The power of synergies in Bangladeshi banks

Illustration: TBS

The notion of synergy is well-known to be an effective instrument for changing the cultures of financial institutions in Bangladesh. 

In the banking industry, "synergies" refers to the collaboration between different departments to achieve a greater outcome than what they could achieve individually. Synergy describes how strategic goals, values and behaviours combine to create a positive and supportive work environment, especially in the context of cultural transformation.

The alignment of vision and values is crucial for any organisation. When the daily tasks carried out by personnel align with the company's objectives, it enhances the corporate culture. This, in turn, leads to employee behaviours that promote the company's values and vision.

Dutch-Bangla Bank Limited is an excellent example of a company committed to social responsibility. The bank actively participates in a range of activities related to healthcare and education. It has improved its company culture by combining banking operations with community development while promoting social well-being. Participating in these programmes gives workers a sense of pride and purpose, enhancing the workplace's culture as a whole.

Enhanced cooperation and communication are crucial for a bank to foster a synergistic culture that promotes candid communication and cooperation across various departments and levels of hierarchy. This helps to ensure that everyone is on the same page and minimises misunderstandings, which is essential for the future of the country's banking sector. 

A remarkable example of synergy in Bangladesh is the partnership between BRAC Bank and bKash, a prominent mobile financial service provider. This collaboration combines the technology know-how of bKash with the vast banking network of BRAC Bank Limited to offer financial services to the unbanked community. This partnership promotes a culture of flexibility and creativity in the banking industry, in addition to improving financial inclusion.

The banking industry constantly evolves due to technological advancements and changing customer preferences. To foster a dynamic corporate culture, it is essential to create an environment that is flexible and innovative. This will enable employees to freely offer creative solutions to problems and work towards achieving common goals.

Synergies aim to create a work environment that fosters employee satisfaction and engagement. When employees are content, they are more likely to exhibit positive behaviours, which helps create a business culture that promotes success and growth. 

Mutual Trust Bank Limited in Bangladesh has implemented extensive staff development programmes that align each employee's professional growth with the bank's strategic objectives. A positive and forward-thinking work environment is created when personal and organisational goals are aligned, resulting in a culture that motivates individuals to give their best.

Effects of synergies on corporate culture 

Collaborations lead to a more engaged and satisfied workforce, resulting in increased productivity. When employees understand the purpose of their work and how it aligns with the organisation's goals, they are more motivated to perform at their best. This positive effect on the business culture benefits the organisation as a whole.

A culture that values collaboration encourages adaptability and inventiveness, enabling banks to navigate challenging situations successfully. An organisation becomes more resilient in the face of market fluctuations or industry shocks when workers are encouraged to work together and utilise their creativity.

Creating a positive brand image is crucial for banks, and one way to achieve this is by actively seeking opportunities to collaborate and improve their corporate culture. Banks that prioritise their culture are more likely to gain the trust and support of stakeholders, investors, and customers over time.

The importance of synergy in transforming and enhancing the corporate culture of Bangladesh's banking sector cannot be overstated. The outstanding instances from Bangladeshi banks indicate the real results of these initiatives and the transformational potential of synergy in determining the course of the nation's banking industry.

Sk. Shamim Iqbal, a Certified Expert in Credit Management (CECM), currently serves Social Islami Bank Limited as a faculty member at its training institute.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard