Fahmida Khan is working as the Chief Financial Officer (CFO) at IPDC. With a decade of experience in Accounts and Finance and External Auditing, she joined IPDC in June 2017 as Senior Manager, Finance. Before joining the institution, she worked with BRAC EPL Stock Brokerage Limited as Head of Finance, and KPMG, Bangladesh, in different leading positions. Besides working with numbers, her job nurtures relationships with investors, lenders, regulators, and critical partners. She says business is more data-driven than ever, and her job is to be on top of the insights for ensuring informed decisions for the company and stakeholders.
Moving up the ladder to be a CFO at such a young age is a significant accomplishment. How do you see the role of CFO evolving in the coming years?
The role of the CFO has been changing steadily yet significantly over the last few decades. Historically, the main components were financial tools such as books and records, statutory compliance, and financial reporting. Today, they are still essential, but most CEOs expect them upfront. That’s why they evolved, and evolving CFO must be able to convert financial data into resources for operational strategy and decision-making. I will call myself fortunate to be overlooking as CFO of one of the most dynamic and fastest financial institutions of the country, where change comes as a part of its everyday transformation. IPDC is on its growth highway; it is pertinent to react responsibly. With every IPDCian, working as the custodian of the brand, CEO of their specialized work area, it makes the job of the CFO easier. Today, the role of a CFO has transformed into Chief Friendship Officer from a typical Chief Financial Officer. Relationships are much of an asset in our modern business.
What suggestions do you have for the young minds who aspire to be a CFO like you?
One must prioritise gaining experience in finance, particularly in roles where you will be exposed to businesses’ operations and commercial functions. This also extends to international exposure – global perspectives are critical if you attempt to work in emerging markets. You must have the enthusiasm to get knowledge of cross-border cases and trends. Next, you must aim to develop skills in team building and leadership, and the easiest way to do this is by seeking out transformation programs. This is also an excellent way to establish the influencing and communication skills necessary for handling stakeholders, be they internal or external. I also believe that any CFO interested in enhancing productivity and managing complexity must consider investing in digital technology. They must prioritise presenting data so that businesses can glean the most value out of it. Finally, probably the essential thing to consider is what kind of talent you’re surrounding yourself with. Be mindful of whom you’re recruiting, and once they join you, you must make the efforts required to retain them.
IPDC has gained broad exposure from versatile branding. As a CFO, how challenging is it to accommodate the unconventional requests arising from these branding efforts?
Indeed, IPDC is well-known for its distinct and unconventional approaches to innovation, collaboration, and communication. All the effort that goes behind branding does hit on the company’s balance sheet. However, as CFO, my job is also to help the company make informed and conscientious financial decisions. At the same time, I must consider the long-term impacts and retention of the initiatives. At IPDC, we have a passionate team focused on ensuring the greater good for the company. So, while prioritizing integrity and transparency, I evaluate the feasibility of branding projects to ensure the company can achieve its goals while maintaining a healthy balance sheet to draw attention to marketing expenses or report financial results after the fact. Yes, someone must balance the books, but the CFOs of today are not limited to crunching numbers. Moreover, I have learned to be creative while staying in the loop about my field’s know-how and best practices.
What, in your opinion, makes IPDC Finance Limited stand out from its peers in the financial industry?
In one sentence, it’s a genuine sense of purpose. At IPDC, the entire team is committed to the vision and mission we have. Over the past few years, we have formed a very young and passionate team that is never out of ideas and energy. Our recruitment efforts have been focused on bringing in young talent. This has helped generate new ideas within the company, which helped create a vibrant and agile workforce quite different from the existing culture of our peers in the financial industry. IPDC has also focused mainly on underserved areas rather than the traditional market, distinguishing itself from other NBFIs. We have also been more technologically sound than our peers as we have been keen on providing tech-based solutions to our customers. In a nutshell, a genuine sense of purpose coupled with passionate employees, innovative and tech-led products have made IPDC the fastest and the most vital financial institution in the country.
IPDC is well known for its dramatic history of pulling down its NPL and remaining liquid.
Some of the Bangladeshi financial institutions are, at present, contending with default loans. IPDC was not so different: in 2006, It was in a vulnerable position as a massive pile of non-performing loans (NPL) dragged the organization on the verge of collapse. A solid goal is to ensure corporate governance is
IN A NUTSHELL, A GENUINE SENSE OF PURPOSE COUPLED WITH PASSIONATE EMPLOYEES, INNOVATIVE AND TECH-LED PRODUCTS HAVE MADE IPDC THE FASTEST AND THE MOST VITAL FINANCIAL INSTITUTION IN THE COUNTRY
uncompromised. IPDC management worked closely with its customers, diligently recovering itself through an intense effort by the team. It wasn’t easy, but today, looking back at it, all challenges look acquirable. IPDC is regarded as a case study for institutions dwelling in a similar position for its definite leadership.
From your experience, how would you assess the work environment for female employees in the industry? Are there any gender-specific challenges?
Bangladesh has come a long way. Gone are those days when we struggled to ensure girls’ education. Now, in all major exams, girls are more successful than boys. As a nation, we are role models for women’s empowerment. In corporate sector, female participation in leadership positions is still limited. At IPDC, we have four critical leadership roles filled up by women. I see this growing in all sectors and functions. Yet, some gender-specific challenges do exist. These include a lack of infrastructure, transport, childcare facility, and overall security. These factors certainly hinder them from participating in the job market. Because of the reproductive role, many women are forced to choose between motherhood and their career. To overcome such challenges, organizations need to come forward. IPDC is a women-friendly organization awarded the ‘Most Progressive Organization’ in years Inspiring Women Awards. To achieve a balanced and sustainable economy, we need more women-friendly organizations.
As a CFO, who do you think should handle the finances for a happy marriage?
In a marriage, it’s common for one partner to do budgeting and bill paying and another to handle all the investments, or for one partner to do all the financial tasks. It can be tricky to discuss finances as a couple, but rather than delegating the Family CFO to one spouse or the other; I recommend that both spouses serve as the Family CFO. This helps to ensure joint decision-making for outcomes that will affect the family for years to come, as well as helping to avoid potential challenges that may occur due to a lack of involvement.