Digitalization of banks and risk management of CMSME in City Bank

Abstract

This internship report encapsulates a comprehensive overview of a BBA (Finance) internship undertaken by Md. Hasibul Alam at The City Bank Limited (CBL) from June 1, 2023, to August 30, 2023. It encompasses an exploration of CBL's digitalization strategies, the impact of digitalization on Cottage, Micro, Small & Medium Enterprises (CMSMEs), and the associated risk management practices. Md. Hasibul Alam's contributions to CBL, such as involvement in the "Score Card Based Lending" project, highlight the tangible benefits of the internship experience. The report elucidates the significant role played by CMSMEs in Bangladesh's economic growth and the challenges they face, setting the stage for an in-depth analysis of CBL's digitalization efforts. CBL's digitalization journey, including the adoption of cutting-edge technologies and enhanced customer services, is examined. The report underscores the challenges encountered, including IT infrastructure limitations and cybersecurity concerns, while emphasizing the bank's proactive approach to address these issues. Effective risk management practices are crucial for CMSMEs, and CBL's methods for assessing creditworthiness are discussed. The report culminates in a set of recommendations to further strengthen CBL's digitalization initiatives and risk management strategies, ultimately benefitting CMSMEs and the bank itself. This report serves as a valuable resource for understanding the dynamic relationship between digitalization, risk management, and the CMSME sector in the context of Bangladesh's evolving financial landscape.