Mercantile Bank Aims for Digital Transformation in Bangladesh
Dhaka, Bangladesh – In a strategic move aimed at staying competitive in a rapidly evolving banking sector, Mercantile Bank has announced its ambitious plan to rank among the top 10 digital commercial banks in Bangladesh within the next three years. This announcement comes from the bank’s Managing Director, Mati Ul Hasan, who shared insights on the bank’s future during an exclusive interview on June 2, 2025, as the bank celebrated its 26th anniversary.
Engaging a Tech-Savvy Generation
As the demographic landscape shifts, with Gen-Z emerging as a significant customer base, Mercantile Bank is committed to leveraging cutting-edge technology to enhance customer experience. Ul Hasan emphasized the bank’s focus on modern banking solutions that resonate with the expectations of younger, tech-savvy clients.
“Our goal is to ensure that we are not just keeping pace with market demands but are at the forefront of innovation in banking,” he stated.
The bank’s digital shift includes the introduction of the MBL-Rainbow app, which currently provides 16 banking services that align with those of Bangladesh’s leading digital banks. This initiative is part of a broader strategy to centralize and modernize the bank’s operations by 2025. ## Financial Stability and Loan Management
In addition to enhancing digital services, Mercantile Bank is prioritizing financial health and stability. The bank aims to reduce its non-performing loan (NPL) rate to below 7% in the next three years, signaling a commitment to responsible lending and effective loan recovery practices.
“With 41 years of banking experience, I understand the importance of maintaining a robust capital base, and we have no capital shortfall,” Ul Hasan assured, addressing concerns about the bank’s financial resilience amid rising NPLs across the industry.
He further noted that the recent rise in NPLs observed across financial institutions was attributed to qualitative judgments in loan assessments. Mercantile Bank is taking solid steps to mitigate this issue while ensuring full provisions against identified risks.
Support for Key Economic Sectors
As part of its outreach strategy, Mercantile Bank is keen on facilitating economic growth by prioritizing loans to the agriculture sector and small and medium enterprises (SMEs). The bank aims to enhance access to banking services for marginalized communities, particularly through the establishment of sub-branches and agent banking outlets.
“We believe that by providing better financial access to these vital sectors, we can stimulate the overall economy and contribute to national growth,” Ul Hasan commented.
Market Stability and Economic Outlook
Ul Hasan also commented on the recent changes in exchange rate management introduced by the banking regulator. He supports this shift, believing it will bolster exports and remittances, both crucial components for the country’s foreign exchange reserves.
The central bank’s establishment of a $500 million market stabilization fund has provided additional confidence in the stability of the currency market. Ul Hasan expressed optimism regarding the economic outlook, suggesting that such measures could pave the way for a strengthened financial environment.
Conclusion
With a significant network of 152 branches, 47 sub-branches, 46 Islamic banking windows, and a total of 200 automated teller machines (ATMs), Mercantile Bank is poised to leverage its existing resources as it embarks on this ambitious digital transformation journey. The institution currently manages Tk 343 billion in deposits and Tk 300 billion in loans and advances, positioning it well to take on the challenges of a competitive banking landscape.
As Mercantile Bank celebrates its 26th anniversary, the leadership’s focus on innovation, financial responsibility, and inclusive banking signifies a proactive approach to meet the demands of a modern economy and a diverse customer base in Bangladesh.