The banks that transformed are winning

Despite ongoing challenges across the sector, a few private banks delivered remarkable growth and profitability in 2025. BRAC Bank became the first local private bank to cross the Tk 2,000 crore profit milestone, while several leading banks recorded annual profit growth of between 20 percent and more than 100 percent. A number of banks also entered the Tk 1,000 crore profit club for the first time. These institutions maintained NPL ratios of around 2-3 percent, well below the industry average, while preserving strong liquidity and capital positions. Deposit inflows rose significantly as customers shifted to financially stable and technologically advanced banks. At the same time, digital banking channels processed transactions worth trillions of taka, driving growth in fee income, customer acquisition and digital adoption.

This performance was underpinned by transformation programmes over several years to modernise banking operations. Banks invested heavily in business process redesign, core banking modernisation, cloud-native infrastructure, cyber security, AI-driven automation, enterprise integration and digital payment ecosystems.

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Digital transformation played a central role. Leading banks strengthened mobile and internet banking platforms to provide faster, more convenient and customer-focused services. Features such as QR and NFC payments, Tap2Pay, Google Pay integration, digital onboarding, virtual cards, cardless ATM withdrawals, bill payments, MFS integration and AI-powered personalisation improved customer experience while boosting fee income and digital adoption. Much of this work was delivered by in-house technology teams working with local fintech and software partners, alongside global consulting firms.

Banks also modernised technology to improve efficiency, scalability and compliance. Major initiatives included core banking upgrades, cloud infrastructure, enterprise data platforms, CRM and ERP systems, chatbots and advanced analytics. They strengthened risk management through AI-powered transaction monitoring, anti-money laundering systems, fraud analytics, PCI-DSS compliance, SWIFT KYC security frameworks, SOC/SIEM solutions and enterprise fraud management systems.

Transformation across SME, retail and corporate banking accelerated growth. Banks expanded digital lending through AI-based credit scoring, nano loans, automated underwriting and loan origination systems. Retail banking evolved into integrated digital ecosystems offering lifestyle services, omnichannel experiences, digital savings products, bancassurance and merchant payment solutions. Corporate banking advanced through API banking, ERP-integrated portals, automated trade finance, virtual account management and integrated treasury solutions.

Business process re-engineering also improved efficiency and customer experience. Banks implemented straight-through processing, robotic process automation, workflow automation, digital document management, e-signatures, AI-based onboarding and automated verification across lending, operations and compliance. Electronic know your customer, or eKYC, and remote account opening accelerated customer acquisition, improved financial inclusion and reduced reliance on branch-based services.

Banks expanded digital infrastructure by modernising internet banking platforms, strengthening ATM and CRM networks, introducing cheque deposit kiosks, expanding QR merchant ecosystems and launching digital branches. Customer education campaigns and digital-first branding helped build trust, improve retention and encourage wider adoption of digital financial services.

Alongside technology, banks invested in organisational and workforce transformation. Initiatives included agile operating models, leadership development, e-learning platforms, psychometric recruitment, innovation programmes and digital talent development to build a more technology-driven, customer-focused workforce.

The performance of these banks shows that long-term success in modern banking no longer depends solely on traditional lending. Sustainable growth now comes from technology leadership, operational efficiency, strong governance and a clear focus on customer experience. Banks that invested early in digital transformation and modernisation have emerged stronger, more resilient and more profitable despite industry-wide challenges.

The writer is a banker and economic analyst