from a regional and global perspective. It means the focus will be on not just security and development for one but the common security and development, not just cooperation but win-win cooperation.

At the moment the trade imbalance cannot be addressed simply by trading. This is where greater Chinese investment can make an impact. There are many similarities among our nations. What are your comments on this?

As Chinese Ambassador, I am glad to know that Bangladesh's affinity towards China is a national consensus. All of the people look forward to this relationship in a positive way. This affinity between

Interview

What we need is national consensus while drafting policies to manage national economy, education or finance issues. These kinds of policies need long term visions to be implemented.

CYBER SECURITY IN BANKS

Dr. Mohammed Farashuddin

Chairman, Board of Trustee, East West University Former Governor, Bangladesh Bank

The Bangladesh Bank (BB) heist has shown how vulnerable our banking sector was to cyber security related threats. You were heading the committee which probed into the incident. What were your recommendations?

The recommendations the committee made were for the banking sector within the financial sector as a whole. One of these recommendations was to materialize the Acquisition and Merger Act of Bangladesh Bank proposed in the year 2000. This law will help merge the weak financial institutions with their much stronger counterparts. We have also made suggestions to strengthen Sonali Bank, the largest state-owned commercial Bank of the country which is also the treasury of the government. Our advice for the other state-owned commercial banks would be to go public through the stock market. This will ensure ownership of the people in these banks. An objective evaluation of the assets and liabilities would enable determination of the face value of shares which could be sold to the members of the public through the stock exchanges. Even if the prices of shares are a little less than the face value there would be no harm. But careful attention should prevent buying of the general peopleâ&#x20AC;&#x2122;s shares by the rich. Until that happens, the committee advised the government to make the Bangladesh Bank, the watchdog for all these banks as well. The current arrangement of the NCBs being supervised by the Finance Ministry is not ideal. A level playing field is required for monitoring the activities of private and public banks in one hand.

The Philippines Senate has found the bank guilty and the president of the Philippines has said that RCBC Manila will have to pay back all the money to Bangladesh.

What major reforms were suggested for the Central Bank?

The committee suggested strengthening the capacity of Bangladesh Bank. The Governor of the Bangladesh Bank, as recommended in 2001, could be appointed for one term for a tenure of six years, without any extension. The position of Governor should be at least be on par with the Chief Election Commissioner and the Chairman of Anti-Corruption Commission in accordance with article 8 of the Warrant of Precedence. The greater dependence on technology in all spheres of life has prompted the committee to suggest massive improvement in the use of technology but within a predetermined yet carefully thought out regulatory regime.

Banks are now heavily dependent on technological aides. What are your thoughts regarding this?

There are many technological upheavals which have occurred over the last couple of years. One such innovation which comes to mind is mobile fund transfer which is being mistakenly called mobile banking. It has been lauded locally and internationally as a revolution in the banking sector, though it should not be classified as any sort of banking at all. It facilitates the transfer of money via mobile phone through a process where a sender gets in touch with an agent to send money to a recipient and the latter too has to go to an agent when he/she doesn't have an account. This kind of convoluted method of transfer has given rise to irregularities and we have seen various scams being attempted with the existing monopoly. The charges are excessive and www.ibtbd.net

A new protocol is underway to connect the SWIFT with cross verification of fund transfer instructions. irrational as in economic or monopoly rent. Neither is there security for the depositors into these accounts. In addition, we can talk about banks offering 24/7 services via ATMs, many of which lack appropriate chips due to the absence of proper regulatory scrutiny resulting in manipulations causing financial disasters for some banks. There is thus an urgent need for a regulatory regime in all these matters to ensure fair play and justice.

The role of international banks in the heist has raised eyebrows. What are your thoughts in this regard?

The committee has made specific recommendations about the management of our countryâ&#x20AC;&#x2122;s foreign exchange reserve. There was a time when reserves were maintained in four different currencies, namely Dollar, Pound Sterling, Deutsche Mark and Yen. It was before the launching of the Euro. Now everything is maintained in US Dollars. In this mixed bag system, a balance could be struck when one particular currency was losing value and another was gaining; the net result was a balance and no exchange loss occurred. The committee has recommended bringing back the earlier system to minimize further risks. We also pointed out that the linkage between SWIFT and RTGS, which has been deemed unnecessary and unwarranted, was at the

root if the reserve heist. By now SWIFT has changed the system of fund transfer. A new protocol is underway to connect the SWIFT with cross verification of fund transfer instructions. We further suggested bringing RCBC Manila to book with the help of the Federal Reserve Bank of New York and the SWIFT.

Is RCBC Manila fully responsible for the mishap?

It absolutely is at the end user level. The bank has disbursed money even after getting a no-payment advice from FRB New York and BB Dhaka. The fund transfer has been made through accounts which were opened just six months before, without a proper KYC. Even though the payment was made to those doubtful accounts, the money was in the banking system for another ten days, when RCBC could have prevented the laundering. The bank's CEO has resigned and the manager in charge of the Makati branch has also done the same. The Philippines Senate has found the bank guilty and the president of the Philippines has said that RCBC Manila will have to pay back all the money to Bangladesh. The central bank of the Philippines has fined RCBC an amount equivalent to $20 million for irregular and illegal handling of the heist money.

How can the Bangladesh Bank move forward now?

Firewalls have already been set up to protect the SWIFT fund transfer system. Additionally, I would like to mention that one of the GMs of Bangladesh Bank, who had a contractual appointment and had earlier

been fired from his previous stint at AB Bank on charges of corruption, is now in jail for those charges. He should not have been appointed and put in charge of such a crucial section looking after the reserves, the property of the people of Bangladesh. These kinds of recruitments raise questions about the credibility of the human resources upon which huge responsibility of national finance is vested and the appropriate measures need to be taken and contractual appointments may be kept at a minimum if at all.

Bangladesh is passing through a critical juncture with its GDP growth. During a period like this, the heist is a big blow to the economy. How do we, as a nation, move forward and avoid such mishaps in the future?

What we need is national consensus while drafting policies to manage national economy, education or finance issues. These kinds of policies need long term visions to be implemented. For example, the kind of coal that we have are of good quality and if used to produce electricity in an open pit method can provide us with 30,000 MW of electricity for 50 years. Please note that the Bangladesh people have great resilience. Its GDP growth rate has already risen to the magic level of 7%. The system at the Bangladesh Bank has been reviewed in respect of payment instructions and the APG has given us a good scorecard on money laundering efforts. Given the dynamic, innovative and enlightened leadership we have now, it should be possible to reach a double-digit growth rate in near future.

Interview

MUTUAL TRUST B A N K LT D .

Anis A. Khan

Managing Director & CEO Mutual Trust Bank Limited Chairman Association of Bankers Bangladesh Limited

I am truly excited with the progress of agent banking services. This is an integral medium through which we can reach banking products and services to the unbanked population.

Anis A Khan has had 34-years of experience and training in banking, management, and leadership practices. Anis currently serves as the Vice Chairman of the Industrial & Infrastructure Development Finance Company Limited (IIDFC), Director of BD Ventures Limited, Independent Director and Chairman of the Board Audit Committee of Berger Paints Bangladesh Limited (BPBL) and Vice President of Bangladesh Association of Publicly Listed Companies (BAPLC). He is the recipient of numerous accolades including the ‘Business & Entrepreneur Excellence Award 2016’ where he was recognized as the ‘Inspirational Business Leader of the Year’, at a ceremony held in London, United Kingdom and which was organized by the UK Bangladesh Catalysts of Commerce & Industry (UKBCCI) on 20th November 2016.

Our economy is growing and there are possibilities and, at the same time, challenges. As you are long associated with the banking industry, which is part of the Macroeconomy. What is your comment regarding prospects of this economy?

also facilitating many new jobs.

Actually, Bangladesh is on the cusp of exciting economic development. Frankly speaking, it is now the twenty-fifth economy of the world. It will be one of fifteen countries of the world within the next ten to fifteen years. In parts of Europe and Japan, the population decrease is resulting in insufficient manpower in their workforce. Due to this trend, demand and consumption have decreased. However, more money will be necessary to care for the elder population. This segment of the population will require healthcare but will not be able to contribute to the workforce. On the other hand, more than 60% of our population is part of the vibrant working force.

All we need is political stability, and strong leadership; and the reforms will follow. Additionally, our nation, as a whole, requires a greater degree of discipline. I can cite the example of our road conditions, which is a major source of daily functionality within the city. Pedestrians cross the road without any regard to vehicles that are passing by and this can result in traumatic accidents. There is no separate lane for public buses, which can be found in many densely populated cities such as London. The public transport vehicles stop in the middle of the road, completely disregarding the ones around them. Whenever I see a fire truck or an ambulance passing by on the road, I always wonder if they will be able to reach their destinations on time.

How do you believe that change will come about in the nation’s future?

The banking industry is at a critical phase. What are the needs of the banking industry?

This generation, unlike the previous generations have greater exposure to international education and the internet. Furthermore, the public universities are expanding and there are many quality private universities. More families can afford to send their children abroad for a quality education and these children are coming back to work in Bangladesh. The first generation entrepreneurs are passing their businesses own to their successors with a modern outlook and a drive for hard work; however many companies are still run by family management. Many companies that have started small have now ventured into numerous sectors. Their growth is commendable and is increasing the investment in the nation. By creating a supply chain within the nation, they are not only driving our economy forward, they are

What are the challenges that hamper the progress of Bangladesh?

Under the guidance of Bangladesh Bank, we were able to open Tk 10 accounts for our farmers. Given that they constitute a majority of the population, this has profoundly advanced financial inclusion. Moreover, the central bank has obliged us to have a 1 is to 1 ratio for banks in the city and rural areas. The mobile banking financial services (MBFS) in Bangladesh have attracted attention around the globe. Mobile Financial Services (MFS) is also a role model. During a conference I attended in Boston, USA, Bill Gates spoke about how Bangladesh is using mobile phones as a tool for advancement. In a population of 160 million, over 100 million people have mobile SIM connections. This device allows the rickshawpullers and other blue-collar workers to send money instantly to their families in the rural area.

www.ibtbd.net

Your company has launched a number of agent banks. How are these banks furthering the growth of your company?

I am truly excited with the progress of agent banking services. This is an integral medium through which we can reach banking products and services to the unbanked population. Setting up a bank branch means significant costs; there is a matter of security, permission and acquiring a workforce, a matter that is not feasible throughout the nation. In this regard, there are various parts of the country, predominantly rural regions, where there are no banks. Agent Banking Centres allow us to embrace these unbanked people in the banking service net. Furthermore, we have school banking that is educating our children as to the importance of having an account and facilitating savings. We have numerous types of accounts catering to the needs of students, women, the underprivileged and senior citizens.

The matrix of distribution of loan is very important. What is the real matrix of distribution of loan or services in your bank? Retail banking is controlled because it creates inflation. Some have to be extended based on income stream and ability to repay. Additionally, increased spending on consumer products will lead to inflation. There are double income families who can afford more. Because of a growing middle class, we can now offer loans. They now have to pay less interest. SME banking is growing very nicely under

cyber security. At end September, I was in Switzerland at a conference â&#x20AC;&#x201C; SWIFT International Banking Operations Seminar (Sibos) that stressed on cyber security. This reinforced my standpoint that we must do much more in order to secure our systems, as it is open to hackers. We have to reinforce double to triple firewalls in our banks. We have appointed a Group Chief IT Security Officer for the first time; he is currently setting up his In a population of 160 million, over department. We have also 100 million people have mobile SIM engaged consultants who are connections. This device allows the discussing the setup of the most impenetrable security system. We rickshawpullers and other find it imperative to work with blue-collar workers to send money technology to ensure the safety of instantly to their families in the all transactions of our bank. the instruction of Bangladesh Bank. The SME products are visibly helping farmers and women. Our bank is the first to have won the SME Award as Best Bank from Bangladesh Bank for the work we have done with women. As a mid-size bank, we are going beyond our expected capacity to help the SME and female entrepreneurs.

rural area.

You are always very vocal about cyber security at the same time using more IT in banking operation. How are you meeting the both ends? What is your cyber planning and preparedness in this regard? I was recently at a seminar organized by the International Finance Corporation (IFC) and there were analysts and international figures. The discussion focused on the importance and various facets of

There is a situation coming that we will not carry money with us not need to carry a wallet? The trend of a digital wallet is growing rapidly. There is, however, our local population who are mostly comfortable with cash. In order to keep all of this in check, we must simplify the tax regime. In terms of taxation, the authorities continually ask for five to ten years of account information. This deters the population from going through the banking system. A digital wallet through banking services will push this phenomenon and ease the matter of collecting taxes.

Interview

“We are training all our human resources on Islamic Banking. However, this does not mean we restrict ourselves regarding the people we’re involved with. We recruit people from all religions and have tailored our service model to suit the needs of all our customers”

EXIM BANK

Dr. Mohammed Haider Ali Miah Managing Director and CEO EXIM Bank Limited

Exim Bank has drawn the attention of customers and businessmen in need of worthy banking services through their commitment to quality.

hough a student of Zoology, Dr. Mohammad Haidar Ali Miah successfully turned himself into a prominent banker after he completed his PhD. Being a passionate banker, he prefers connecting with the masses by providing ideal services through his bank. He emphasizes on cultivating strong ties with the people and is always encouraging the youth of the nation to peruse entrepreneurial roles instead of looking for jobs. Elaborating on his banking strategies he said, “Exim Bank is a 3rd generation bank in Bangladesh and was formerly known as Bexim Bank. As of 2004, we joined the ranks as one of the eight full-fledged banks to follow the Sharia based Islamic Banking system. Islamic Bank Bangladesh Limited (IBBL) is the frontrunner in this sector as they have had a longer period to strengthen their root level marketing while growing their borrower base.” All their stakeholders, including the Bangladesh Bank, have been inspiring and pushing them to become the number one bank in their field. “We are training all our human resources on Islamic Banking. However, this does not mean we restrict ourselves regarding the people we’re involved with. We recruit people from all religions and have tailored our service model to suit the needs of all our customers,” commented Dr. Haider. Exim Bank has drawn the attention of customers and businessmen in need of worthy

banking services through their commitment to quality. Dr. Haider elaborates, “Our mission is to provide our clients with the best services available. That is our popularity is growing. Our manpower is devoted to client services and ensure that people never leave the bank dissatisfied.” In addition to adhering to these stringent quality levels, Exim Bank also maintains their reputation through their extensive social activities. “We are providing zakat of 2.5% on our income, which is distributed to the under privileged. In addition to this, 5% of our income goes to our CSR wing which uses the funds to contribute to the Prime Minister’s Zakat Fund, educational institutions and the burn unit of Dhaka medical College and so on.” When inquired about his stance on their agricultural loan program he postulated, “Developing our agricultural sector is also part of our responsibility to the enhancement of our economy. It is one of our missions to see the rural economic development of Bangladesh as we believe this can provide the necessary boost which will move us towards a Middle Income Country (MIC) status by 2021. To facilitate the progress in this sector we are encouraging people to opt for our agro-based loan schemes which includes loans for tenant cropping, poultry, fisheries, dairy and also special loans for women entrepreneurs in rural areas.” Dr. Haider holds the vision to create more entrepreneurs. He expounds on this, “We have a catch phrase www.ibtbd.net

IT has become the change agent and to adapt to this change agent, we will require capable recruits who know how to work in these spaces.

which is – don’t chase jobs; instead, create them. Most of the people apply for loans at our bank are from this category. Also, our recovery rate from the Agricultural sector is 100% which is an accomplishment which has been lauded thrice by the Bangladesh Bank.” When broached about the issue of cyber security, he elaborates on the state of the art software used in Exim Bank’s activities, “We are using world class software from Switzerland which has its own Islamic banking version. We have heard of ATM forgeries in other banks but this has never happened with us. When it comes to the SWIFT,

we have five layers of firewalls, making it almost impenetrable. We are also investing heavily in IT-centric human capital and strengthening internal compliances so that there can be no doubt regarding security issues at our bank.” With the world becoming more IT oriented, Exim have recognized the need to groom the future generation to take over. As such, Dr. Haider explains, “We are training and prioritizing the growth of the younger generation in our bank. They are being provided greater freedom and the seniors have been advised to share their extensive knowledge with these

bankers of the future. IT has become the change agent and to adapt to this change agent, we will require capable recruits who know how to work in these spaces. The average age of our employees is around 33, which shows you that we are opting for younger faces to make up the bulk of our banking team. We are recruiting them from the management trainee level and then grooming them for the future.” Regarding the competition in the industry and the loan distribution mix he expressed that the cases were complicated but the banks stance was still very aggressive. “We are prioritizing the Small and Medium Enterprises. We have reduced our deposit rate to around 6% and our lending rates were around 10% which allowed us to keep 4% at hand to meet our expenses. However, our lending rate is falling to 9.5% while the Bangladesh Bank has asked to maintain a 5% spread. This will be difficult especially with people crowding towards savings certificates which are providing double digit returns.”

Interview

Technological innovations will be required which can completely nullify all forms of digital threats and only then can we envision a future where paper money will become obsolete.

A G R A N I B A N K LT D .

Sangita Ahmed

Director Agrani Bank Limited

Over the years Sangita Ahmed has been involved in various fields in Bangladeshâ&#x20AC;&#x2122;s diverse business stratosphere. She has worked as a development activist, newscaster, writer, social entrepreneur and businesswoman. She is currently a Director at the Agrani Bank Limited before which she served as a Director at the Janata Bank Limited. Sangita also works as an English Newscaster for BTV. In the food business, she has worked as the Managing Partner at The Sky Room Dining Ltd and is currently the Managing Partner of the popular eatery, Time Out. She has also worked on womenâ&#x20AC;&#x2122;s economic empowerment during her time as a President of the Bangladesh Women Chamber of Commerce and Industry.

We must tighten the security on customer-managed software to better protect their local environments, enhance our guidelines and develop security audit frameworks for customers.

The Bangladesh economy is at a transformational stage. The use of IT and the internet has revolutionized how we're getting our services. At the same time, our country was the victim of a massive cyber security heist. What are your thoughts on these trends?

As a growing economy it is great to see consumers in Bangladesh moving their shopping and buying activities to online platforms through smartphones and computers instead of visiting shops or physical facilities. This can be especially beneficial for women entrepreneurs for whom travelling outside their homes is difficult. We have moved past the Bangladesh Bank heist and focus on mitigating fraudulent cyber security issues so similar incidents do not occur in the future. In order to keep in pace with modern banking practices we need to improve information sharing among the global financial community. We must tighten the security on customer-managed software to better protect their local environments, enhance our guidelines and develop security audit frameworks for customers. A strong support is required in the banks' increased use of payment pattern controls to identify suspicious behavior. The introduction of certification requirements for third party providers is also another security measure that needs to be in place.

You have been with the Janata Bank and now you are a Director at the Agrani Bank Limited. What are the main challenges faced by state-owned commercial banks? What is being done regarding these challenges?

Banks, particularly state-owned commercial banks, are facing rising volumes of Non-Performing Loans (NPLs). This is taking a toll on the capital adequacy and profitability of banks. Non-performing loans, coupled with the lower demand for loans by prospective customers has affected the profitability of most banks. Though we offer banking services to remote areas all over the country through our 935 outlets, large sections of people still remain outside the purview of banking services. We are continuously trying to reach out to this unbanked population of our country. At the same time, we are identifying good borrowers in the productive sectors of the economy who can boost our Advance Deposit Ratio while reducing our NPL by recovering classified loans and raising low cost deposits. The main objectives of state-owned banks is to increase low cost deposits, ensure better customer service, increase the perimeter of customers and focus more on supporting small businesses with SME loans. Taking the bank to the doorsteps of the rural non-banked population, women entrepreneurs, poor farmers and low income groups are some of the steps we are taking to improve banking services.

www.ibtbd.net

The core banking policy of the bank is to operate the affairs of the bank through core banking software (T-24) & WMIS system and the bank has been able to do this to a great extent. Digitalized banking products like plastic card banking and mobile banking have become popular recently. However, the full utilization of Core Banking Solutions including mobile banking and agent banking may change the vision regarding how the bank will move forward.

Word has it that in time plastic money along with other transactional methods will entirely replace cash transactions. What are your thoughts in this regards? Plastic money along with other transactional methods can replace cash transactions. Nevertheless, for this to work, users will need 100% assurance regarding cyber security issues from the banks. Technological innovations will be required which can completely nullify all forms of digital threats and only then can we envision a future where paper money will become obsolete. Infrastructure relating to IT

security and zero downtime must be ensured.

What is your Corporate Social Responsibility policy? How do you contribute through CSR in respect to Global Social Responsibility?

According to the CSR policy of the bank, we must build a society where human dignity and rights receive the highest consideration. Though we have not directly contribute to global social responsibility, the bank through its CSR has contributed to the MDGs set for Bangladesh. These policies also include promoting a ocially-responsible-environ ment-friendly atmosphere in Bangladesh through green financing.

There are Nonperforming Loans and at the same time, the interest cap is very high. How will this affect competition?

The NPLs reduce the bankâ&#x20AC;&#x2122;s earning assets, while, if the interest cap is high, it may create low credit demand thereby affecting the bankâ&#x20AC;&#x2122;s profitability. So, high NPLs and high-interest caps both result in the bank lagging behind competitively. While these are challenges, it is important to work with the current realities and focus on finding good borrowers who have a proven track record of running a

successful business and assist them to grow further. Good borrowers command better interest rates and can be accommodated with the rate caps but are expected to pay their debts as per the terms and conditions which will have a positive impact on the competitive environment.

What are your thoughts regarding risk management? What are the challenges in this respect?

Risk management is a continuous process to safeguard against potential risks. The challenges concerning risk management arise from AML & CFT foreign exchange, internal control and compliance, information & communication technology, reputation, liquidity & credit management, market & interest rate management and environmental & climate change management. We intend to enhance our capital base in line with the Basel III regime which will enhance our capability to withstand capital shocks in case of stressed situations.

Special Event

November 18th. During the daylong speaking session, esteemed experts from diversified fields joined forces to share their journey to the top. This included their ups and downs, inspirations and aspirations of becoming game changers in their distinguished fields. These experts came from the fields of business, entertainment, music and sports. The platform served as a golden opportunity for those in attendance to know their success and failure stories, how they became what they are now, and what it takes to be extraordinary amidst the ordinary. Founder and Chief Inspirational Officer of Don Sumdany Facilitation and Consultancy, G Sumdany Don, kick started the event with his encouraging and uplifting words, urging people to believe in themselves and never give up. He also shed light on what negative aspects in us prevent us from achieving our career goals and how to overcome A Lifetime Achievement Award was bestowed upon the Chairman of Anwar Group of Industries, Anwar Hossain, for his outstanding contribution to the development of business and entrepreneurship in Bangladesh. At the end of the event Don went on to say, “We are thrilled to witness a one thousand plus audience turnout. With the versatility of speakers today, it is sure to change the lives and perceptions of many in the audience.” He envisioned three major programs every year from his firm which would include a career boot-camp, a public speaking program and the ‘Rise Above All’ event. ICE Business Times will be the magazine partner of the event along with other media partners such as GTV, Dhaka Tribune, bdbews24.com, United News of Bangladesh, Bangla Tribune, ColoursFM 101.6, Vertical Horizon and Bangladesh Organization of Learning & Development (BOLD).

RISE ABOVE ALL

A Tale of Game Changers The Don Sumdany Facilitation and Consultancy presented their latest event, “Rise Above All – A Tale of Game Changers”, presented by Sailor (by Epyllion Group). The event was powered by Cooper’s Bakery and co-sponsored by Shwapno and Symphony. It was held on these negative issues. After Don, the first speaker of the day was Saidus Salehin Khaled aka ‘Bassbaba Sumon’ of the popular band Aurthohin. He shared with the audience the inspiring story of his battle with obesity and cancer. The next speaker, Ali Reza Iftekhar, Managing Director and CEO of Eastern Bank Ltd, adressed essential leadership traits. He surmised that one’s career should not about their current position, but about how they develop themselves for the future in order to become leaders. He emphasized on the fact that there is no alternative to hard work and perseverance. The event also consisted of speeches from filmmaker Mostofa Sarwar Farooki, musician and academician Tahsan Khan, Chief Service Officer at Airtel Bangladesh Rubaba Dowla, Head of Communications at BRAC Bank Ltd and G Sumdany Don himself.

Cover Focus

Of Customer -Centric BaNKING RETAIL BANKING

By Shaikh Ashfaque Zaman

As Bangladesh progresses to become a lower middle-income country, there are many drastic changes in the everyday dynamics of the nation. The demographic change of the average income leads to the necessity for evolved banking solutions. Furthermore, the advent of technological advances such as mobile banking has provided these banks need to continually innovate in order to retain their customers. ICE Business Times opens the dialogues with three prominent banks in Bangladesh on how they make banking solutions more customer-friendly.

Md. Ariful Islam Choudhury

SEVP & Head of Retail Banking BANK ASIA

There are 56 retail banks; the top 3 challenges for banks in the Asia Pacific are attracting and retaining talent, attracting new customers, and new market entrants. How do you address these challenges in order to retain success? As a part of attracting and retaining talents, Bank Asia developed in-house training and certification programs to identify and motivate the latent talents. Bank Asia Institute of Training & Development (BAITD) focuses on comprehensive grooming of staff in key banking areas. We in Bank Asia believe that it is important to provide targeted development program that provides hands-on experience to all aspects of banking supported by mentoring and coaching for high-performing and

ambitious individuals. In line with that, we launched â&#x20AC;&#x2DC;Be a Future Leaderâ&#x20AC;&#x2122; program. One of the unique aspects of this development program is Mentorship. A group of officers will be placed under an executive mentor for the duration of the program; officers are expected to interact frequently with the mentors and use them as a sounding board in understanding topics that may be outside their current knowledge base. The mentor will be responsible for developing the officers as future leaders of the Bank. Customers want convenience, personalization, accessibility and ease of use. They want to feel like their bank is anticipating their needs, not bombarding them with product offerings. They want transparency and no surprises in terms of fees. We are working to develop a much deeper, holistic understanding of our customersâ&#x20AC;&#x2122; needs and offer solution accordingly. We are simplifying our product sets and redesign our core processes from a customer point of view. As a part of this, we are taking various initiatives to promote new customer friendly products to cope with the market in future. Bank Asia introduced Agent Banking services as the pioneer in Bangladesh with an objective of ensuring greater financial inclusion and increasing the outreach of the services to the unbanked population. As a part of attracting new customers in the new market, we are providing low cost, secured financial services at the doorstep of the unbanked people of Bangladesh through our 870+ agent points located all over the country. We are processing Retail, SME & Agricultural loan from these agent points. We are setting up District/Upazila level back office throughout the country under the same umbrella.

Why must banks take advantage of technological advancements such as mobile banking, setting up a Central Data Repository, generation of Management Information System (MIS) and FinTech? How is technology helping you target and reach the right customer? Banks must adopt fin-tech much more aggressively, enabling radical productivity improvements such as mobile banking, agent banking etc. It brings low cost and secured financial services by offering technology-driven www.ibtbd.net

banking solutions to the doorsteps of unbanked people as a part of financial inclusion. This would happen quickly enough to pass efficiencies on to customers through lower transaction fees. We have established a unique Agent Banking model with technology based banking concept ensuring appropriate security with real-time banking for customers. Our agents are fully equipped with I.T devices like PoS, card reader, the image capturing webcam, biometric identification system, mobile connectivity through internet banking and Tablet PC for applying hassle free loan facilities. Agent Banking Customers are logged through their Biometric authorization which ensures faster and secured financial services. Data analysis could help financial institutions find ways to save money while providing better customer service and building new sources of revenue.

According to Boston Consulting Group (BCG), by 2030, 33% of Bangladesh will belong to the middle-class and this will change demands. What services are you creating in order to cater to this shift?

Bangladesh is emerging as one of the world’s next great growth opportunities for companies with a keen understanding of the nation’s rising consumer class, according to a report released by BCG (Boston Consulting Group). The report focuses on Bangladesh’s middle and affluent class, which the firm defines as individuals with annual household income of around $5,000 or more. That means these consumers earn enough to afford goods and services that offer luxury and convenience. At Bank Asia, we believe that innovation is the key element in providing aggressive top line growth. But doing one or two innovation initiatives a year will not support or sustain innovation. Organizations need to be innovating all the time. Innovation alone is not enough. Organizations need to set the context for innovation; the right people, the right processes, and the right environment. In order to drive innovation, we have focused on developing innovative financial

(Fig 01) Importance of considering the banking market in 2020

USA

61%

Emerging Markets

Europe

67%

79%

Asia-Pacific

71%

products and services to cater to potential large customers in future. We have built distribution networks all over the country and selling banking products through our Branches, SME service centers, and Agent points. We are building robust mobile and Tab banking platforms for interacting with customers through wireless telecommunication—rather than primarily through computer screens—as well as e-commerce fulfillment capabilities that can meet growing mobile-enabled demand. We are working to get into a position in order to build a sustainable competitive advantage in one of the world’s next important growth markets.

According to PWC, the top three priorities for Banks in our region are enhancing customer service, R&D and innovation and new product development. What are your thoughts on this observation? How are you creating a more customer-centric business model? The banking industry has come under intense competition in recent years. This is due to new entrance in the market and enforcement of various regulations of the Central Bank. High service quality is therefore required to differentiate offerings in the marketplace. We would like to ensure that our customers leave our premises with a delightful experience. We have created a complaint management system which ensures top quality service to our customers. We encourage our front line staff to listen closely to our customers when they have issues, ask questions, identify

what will satisfy them, apologize for the inconvenience and then propose a resolution. We prioritize R&D, innovation, and new product development because success and survival of a bank depend on how well it adapted to new technologies and products. We are also giving highest priority on developing technology driven products for the ease of the customer. These will contribute more values to the society as well as for the betterment of our organization. Our approach is customer centric which provides a positive customer experience in order to drive repeat business, customer loyalty, and profits.

Many banks are attempting to change their deposit mix; are you satisfied with your deposit mix? If not, are there any changes that you would like to implement and how will this change the scenario within your bank?

In the present context, banks’ performance is measured on several indicators, including the deposit mix and the quantum of low-cost deposits in the mix among others. In the present era of competition and with the emergence of private and multinational banks, an ideal mix of deposits is a must to survive. Since the interest paid on deposit forms a big burden on a bank, the mobilization of low-cost deposits, like current account and savings account deposit is the urgent need for the bank. In Bank Asia, we have already taken steps to mobilize low-cost deposits which are key to offering competitive lending rates to customers.

Gazi Yar Mohammed

SEVP & Head of Retail Banking ONE Bank

mobile wallets, contactless payment cards, innovative transactions and customer analytical driven services are the future. Banks need to do even more to ensure they are well-positioned to succeed in the future. Retail banks should focus on developing a customer-centric business model optimizing distribution, simplifying business, and working on big data to understand customer analytics and enabling innovation and managing risk, regulations and capital. Banks are using data to analyze the customer experience and look for opportunities for growth. Retail banks need to adapt to this movement or be left behind.

How will retail banks compete with FinTech? Will Fintech replace retail banks since peer to peer lending is taking a big share of retail banks in the global market and what is the prospect of p2p lending in Bangladesh?

Q 42

What are current trends in retail banking?

The entire financial services industry is undergoing drastic changes. New technology, increased regulation, and expansion of digital channels have come together to create a really interesting time for retail banks. Customer demographics is changing due to change in priorities and behavioral change. Customersâ&#x20AC;&#x2122; expectations are growing. Digital

The Economist points out â&#x20AC;&#x153;No Fintech product comes close to matching the convenience and security of a current account at a bankâ&#x20AC;?. So, banks can team up with Fintech to offer most exciting values and experience for customers. Paym and Paytm, digital payment wallets, are the burning examples that denote that impact of a handshake between banks and Fintech. Bank products comparison sites are evolving in Bangladesh and banks are teaming up with these platforms. It is true p2p lending is eating up the pie of the cake in some markets, while some banks also tied up with the p2p lending platform as an investor and with the leverage of technology, banks can extend loans through p2p faster as p2p risk underwriting framework is highly efficient. So it is not just technology that is changing, disruptive business models are also emerging. Importantly, banks have to manage security, culture, and rules and regulation while teaming up with Fintech.

According to Boston Consulting Group (BCG), by 2030, 33% of Bangladesh will belong to the middle-class and this will change demands. What services are you creating in order to cater to this shift? Yes, this is surely a good sign and insightful landscape. Retail banks have a

(Fig 02) Top 3 challenges

(Fig 03) Top 3 investment priorities

Asia-Paciﬁc

huge space to enhance the net to bring new customers on board by offering innovative solutions. We recently launched OBL Shopnoneer – a home loan facility for semi-urban areas and this facility is offered to build ‘semi paka/tin shed’ building as a good number of customers fall into this category, those who dream of a home within their financial capacity. We launched Loan for Bankers as a lot of fresh graduates are joining banking sector and this sector is expanding rapidly. We are offering product line for student banking.

Could you elaborate upon your Customer Relationship Management (CRM) policy?

We relentlessly strive to improve our service level all touch points covering branches, kiosks, and contact center. We have implemented Business Activity Tracker for business teams which cover tracking customer business calls, deals under pipeline and closed deal managed by Relationship Managers. We can track the business activity of retail business team through this real-time CRM.

We take regular customer feedback trough customer meet program and customer satisfaction surveys run by the call center. Based on customer feedback, we address the issues and offer new products and value proposition. We also run customer loyalty programs for high-value customers. We run various campaigns for customers and employees. We run idea generation contest for our employees to come up with new value propositions. We are matching product attributes to customer behavior, and pricing them accordingly that can help capture these previously underserved or not served segments.

Asia-Paciﬁc 38%

Attracting and retaining talent 34%

Attracting new customers New market entrants

(Fig 04)

51%

Enchancing customer service

40%

R&D and innovation

25%

34%

New product development

Area for innovation

Asia-Paciﬁc

Products

48%

Customer Interfaces/Channels

44%

Core Platforms

46% 59%

(Fig 05) Six Priorities: Signiﬁcant gap between preparedness and importance

Customer-Centric Business Model Optimised Distribution

Information Advantage Enabling Innovation Proactively Managing Risks and Regulation 0% ■ Very prepared ■

10%

20%

30%

40%

50%

60%

70%

■ Very important

Tell about your most successful products and any other future products that you are going to release.

We have launched a couple of new products and we have received a tremendous response in 2 depository products. We have made significant momentum with our Home Loan product and our home loan portfolio occupies 65% of a retail loan portfolio. In concern with deposit product, we offer Quick Millionaire and Pyramid

Savings. Quick Millionaire is recurring deposit scheme with an initial deposit and it offers customer options to have Tk 10 lac in the minimum tenor of 2 years. Pyramid savings is a combination of savings and recurring savings deposit. The customer can deposit in this non-checking account any working day of the month and can get a good return after a specific period selected by the customer.

Md. Shafquat Hossain Head of Retail Banking Dhaka Bank Limited

Dhaka Bank emphasizes the necessity for human resource in order for the bank to flourish, could you elaborate upon this idea? How does Dhaka Bank maintain an efficient workforce? Human resources are considered to be the most important asset to any organization but very few organizations are able to fully harness their potential. Banks struggle to find talent while facing the threat of their

top professionals leaving. In order to develop our human resources, we have taken a number of initiatives; these include continuing education and on the job training, IT orientations, career development, and counseling. At present, the service quality of banks is an important factor in order to survive in the banking markets due to domestic and global competition. There are prerequisites to receiving quality services in banking which include the placement of the right people with skills, abilities and right knowledge of banking services, in offering services to clients which have a direct positive impact on customer services. We implement 4 strategies in order to attain this: - Talent acquisition: we use the term Talent Acquisition (TA) and not recruitment. TA is a strategic approach to identifying, attracting and bringing out the most talented to efficiently and effectively meet business needs. Dhaka Bank sees recruiting as a subset of TA, which includes activities of sourcing, screening, interviewing, assessing, selecting and hiring. -Compensation: our bank maintains an equitable remuneration structure that recognizes the employee contributions and reward performance facilitating high levels of motivation and retention; setting the standards for disciplined management of human capital risk also entails developing incentive and reward structures that reinforce Dhaka Bankâ&#x20AC;&#x2122;s culture. -Training and development: we realize that human resources working in banks must be equipped with ICT -based knowledge, skills and competencies. The banking industry is a knowledge based industry. The knowledgeable and well-equipped employee is essential to successfully operate the business. - The millennial generation: we want to focus on employing millennial as employees as they are best equipped to understand the needs of their generation, and can develop convenient solutions that fit their lifestyles.

With so many banks as options for customers, how do you attract customers and address the competition?

Banks are finding new growth opportunities through online and mobile channels, proving once more that www.ibtbd.net

consumers are increasingly attracted to the convenience and speed of mobile and online solutions. Knowing consumer trends will help Dhaka Bank understand how to position itself in an increasingly mobile reality. Delivering superior service quality to customers in today’s business environment is very crucial and important due to the stiff competition. Dhaka Bank’s ability to provide high service quality will strengthen its image; enhance retention of customers, attracting new potential customers through customer satisfaction and loyalty programs. The Central Bank's decision to allow licenses to new banks has the merit. A logical argument can be made beyond the unbanked population argument that more competition will improve service quality and ultimately will benefit the consumers. While most banks offer similar commodity type products, they are combating with each other in most cases on price/yield/turn-around time (TAT). Dhaka Bank, by focusing on service delivery (TAT), differentiates itself and gains ground on new entrants. Contrary to popular believe that aggressive marketing or in this case aggressive lending may help quickly capture market share and drive banks' profitability; in reality, the success of banks in the long-run depends on ensuring that they lend to the right clients. Most of us are aware of the negative result of aggressive growth in the lending portfolios. Dhaka Bank has one of the strongest corporate portfolios. This can be leveraged by means of Payroll Banking to create and capture a secured and sustainable retail portfolio.

Why is it important that a bank set up a Central Data Repository?

During the normal course of business, financial institutions collect valuable data about their customers and the markets in which they operate. This data includes customer demographics, historical and current banking trends, historical and current financial statements, business activities and plans, market trends and norms, as well as probable risk indicators and more. When a financial institution does not have a centralized data

(Fig 06) Bankers believe simpliﬁcation will...

Improve service 69%

Improve profitability 59%

Decrease costs 58%

Increase customer base 46%

Improve time to market 42%

(Fig 07) Open innovation – importance and preparedness Emerging markets

USA

Europe

28%

18%

62%

40%

Asia-Pacific

14%

61%

■ Very prepared ■ Very important

repository, data is saved in several independent data silos that are difficult if not impossible to integrate making it quite a challenge to obtain a complete picture of a counterparty, exposure or portfolio. Lack of a centralized data repository results in incomplete analyses and reduced quality for no reason other than the lack of a central system to retain relevant information. Consolidating data into a single information source gives your financial institution a significant edge. The financial institution will be able to obtain an up-to-date, accurate depiction of individual counterparties as well as portfolios from a single aggregated data source, without wondering if

additional data resides elsewhere. The consolidated data repository solution will also make a huge contribution towards creating and maintaining risk scoring models. Credit and borrower scoring has become a mandatory part of the lending process. Maintaining a sound scoring system poses a serious challenge to banks, the greatest of which is perhaps the initial building and implementing of the scoring models. Maintaining a data repository will assist bankers in selecting risk scoring methodologies most appropriate for the types of data that have been captured. Furthermore, the more data captured, the more extensive the analyses may be. The benefits include:

• Improves business decisions • Centralize the storage and maintenance of data • Improves Data quality and accuracy • Reduces time-consuming updates and redundancies • Maintains data history • Generates a higher ROI

(Fig 08) New model customer centric Checking Savings Mortgage Money market Agent/ broker/ advisor

What are the necessities of generating a Management Information System (MIS) and FinTech in banking?

Banks have manifold functional systems. These usually include sales systems, call center, financial systems, inventory, logistic and more. MIS combines information from multiple systems. This helps management staff better understand their own departments' contributions. In many cases, the combination of data, such as sales figures combined with available inventory, help the bank take the appropriate action in order to reach the right customer and meet their specific needs. Banks collaborating with FinTech for mutual benefit has long been the preferred narrative when discussing the future of financial services. Banks in Asia-Pacific are keenest to acquire FinTechs. 31% of banks said they view FinTechs as acquisition targets, while banks in North America were similarly keen, with 30% seeing FinTechs this way. Acquiring a FinTech provides banks with full control of the solution, enabling them to shape it to their specific needs, while also allowing them to market innovation under their own brand. From a FinTech’s perspective, a sale can be attractive because it removes the pressure of having to achieve profitability and scale independently in an increasingly crowded market. No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new FinTech revolution.

According to Boston Consulting Group (BCG), by 2030, 33% of Bangladesh will belong to the middle-class and this will change demands. What services are you creating in order to cater to this shift?

Bangladesh’s middle-class population is expanding rapidly. Substantial upward mobility among households at the lower steps of the economy is likely to assure that growth in Bangladesh’s consumer class will remain strong for decades. This growth will enhance buying power throughout the country. Currently, a majority of Bangladesh’s middle-class population is concentrated in two cities—Dhaka and

Call center

Internet

Products Brokerage

Mobile

Channels

Integration around the customer Customers

Customers get what they want (Fig 09)

THE TOP PRIORITIES FOR BANKS IN 2020: 1. 2. 3. 4. 5. 6.

Developing a customer-centric business model Optimizing distribution Simplifying business and operating model Obtaining an information advantage Enabling innovation and the capabilities to foster it Proactively managing risk, regulation, and capital

Chittagong. Initially, most of the middle-class population growth will occur in Dhaka and Chittagong and will spread through the smaller cities of Bangladesh – thus having significant implications for business. Historically, the middle-class population has a tendency to save and Dhaka Bank is one of the pioneers in the industry in savings products of different types. Dhaka Bank will take full benefit of its distribution platform, product management, and capabilities to tackle the demand for the growing middle class Studies have shown 2 important trends regarding MAC: I. Customers are highly steadfast to brands, but they are also budget and quality conscious. Most Bangladeshi consumers work within a budget, and the price is often cited as the second priority over quality. Dhaka Bank will nurture its existing strong brand value to ensure a growing customer base. II. Customers increasingly use the mobile Internet and a good portion of Bangladeshi consumers own Internet-enabled smartphones. Currently, most transactions are in cash, but the popularity of smartphones suggests that more consumers will be making the jump to mobile payment, creating an opportunity for reaching households through wireless mobile services. bKash is a prime example here. Harnessing IT innovation, Dhaka Bank will provide banking solutions via mobile applications.

* Fig 01-07, 09 courtesy of ‘Retail Banking 2020 Evolution or Revolution?’ (online version) from PwC Retail Banking 2020. www.pwc.com * Fig 08 courtesy of ‘Getting to Know You: Building a Customer-Centric Business Model for Retail Banks’ (online version), a publication of PwC’s Financial Service Institute (FSI).www.pwc.com

www.ibtbd.net

SPECIAL FEATURE

BANKING

ReEvaluating Retail By Taposh Ghosh

The 21st century has been dubbed â&#x20AC;&#x2DC;the era of disruptionsâ&#x20AC;&#x2122; with new technologies and innovations penetrating our everyday lives and changing consumer behavior. Consumers are more aware than ever before, holding high expectations from the services they receive. This trend has compelled numerous global industries to look back and rethink about the way they carry out their activities. Emulating the pace, banks and financial institutions also need to reshape and retool to survive and thrive in such challenging times.

rowth for retail banks and other financial institutions has remained illusory in recent years, with organizations experiencing a difficult time saddling their cost of operations. Previously, an average customer was said to interact at least twice a day with their banks to perform some sort of transactional activity; a figure which has been on the decline in recent times. Despite financial services still remaining highly transactional, the current generation of banking customers portrays greater expectations in services and value.

The digital natives seek an enhanced customer experience, reduction in friction, and increase in speed and transparency. This trait of consumer behavior can be traced back to the accepted forms of technology used on a regular basis, e.g. Google and Apple. The retail bankâ&#x20AC;&#x2122;s attempt to acquire customers in the digital space through mobile applications and online banking are deemed sufficient by most institutions. However, the lack of sophistication and clever use of available technology has created a discontinuity and disconnect between modern customers and their banks. It does not take a financial expert to deduce that digitization is challenging the very way in which banks operate, with customers not responding well to its slow-shifting legacy models. Yet, digitization also represents significant opportunities for the retail banking industry. The winning strategy lies in integrating technology with existing models and creatively implementing tools and techniques we already have; the pace of which is rapidly intensifying.

How do you like to interact with your financial institution? (Choose all that apply)

Online Banking…

57%

In Person at the Branch

67%

55%

On my Smartphone… ATM

52%

26%

By Phone

How do you like to interact with your financial institution? (Choose all that apply) (by Demographic)

Online Banking…

In Person at the Branch

On my Smartphone… ATM

By Phone

54%

73%

52%

48%

65%

58%

22% 27% Gen Z

29%

75%

54%

57%

26%

Millennials

70%

55%

Gen X

53%

68%

69% 27%

44%

Baby Boomers

How many times do you visit your branch per year? (By Demographic) 53%

46% 42%

31%

More than 10

39%37%

Penetration of the Mobile and Digital Payment Market

29%

22%

More than 5

23% 21%21% 18%

Less than 5

Use of Cognitive Banking to Provide a Richer Consumer Experience

The new generation of customers expects their banks to play a more advisory role when it comes to managing their money and making investment decisions; a service which was seldom conducted by traditional banks. But in order to retain and cater to the demands of these digital natives, banks need to gear up and adopt cognitive approaches for better customer support and investment advisory. Traditional bankers may disagree with the importance of consumer experience in the business. However, the magnitude to which user experience is a concern is spelled out in 2015’s World Retail Banking Report which stated that positive consumer experience had fallen for the second year in a row. The Generation-Y bank customers, unlike their parents, are less likely to stay loyal to their banks. They demand full control over where and how their money is managed and invested, and a cognitive approach can help banks achieve such feats. So, what is cognitive banking? A bank which has adopted

cognitive methods can be termed as a bank which ‘thinks’. The process includes data analytics and machine learning to understand consumer behavioral patterns and produce personalized services. Being one of the most data-intensive industries, the banking industry has the greatest potential in benefitting from cognitive technology to improve their operations and services. More likely than not, the use of deposit slips and cheques are still going to prevail, and the industry will keep on accumulating data, which is no less in value than a currency in today’s world. To cater to the needs of its younger customers, banks need to leverage its data and act as identity brokers. They should concentrate on tailoring personalized products and services based on advanced customer profiling. In simpler words, banks need to pick up the digital clues their customers leave behind and use them to truly understand what these customers desire from their banking services and ultimately cater to these personalized needs.

3% 5% 4%

I did not visit my branch in the last year

Payments and completion of monetary transactions have forever been the beachhead for the banking industry. However, new players in the form of Fintech startups are threatening this space. To accommodate the increase in the number of smartphone users and the exponential growth in online activity, these businesses are providing payment gateways and other diverse tools through the use of cellphones, tablets, computers, and so on; these activities are devouring a great chunk of the potential revenue that banks could have acquired. Many high street banks have already begun to reach customer communities deploying their own mobile payment channels. Nevertheless, for the most part, non-bank players, such as telecommunication companies and small Fintech firms, who are spelling out the standards for digital banking. The average bank’s futile attempts at countering this threat through mobile applications are only limiting users to checking their balances, transactions and transfers. The secret to the success of these non-bank challengers lie within their size and agility of operations. They are functionally designed for continuous improvement and launch out updates at real time, something

a comprehensive digital platform to provide for all possible financial services. This has to reflect throughout the entire organization, from front-end commercial activities to back-end technology and operations. Going digital also provides the scope to automate processes – taking an activity which is now done manually, meaning in an error-prone manner, and transforming it into a process which delivers the exact same result every single time. This enables banks to cut off major parts of the cost structure and achieve greater efficiencies. Personalized consumer experience will be of utmost importance, as use of data strength can lead to introduction of new diverse services targeted towards underserved segments, including small and informal merchants, international travelers, migrant workers, youth market, etc., which can help to channel these customers under the banking umbrella. Key performance indicators will also need to change, with greater budgets dedicated to digital marketing and decreasing importance on bank branches. Branches will no longer describe the reach and spread of a bank, rather it will act as a consumer touch point when they feel the need for consultancy or a more personalized service. Efficiency ratios will also be pushed into the high 30s and low 40s, as integration of technology will cut down costs.

What are some service enhancements you would like? (By Demographic) Gen Z

53% 46% 43% 39%

Ability to have a pre-booked appointment

Millennials

71%71% 64% 64%

Gen X

26% 19% 17%

Ability to bank after typical business hours

Baby Boomers 57%

Ability to have a video call from home with a �inancial advisor

39% 31% 23%

Free Wi-Fi capabilities

31% 20%19% 15%

Cafe environment

which counters the rigidity of banks. The narrow focus on their value-added services helps these competitors cater better to the needs of the fast-paced generation; for example services like PayPal allow merchants to receive payments within one day, almost a couple days faster than most banks. Banks now need to utilize their already established transactional infrastructures to take over the mobile payment channel. Bkash in Bangladesh is one of the most successful examples that can be highlighted, where a retail bank has redefined mobile payment. These channels help to multiply customer interactions and extend the banks’ commercial footprint through generations of transaction fees. Valuable insight of the consumer’s future decision can be provided by leveraging on the bank’s pool of raw behavioral data. The key is to use the data strength to create personalized services along the entirety of the consumer decision journey, ultimately aiming to manage the consumers’ entire digital wallet. This extension of value proposition through data can help banks double the revenue earned through mobile and digital channels, and beating the non-bank competitors at their own game.

Embracing the Digital Revolution

We are currently living in a time where innovation is an everyday phenomena and adapting to such changes is the key to survival. With the exponential rise in online commercial activities, banks have crucial roles to play in offering the most secure payment channels and catering services which best suits the consumers. Implementation of cognitive banking and machine learning will open limitless possibilities for banks while satisfying the young consumers’ need for personalized user experiences. Banking in the future is predicted to act as an open ecosystem, where one bank account holds the potential to serve for all of the consumers’ financial needs, both on and off the digital space.

The Changing Legacy Business Model for Banks

The business model for banks have experienced very insignificant changes entering the 21st century, with the adoption of 24/7 online banking being one of the more crucial ones. But in this era, if the banks do not take the initiative to disrupt themselves, someone else is going to enter the space and take the industry by storm. The insurgence of technology firms such as Google, Apple, PayPal, etc. into the payment arena cries out for the need of traditional financial institutions to sit and look back at their slow-paced business models, if they wish to survive through the upcoming decades. To take complete advantage of the digital revolution, the banks of the future must provide

Figures courtesy of ‘The State of Retail Banking Survey 2016’ (online version) from www.timetrade.com

What are the reasons you come into the branch? (Choose all that apply) (By Demographic) Make a Deposit / Withdrawal

Use the ATM

Mortgage / Loan

Weath Management / Retirement / Insurance

62%

60%

Open an Account Business Services

67%

75%

48%

48% 11%

21%

10% 17%

22%

69% 54%

38%

75% 39%

25%

14%

14% 6%

7% 10% 11% 9%

Gen Z

Millennials

Gen X

Baby Boomers

Feature

INVESTMENT

By Fuad Hussain

I 54

nvestors from a few years back would probably be able to recall when savings at banks paid handsomely. The interest rates on such savings were more than 10% and savers were happy. But what should be the investing strategy today when interest rates on bank deposits are low and are likely to stay there?

Saving Grace Low Rate Fixed Deposits

Nowadays, banks pay around 5.5% on FDRs. Given that the inflation rate is hovering around 6%, your hard-earned savings is actually losing its value. When you adjust a given interest rate for the effect of inflation you get what is a called â&#x20AC;&#x153;realâ&#x20AC;? rate of return. In this instance, you are having a real rate of return of negative 0.5%.

Sanchaypatra Salvation

In a low-interest environment, what other options do you have to get a better return on your money? An alternative could be the Government Savings Certificates or Sanchaypatras (SP), instruments which are paying well above 11% interest, yielding returns which are beating the inflation rate. However, the tenures of such instruments are 5 years and 3 years and early encashments can be penalized. There are also restrictions on how much money you can include in each scheme. On the other hand, FDRs have flexible tenures but returns are much lower compared to SP. Hence, whether to put all of your money in SP or have a combination of both FDRs and SP depends on your return and liquidity requirements. Putting more weight on high interest bearing instruments would generate a higher real return.

Stocking Up

Another option could be investing in shares of quality companies. Though stocks are considered to be the riskiest asset class of all, their return prospects are also much higher than the aforementioned two options. Time and again, studies have proven that shares are one of the best long-term investments in the financial marketplace. The backbone of portfolio construction is about finding excellent companies that are selling at attractive prices. Patience is the key as you have to give time to your investment decision-making process and must be able to assess and analyze the financial and non-financial aspects of companies and sectors. If you are investing for dividend incomes then look for companies whose businesses are viable and sustainable so that they can continue in paying cash dividends. Companies whose cash flows are not sufficient are most likely to cut dividend payments and those stocks are better to avoid. Seek companies whose operating earnings and cash flows are strong and have the ability to sustain adverse situations without compromising dividend payments. Also, it is worth looking at their dividend paying trends to have an idea of the future. The dividend yield is the key figure for you. It is the ratio of the annual dividend payment to the current share price (annual dividends per share divided by current price per share). Therefore, given a constant rate of payment, the yield and stock price always move in opposite directions. In the Bangladesh market too, there are a lot of stocks across sectors which offer handsome dividend income opportunities. For instance, some banks offer dividend yields above 7% and trading below their NAVs. In the Mutual Fund sector, there has been impressive development on the regulatory side protecting investorsâ&#x20AC;&#x2122; interest. Many of the mutual funds are trading at discounts and also pay cash dividends annually, yielding a higher return than other financial asset classes. Dividends may help cushion the impact of market declines. On the other hand, growth investing is the interesting part of the stock market. It involves finding companies with strong future growth potential. You may see a capital gain from investing in such companies. Growth investing can involve more risk if you focus too heavily on small-cap stocks that have the potential for rapid growth, but also face tremendous odds for long-term success. There are large-cap stocks that are in strong growth positions. Your job is to find those that match your strategy, goals, and risk tolerance. Value investing may be the most difficult, but may also offer the best return over the long term. Value investors find companies that are trading at prices significantly below their true value.

Deposit Rate

Inflation Rate

6.40% 6.20% 6.00% 5.80% 5.60% 5.40% 5.25% January February

March

April

May

June

July

Schedule banks' weighted average interest rates on 2016 Deposit Rate InďŹ&#x201A;ation Rate January 6.21% 6.20% February 6.10% 6.15% March 5.77% 6.10% April 5.77% 6.04% May 5.67% 5.98% June 5.54% 5.92% July 5.48% 5.84% Source: Bangladesh Bank

The companies may be out of favor with the stock market because they are not in the current hot stock sector or they are in a business that investors find unattractive. However, the payoff can be significant when the stock market discovers the stocks and bid up its price from the low point when you purchased to a much truer level. This may require you to hold the stock for a long period and require you to update your assessment on a regular basis. Blended investing, also known as balanced investing - is a combination of growth and value investing strategies. By combining the two and practicing good asset allocation, you can hit the best of both. You can adjust the mix to increase or decrease potential return and risk to fit your particular goals and timeframe. However, stock market investing is not easy. There are a lot of risk factors that can affect your wealth. It is a time consuming process to select stocks then monitor and review the factors involved. You must look at the financials, ratios, management and potential of the companies among other factors. You should also remember that investment in stocks may eat up your wealth as well! Always bear in mind that how you want to distribute your wealth in different asset classes depend on your return requirement and risk tolerance. www.ibtbd.net

Special Feature

ICT SECTOR

World Wide Investment By Sheahan Nasir Bhuiyan

B 56

angladesh only started developing a national Information Communication Technology (ICT) strategy in 1997. The sector was identified as a “thrust” sector back in 2002 but the real push came in 2008 from the current ruling party’s political manifesto of Vision 2021 which aims to make Bangladesh a middle income country by 2021. The core foundation of achieving Vision 2021 was laid through the application of digital technology. Commonly referred to as “Digital Bangladesh”, the government proceeded to implement a large number of projects to digitize government operations as well as to raise public awareness about the benefits of using ICT. This initiative seeks to transform Bangladesh from one of the world’s poorest countries into a knowledge based society supported by a world class technology backbone.

Here are some projects that are already underway

01.

02.

03.

Leveraging ICT for Growth, Employment and Governance Project (LICT)

Establishment of Computer and Language Training Lab in Educational Institutions all over the Country

Development of Bangladesh Hi-Tech Park Authority (BHTPA)

Launched in January 2013, LICT is a project run by the Bangladesh Computer Council (BCC) to develop a vibrant and healthy ICT structure and promote IT enabled services within five years by leveraging ICT for economic growth and competitiveness. LICT aims to catalyze the growth of the IT sector for creating employment and diversifying exports. It also aims to finally be rid of the archaic paper pushing model used by government employees and replace it with digital technology. LICT will push for new policies and guidelines to regulate the use of such technology and also provide training to build the capacity of government employees. Through such activities, LICT will create 34,000 skilled new jobs. Government employees will be able to engage in shared IT hosting and remote conferencing and reduce the time taken to accomplish tasks. This will promote Bangladesh’s IT capabilities to the rest of the world and attract foreign business.

Recognizing the fact that most of the school going children in Bangladesh do not have access to computers and modern technology, the Government launched this project in January 2015 to establish specialized computer labs in educational institutions across the country to speed up the expansion of computer education and develop language competency. It is designed to arm the students with employment skills to compete in not only the local job market, but also international markets as well. The project is being implemented by the Directorate of Information and Communication Technology and by December of this year, will establish computer labs in 2,000 schools and colleges and a Language lab in each district, all powered by high speed internet. The computer labs will employ 1,000 teachers who will teach 9 different languages (English, French, Spanish, German, Russian, Mandarin Chinese, Arabic and Korean) to students.

The core foundation of achieving Vision 2021 was laid through the application of digital technology. Commonly referred to as “Digital Bangladesh”, the government proceeded to implement a large number of projects to digitize government operations as well as to raise public awareness about the benefits of using ICT.

BHTPA is an agency set up by the government to establish, manage and operate technology business parks throughout the country, similar to Malaysia’s Multimedia Super Corridor. These will be areas dedicated to providing adequate infrastructure support services to create an environment for the development of need based industries. The Hi-Tech Parks will develop indigenous technological capability for the development of local industries. The park will also produce state of the art technologies which will be exported into foreign markets. The Government wants Bangladeshi manufacturers to start manufacturing smartphones, tablets and other similar tech devices, millions of which are imported into Bangladesh every year. By moving production to these parks, not only will it create thousands of jobs, but will also make the nation more competitive in international markets. Each park will have state of the art www.ibtbd.net

training facilities to develop Bangladeshi youth. Projects by the BHTPA include: • Kaliakoir Hi-Tech Park • Jessore Software Technology Park • Sylhet Hi-Tech Park • Mohakhali IT Village • Barendra Silicon City

04.

Tier IV Data Center The Kaliakoir Hi-Tech Park will play host to another massive investment in the ICT sector, namely the establishment of a Tier IV Data Center. For those who are not aware of what a Tier IV Data Centre is, very briefly, it is a data center which comprises of all the functions of Tiers I-III and adds more. According to Vivek Gite (2008) on nixCraft, Tier IV data centers were “designed to host mission critical servers and computer systems, with fully redundant subsystems (cooling, power, network links, storage, etc.) and compartmentalized security zones controlled by biometric access control methods.” For a comparison between Tier I and Tier IV, a Tier I data server has a single uplink and servers and is used by small businesses or shops. Tier IV on the other hand, have fully fault-tolerant components and everything is dually powered. Tier IV Data centers are used by governments to run countries. According to Financial Express BD, the data center being built in Kaliakoir Hi-Tech Park will be the seventh largest of its kind

in the world. The State Minister for Finance and Planning, M A Hannan claimed that the capacities of existing data centers are not sufficient to meet the demand of the various Government agencies. This data center would meet the current demand and provide a highly secure building for holding Government data.

05.

Skill Development for Mobile Game and Application The saying goes “all work and no play makes Jack a dull boy”. The Bangladeshi government did not want to be Jack and in August of 2016, launched the “Skill Development for Mobile Game and Application” project to gain a footprint in the global gaming and application markets. It is estimated that by the end of 2016, the global mobile gaming market will be worth approximately $36.9 billion, with the lion’s share going to the United States and China. The market is expected to grow even larger and the government, rightfully, wants a share of the pie. In a local context, out of the 63.3 million internet users in Bangladesh, 59.7 million of them use their mobile phones to access the internet. In the local market alone there is a huge potential for local developers to make it big. Some local games like ‘Heroes of 71’, ‘Tip Top Ant’ and ‘Dragon Village’ were downloaded by millions of users according to NewAgeBD.com. However, despite the

popularity of these games, the majority of the market here is dominated by foreign developed apps and games. This project seeks to end their dominance by creating 8,750 app developers and 2,800 gaming animators by December 2017. In order to do that the project will develop seven Mobile Apps and Game Development Academies at the divisional level, while Mobile Apps and Games Labs, App Testing Labs, and Training Points will be established in educational institutions across 30 districts.

The Future

The government has more ongoing projects and a host of projects lined for the future as well. They are actively seeking investments from developed countries. Bangladesh wants more investments into the Hi-Tech Parks from the United States. Investors in Hi-Tech Parks will be incentivized by tax breaks on income, export and import for the next ten years. Bangladesh has already signed Memorandum of Understandings with the US to build more start-ups in the IT sector. The recent visit from President Xi Jinping of China focused on increasing Chinese investments into the IT sector in Bangladesh. President Jinping, along with Prime Minister Sheikh Hasina laid down the foundation stone for the Tier IV Data Centre in Kaliakoir Hi-Tech Park. On top of that, the governments have signed MOUs where it was agreed that the Chinese government will provide loans for building a National Infra-Network for the Bangladeshi Government, and establishing a project titled Digital Connectivity and Modernization of Rural and Urban Lives in Bangladesh through ICT. The sheer size of the Bangladeshi population, coupled with the fact that internet usage is on the rise, means Bangladesh is a very attractive location for investors. The government is doing its part by offering lucrative investment options. If things go according to plan, who knows, maybe the next Mark Zuckerberg could be found Bangladeshi!

World Wide Investment

Q What is the real scenario in this area? ICT is the backbone of any digital initiative, which covers the immense area of information, communication and telecommunication technology. It is also a combination of physical backbone and intellect. Since 2002, the ICT sector in Bangladesh is recognized as one of the “main sectors” in terms of potential transformations,

Uttam Kumar Paul Secretary General BASIS

exporters and startups have given sufficient evidence of their qualifications. With the availability of our abundant human resources, Bangladesh is ahead of the others in many ways. In fact, Bangladesh is now considered to be among the next high prospect destinations in the segment, with rave reviews from AT Kearney, Gartner, Goldman Sachs and a host of others. The fundamentals of the industry are summed up in the diagram below. The industry has seen strong growth over recent years involving 250,000 people, with 1,500+ companies. On top of this, there are freelancers registered in platforms like Upwork, Elance who have gained a reputation for providing quality service at affordable costs; although at the lower or mid-tier job categories. Our country is considered as one of the leading countries in outsourcing and ranked in the top 30 countries in the Gartner Outsourcing ranking. Overall, it can be said that ICT industry of Bangladesh is going on the right track at the moment.

What is the present trend of growth? employments opportunities,industry evolution, and refining governance. Over the past three decades, Bangladesh’s ICT industry has been developing slowly through its software, digital services, and e-commerce business. A large portion of the software and IT services of Bangladesh serve various companies in Europe, North America, and East Asia. We believe that South Asia is another promising market for us. Our emerging

ICT Sector At a Glance

USD 600 Million+

USD 132.5 Million+

250,000+

1500+

Companies

People

Export

Total Value

Source: BASIS & Light Castle Research

The Bangladesh ICT industry may be separated into two groups; one being IT and another being IT-enabled services (ITES). Furthermore, IT enabled services can be classified in application services which involve systems integration, infrastructure development & consultation and Engineering services which involve the development and testing of hardware and software. Almost 1,500+ IT/ITES companies are currently registered in

The industry has seen strong growth over recent years involving 250,000 people, with 1500+ companies.

Source: BASIS & LightCastle Research

discussed and mutually agreed that there is vast opportunity to work on ICT infrastructure and other required facilities to build smart cities in Bangladesh. So, yes there are possibilities of growing our IT further.

What is your comment on our future of IT industry?

Source: EPB

Bangladesh. More and more are coming in line and mostly are involved in ICT value chain services, extending from custom-made applications & maintenance to BPO services. The local requirement from banking, telecom, pharmaceutics, RMG and Textile sectors has also built up the capacity in the sector for export services. The research data shows the trend of contribution from different activities on ICT sector with overall 55% income generating from customized software development. Currently, the top outsourcing destinations are USA, UK, Canada and Australia. Though, current

contribution from ICT sector is dwarfed by the billions earned by the RMG sector, there is huge scope for enormous expansion in IT to build a Digital Bangladesh, to move into the digital domain which will generate employment and create numerous benefits in different sectors across the country. What are the challenges? We've seen great progress but the industry still has a long way to go. The essentials such as government will, private sector capability, talent availability and the necessary infrastructure are already in place. Different authorities are patronizing various activities but the major challenge is

inadequate co-ordination. Other challenges are speedy development in improved communication, uninterrupted power supply, industry-friendly infrastructure, producing industry ready ICT Skills etc. Limited financial resources, inadequate public-private partnerships are also important points to focus on.

We heard that after the visit of the Chinese president there are possibilities of growing our IT? During the visit of the Chinese President, there were positive discussions between ICT Division of Bangladesh and Honorable President of China. It was

We still have a long way to go before we reach the $1 billion mark by 2018 and $5 billion mark by 2021. As I mentioned before, the basics such as government will and private sector capability, and the enabling infrastructure are already in place. However, the local market is almost untapped. If we can make slight changes in our existing tax & vat rules related to IT services and customized finished products, our local IT industry itself will become a much larger market. In the coming years, the government agencies will be the major buyers of IT & ITES in order to tone with the vision of digital Bangladesh. We just need the right set of structured actions and Bangladesh can jump into the province of IT/ITES outsourcing heavyweights by leveraging its natural advantages in many ways to other countries. Moreover, the local market is almost untapped.

www.ibtbd.net

Feature

Working with Wisdom By Rehnuma Karim, Ph.D

EMOTIONAL INTELLIGENCE

Act Accordingly

Scenario

Picture yourself in one of two situations,

You find yourself supervising a team. One of the team members is teasing and blaming another member for not completing a task in front of others. However, you have decided to ignore the situation without consideration of the teased employee's feelings.

These types of episodes can cause stress at the workplace reducing the overall productivity of one's organization. The course of events in these scenarios could have been handled in a better manner through effective management of one's emotional and social skills. The team member at the meeting should not be belittling his colleague. As a supervisor, you should be noting these disruptions and avoid being passive. Throughout various situations in our everyday life, we often act and speak without giving the matter a second thought or making an effort to understand the social environment around us. A lack of understanding one's self, as well as others, creates situations that become a speed breaker towards our strive for optimum success. There is a saying by Aristotle, â&#x20AC;&#x153;Anyone can become angry - that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose and in the right way - that's not easy". This concept applies when we put ourselves in the position of an observer. As a participant in the given situation that demands us to take hold of our emotions and act decisively, we often do not put ourselves in the other's shoe. This is where the emergent concept of "Emotional Intelligence" (EI) plays a big role. In 1990, two psychologists, John Mayer and Peter Salovey, pioneered the idea of emotional intelligence. It was later researched and popularized by the psychologist, Daniel

Scenario

You received an email from an angry colleague regarding how you handled a certain scenario. Upon reading the email, you are immediately aggravated. In response, you send a very aggressive email in response.

Goldman, in his book titled, â&#x20AC;&#x153;Emotional Intelligence". According to Goldman, â&#x20AC;&#x153;Emotional intelligence can be defined as the ability to monitor one's own and other people's emotions, to discriminate between different emotions and label them appropriately and to use emotional information to guide thinking and behavior." An underlying ability in emotional intelligence fundamentals is to required in order to proficiently understand emotional competence in areas such as customer service or teamwork. The impact of EI has become one of the most compelling topics in the world of business particularly in the areas of leadership and employee development. Worldwide, today's companies routinely look through the lens of EI in hiring, promoting and contributing to the growth of employees. It was found that Intelligence Quotient (IQ) counts for only 20% of one's success while the 80% is due to emotional intelligence and the surrounding environment. I have witnessed many people with high IQ flounder in the real world where one has to deal with people, whereas, individuals with modest IQs are doing surprisingly well. In the real world CEO's are hired for their intellect and business expertise and often fired for the lack of EI. Studies also showed that around 90% of top performers in the workplace have high emotional intelligence. Why is this concept of EI suddenly becoming a buzz word? The Harvard Business Review hailed EI as "a groundbreaking,

A lack of understanding one's self, as well as others, creates situations that become a speed breaker towards our strive for optimum success.

Rehnuma Karim is an Assistant Professor at the State University of New York at the school of Health and Human Development. She is also the Founder and President of "Heroes for All", a Non-profit aimed to build the potential of youth force through research, programs, workshop, and community engagement.

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Amidst all the commotion around us, we hardly take the time to make the conscious effort to improve and shape ourselves for success. Change can only happen when one understands one's strength and weaknesses. paradigm-shattering idea" shaping the business atmosphere of today as most businesses give credit to the success of their organizations to effective relationship building and motivating work environment. Even the famous Herzberg's Two-factor Model emphasized how human behavior plays an important role to an organization's success. The two-factor model highlights the significance of "motivation" and "hygiene factors" that influences a person to either feel satisfied or dissatisfied in their workplace. The motivation factor is comprised of a sense of achievement, opportunity for advancement and growth, and responsibility. While the hygiene factor among many other factors includes relationships with peers and bosses, work conditions and supervision. The entirety of this dynamic has to do with the positive or negative emotional state of those in charge or those who are peers. There can be no doubt that even in this model - the attributes of self-awareness and relationship building are present contributing to how one perceives his/her work life. Observing the rate of heart attacks and other stress-related physical and psychological problems around us, it is high time to pay attention to heighten our emotional intelligence for a balanced and productive life.

mistakes and pushing the blame onto others 8. Afraid of trying anything new 9. You let all the negativity affect your performance 10. Giving up too easily in the face of adversity 11. Engaging in pointless arguments 12. You hold others to the same high expectations you hold for yourself If you identify some of these elements in you, you need to pause and re-evaluate yourself; as Socrates wisely quoted, â&#x20AC;&#x153;Know Thyself". Amidst all the commotion around us, we hardly take the time to make the conscious effort to improve and shape ourselves for success. Change can only happen when one understands one's strength and weaknesses.

The Emotional Factor

In order to transform into a better version of ourselves we need to understand the domains of emotional intelligence suggested by Steven Stein in his book, "EQ Edge" and also discussed by Goldman (1996). Working on the following domains will allow one to evolve as a professional: 1.

Internal motivation the passion for working for internal reasons, that go beyond money and status, which are external rewards such as an inner vision of what is important in life. This entails a joy in taking on a task, and curiosity in learning; a flow that comes with being immersed in an activity.

The question that remains is how one would measure their level of emotional intelligence?

Self-regulation the ability to control or redirect disruptive impulses and moods, the propensity to suspend judgment and to think before acting.

Know Thyself

The following are signs of low EI: 1. Continuously performing poorly at work 2. Being judgmental and criticizing others whenever you get a chance 3. Losing temper over minor issues 4. Not handling disagreements well 5. You cannot lead or work in a team 6. Lacking empathy 7. Not taking responsibility for your own

Self-awareness

the ability to recognize and understand personal moods, emotions and drives, as well as their effects on others.

Empathy the ability to understand the emotional makeup of other people; a skill in treating people according to their emotional reactions.

Social skills the proficiency in managing relationships and building networks, and an ability to find common ground and build rapport.

The Smart Strategy

So what do you do if you recognized yourself being challenged in the domains mentioned? Here are few among many strategies that help: 1.

Avoid assumptions Instead of being judgmental or making assumptions based on hearsay. All the sadness and drama we create in our lives spring out from the assumptions which impact our performance and interpersonal relationships. Express Eloquence This is one of the four Toltec words of wisdom. Those with weak emotional intelligence often underestimate what a negative impact their words and actions have on others. The following is an example of what those with low emotional intelligence may say and how it’s actually heard – What you say: “If I can understand it, anyone can.” What others hear: “You’re not smart enough to get this.”

Regardless of what you intend to mean, think about how your words are going to impact others and whether that’s how you want to them to feel. 3. Press pause Having high emotional intelligence means making choices about how you respond to situations rather than having a knee-jerk reaction. For example, you might hastily shoot down other people’s ideas before they could complete their thoughts or react, instantaneously replying to an email or acting out in anger. You need to start to take pauses before reacting; taking this time to listen to one's self and others. 4. The other shoe You develop empathy by putting yourself in another's position. A key component of EI is empathy. Think how you would feel if you were at the receiving end or you were going through the crisis as the others are. This practice will give you a whole new perspective influencing your attitude a d behavior towards others. 5. Mental scale Don't take things personally and try to weigh in the positives instead of the negatives in your life. We are in control of our mind and we can control our emotions. We often make assumptions that everything is about ourselves which is far from the reality. This is a maximum expression of selfishness where we feel offended and can react to create conflict in our lives. As the Toltecs use to say, “your mind is a dream where a thousand people talk at the same time and nobody understands each other." Strengthening your emotional intelligence takes commitment, discipline, and a genuine belief in its value. Consequently, it can help us understand the world around us along with understanding ourselves. With time and practice, we find that the results we achieve far outweigh the effort it took to get there. We can eliminate the static in our lives by practicing the management of destructive emotions, empathy, and self-awareness; an action which is becoming an essential leadership tool.

Feature

Ending on a good note CORPORATE

By Antony Rahman

O Clearly, the company has taken a hit to its image and reputation, even if the change turns out to be an improvement and net gain for them, their integrity and conduct is still brought into question.

rganizational changes and restructuring are a deeply embedded and inescapable aspect of corporate culture. A successful business is ever changing, always trying to enhance and improve in various ways, and these shifts can often have negative and upsetting repercussions on the people employed there. Even the top brass of any given corporation are not immune to this, and sometimes people in influential positions are forced to step down and end their tenure. When this happens it is very important, even absolutely imperative for all parties involved to present the transition as a graceful affair, with no hurt feelings or bad blood involved. Preserving the reputations of both the company and the departing individual is mutually beneficial in the long term. Cyrus Mistry, chairman of the $102 billion company Tata Group, was recently and abruptly replaced by Ratan Tata who has taken on the position of interim chairman for the next four

months. This is unusual as Tata Group is known for its good code of conduct and impressive ethical principles in matters related to their employees. Following that, Tata group released a statement filled with vague sentiments and lacking in information, which caused unrest and confusion among customers and shareholders alike. That Cyrus Mistry did not resign of his own free will spoke of possible altercations or a deeply rooted lack of trust among the top echelons of the organization, and even now speculation is rife as to what exactly transpired and what it means for everyone involved with the company, whether it be employees, managers, or shareholders. Clearly, the company has taken a hit to its image and reputation, even if the change turns out to be an improvement and net gain for them, their integrity and conduct is still brought into question. This state of affairs can obviously have long reaching negative consequences for everyone involved, and as such

organizations should aim to avoid this sort of occurrence within their own sphere. There are many steps that can be taken to help with this, not only from the organization in question but from the departing individual as well. When a company decides that one of their top level employees departure is unavoidable, they should put a significant amount of time and effort into preparing beforehand in various ways, such as informing the individual in question ahead of time to allow them some time to think everything through calmly and clearly, and offering to make the transition as smooth as possible. This can be achieved by offering the

employee a reasonable severance package, and by attempting to help them secure employment in the future through good references and recommendations. Care must be taken in preparing a P.R. Statement to be issued to the shareholders and employees which don't paint the departing individual in a negative light. In particular, it is important for a business to control and cultivate the gossip and rumor mills inherent to every workplace, so that changes in the top level and management structure are not seen negatively, but rather as a part of the growth and progress of the company. In relation to this, another thing to consider when an

influential member of a company leaves is how big the company is. When a company consists of a smaller number of people, an important or influential employee leaving can cause significant unrest and turnover among the remaining workers, as smaller workforces are more likely to be tightly knit groups. In contrast to this, any one person leaving a large company is likely to have a relatively smaller impact on the rest of the employee base. However difficult and unsatisfying it may feel, it is also always essential for the person on their way out to do their part in not exacerbating the problems of a termination. There are several ways for the person

in question to avoid leaving behind resentment and render themselves less susceptible to unflattering assumptions about their competence as an employee and even their character. The best way to show grace in this situation is for the departing employee to help hand over the reigns of their previous position to their successor. This takes a significant amount of tact and poise and serves to display to everyone that you are not leaving on bad terms, or being terminated on account of a bad personality or character flaw. In addition to this, it is also helpful to express appreciation for the training, experiences, and relationships that you've cultivated during your stay in the organization. Thanking the people who supported you on your journey and making an effort to keep in touch with them in the future helps not only to make a graceful exit but can go a long way towards ensuring a fruitful and satisfying professional future. Even though most of the above is fairly obvious and can even be termed common sense, in situations like these it can be very difficult for all involved parties to maintain a calm and rational atmosphere. Tempers flare, feelings and egos are hurt, and overall it is not commonly a pleasant circumstance. However, at the end of the day, the most beneficial course is never the one that ends up smearing and damaging the public and internal image of everyone involved, but rather a mutually beneficial and amicable transition. www.ibtbd.net

Interview

Samsung always focuses on adding value to peopleâ&#x20AC;&#x2122;s lives through innovation and technology. All our CSR activities reflect the same motto.

SAMSUNG MOBILE

Md. Muyeedur Rahman, Head of Mobile, Samsung Bangladesh

Bangladesh’s smart device industry looks very promising in the years ahead. As it has in the previous year, the mobile phone usage will increase significantly this year.

What is the status of Samsung mobile in the global market and in Bangladesh?

As a leading global mobile device provider with an annual sale of $250 billion, Samsung operates in more than 84 countries and regions with 490,000 employees worldwide, serving one-third of the total world population. Samsung, in its 7th year of operation in Bangladesh, has emerged as a leading mobile device company in the country. During this period, the company has upgraded its technology and introduced various models of Samsung devices. Samsung is optimistic about its opportunities in Bangladesh that are also aligned with the digitalization of the country.

What are the current mobile technology trends in Bangladesh?

In recent times, the global mobile device market has been influenced by the rise in demand for smart devices. This trend is also prevalent in Bangladesh’s market, as the users are shifting from the traditional feature phones to smartphones. This is happening globally because of the overall change in the communication mode and the availability of faster internet; a trend that has lead the consumers of our country to rapidly switch their mobile devices to smartphones in order to stay ahead of the curve.

Tell about the latest smartphones of Samsung in the Bangladesh market and how Samsung is catering the need of the Bangladeshi customers?

Samsung is the market leader in terms of value market share in the smartphone industry of

Bangladesh. Due to consistent innovation in technology, reliability, competitive pricing and brand image, Samsung has always been the first choice of consumers in most segments. Samsung has created a global aspiration with its high-end premium devices. Devices such as the Galaxy S7 Edge and the Galaxy Note 5 have astonished the smartphone users worldwide and are considered a tremendous commodity for Samsung. Succeeding with these premium devices globally, Samsung has gained the faith and trust in the minds of the customers, who constantly demand the best in class service and superior quality products. Samsung’s premium devices are lauded by many of the best smartphones on the shelves at this moment. Fact by fact these latest Samsung devices can impress a customer on all fronts. The performance is top-notch, the camera is excellent, and all in all, these devices will remain some of the best phones in the recent times.

Could you tell us about any new and innovative products that are being introduced to the local market?

The people of Bangladesh appreciate the innovation and have always welcomed new technologies. Besides the flagship and premium devices of Samsung, the demand for affordable and stylish J-series devices is escalating fast. In regards to this, Samsung has released their latest addition to its J series smartphone lineup – the Galaxy J7 Prime. A new design language with a metal unibody and ergonomic height-to-width ratio and a www.ibtbd.net

Samsung, in its 7th year of operation in Bangladesh, has emerged as a leading mobile device company in the country. During this period, the company has upgraded its technology and introduced various models of Samsung devices. fingerprint sensor on the home button are key changes from its predecessor. The Galaxy J7 Prime will elevate the customer’s experience to the next level.

Knowing the business and its success in the country can you tell us about the CSR activities of Samsung in Bangladesh?

Samsung always focuses on adding value to people’s lives through innovation and technology. All our CSR activities reflect the same motto. We have previously run successful projects with the Directorate of Technical Education. Under that project, we initiated “Samsung Technical School” at Dhaka Polytechnic Institute, creating a new, state of the art laboratory for the students of the institute. We also developed training programs where we upskilled the trainers at the Polytechnic Institute so they could provide advanced repair and industrial skills training. Samsung Electronics recently introduced its latest initiative to help improve the lives of those with autism. Samsung, in partnership with Shuchona Foundation, launched the application “Look at me”. It aims to help develop communication skills in children with autism, with a view to deepening relationships with those around them. This app is a

harmony between technology and humanity. “Look at me” was very successful in Korea and Canada; with the same aspiration to succeed is the app is being launched in Bangladesh. We hope to continue working on similar projects in the future that will improve the quality of life through technology. We believe the results of this app in Bangladesh will be progressive and it will build a positive impact in the lives of autistic children.

What is Samsung’s plan for Bangladesh in the coming future? Are there any new products or services in the works?

Bangladesh’s smart device industry looks very promising in the years ahead. As it has in the previous year, the mobile phone usage will increase significantly this year. Consistent with this growing number of mobile phone users, Internet usage through smartphones is also on the rise. According to the latest statistics from BTRC (Bangladesh Telecommunication Regulatory Commission) by the end of August 2016, there were more than 119 million active mobile subscribers, of which Internet users were 58 million. People using mobile devices to access the internet was close to 51 million. Due to massive 3G expansion and mobile

Internet penetration, users are finding it easier to access the Internet on their mobile devices, which in turn will massively reduce feature phone usage and will influence customers to lean towards smart devices for their everyday communications. To stay a step ahead in this industry, Samsung is working continuously to meet the demands of this growing number of smart device users. Samsung, along with its feature phones, now have a wide range of devices that are ready to embrace the fourth generation of wireless mobile telecommunications technology, 4G. Our customers need specific features in their devices that contribute to their lifestyle and provide them with better consumer benefits. These devices from Samsung are designed with in-built features along with brilliant specifications that are available at affordable prices. Features like the Ultra Data Saving, Turbo Speed Technology, S Power Planning, S Secure, S bike are among the many features that these devices have to offer. S bike, for example, is a unique feature in a Samsung smartphone that allows bikers to facilitate calls while riding. The S bike mode once activated informs callers through an automated answering machine that the biker is riding and cannot take calls. In the case of emergency, callers can press 1 to reach the person. Bikers can then take the calls only after coming to a halt. The motion lock in the phone does not allow the incoming call to get answered during a motion lock mode thus ensuring the safety of the rider.

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STEEL INDUSTRY

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psi), substantial ductility with elongation of 14%, and weldability that prevents it from becoming brittle. Furthermore, it is manufactured by a state-of-the-art rolling mill to ensure that it remains 180 degrees straight. Their amazing quality of quality spectrums of steel production has secured with certification from BUET and the International Steel Market Organization.

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Interview

By the end of 2017, we are expecting the smartphone and feature phone sales ratio to become 50-50.

SYMPHONY

Rezwanul Hoque

Senior Director Symphony Mobile, Edison Group

R ezwanul Hoque has 15 years of valuable experience in the mobile handset industry. As an MBA graduate, he has a charismatic influence over almost all channels of the mobile phone industry from suppliers, dealers, retailers and customers. He is also served as the General Secretary of Bangladesh Mobile Importers Association.

With smartphone penetration growing in our country day by day, how do you see the scenario in Bangladesh evolving over the next few years?

Right now, the import of smartphones from year to year is growing by 50%. Last year total import of smartphones in Bangladesh was around 6 million, this year it's around 9 million. So you can see the 50% growth there. Smartphone penetration is another statistic which is constantly improving. At the end of 2015 it was around 20% and in 2016 it has grown to 30%. If we look at the pattern of growth, we can easily see that this situation will only improve in the future. If you look at most developed countries, 80% of the people have smartphones and 20% have feature phones. In Bangladesh the scenario is somewhat reversed as 30% of the population are using smartphones while the remainder is using feature phones. This shows the immense scope available here. At the end of this year, only two crore people from our population will be smartphone users. However, in the next few years, this number will grow to six crores. By the end of 2017, we are expecting the smartphone and feature phone sales ratio to become 50-50.

One of our biggest strengths comes from the depth of our sales services and distribution network which is available to customers even at the Thana levels.

What can you tell us about the competitive scenario of the smartphone market in Bangladesh?

The competition in the smartphone market has driven out a lot of previously prominent brands. Once upon a time we had 20-25 international brands in the market. Now you will only see about 5-10 brands controlling the market. Market domination from big names will always fluctuate with time. Apple recently faced problems with the headphone issue and Samsung faced massive problems after the problems with their Note 7 series. Other famous brands who used to dominate are no longer playing a significant role like Motorola, Nokia, BenQ-Siemens, etc. If we look at the local scenario in Bangladesh you have to see how it has been dominated by local brands. The market share of foreign brands was only 15%, whereas local brands covered 85% of the demand. However, international brands are gaining momentum and their share of the market has recently grown to 25%. Out of this, Apple has around 1% maybe. The remaining portion is dominated by Samsung and Huawei. In terms of the overall scenario, the largest share belongs to Symphony with 45%. Next, comes Samsung with around 15% and Walton with 8-9% of the market share. Local brands are currently at the top of the smartphone market in Bangladesh and will be there for a few more years. However, it has to be noted that slowly international brands will gain more power especially the Chinese brands like Huawei and Xiaomi. www.ibtbd.net

What kind of role does innovation play in helping companies improve their positions in the smartphone market?

Innovation is saturated in the market right now. We can see this with the development of the iPhone 7 which left a lot of people disappointed. Of course, there will be incremental changes but they won't be drastic or groundbreaking. We can bring out Full HD, but immediately after that you can't expect double Full HD. You have to depend on a few key innovations to lead you forward for some time. Therefore, companies are concentrating on improving themselves in already existing avenues. We can see this with the improvements being made in regards to camera optimization, design aesthetics, and the overall user experience. At Symphony, we focus on three key areas. Firstly, we focus on providing quality phones. Secondly, we focus on providing value for money. These two aspects are down to our in-depth understanding of the market in Bangladesh. Finally, when it comes to aftersales services, we are the number one in the country. You can buy international brands but you won't have service centers like we do across the country. One of our biggest strengths comes from the depth of our sales services and distribution network

In India, 30% of the market has now gone online, whereas here, it is less than 1%. New brands who would want to claim a stake in the Bangladeshi smartphone market can dedicate themselves to serving online customers. which is available to customers even at the Thana levels.

How can new brands hope to enter this competitive framework in the Bangladeshi smartphone industry?

In the international market, Chinese brands are creating a stir with their high-quality phones and competitive prices. Their position is further strengthened by their impressive backward linkages. However, making an impact in the Bangladesh market might be a taxing prospect for some foreign brands as a large amount of invest would be required in the distribution and service networks. This procedure will also take some time as they will be required to settle and grow for a number of years. Symphony has the upper hand in this regard. Currently, the biggest opportunity for new players lies in the online market. In India, 30% of the market has now gone online, whereas here, it is less than 1%. New brands who would want to claim a

stake in the Bangladeshi smartphone market can dedicate themselves to serving online customers. The advantage here lies in the fact that through e-commerce and online sales, companies can cut down other sales and distribution costs which can allow some sellers to provide phones at reduced prices. However, the problem in our country is that a lot of the online trade is going on through the gray market which allows retailers to sell the phones without the 25% tax that's imposed on properly imported phones. This gray market needs to be nullified before a proper online phone market can be established in Bangladesh.

What new products can we expect from Symphony in the coming days?

We always trying to innovate and improve our quality. Our latest flagship phone from our Z Series is set to be launched in the first quarter of 2017. We are also releasing a new phone on our R (Robust) Series which focuses on the battery life as that's a major concern for smartphone users. The newest models in this series come with a minimum 4000 mAh battery. This will focus on both reducing energy consumption and improving the battery size. However, regardless of the enhanced battery, you will not find any difference in its design compared to our other phones. Our symphony accessories department which opened 3-4 years back is also working to provide customers with everything they need including batteries, chargers, and power banks.

Interview

THE WESTIN

Maintaining Excellence Dilip Madhok

General Manager The Westin

You cannot simply spend the greater majority of your budget on the aesthetics of your hotel and not focus on the amenities that you would provide the customers during their stay. In this context, understanding your financial capability is extremely necessary.

What are the challenges in running an international standard hotel in Bangladesh? Are there any training programs for director and staff?

The biggest challenge is sourcing quality products. Furthermore, we have a number of strict brand standards that we must adhere to. In order to maintain the standard product, we are required to import a majority of raw materials and equipment. At the Westin, we have a number of training programs conducted within the hotel for our staff to improve their skills and prepare themselves for the next step of their career. We concentrate on developing our leaders from within our own team; to achieve this, we have a number of self-development online courses offered to our staff.

You have international experience in India and China. How has your experience helped your career? Are the hotel industries in those countries vastly different from the one in Bangladesh?

My international experience has given me the skills to recognize and seize business opportunities. I am able to relate to a wide range of guests while being culturally sensitive. The hotel industry is quite similar in most countries. In Bangladesh, our hotel industry is still growing and we see new hotels coming up each year. The increasing competition encourages us to continuously be innovative and deliver exceptional services. This is an exciting time for the hotel industry in Dhaka.

Westin Dhaka is a large hotel with over 240 rooms. How do you manage such a large staff? What advice do you have for a new manager of large hotels?

Empowerment is the key when managing a large team. I believe that as a manager, one must be able to give their utmost dedication to the recruitment and selection of their staff while ensuring job satisfaction. Additionally, they need the power to make decisions to ensure that our customersâ&#x20AC;&#x2122; expectations are exceeded. Assigning responsibility and giving clear instructions is another important management skill. I would say if you lead by example you cannot go wrong; so walk the talk as your team is continuously watching you.

You have obtained degrees in Managerial Economics from Pune. What lessons and skills has your education taught you regarding management? Do you feel that this is an essential part of the job criteria? Do you believe that it needs to be introduced to Bangladesh? My educational background has assisted me in evaluating the financials as the financial statement of any business, is the most important tool to measure and set goals. When making a major business decision, it is imperative to understand the economic impact. I do feel that being financially savvy is an important skill for any business leader. You have to ensure that your investment will be worthwhile in the long run because profit allows you to expand and better your services. It also allows you to provide new service and upgrade any facilities that you can provide. With many technological and architectural advances providing consumers with new experiences, you must make sure that yours are up to the mark with any international standards. The idea of expanding in accordance with the means available is a concept that requires further application in Bangladesh. You cannot simply spend the greater majority of your budget on the aesthetics of your hotel and not focus on the amenities that you would provide the customers during their stay. In this context, www.ibtbd.net

understanding your financial capability is extremely necessary.

What are the qualities of any effective manager? What skills and qualities do you instill in your staff?

An effective manager needs to have a good financial understanding of the business; be an effective listener who is decisive and genuinely care for the team. An effective manager must first listen to both the staff and the customers. The customers provide the greatest insight as to the shortcomings or the services that are not up to the mark; this must be taken as constructive criticism. In addition to this feedback, a hotel is run by a large staff and entails numerous services, therefore the opinion of your staff is imperative. They are able to tell you if any improvements are needed. So we firmly believe that we need to look after our staff who in turn will look after our guests and give them a memorable experience. We encourage them to provide their suggestions or mediate solutions as they see best. This allows them to learn to make smart decisions. Our staff are always encouraged to pay attention to the details, take ownership, to learn new skills and grow with our organization.

With such as large employment pool, what tools do you use to ensure cooperation?

We do use technology to communicate and keep our staff well informed of all updates. Technology has made it very easy for such a large staff to stay in constant contact, mediate solutions as a collective unit, and disseminate information regarding a client, problem or service that is to be provided.

The customers provide the greatest insight as to the shortcomings or the services that are not up to the mark; this must be taken as constructive criticism.

The team is encouraged to voice their ideas and forums are set up to receive feedback. We want each employee to know that their opinion and employment experience are of value to us. If we are to function as one cooperative unit, each and every member of the team must be content in their field and have the passion to provide quality service. We encourage open dialogue and discussions to reach the right solutions because we believe that with all of our collective ideas, the best solution can be attained. Delegation and accountability are some of the keys to managing our large team. Every member of the staff must focus on the purpose that they have been assigned to and have a sense of personal responsibility to see that it is carried out.

How has Westin contributed to the hospitality and tourism of the nation?

Westin has been consistently, introducing new trends and cuisines to the people of Dhaka. We have set the expectations of the international travelers for what standards of hospitality can be experienced in Dhaka. Being a truly international brand, guests from all around the world are familiar with the quality of our hotel and feel comfortable when traveling to Dhaka. We are located in the center of the city which allows for tourist and businessmen to have equal access to all parts. Furthermore, they can also experience some of the greatest local and international cuisines at our restaurants. If they have any specific requirements, such as travel service, guidance through the city,

exercise or leisure needs, our facilities and staff are able to cater to these requirements. We want to provide them with a holistic experience that allows them to understand the quality of Westin and the potential of Dhaka. Also, our Bangladeshi guests know what to expect from an international hotel when traveling overseas.

With many new hotels opening in Dhaka, do you feel the pressures of being continually innovative? How does Westin stay ahead of the competition?

Westin is a brand known to be innovative and is constantly evolving and introducing new services and products for our guest to experience. We don't ever believe that we can rest on our laurels; we have won a number of awards and accolades for our exceptional and exemplary standards of service and facilities. We have won the World Luxury Hotel Awards for 6 years consecutively. We pride ourselves in creating more than just an experience, we want our guest to create memories of the wonderful time and service that they have experienced during their stay at the Westin. Our guests leave us relaxed and rejuvenated, ready for the next challenge. A significant part of staying ahead is the fact that we are an international brand. This provides us with the insight for the latest in luxury trends, and the best innovations in terms of service. We have a constant pressure to maintain our standards because we have established a reputed name throughout the world. If one of our hotels pales in comparison, it reflects on the global brand that is Westin.

INDIGENOUS LIFE

WATER CRISIS

Scouring Through the Scarcity By Monowarul Islam Water scarcity affects more than 40% of the people around the world, an alarming figure that is projected to increase with the rise in global temperatures as a consequence of climate change. Although 2.1 billion people have gained access to improved water sanitation since 1990, dwindling supplies of safe drinking water is a major problem impacting every continent.

Causes of Drinking Water Scarcity in CHT

Drinking Water Scenario in the Chittagong Hill Tracts (CHT) Bandarban, Rangamati, and Khagrachari; three hilly districts of the CHT of Bangladesh have been suffering from an acute drinking water crisis, particularly in the dry seasons for many years. There are many areas in these districts, which have no tube-well within miles of the localities. In some areas, tube-wells have been gone out of order for many years and in many areas working tube-wells lack water. The residents of these localities then have to depend on sources of surface water such as waterfall, rivers, lakes, canals, springs and ponds which can be unsafe for drinking. Drinking water availability in CHT is not found uninterruptedly around the year. During the dry seasons from February to May, the water flow of canals or springs become dry and drinking water sources become scarce. Also, the shallow aquifers groundwater sources i.e. ring well, dug well etc. become dry and the water levels go down. The use of groundwater in CHT is comparatively low. The hard bedrock underlying much of the region makes tubewell installations difficult. As a result, wells are not drilled deep enough and those that are, dry up quickly. Moreover, it is quite expensive to drill a hole and thereby to install a well and the semi-operational wells dry up between February and May. Villagers who rely on rivers or streams also face water scarcity during this period.

Water rights are rather undefined compared to land and forest rights. Sustainability of groundwater based technologies installed for producing water is questionable due to the many challenges in this area which originate from the geographical context, land type, depth of groundwater, hard rock layer below the ground surface, proper maintenance, replacement of instruments, seasonal disorder, high iron content bad odor, and taste. Often within a few months or years, most water installations go out of order. As a result, people return to their surface water sources and face difficulties for water collection. It will be a major challenge to mitigate the demand for safe water in this region. Water sources are not protected and with the lack of conservational practices, the prime water sources are gradually degraded and dry up. Unsafe water practices are also a common phenomenon in the remote villages of CHT.

The common perception of the inhabitants of CHT on the scarcity of drinking water is mainly caused due to the erratic rainfall which occurs due to climate change. Rapid forest degradation and unsustainable consumption of woodland resources are also causing this change in the rainfall pattern. Spring creation happens only on those hills where thick cover indigenous forests exist. It is believed by the indigenous people that springs originate from the accumulation of water drops discharged through tree roots in the pronged of the hills. This process is further reinforced by the sweating of the hills and precipitation. The degradation of bamboo trees has become the main cause of water scarcity in this area as bamboo helps store water in the soil. Also, the lack of rainfall variation means the groundwater level is not recharged. This is also hampered by the installations of deep tube wells. During the rainy seasons, flash floods can often pollute the water sources. This happens just after the rain when rapid water flows arrive from the upper hillsides. This phenomenon can occur during June, July or August. Once this happens, villagers have to go through a waiting process for the water to become normal before they can collect it for drinking purposes.

Role of Indigenous Women in Drinking Water Management Indigenous women conventionally contribute to daily labor and other types of agricultural activities along with their male counterparts. www.ibtbd.net

However, as an additional practice, they are also tasked with collecting drinking water throughout the year. There is no specific reason behind this therefore, it can be concluded that it is just a traditional and social practice for the indigenous community. During water collection, women face various difficulties. Women have to content with performing this industrious work alongside their regular household tasks. Due to this, they may sometimes feel stressed when they return from agricultural field work and again have to go for water collection. When the collection process requires them to travel some distance it may even lead to physical discomforts. During rainy seasons, the roads become muddy and smeared, which could make transporting the water in large pots even more bothersome. Particularly after sunsets, they may even encounter snakes or pests. During the dry seasons, they perform this task while struggling through the severe heat. After collecting water, women then must preserve it. They store water by traditional earthen pots, modern silver pots, jugs, jerry cans, plastic bottles, etc. In most cases, they use the same water pot for preservation and collection. A few households make cloth-made filtration systems but otherwise, they do not take any other purification measures. All activities relating to drinking water i.e. collection, preservation, filtration, serving etc. are done by the female members in CHT. The male members only collect water during emergency cases i.e. when illnesses or accidents befall the female members who are mainly involved in collect drinking water.

Indigenous Women and Agriculture It is customary for indigenous women to do agricultural work in the jhum fields. Women also perform most of the household activities; this includes waking up early to pound rice, cooking food then serving the food to other family members, taking care of the children and also taking care of their domestic animal husbandry activities. In the Jhum field, almost all adolescents and women are involved in planting, weeding, and harvesting. Sometimes they also help with the slashing and burning. Women usually try to reach the jhum fields before sunrise and stay there till the evening. During winter, women collect firewood and are engaged in beer and liquor production. The elderly women stay home to take care of the children of the people who go to work in the fields.

Conclusion and Recommendations To address the acute water scarcity situation and reduce the stress poured on the women from water collection in CHT, realistic and community friendly development initiatives are imperative. Like any other remote area in Bangladesh, climate change-induced water scarcity is widely visible in CHT. Also, it has to be taken into consideration that groundwater extractions can lead to mixed results due to varying altitudes, rock formations, and seasonal water level fluctuations. Therefore, useful strategies which can provide sustainable solutions are: (i) Developing water reservoirs at appropriate altitudes for capturing and storing spring and/or rainwater for distribution to downhill communities through small flexible pipe networks (ii) Infiltration galleries, protected dug wells and tube wells where feasible, should be developed as community water points (iii) Individual or community Rain Water Harvesting

Systems (RWHS) with adequate storage for supplementing dry period requirements Integration of indigenous and scientific knowledge along with active community involvement and participation can help sustain these solutions for acute water scarcity. In the hilly areas, where water is a particularly scarce resource for households, more local studies need to be done on the feasibility of wells. It is of particular importance to use geological data to the fullest extent possible, in order to develop a set of models which can be used for the local situation. These initiatives might be initiated by the Regional and District Hill Councils of CHT with a participation of tribal leaders and representatives of local indigenous people and institutions with the cooperation of local government institutions and development agencies. The writer is a Senior Research and Communications Officer at the Bangladesh Centre for Advanced Studies (BCAS) and the Treasurer of the International Union for Conservation of Nature (IUCN) Bangladesh National Committee. He can be reached at monowarul.islam07@gmail.com.

Tech

Breaching The Surface MICROSOFT S U R FA C E S T U D I O

Microsoft shows the world how to reimagine computers

By Abhijit Asad

f someone had mentioned even a decade ago that Microsoft would be making the most exciting out-of-the-box computer of 2016, they would have been laughed out of town by the reigning tech gurus of the time -- and with good reason, too. At that time, Microsoft had been submerged in an era of deep stagnancy and mediocrity, owing largely to substandard management and a crippling lack of vision. Yet, here we are, staring in awe at the Microsoft Surface Studio, which makes Apple’s horribly designed new Macbook Pro look like a laughable toy in comparison. In all fairness, the Surface Studio is something we would not have expected to emerge from Microsoft’s labs. Although Microsoft has been working on their own tablets and hybrid laptops (the

Surface Pro and Surface Book ranges) for a while now, people’s reception to them has been relatively lukewarm; they have not achieved ubiquity the way iPads and Android tablets have. While they remain huge favorites for many artists, they scratch a rather niche itch, so to see a computer as bold as the Surface Studio emerge as the next evolutionary step of the Surface range is a stunning and pleasant surprise. From a distance, the Surface Studio looks like a large 28” screen mounted on a small rectangular base on a pair of metal stilts. While that description may not sound terribly flattering, the device looks absolutely gorgeous, with subtle angles and straight lines carefully designed to reflect a conscious deviation in

fashion from the ever-so-popular round corners and smooth curves that have infected general design trends of consumer electronics for years now. There is no separate system unit as the innards of the computer are all built into the rectangular base and the screen. Parallels may be drawn at this point between the Apple iMac and the Surface Studio regarding the lack of a separate tower housing the components, but that is as far as the similarity goes. Despite its minimalistic design, the Microsoft Surface Studio is not a glorified fashion accessory. The device is powered by a beefy 6th-generation Intel Core i5 or i7 CPU, coupled with a generous 8 to 16 GB of RAM, at least a terabyte of storage space, and a powerful Nvidia

graphics card of the GTX 900M range (unfortunately, the GTX 1000-series offerings didn’t manage to make it to this one, but this reviewer believes they are going to show up in the next Surface Studio along with 7th-generation Intel CPUs). Microsoft has spared no effort in creating an ideal environment for Windows 10 to run at its smoothest on this machine. If all these technical specs mean nothing to you, allow me to translate; while it’s not as powerful as a custom-built full-sized desktop PC, it can run rings around any iMac in terms of power, and the additional GPU muscle grants it the ability to run many 3D design applications as well as games and other applications which take advantage of the GPU’s

additional processing power (these include many members of the lauded Adobe Creative Cloud family of productivity software). But the real magic of the Surface Studio isn’t about impressive performance or high-end components. It’s all about the screen. What, why did you think they call it a Surface? While the Studio can be used just fine as a normal desktop computer using the classy-looking mouse and keyboard bundled with it, the real fun begins when you plant your fingers on the screen and apply a gentle but firm push. Remember those earlier mentioned metal stilts, which are connecting the screen to the base? Those are actually meticulously designed hinges that tilt the screen backward and lower

it to an angle that is perfect for touch-based and pen-based operations. Whether you are going to paint a lush landscape, work on an intricate architectural draft or sculpt a complex 3D model, there is no finer way to do this. The technology and experience is taken to yet another level when we factor in the optional (but essential) peripheral called the Surface Dial, which looks like a silver hockey puck at first glance; placing it on the screen instantly evokes new user interface features, such as a radial menu with quickly accessible options, as well as the ability to rotate the dial and change parameters such as color on the fly while your other hand continues to paint away. Microsoft is working with a

massive number of software partners to make the integration of the Dial a relevant and useful thing for the users. The preliminary demonstrations of the Dial working its magic in various programs have been all but terrific, and the implications of this level of real-time control in this field are staggering. The Dial also works with the Surface Pro and Surface Book devices in the same way, so it’s not just tethered to the Surface Studio alone. The screen’s high pixel density and rich color reproduction, combined with its amazing touch-sensitivity and the added layer of control introduced by the Surface Dial often evokes a feeling of the man-machine interface becoming blurred, with the user working seamlessly with the software and the hardware, achieving a degree of effortless artistic synergy that has perhaps never been achieved to this extent. It should be noted that the Surface Studio is not cheap, with prices starting from $2,999 and going all the way to $4,199, and that without the Dial (which costs an additional $99) but if you are an avid digital artist and content designer, consider this the device worth selling one of your kidneys for. It’s not for everyone, and that’s where it’s true beauty lies. It is a machine that requires you to be worthy enough to utilize it to its fullest potential, which tends to go quite far indeed. On the other hand, if you are looking for a table top fashion accessory for occasional Facebooking, maybe you are going to fare better with one of the new iMacs instead. www.ibtbd.net

Beyond the Business By Shaikh Ashfaque Zaman

The Treatment TRAVEL & LEISURE

Twenty-four hours and seven days seem too short a time for deadline, project updates and traffic conditions. Stress grows like the stack of folders that await our approval. Fortunately, Mr. Cutts, a premium menâ&#x20AC;&#x2122;s salon, provides the ideal solution to relieving the tension of week. Enjoy one of their tranquil massages; the spa only uses organic oils in order to protect the skin and provide the best reflexology session that will leave your mind, body and skin rejuvenated.

Patawe Thai Herbal Oil The traditional hot compress massage has been used for ages for its many benefits. The hot organic oils improve the circulation of the lymph and blood vessel, stimulating the internal organs. The massage relieves stress, migraine, muscle pain and anxiety. And with the incorporation of lemongrass and kaffir lime, it boosts the immunity, alleviates the common cold or flu.

Artiscare Olive Oil

Written in historical and mythology text and sought after throughout the world, olive oil is unrivaled in its many uses and benefits. The Artiscare uses these very benefits reinvigorate the mind and body. Not only does the massage take away stress, the properties of olive oil reduce sunburns and stretch marks, slow skin aging and aids in better sleep.

Deep Tissue Massage

Infusing the serene aromas of almond, ginger, and chamomile, the tissue massage allows the skin to heal. Using the quality oils of the Body Shop, this combination allows the body to relieve muscular pain. The benefits of a ginger herbal press include digestive relief, antibacterial treatment, and improve the quality of the skin.

Mr.Cutts is located in Pearl Tower. Road 12, House 76 (5th Floor), Block E, Banani, Dhaka, Bangladesh

Up In The Air

By Subah Anbar Ali

hile the word ‘travel’ can conjure up images of luxurious business class planes whisking us off to exotic destinations, anyone who has to travel as a part of his/her job knows that the reality is grim. George Clooney made business travel look suave and easy in Up in the Air, but, in real life, it’s much more stressful. Between packing, planning the itinerary and functioning while jet-lagged, corporate travel can be chaotic. Luckily, these hacks and tips can ease the travel turbulence and make corporate travel a breeze.

Packing

If you have to travel frequently, make a note of the essentials that is easily forgettable (socks, painkillers, band-aids, deodorant, etc) and bring it out every time you need to pack. Plan ahead and research on the destination: weather, temperature, and even culture if you want to make the most out of the experience! Have a fool-proof packing strategy for anxiety free travel.

Battling Jet Lag

Since everyone’s body mechanism is unique, there is no one-for-all jet lag cure. Each person has a different way of fighting jet lag, and it may take a couple of tests but you’ve hit the jackpot once you’ve found your ultimate jet lag cure formula. Common methods include meditation, natural light therapy and staying hydrated. A good neck pillow is a godsend remedy for sound sleep and no back pain. If you suffer from in-flight soreness, a cheap (and fun!) solution is to bring a tennis ball to massage the back and feet by rolling it around.

Electronics

In the 21st century, with necessary documents being available on the phone, it’s much more convenient to store them electronically. Nonetheless, keep print-outs of everything at hand in case of emergencies. Chargers and power banks are just as important as mobile devices themselves, so make sure they’re packed in the carry-on and ready-to-go as well.

Being Economical (even in business class)

When it comes to being money savvy, loyalty goes a long way. Travelling by the same airline lets you accumulate frequent flier miles and get discounts for flights. Plus, a familiar face always gets upgrades to business class, so choose your airline wisely. Look for credit cards offer rewards and have discounts at various hotels, both domestic and overseas.

Airport attire

Invest in a carry-on that doubles as a messenger bag for the times you need to go straight to a conference from the airport. When traveling for business, it pays to look the part. Dressing up well plays a huge part on how you are perceived; moreover, a study showed that well-dressed people are way more likely to get upgraded to better seats than those dressed sloppily. However, do not substitute fashion for comfortfind something that’s both elegant and cozy. www.ibtbd.net

Work Ready

00 CORPORATE GROOMING

Blazer, Shirt, Pants & Sweater by Yellow Watch by Fastrack at www.daraz.com.bd Shoes by Leatherex at www.daraz.com.bd www.ibtbd.net

TRAVEL

A World within a World The ancient Chinese once had the misconception that China was the entire world. Once you set foot on China, you will realize how this perception has been central to the Chinese identity. The insular environment is exemplified by how the Chinese do not speak English and those who can, are reluctant to do so. Names of shops, streets, movie theaters, restaurants and menus – things that foreigners require to read – are all in Chinese. They do not even use Facebook or Google – two of the absolute necessities of current times. My trip to China has given me so many unique experiences that I could have never experienced elsewhere as a traveler. I felt stonewalled on a number of occasions, yet I somehow fell in love with the quirkiness of this country.

SAADAT WORLDWIDE

Words & Photographs By Saadat Chowdhury

www.ibtbd.net

How to Get There

China Eastern and China Southern are two airlines that go directly from Dhaka to China within a few hours at a decent airfare. However, the in-flight experience was not pleasant – food was not palatable according to my taste; no in-flight entertainment; uncomfortable seats with very little leg space; and last but not the least, nerve-wrecking turbulence. If you are in no rush and willing to spend some extra bucks, choose Singapore Airlines or Malaysian Airlines that transit through their respective countries to China. The in-flight experience, however, had nothing on the domestic airports in China, which can be extremely frustrating for foreigners. I reached the airport on time for my Guangzhou to Shanghai flight. Turns out, the flight was delayed which is a very regular thing. What worked my nerves was none of the airport staff spoke English and I was not being updated regarding the flight as I waited cluelessly at the airport. All announcements were made only once and that too in local language. Every now and then, a person who spoke English would show up but they had to go from counter to counter so it was hard to get to one of them. I was the only one panicking and everyone else was calm, occupied with his or her trolley. I have never seen such high-tech trolleys in my life, with tablets attached to them containing entertainment, an earphone jack and a charging port. Of course it was all in Chinese, so I only managed to charge my phone. After 7 hours, I finally managed to get on the plane with the help of a kind gentleman who spoke little English. My woes did not end there. After getting aboard, the plane zipped around the runway for an hour, delayed further by bad weather, and they started serving food in the middle of it. While we were eating, the plane took off and I scrambled to keep a hold of everything. This entire experience was just incredibly unsettling.

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GUANGZHOU It is the industrial hub of China. A visit to this city is mandatory for every entrepreneur aiming to start a trading or manufacturing business. However, rapid industrialization has led to the presence of heavy smog all over the city and is considered hazardous for one’s health. The city center is well organized, nice and clean, with futuristic bridges and high-rises including the Canton Tower. The best view of the skyline can be enjoyed from cruise ships on the Pearl River, even though the skyline does look slightly hazy due to the infamous smog. The Chimelong International Circus is highly entertaining with animals such as elephants and bears dancing to upbeat songs. However, the thought of the sufferings that the animals had to go through for our “entertainment” made me get up and leave halfway through the performance. The Chimelong Hotel, right next to the circus, is one of a kind – there is a caged lion in the lobby!

SHANGHAI Shanghai is indeed the New York of the East – people are posh and fashion forward; streets bursting with life; city center filled with shopping malls and eateries; an area called the French Concession dotted with clubs and pubs; and of course, the magnificent skyline that very few cities can match (the Bund provides a great opportunity for a photo op). Expats who live there find ways of extending their stay for the wonderful opportunities that Shanghai offers.

BEIJING

Beijing is currently one of my favorite cities in the world with its perfect blend of history and modernity. Out of the three cities that I visited in China, Beijing is the most tourist-friendly. The city center is absolutely marvelous with numerous large, well-maintained parks as well as stunning works of architecture that include the CCTV Tower, the Bird’s Nest (where the 2008 Summer Olympics took place), Giant Egg (National Centre for Performing Arts) and many more. Among the parks, my favorite remains the Summer Palace – a retreat for the royal families. It is the largest royal park in China. An entire day should be spent at the Great Wall of China. It stretches some 21,000 kilometers and is therefore impossible to see in its entirety. The steep stairs climb from the base to the top is not easy. I experienced mountain sickness and was out of breath, more often than not. Even during summer, the temperature is low and that makes the climb slightly less strenuous. The Great Wall winds its way through greenery and passes over the horizon. It is an experience that can barely be conveyed through words once you reach the top. Another historical highlight is the Forbidden City, an enormous compound spanning 180 acres built by the Ming Dynasty. During their reign, no one could enter or leave without the Emperor’s permission. Ironically, now it is a hot tourist spot and a UNESCO World Heritage Site holding the world’s largest collection of preserved ancient wooden structures. Once you get on top of Jingshan Park, the view of the entire Forbidden City comes into focus along with the traditional Chinese roofing, and makes you realize exactly how much you have walked because it does not feel that way — fatigue sort of slips because of the wonderful experience. www.ibtbd.net

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DON’TS • Upon landing, do not take the taxis right outside the airport. They charge triple the price. • Do not try to imitate or speak Chinese language unless you are fluent in it. It is undoubtedly one of the most difficult languages since the tone affects the meaning of the word. For instance, the word “Ma” has multiple meanings ranging from “mother” to “horse” depending on how it is said.

FOOD Most restaurants have their menus written entirely in Chinese. Having no idea what the dishes were, I relied on my adventurous spirit and pretty much ordered off the pictures. Rarely was I disappointed; Chinese food is just too good. It even felt familiar to the food I eat back home, making me wonder at times how much Chinese influence we have. One issue though is that there is pork in almost all foods, even in some vegetarian dishes. It appears as if pork is a staple of Chinese food. For a meal to remember, the roasted “Peking Duck” in Da Dong Beijing Restaurant is perfect. They bring the whole duck, and cut only the best lean meat and skin for you. The price for a meal that spectacular seemed justified.

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DO’S

• First thing you should do upon landing: get a SIM from the airport and install VPN, otherwise you will not have access to blocked sites such as Google or Facebook. Even though you will get a VPN, do know that the internet in China is extremely slow and takes ages for these blocked sites to load. • Stay at an international chain hotel like Radisson/Westin/Marriott/Sofitel/etc. Even though they are pricey (about USD $150-200 a night), you will find staff who can speak English. I made the grave mistake of checking in to a regional 5 stars hotel in Guangzhou. It looked quite impressive with a line of expensive cars parked outside, but I later figured those were permanent fixtures to attract guests. Neither the receptionist nor the concierge spoke English. I asked for a pair of scissors to cut my luggage’s bubble wrap. At first, they brought a spoon for me. Helpless, I gestured for it again, explaining that I needed scissors. They nodded and kept saying okay. Thinking that the problem was solved, I waited and the response was that I got a screwdriver this time. So of course, I asked again and this time they did not even bother. For a small fee, I checked out of the hotel. The same thing happened in Shanghai. There was heavy rain outside and I asked for in-room dining but nothing happened. I went to the reception and gestured yet again but still failed to make them understand. I starved until the rain subsided. • Before you leave the hotel, get the concierge to call for a taxi and keep the hotel’s business card that has the name and address both in Chinese. Wherever you intend to go, get the Chinese names of those places for the cab drivers to understand. There was this one time I got into a taxi and it was raining outside. There was no way for me to know that it was going to rain because the weather is unpredictable like that. Google Maps was not loading through the VPN. After 40 minutes of driving in circles, it finally loaded and I got to my destination.

Hot on Wheels

the head-turners CARS OF 2016

By Saniat Ahmed Choudhury

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hether you are a proper car enthusiast or just an average joe who likes ogling at those shiny metallic beasts on the computer screen, 2016 has and will be an absolute feast for the soul. With an eclectic selection of vehicles on offer, companies worldwide have stepped up their game to bring the best of what they have to offer regarding automotive innovation. The year has already seen the likes of such mechanical wonders such as the Bugatti Chiron and the Lamborghini Huracan Spyder. However, 2016 still has a lot more to offer, the following being the top picks for the most anticipated cars for the rest of the year:

Porsche 718 Cayman

Ford Focus RS

Joining the likes of the Subaru WRX STI and the VW Golf R, Ford's much awaited mega hatchback is a high-performance improvement of the Focus ST, and one like no other. The 2.3 liter 4 cylinder EcoBoost engine pumps out a whopping 345 horses and a torque of 550Nm, allowing it make the 0-62 mph mark in under 5 seconds (4.7, as per Ford). For a sub-$40,000 car, that is pretty darn impressive. While the prospect of a four-wheel drive may induce fears of understeering around corners, an innovative torque vectoring system coupled with a 6-Speed manual gearbox dispels those concerns and makes the RS a breeze to handle. The exterior is a head-turner, with voluptuous curves and sharp edges that are complemented by a 19-inch multi-spoke rim. The interior isn't the absolute finest, but it is on par with its cost. Besides, with a performance as great as it has, you won't care how it looks on the inside. Seriously.

As has been predicted by enthusiasts worldwide, Porsche has also given its Cayman lineup the 718 revamp. While the 718 Cayman has been equipped with a 296bhp 2.0-liter engine, its Cayman S counterpart comes with a 350bhp 2.5-liter unit, producing a torque of 380Nm. The Cayman hits 0-60 mph in 4.5 seconds in its most performance-friendly mode, and can hit a top speed of 170 mph. The chassis has also been re-equipped with firmer springs, stabilizers, and revised shock absorbers, and that coupled with the 6-speed manual transmission should provide excellent handling. While the exterior is similar to its predecessor, it does boast certain design changes, including a reshaped front grill and wider air intakes. The interior is spacious and very akin to that of the 718 Boxster. The prices vary from $54,000 to $69,500, depending on how much you wish to adhere to performance. www.icebusinesstimes.net

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Aston Martin DB11 Honda NSX

When Honda developed the 1989 NSX with the help of the late great Ayrton Senna and released it into the market, it was an absolute showstopper that revolutionized the automotive industry with its lightweight aluminum chassis and an unprecedented simplistic approach to performance-heavy cars. A 15-year production run and multiple revamped designs later, the car was discontinued in 2005. However, after ten years of speculations and conjectures, Honda is finally bringing back a legend that could potentially challenge the likes of Ferrari and Porsche. The 2016 NSX is an all wheel drive hybrid supercar, and will feature a 3.5 liter V6 with two separate independent 36bhp engines, producing a net horsepower somewhere north of 550bhp and allowing it to hit 60 mph in under 4 seconds. A nine-speed dual-clutch gearbox should provide superb handling freedom as well. With a price point similar to that of the BMW i8 ($150,000-plus), Honda claims it offers performance on par with costlier supercars such as the Porsche 918. The aesthetics are pleasing, with a futuristic exterior that looks like a cross between an Audi R8 and a McLaren 650S.

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Jaguar F-Type SVR

The 2016 performance-heavy adaptation of the F-Type R is the fastest production car Jaguar has ever produced, with a heart-stopping top-speed of 200mph. The supercharged 5.0 liter V8 is assisted by a lightweight titanium and Inconel exhaust system, and is clearly superior to the F-Type R. The added option of having 398mm diameter carbon ceramic discs and a carbon fiber roof can make the car lighter than it already is. The all-wheel drive 550bhp engine allows the vehicle to do a 0-60 mph in 3.5 seconds. Available as either a coupe or a convertible, the SVR is a beautiful car, with a pronounced body style that highlights all the right curves and edges, and complements the sonorous roar of the engine with well-crafted aesthetics. And it does all this at an effective price of $130,000 (a good $60,000 lower than the similarly powered Porsche 911 Turbo S).

Finding a worthy successor to the fantastic DB9 seemed almost too daunting a task for Aston Martin, but that is exactly what they have done with the DB11. Unveiled at the 2016 Geneva Motor Show, the DB11 captivated audiences with its sculpted head and tail-lights, the signature yet unique AM front grill, beautifully hand-crafted leather interior and a sleek low body designed to allow the car to glide efficiently through the air. To further improve its mobility, the DB11 has guiding passages above the front and rear wheels to assist laminar airflow. Under the hood lies a 600bhb-inducing twin-turbo V12 that generates a torque of 700nm, enabling the car to do 0-62 in under 4 seconds. With aesthetics as mesmerizing as it is, it is no wonder that this $220,000 beauty is touted to be the best Aston Martin has produced in years.

Word of Mouth

BANKING CORNER

BRAC Bank Limited organized the “Sales Convention 2016” recently in Dhaka. The convention was organized to celebrate the bank’s outstanding performance in Retail Assets and Liability sales in 2016

Dhaka Bank Limited and Royal Tulip Luxury Hotel, Inani, Cox's Bazar have recently signed an agreement for offering special privileges to Dhaka Bank Credit/Debit cardholders and employees

A Mutual agreement was signed between Jamuna Bank Limited and RAHIMAFROOZ held recently. Under this agreement, all employees of Jamuna Bank and Jamuna Bank Credit Card holders will get EMI facilities and others corporate facility from RAHIMAFROOZ

Southeast Bank Limited gave financial support to the renovation and modernization work of Computer Laboratory of Department of Information Science and Library Management, University of Dhaka as part of Bank’s Corporate Social Responsibility

www.ibtbd.net

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HAPPENING

The first Annual General Meeting 2016 of Bangladesh Independent Power Producers' Association (BIPPA) was held on November 12th

Casper Foundation hosted a seminar titled â&#x20AC;&#x153;Identify the Color of Your Cape: Be the Next Superhero of Our Communityâ&#x20AC;? at ULAB on 1st November 2016

Dr. Atiur Rahman attended a panel discussion at the ADB head Quarter, Manila on November 24 about the need for a greater cooperation between regulators, policy makers and multilateral organizations for boosting green financing including bonds

As an effort to demonstrate the support towards Global Goals with promoting the preventative measures against Diabetes, Epyllion Group organized a "Run for Awareness" initiative that took place in the early hours of Saturday, 19th November 2016

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WaterAid Bangladesh in association with Dhaka North City Corporation has launched three modern public toilets at city’s busiest area Firmgate, Mohakhali and Shyamoli. Honorable Mayor of Dhaka North City Corporation Annisul Huq inaugurated these modern sanitation facilities

JCI Dhaka East recently held its General Assembly for the year 2017 at Gulshan Club Ltd. The event elected the new board for the upcoming year

Le Méridien Dhaka won World Luxury Hotel Award 2016 in the category of “Best Luxury City Hotel” in Doha on 29th October just before celebrating its first anniversary

Erfan Hossain, Executive Sous Chef, Radisson Blu Chittagong Bay View is creating an array of mouthwatering Christmas delicacies this December

www.ibtbd.net

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SSG was the event partner of 'Home Fest Dhaka 2016' that took place on December 2 to 3, 2016

The UK-Bangladesh Catalyst of Commerce and Industry (UKBCCI) honoured 12 Bangladeshi successful entrepreneurs for their outstanding success in their respective businesses in the United Kingdom.

The Canadian High Commission Dhaka held an award ceremony for those who have supported the initiative â&#x20AC;&#x2DC;Prevent Child Marriage and Reduce Gender-Based Violence. Professor Dr. Gowher Rizvi, International Relation Adviser to the Prime Minister was the Chief Guest of the event

The Westin Dhaka introduces a Bistro menu at Prego, the signature Italian restaurant.

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Chairman of Bengal Foundation, Abul Khair, giving his speech at the inaugural ceremony of the Bengal Classical Music Festival 2016. Thousands of classical music aficionados gathered at the army stadium to witness spectacular performances of artistes from home and abroad. The five-night festival ended on November 28

Le Méridien Dhaka has celebrated its first anniversary. It has achieved four international awards within this short time for global hospitality. Rashed Khan Menon, MP, Minister of Tourism and Civil Aviation was presented in anniversary ceremony as Chief Guest and Sayeed Khokon, Mayor of Dhaka South City Corporation, were present as a special guest on the occasion.

Anne Hermans, Co-Founder and Managing Director, has recently arrived from Berlin to head the Bangladesh Branch of Lamudi.com. She brings with her a wealth of international experience having previously worked in Hong Kong, London and Amsterdam. Before joining Lamudi, Anne developed herself as an all-rounder, focusing on different business areas for Calvin Klein as well as Tommy Hilfiger, during her time at PVH Corp. Reflecting on her appointment, Anne said, “I am honoured and excited to have been selected to lead this amazing company.” “Lamudi has momentum. Our winning strategy has enabled us to grow rapidly and now that the Bangladeshi Real-Estate Market is ready for our platform, we have the broadest capability to serve this demand. Taking this company to the next level is a challenge I accept with confidence and ambition.”

Mahbubul Alam, CCCI President at the courtesy call with Paban Chowdhury, President of BEZA

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Infographic

ACentral Family Affair Bank of Iraq (2003)

By the Burrow Banco Central (2005)

The Legend: Saddam Hussien had sent his son Qusay to withdraw the money with the claim that it was security money. A majority of the stolen amount was found within his palace walls.

The Legend: The gang had dug a 260 feet tunnel with wood panels to prevent landslides and an electric lighting system. The mastermind Antonio de Araujob and 40 others were arrested however only $8 million was recovered.

$1 billion in cash

$79.1 million

in cash, luxury watches, gold bars and precious jewels

Seems like the Security Dar Es Salaam Bank, Baghdad (2007)

The Legend: It is believed that the robbery involved the hands of the Interior Ministry. The guards who had fled the scene were found with most of the money.

$282 million in cash

The Legend: Valerio Vicci, the brain behind the heist, had arranged security uniforms, walkie-talkies, and the equipment in order for his team to clear 114 boxes within 2 hours.

$66 million in cash

Busy Bodies The British Bank of the Middle East (1976)

The Legend: Orchestrated by the Palestinian Liberation Organization, the team broke through a wall that the bank shared with a church.

Preying on the Pawns The Belfast Northern Bank (2004)

$210 million in cash and jewel

The Ingenious Italian

The Knightsbridge Security Deposit (1987)

The Legend: Befriending two of the bank officials, the team managed to hold their family members hostage in order to pull off the heist.

£30 million sterling

Cooped Up Securitas Cash Management Ltd (2006)

The Legend: Gaining access by kidnapping the bank manager’s family, the gang left all of the entire staff in cash cages after they cleaned house.

Security Scandal The Brink’s MAT Warehouse (1983)

$92 million in bank notes

The Legend: Anthony Black, the security guard, assisted in the heist. Upon entering the facility, the conspirators doused the guards with gasoline and threatened to light them on fire if they did not cooperate.

$30 million

worth of diamonds, cash and gold bullion

An Encounter with an Examiner The Los Angeles Dunbar Armored

Facility (1997)

The Legend: This robbery was an inside job by Allen Pace, the regional safety inspector. By securing photographs of the interior, his team was able to avoid security cameras and take the money in a U-Haul truck.

$19 million in cash

Miles Ahead Loomis Fargo and Company (1997)

The Legend: Phillip Noel Johnson, an armored car driver of the company, subdued his co-workers and drove away with the cash. He was caught while trying to cross the border to Mexico. The information for this infogrpahic was provided by www.enkivillage.com

A Vacated Vault

BANK ROBBERIES

$18 million in cash

By Shaikh Ashfaque Zaman Hardly emerging into their youthful 20’s, a young Clyde Chestnut Barrow met Bonnie Elizabeth Parker. The couple was rumored to have robbed numerous banks and killed those in their way during their short-lived stint. Cemented in American folklore, their exploits became sensationalized within the celluloid of pop culture. However, there are numerous other cases where an insurmountable amount of cash and valued items were stolen from banks throughout the world. ICE Business Times decodes the most lucrative bank robberies of all time.

Sutton, by J.R. Moehringer

The Town

Category

Doreen Power Generations and Systems Limited Fortune Shoes Limited National Bank Ltd. MJL Bangladesh Limited Titas Gas Trans. & Dist. Co. Ltd. Square Pharmaceuticals Ltd. KDS Accessories Limited Bangladesh Steel Re-Rolling Mills Limited IT Consultants Limited Argon Denims Limited

N N A A A A A A N A

Total Turnover in shares 35,755,371 31,504,089 150,597,451 11,749,245 26,191,192 4,346,253 13,787,103 7,113,822 17,767,200 31,793,975

Total Turnover Tk. in mn 3,519.49 1,580.32 1,482.26 1,439.79 1,311.35 1,162.35 1,060.57 1,029.51 1,024.56 926.30

% of Total Turnover Tk. 5.47 2.45 2.30 2.24 2.04 1.81 1.65 1.60 1.59 1.44

Top 10 securities by turnover in shares Sl. No.

Name of securities

Category

1 2 3 4 5 6 7 8 9 10

National Bank Ltd. C & A Textiles Limited First Security Islami Bank Ltd. Premier Bank Ltd. Doreen Power Generations and Systems Limited Export Import (Exim) Bank of Bangladesh Ltd. GSP Finance Company (Bangladesh) Limited Argon Denims Limited Fortune Shoes Limited Bd.Thai Aluminium Ltd.

A A A A N A A A N A

Total Turnover Tk. in mn

Total Turnover in shares

1,482.26 418.09 428.00 332.07 3,519.49 347.17 681.76 926.30 1,580.32 602.03

150,597,451 49,676,293 39,603,212 36,325,999 35,755,371 34,802,116 34,129,044 31,793,975 31,504,089 29,593,862

% of Total Turnover shares 7.22 2.38 1.90 1.74 1.71 1.67 1.64 1.52 1.51 1.42

Top 10 gainer securities (based on closing price) Sl. No.

Name of securities

Category

1 2 3 4 5 6 7 8 9 10

Doreen Power Generations and Systems Limited Paramount Insurance Co. Ltd. Stylecraft Limited Sonali Aansh Industries Limited JMI Syringes & Medical Devices Ltd. IT Consultants Limited Desh Garments Ltd. Eastern Housing Limited Shasha Denims Limited Standard Insurance Ltd.

N A A A A N A A A A

Current Fortnight Closing Price 111.90 17.70 1,618.00 193.50 185.90 56.80 315.40 39.40 42.20 17.60

last Fortnight Closing Price 69.20 13.10 1,327.30 159.30 155.50 47.60 266.10 33.50 36.40 15.30

change %

Turnover Tk. in mn

61.71 35.11 21.90 21.47 19.55 19.33 18.53 17.61 15.93 15.03

3,519.49 124.56 60.82 213.00 525.75 1,024.56 190.24 466.48 507.38 23.10

Daily Avg. Turnover Tk.in mn 293.29 10.38 5.07 17.75 43.81 85.38 15.85 38.87 42.28 1.93

Top 10 loser securities (based on closing price) Sl. No. 1 2 3 4 5 6 7 8 9 10

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Z B Z Z A A

Current Fortnight Closing Price 9.90 17.20 21.30 8.00 10.30 17.50

last Fortnight Closing Price 20.30 31.20 33.10 11.70 14.20 23.20

A A A A

16.90 18.80 233.70 580.60

22.20 24.30 290.80 722.00

Name of securities

Category

Alltex Industries Ltd. Legacy Footwear Ltd. Sinobangla Industries Limited Deshbandhu Polymer Limited Bangladesh Finance and Investment Co. Ltd. Khan Brothers PP Woven Bag Industries Limited Golden Son Limited Far Chemical Industries Ltd. Northern Jute Manufacturing Co. Ltd. Renwick Jajneswar & Co (Bd) Ltd.

change %

Turnover Tk. in mn

Daily Avg. Turnover Tk.in mn

(51.23) (44.87) (35.65) (31.62) (27.46) (24.57)

168.90 130.96 322.96 77.05 300.16 308.57

14.07 10.91 26.91 6.42 25.01 25.71

(23.87) (22.63) (19.64) (19.58)

130.97 219.20 68.49 41.99

10.91 18.27 5.71 3.50

Disclaimer: Dhaka Stock Exchange does not hold any responsibility for these date.

Fortnightly Report of DSE, 1st November To 15th November 2016 Sl. No. 1 2 3 4 5 6 7 8 9 10 Sl. No. 1 2 3 4 5 6 7 8 9 10

Top 10 securities by turnover value in Tk. Name of securities

Category

Confidence Cement Ltd. Doreen Power Generations and Systems Limited Bangladesh Building Systems Ltd. Shasha Denims Limited Square Pharmaceuticals Ltd. MJL Bangladesh Limited Quasem Drycells Ltd. BRAC Bank Ltd. Apex Footwear Limited Golden Harvest Agro Industries Ltd.

A N A A A A A A A A

Total Turnover in shares 20,668,720 15,066,976 43,345,256 33,752,224 6,181,345 11,525,648 14,912,460 17,548,260 2,723,222 31,918,790

Total Turnover Tk. in mn 2,406.90 1,917.99 1,852.36 1,746.24 1,640.99 1,382.81 1,289.91 1,123.22 1,035.09 1,002.46

Top 10 securities by turnover in shares Name of securities First Security Islami Bank Ltd. Bangladesh Building Systems Ltd. The Peninsula Chittagong Ltd. Bd.Thai Aluminium Ltd. Shasha Denims Limited C & A Textiles Limited Golden Harvest Agro Industries Ltd. Argon Denims Limited National Bank Ltd. Beacon Pharmaceuticals Ltd.

Category

Total Turnover Tk. in mn

A A A A A A A A A Z

Total Turnover in shares

522.80 1,852.36 936.55 749.61 1,746.24 263.66 1,002.46 865.53 283.92 629.56

46,191,503 43,345,256 41,625,810 35,189,287 33,752,224 33,311,580 31,918,790 30,755,776 29,740,959 28,798,146

% of Total Turnover Tk. 3.92 3.12 3.02 2.84 2.67 2.25 2.10 1.83 1.69 1.63 % of Total Turnover shares 2.85 2.67 2.57 2.17 2.08 2.05 1.97 1.90 1.83 1.77

Top 10 gainer securities (based on closing price) Sl. No.

Name of securities

Category

1 2 3 4 5 6 7 8 9 10

Shasha Denims Limited The Peninsula Chittagong Ltd. Confidence Cement Ltd. Golden Harvest Agro Industries Ltd. Bangladesh Building Systems Ltd. National tubes Ltd. Kohinoor Chemicals Company (Bangladesh) Ltd. National Housing Finance and Investment Ltd Navana CNG Limited National Tea Company Limited

A A A A A A A A A A

Current Fortnight Closing Price 59.40 24.50 115.50 34.60 45.90 131.50 452.20 53.90 54.90 590.70

last Fortnight Closing Price 42.20 18.30 87.20 26.30 35.00 103.60 367.20 44.60 45.70 491.80

change %

Turnover Tk. in mn

40.76 33.88 32.45 31.56 31.14 26.93 23.15 20.85 20.13 20.11

1,746.24 936.55 2,406.90 1,002.46 1,852.36 786.04 57.86 460.85 808.63 37.49

change %

Turnover Tk. in mn

(38.25) (32.29) (32.20) (25.21) (20.91) (19.02) (18.80) (17.59) (16.55) (15.00)

69.22 68.17 62.57 165.34 59.24 274.53 384.16 287.12 506.03 24.14

Top 10 loser securities (based on closing price) Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of securities Bangas Ltd. Rahim Textile Mills Ltd. Tallu Spinning Mills Limited Evince Textiles Limited Standard Ceramic Industries Ltd. Eastern Lubricants Ltd. Active Fine Chemicals Ltd. JMI Syringes & Medical Devices Ltd. IT Consultants Limited The Dacca Dyeing and Manufacturing Co. Ltd.

Source: Dhaka Stock Exchange

Category Z A Z N A A A A N Z

Current Fortnight Closing Price 100.90 233.40 8.00 18.10 52.20 883.40 39.30 153.20 47.40 6.80

last Fortnight Closing Price 163.40 344.70 11.80 24.20 66.00 1,090.90 48.40 185.90 56.80 8.00

Daily Avg. Turnover Tk.in mn 158.75 85.14 218.81 91.13 168.40 71.46 5.26 41.90 73.51 3.41 Daily Avg. Turnover Tk.in mn 6.29 6.20 5.69 15.03 5.39 24.96 34.92 26.10 46.00 2.19

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parting Thoughts

A New Chapter for America US ELECTIONS

Diplomat Mohammad Amjad Hossain The people from all spectrums of American society cast their valuable votes on 8 November, 600 days after the presidential campaign had begun. Possibly for the first time in the history, the presidential election has taken place against the backdrop of a bizarre, ugly and demoralizing campaign. Editor of The Week Journal has stated, "the rift between red and blue America has opened to a chasm of mutual contempt and incomprehension. Politics has become overly radicalized, venomous, toxic - a civil war by other means.â&#x20AC;? Furthermore, it is also a kind of revolution against the first African-American President, Barack Hussein Obama, who secured his second term in 2012. Generally, the Republicans, somehow or other, did not

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accept the presidency of Barack Obama; an opinion that is also reflected in both houses of Congress. Since both houses of the Congress went to the Republicans in the current election, Donald Trump's nominee would be selected as a judge in the Supreme Court. Therefore, Republican voters cast votes in favor of Donald Trump to oppose Hillary Clinton, whom they consider would follow the dynamics of President Obama. This has been confirmed following a series of public meetings by President Obama and first lady Michelle Obama in favor of Hillary Clinton. The new President-elect, Donald Trump is against the affordable health care act (Obamacare) of President Obama and the Trans-Pacific Partnership of Trade agreement as well. These two agreements would likely be doomed, apart from North American Free Trade (NAFTA) between America, Canada, and Mexico which was signed by President Bill Clinton. NAFTA was declared a disastrous trade agreement by Donald Trump. He has also threatened to impose tariffs of up to 35% if any American industry produced goods in Mexico enters America. As a part of his pledge during the election campaign, Donald Trump would review all trade agreements with different countries including Muslim countries in order to review terms of the agreement and see if they go against American workers. On the other hand, the world stock market shuddered on receiving

The new President-elect, Donald Trump is against the affordable health care act (Obamacare) of President Obama and the Trans-Pacific Partnership of Trade agreement as well.

news of Donald Trump wins the presidency. On the international platform, the scenario will be disrupted if Donald Trump keeps his pledge which means breaking up of North-Atlantic Treaty Organization (NATO) along with the proliferation of nuclear competition. Donald Trump is reported to have said that Japan and South Korea should not defend against America for their security. Donald Trump is also critical of the nuclear deal with Iran. He also proposed to negotiate with the erratic President of North Korea while endorsing the normalization of relations with the Russian Federation. Russian President Vladimir Putin is possibly the first foreign dignitary to congratulate Donald Trump, assuring him that they would work closely. Russia also scrapped an agreement signed with America in 2000 to decommission its extra weapons-grade plutonium. President Vladimir Putin is on record saying he would rejoin the treaty only if America cancels all sanctions against his country and cuts its military presence in NATO countries near the Russian border. It is interesting to note that Philippineâ&#x20AC;&#x2122;s newly elected President, Rodrigo Duterte, congratulated Donald Trump and proposed to work with him. The Philippines President criticized President Obama for condemning him "for the extrajudicial killings of drug dealers" and threatened to break up relations with America while on a visit to China recently. The Filipino President compared himself to Adolf

Possibly for the first time in the history, the presidential election has taken place against the backdrop of a bizarre, ugly and demoralizing campaign.

The writer is a retired diplomat from Bangladesh and former President of the Nova chapter of Toastmasters International Club of America. He writes from Virginia

Hitler and said he would be happy to slaughter millions of drug addicts the same way Hitler tried to eliminate Jews. French foreign Minister, Jean-Marc, pledged to work with Donald Trump but said his personality raised questions and he admitted to being unsure as to what a Trump presidency would mean for key foreign policy challenges; concerns from climate change and the West's nuclear deal with Iran to the war in Syria. By now conservative and hardline officials were quick enough to send their best wishes to Donald Trump whom they consider a strong president against President Obama, who withdrew troops from Iraq and backed out from Syria. It is too early to say which way the winds will blow in America after Donald Trump takes presidency January 20th of next year but the current signs seem quite ominous.

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