Exploring the Evolution of a Banking Professional’s Transition into a Stock broker!
The road to success is rarely a straight line from point A to point B. It is filled with twists, turns, detours, and construction zones along the way. Just when you think you’re making good progress, a roadblock appears that requires you to reroute or put your journey on hold.
This is all part of the process, though. Success is not a destination; it is an ongoing journey of growth, learning, failing, adjusting, and persevering. The road is always under construction because you are constantly working on your mindset, skills, strategies, and actions to keep moving forward. The most successful people understand this.
They do not get flustered by obstacles or setbacks. They expect them and are prepared to be flexible, patient, and resilient. They know that sometimes the road will be under construction, requiring them to slow down, take an alternate route, or stop to repave and rebuild.
Similarly, believing in the famous quote “The road to success is always under construction,” Mohammed Rahmat Pasha, with over 35 years of professional experience, including 25 in banking, has deftly managed the progressive sector of finance and capital markets. Today, as the Managing Director and CEO of UCB Stock Brokerage Ltd., he stands at the vanguard of solving Bangladesh’s immense economic potential through the capital markets.
His journey is an example of his devotion and strategic foresight. After tenures at esteemed institutions like The City Bank Ltd., Dutch Bangla Bank Ltd., and BRAC Bank Limited, he transitioned to the brokerage realm in 2011, becoming CEO of BRAC EPL Stock Brokerage.
In 2016, he embarked on a new chapter, assuming the leadership of UCB Stock Brokerage Ltd. This strategic shift was driven by Pasha’s recognition of the burgeoning opportunities within Bangladesh’s capital markets.
Despite GDP growth of 6–7% for over a decade, the market capitalization to GDP ratio remains a modest 15%, suggesting vast untapped potential compared to peer nations. Under his guidance, UCB Stock Brokerage has spearheaded efforts to bridge this gap, bolstering foreign investor participation, which currently accounts for just 5–12% of overall market trade. The firm has implemented a multifaceted approach, delivering unparalleled service, comprehensive corporate access, tailored equity research, and impactful roadshows in global financial hubs.
“Bangladesh’s economic growth trajectory is undeniable,” Pasha asserts. “However, realizing our full potential requires a robust capital market ecosystem. By enhancing foreign participation and introducing new asset classes like fixed income and commodities, we can solve sustained prosperity.”
With an adherence to service excellence and innovation, UCB Stock Brokerage, under his leadership, is poised to play a pivotal role in shaping Bangladesh’s financial future, one that harnesses the nation’s economic dynamism while integrating it seamlessly into global markets.
Let us explore his journey:
Inspiration
Pasha, with over 35 years of career experience, including 25 years in the banking sector, prioritizes the effective and efficient achievement of company goals to leave a positive impact on the industry and the overall economy.
Having served at the 3 prominent banks in Bangladesh, The City Bank Ltd as FX Dealer for 7 years, Dutch Bangla Bank Ltd as Senior Executive Officer for 5 years, and BRAC Bank Limited as Head of Treasury & Financial Institutions for 10 years, Pasha transitioned to stock brokerage in 2011.
Assuming the role of Chief Executive Officer at BRAC EPL Stock Brokerage Limited for 4 years, he embarked on a new journey in March 2016 as CEO at UCB Stock Brokerage Ltd. There, he continues to leverage his expertise to guide the organization towards sustained growth and success, positioning it as the preferred brand for stock broking in the Bangladesh Capital Market.
Pasha’s decision to transition from banking to stock brokerage stemmed from strategic recognition of the capital market’s growing potential within Bangladesh’s versatile economic sector. With Bangladesh’s economy maintaining a GDP growth of 6-7% for over a decade and experiencing consistent increases in GDP per capita, Pasha identified key drivers such as a robust demographic dividend, strong ready-made garment (RMG) exports, resilient remittance inflows, and stable macroeconomic conditions supporting rapid economic growth.
Recognizing the crucial role of the capital market in driving national economic growth, Pasha highlights the current market capitalization to GDP ratio of approximately 15.0%, which indicates untapped potential for enhancing the capital market’s contribution to economic growth. He emphasizes the need for diversifying asset classes beyond equity investments to include fixed income and commodities, with regulatory bodies in Bangladesh initiating efforts to bolster trading in these areas through stock exchanges.
Moreover, Pasha acknowledges the suboptimal foreign investor participation in Bangladesh’s financial markets, accounting for approximately 11.4% of the free-float market capitalization and contributing 5-12% to the overall market trade.
In response, UCB Stock Brokerage Ltd. has undertaken strategic initiatives to increase foreign participation, including delivering unparalleled service, providing comprehensive corporate access and tailored equity research for foreign clients, and organizing impactful roadshows abroad, particularly in key financial centers like the USA and UK.
Pasha firmly believes that enhancing foreign investor participation will not only benefit individual firms but also contribute significantly to the overall economic growth of Bangladesh in the foreseeable future.
Insights on Inception Story
UCB Stock Brokerage Ltd., a wholly owned subsidiary of United Commercial Bank Plc, was established in 2013 and has since become the largest stockbroker in Bangladesh based on trade value. Initially debuting at #102 in its first year of operation on the Dhaka Stock Exchange (DSE) with a market turnover of 0.4%, the brokerage house faced this positioning as a challenge upon Mohammed Rahmat Pasha’s assumption of leadership in 2016.
Under Pasha’s guidance, the company’s performance saw significant improvement. Between 2013 and 2015, its DSE ranking climbed to #63, with market turnover increasing to 0.6%. This upward trajectory continued, culminating in the company securing the second rank by 2020, achieving a DSE market turnover of 4.4%. Throughout this journey, the company consistently met and exceeded investor expectations, maintaining its number one position in 2023 with a DSE market share of 7.5%.
In addition to focusing on trade value, UCB Stock Brokerage Ltd. aims for nationwide expansion. With a network of 26 strategically located branches across Bangladesh, the firm ensures enhanced accessibility for its clientele. Throughout this journey, the company consistently met and exceeded investor expectations, maintaining its number one position in 2023 with a DSE market share of 7.5% maintaining its leadership position for three consecutive years.
Motivation Behind the Capital Market
In the view of Mohammed Pasha, the banking industry of Bangladesh has historically served as a vital financing source for businesses, driving the country’s economic growth since independence. However, despite its significant role, alternative financing avenues such as the capital marke have yet to reach their full potential.
Illustrating the banking system’s extensive reach, Pasha highlights the vast number of deposit accounts, exceeding 130 million nationwide, in contrast to the comparatively lower number of BO accounts, standing at approximately 2 million. Recognizing this gap, Pasha advocates for a focused approach to capitalize on the immense opportunity for capital market growth within Bangladesh’s economy.
He emphasizes the need for strategic initiatives aimed at maximizing the capital market’s contribution to the overall economy. He believes in targeting both retail and institutional clients to expand market reach and provide alternative financial services tailored to their specific needs. By broadening the scope of stock brokerage services, he further aims to bring a larger segment of the population into the capital market fold, thereby facilitating economic development on a broader scale.
Motivated by the vast potential and untapped opportunities in the market, Pasha embraced new responsibilities with enthusiasm. His drive to pioneer change set high standards, and tackle challenges head-on has been a rewarding journey thus far, with his organization playing a pivotal role in the development of Bangladesh’s capital market.
Industry Trends and Best Practices
Staying abreast of industry trends is paramount to ensuring UCB Stock Brokerage Ltd. maintains its position as a leader in innovation and technology. This is achieved through ongoing research, reading, and engaging in discussions with peers to stay informed about emerging developments.
Pasha accentuates a strong focus on innovation and technology within the company, implementing various strategies such as utilizing HR Information Services, adopting cloud computing, leveraging Microsoft services for improved efficiency, and integrating AI-based systems into daily operations.
Furthermore, Pasha prioritizes the development and training of human resources, emphasizing both soft and technical skills. This commitment extends to providing continuous training opportunities for himself and all employees to ensure they remain competitive and adaptable in the evolving landscape.
In his current role, Pasha integrates industry insights into strategic planning processes, conducting thorough analyses of market trends, regulatory changes, and competitor activities to inform decision-making and identify growth opportunities. Through collaboration with colleagues, best practices are implemented to ensure competitiveness and deliver exceptional value to clients. His zeal to stay informed and adaptable contributes to the ongoing success and growth of UCB Stock Brokerage Ltd. in the active financial environment.
Challenges at UCB Stock Brokerage Limited
When Pasha commenced his career at UCB Stock Brokerage Limited, the company operated on a modest scale. Accounting for only 0.7% of the market turnover and boasting a customer base of merely 1,500, the prospects for maintaining a competitive edge seemed daunting. Recognizing the limitations within the industry, he strategized to distinguish the company. By recruiting top talent and inspiring them with the potential value they could attain, he navigated the challenging task of assembling a high-caliber team.
Pasha’s vision and adept leadership skills proved pivotal in rallying these skilled individuals to join UCB Stock Brokerage Limited and undertake proactive initiatives to foster business growth autonomously.
Success Story from UCB Stock Brokerage Limited
Upon assuming the role of managing director at UCB Stock Brokerage Limited in 2016, Pasha inherited a company ranked 63rd in its sector. From the outset of his tenure, he articulated a bold vision aimed at propelling the brokerage firm to the foremost position within five years. His adherence to superiority guided his actions throughout.
In 2021, he fulfilled his pledge as UCB Stock Brokerage Limited secured the top spot nationwide, surpassing all competitors. Under his stewardship, the company experienced a remarkable surge in market share, escalating from approximately 0.7% to an impressive 7.5% by the end of 2023.
This achievement stemmed from his strategic focus on acquiring top-tier resources and delivering unparalleled customer-centric solutions. Consequently, the client base burgeoned from 1,521 to 16,160. Moreover, the company’s profit before tax exhibited an impressive compound annual growth rate of 43% from his appointment until the latest fiscal year.
Culture of Innovation and Continuous Improvement
In the rapidly evolving technological landscape, Pasha highlights the necessity of embracing creativity and adaptability to maintain a competitive edge. Recognizing the vital role of employees in driving innovation, he advocates for their continual development and integration of the latest technology into daily operations.
Over the preceding two years, significant investments of nearly BDT 50 million have been made in technology to ensure the delivery of futuristic solutions and services to customers.
Pasha underscores the importance of fostering corporate entrepreneurship and a growth mindset among employees. By encouraging a culture of continuous improvement, he motivates employees to learn from mistakes and actively seek self-improvement.
Notably, the brokerage firm distinguishes itself by actively supporting employees’ participation in top-tier training workshops, both domestically and internationally. Each year, substantial investments are made to facilitate employees’ access to industry-leading practices, including prestigious programs at renowned institutions like Harvard and UC Berkeley.
Balance the Need for Short-term Results with Long-term Strategic Planning
UCB Stock Brokerage Limited’s vision, as articulated by Pasha, is to be the preferred brand for stockbroking in the Bangladesh Capital Market. With this vision driving their efforts, the company strives to attain the pinnacle of the brokerage industry, aligning both short-term and long-term strategies accordingly.
Identifying the inherent challenges posed by the cyclical and volatile nature of the market, UCB Stock Brokerage Limited remains adaptable, making strategic adjustments as necessary to navigate changing business landscapes.
In the face of short-term market fluctuations, the company prioritizes maintaining a prudent cost structure and fostering resilient revenue growth to ensure alignment with its long-term vision. Despite encountering periodic challenges, UCB Stock Brokerage Limited has consistently demonstrated a capacity to attract and retain high-caliber customers, thereby upholding their commitment to their overarching vision while maintaining strategic coherence in long-term planning efforts.
Advice for Upcoming Entrepreneurs
Pasha underscores the importance of cultivating leadership skills alongside technical expertise in the financial sector. He advises newcomers to prioritize continuous learning and gaining practical experience, utilizing these opportunities to improve performance and achieve tangible results.
He underlines the significance of responsibility and ownership, advocating for a proactive mindset that prioritizes customer satisfaction and the timely delivery of quality services.
Furthermore, he stresses the importance of independent thinking and decision-making, acknowledging that individuals must often rely on their judgment in the absence of direct supervision. Pasha highlights the paramount importance of ethical conduct and integrity, reminding professionals that they serve as ambassadors for their organization. By adhering to these principles, individuals can not only excel in their careers but also uphold the reputation and values of their company.
