Expansion strategy: JS Bank plans to add 11 more branches to its network

KARACHI: Under the branch expansion strategy, JS Bank has planned to add 11 more branches to its network this year aimed at growing customer base, deposits and trade business.

“Despite stiff competition and various challenges in the banking industry, JS Bank’s ambition is to become the most innovative, customer-friendly, best service provider and responsible financial institution in Pakistan,” said Atif Salim Malik, the Group Head of Retail Banking at JS Bank.

Exclusively talking to Business Recorder, Malik said on the digital front JS Bank has keenly focused on its forward-thinking approach in recent years, emphasizing a significant shift towards digital banking solutions. “Presently, our digital banking platforms offer a complete and best range of financial services to the customers,” he added.

Highlighting the Bank’s agility in adapting and shifting from physical banking to a digital-first approach due to changing customer needs during and post the COVID-19 pandemic, he said that this shift has positioned JS Bank as a frontrunner in the industry, standing out from other market players. This strategic pivot has not only been a response to the pandemic but also recognition of the growing significance of digitalization in the financial sector.

JS bank’s digital arm “Zindagi” has acquired 4 million customers in a year. While, currently some 50 percent of the bank’s customers are using mobile applications for banking services, he informed.

After achieving technology upgradation and digital banking goals, JS bank is focusing on the expansion of branch network and planned to expand its branch network by adding 11 more branches this year, he maintained.

Atif sharing insights into the JS Bank’s financial performance in the first half of CY23, said the JS Bank’s profit before tax posted healthy growth of 231 percent to reach Rs 3.209 billion and profit after tax by 254 percent to Rs 1.508 billion during the first half of this calendar year compared to the same period in the previous year.

“This growth trajectory is because of the Bank’s product expansion strategies, coupled with a commitment to enhancing banking convenience for its customers,” he added.

JS Bank is providing a complete cycle of the financial services for all segments of the society and presently, the bank’s ADR is over 50 percent, which is much higher than other financial institutions, he mentioned.

The JS Bank has also demonstrated versatility and quick adaptation to state-of-the-art banking practices value that lies at the core of the bank’s mission,” he added.

He informed that, in the first half of 2023 JS Bank’s retail banking grew significantly in the non-remunerative deposit category by 19 percent which is higher than the industry average.

In addition, JS Bank is one of the major banks in the country to promote solar financing for SMEs and housing financing needs. “We also kept our focus on gold financing and managed to disburse Rs 4 billion in the first half of this calendar year and are ambitious to keep the same pace for the remaining of the year,” Atif added.

He mentioned that on the product side, JS Bank acquired more than 11,000 credit card customers so far this year, which came as a result of customer-centric incentives like instant cashback in four categories; fuel, grocery, utilities, and education.

“We also have a very healthy portfolio in housing finance compared to other leading banks, while JS Bank also aggressively participated in the PMYBL&AL Scheme to support the new entrepreneurs’ ‘, he added.

Knowing the importance of women’s inclusion in the financial industry, JS Bank has introduced a product “JS Her” exclusively for women to address their diverse financial needs. Women from all walks of life can cater to their financial needs from “JS Her”.

Talking about the JS Bank’s growth ambitions, he said that aimed to become the largest financial service provider in the country, the bank has made several strategic investments across the board.

JS Bank’s decision to acquire BankIslami is an important milestone for the Bank, however, he mentioned that both JS Bank and BankIslami will continue to work as two separate and independent financial organizations. “BankIslami will continue to operate as an Islamic Bank by providing Shariah-compliant products and services to its customers”, he added.

Now JS Bank is fully equipped to serve customers with conventional and digital banking products through JS Bank and Zindagi, Shariah Compliant products through BankIslami, and mutual fund and equity investments through its subsidiaries JS Investments Limited and JS Global Capital Limited, he added.

He said the acquisition of BankIslami is in line with the company’s commitment to providing all financial services that cater to all customers’ needs, particularly those with Islamic banking and Shariah-compliant services. “This strategic decision will allow customers to freely choose between the multiple products and services while staying within JS Group’s network,” he added.

Talking about the adoption of digital banking in Pakistan, Atif acknowledged the role of the State Bank of Pakistan (SBP) for promotion of digital banking adoption in the country and its proactive policies have catalyzed the introduction of innovative digital products and facilitated deeper penetration of digital banking nationwide.

Copyright Business Recorder, 2023