Customer trust, digital push fuel UCB deposit growth

United Commercial Bank PLC (UCB) is prioritising sustainable deposit growth by strengthening customer trust, expanding digital banking services and offering more personalised financial solutions, according to its Chief Executive Officer Mohammad Mamdudur Rashid.

In an interview with the Daily Sun, Rashid said digital transformation has made saving easier and more convenient, while growing financial awareness among customers is supporting the bank’s retail deposit base despite intense competition and changing market conditions.

He said digital banking has fundamentally changed the way customers save, allowing them to access banking services anytime and anywhere. Through UCB’s flagship super app, UCB One, customers can open and manage accounts, transfer funds, pay 

bills, invest and monitor their savings securely without visiting a branch.

“The convenience of digital banking is encouraging customers to save more regularly and engage more actively with formal banking services,” he said, adding that rising digital adoption has boosted account activity and strengthened low-cost retail deposits, a key strategic focus for the bank.

Retail customers remain the backbone of UCB’s deposit franchise, accounting for around 62% of its total deposits. Rashid said the bank’s retail deposits have grown by more than Tk5,000 crore so far this year, reflecting customers’ confidence in the institution and its customer-centric approach.

He added that deposits from SME entrepreneurs and affluent clients are also increasing as more businesses formalise their operations and customers seek tailored wealth management solutions.

“Our strategy is to maintain a balanced deposit portfolio across retail, SME and corporate customers, which strengthens our funding base and enhances resilience,” he said.

Commenting on changing customer preferences, Rashid said higher interest rates have increased demand for fixed-term deposits as savers look for better returns. However, customers continue to value the flexibility of current and savings accounts for day-to-day transactions, allowing UCB to maintain a healthy CASA (Current Account and Savings Account) mix.

On the growing competition among banks, he said UCB is focusing on long-term customer relationships through trust, service quality, digital convenience and strong corporate governance.

“We are continuously improving customer experience, strengthening governance, expanding digital capabilities and ensuring nationwide accessibility through our branches, sub-branches, agent banking and digital platforms,” he said.

Rashid also highlighted the growing role of data analytics in modern banking. By analysing customer transaction patterns and savings behaviour while ensuring data privacy, UCB is developing more personalised savings products for students, young professionals, families, senior citizens and business owners.

He noted that customer saving behaviour has changed significantly over the past two years due to inflationary pressures and economic uncertainty. Customers are becoming more financially disciplined, maintaining higher precautionary balances and paying greater attention to long-term financial planning, including education, retirement and emergency savings.

Although some customers are diversifying into government savings certificates, the capital market and real estate, Rashid said bank deposits remain the preferred investment option for most people because of their safety, liquidity and predictable returns.

He observed that many customers are now building balanced investment portfolios rather than relying on a single asset class, reflecting rising financial literacy.

“Saving is not merely about accumulating money. It is about building financial resilience and creating future opportunities,” Rashid said.

He added that UCB will continue to focus on earning customers’ trust through sound governance, digital innovation and consistent service excellence while supporting individuals and businesses in achieving their long-term financial goals.