Impacts of digital banking

The financial landscape in Bangladesh has undergone significant changes recently with fintech and digital banking transforming how consumers access and use financial services. The emergence of mobile financial services (MFS) such as bKash, Nagad, and Rocket has made banking facilities accessible to millions of Bangladeshis. Historically, the population, especially in rural areas, had limited access to bank accounts. However, even those in remote locations can now perform simple financial activities such as sending money, paying bills, and saving, thanks to mobile banking apps and agent banking services.

Digital banking has made financial transactions more efficient and quicker, alleviating the long lines at traditional bank branches. Customers can now use their mobile phones to apply for loans, make payments, and transfer money. Fintech solutions have also streamlined payment processes for businesses, aiding in the expansion of small and medium-sised enterprises (SMEs) and e-commerce.

Despite its advantages, digital banking presents challenges, particularly regarding cybersecurity. The risk of fraud and data breaches has increased as more individuals use internet platforms. Additionally, a lack of financial awareness among certain demographics poses obstacles to widespread adoption. As Bangladesh continues its digital transition, fintech will play an increasingly important role in fostering economic growth and financial inclusion. With more individuals gaining access to smartphones and internet services, the future of digital banking in Bangladesh looks promising. However, ensuring security and establishing robust regulatory frameworks will be critical to its long-term success.

Siam Howlader, Student

North South University

[email protected]