Bangladesh's next chapter of economic growth will be shaped not only by large industries but also by the strength and resilience of its small and medium enterprises (SMEs). As the backbone of the economy, SMEs generate a substantial share of employment while driving manufacturing, services, agriculture, exports, and domestic commerce. Ensuring the sector's sustainable growth, therefore, demands more than access to finance; it requires technology-driven banking, entrepreneur-friendly financial services, and long-term institutional commitment.
Against this backdrop, financial institutions have an increasingly important role to play in building a more inclusive and competitive economy. United Commercial Bank PLC (UCB) has sought to position itself as one such institution by continuously strengthening its support for the SME sector.
Today, UCB's SME and Agricultural Banking Division serves more than 20,000 entrepreneurs across Bangladesh. With a loan portfolio of approximately BDT 7,259 crore, the Bank is helping small and medium enterprises expand their businesses in different parts of the country. Significantly, around 83% of this portfolio is funded through the Bank's own deposits, reflecting a strong deposit base and sustainable financing capability.
That funding strength is underpinned by customer confidence. Over the past 18 and a half months, UCB's total deposits have grown to BDT 72,300 crore. Remarkably, nearly 70% of this deposit base is contributed by Retail and SME customers -- a powerful testament to the trust and confidence of customers at the mass level. From grassroots entrepreneurs to individual savers, millions have chosen UCB as their trusted financial partner, reflecting the Bank's deep market penetration, strong customer acceptance, and enduring relationships across the country. In a banking environment where stable, diversified deposits have become increasingly valuable, this represents more than a balance-sheet achievement; it is an indicator of institutional credibility.
Equally important is the way banking itself is evolving. Financing alone is no longer sufficient. Entrepreneurs increasingly expect banking services that are faster, simpler, and more responsive to their business needs. Recognizing this shift, UCB is investing in digital transformation across the entire lending journey -- from loan application and approval to disbursement. The Bank is also implementing digital lead generation, platform-based lending, and data-driven analytics to deliver more customer-centric financial solutions, enabling entrepreneurs to access banking services with greater speed, transparency, and convenience.
The Bank's commitment extends beyond SMEs into agricultural financing, another critical pillar of Bangladesh's economy. During the current fiscal year, UCB has achieved more than 100% of its agricultural lending target. Financing has been directed toward agricultural entrepreneurs, small farmers, and agribusinesses to strengthen rural economic activity, while supporting environmentally sustainable agriculture, climate-resilient initiatives, and agriculture-based entrepreneurship.
The importance of supporting SMEs becomes even more apparent in international trade. Despite a slowdown in the global economy and continued pressure on Bangladesh's overall export performance, UCB's SME trade business has maintained positive momentum. During the current year, UCB's SME export business recorded nearly 39% growth, while the country's overall export growth stood at negative 3% over the same period. The Bank has also maintained a relatively stable position in import business compared with broader market trends. Through specialized Trade Helpdesks, branch-level expertise, partnerships with business associations, and fast, accessible trade finance, UCB is helping smaller businesses become more competitive in international markets.
Yet sustainable SME development requires more than financial products. Entrepreneurial capability, business knowledge, and institutional partnerships are equally essential. With this understanding, UCB regularly organizes Relationship Manager training, entrepreneurship development programmes, collaborations with local chambers and business associations, and field-level engagement sessions with entrepreneurs. These initiatives allow the Bank to better understand evolving business needs while providing practical financial solutions tailored to entrepreneurs.
Looking ahead, UCB continues to focus on expanding SME participation in global trade while investing in next-generation banking capabilities. Its strategic priorities include specialized SME Relationship Managers, Digital Supply Chain Finance, Bangla QR-based collection systems, data-driven risk management, and more advanced digital banking services. The Bank's objective is to create a banking ecosystem where entrepreneurs receive not only financing but also advisory support, technology, and long-term partnership.
To support this vision, UCB has already introduced an automated loan processing system to accelerate loan approvals and simplify customer journeys. The Bank has also partnered with Sokrio Technologies to strengthen its platform-based lending capabilities. As part of its 2026 roadmap, UCB plans to launch Digital Supply Chain solutions alongside Bangla QR Code-based deposit collection for SME customers, making transactions faster and more convenient.
The Bank is also adopting new approaches to deepen engagement with entrepreneurs through local `Cha-chakra' (sharing meeting with Tea) networking sessions and active communication across social media platforms. While digital innovation remains central to future banking, these direct interactions reinforce an equally important principle -- that trust continues to be built through meaningful human relationships.
Bangladesh's long-term economic aspirations will depend on the success of its SMEs. As entrepreneurs seek greater access to finance, technology, markets, and institutional support, banks will need to evolve from lenders into long-term development partners. Through technology-driven innovation, sustainable financing, agricultural commitment, and entrepreneur-centric services, UCB is seeking to contribute to that transformation by helping build a modern, accessible, and sustainable banking ecosystem for the country's SME sector.
The writer is Managing Director & CEO of United Commercial Bank (UCB)