Not long ago, carrying cash was the norm in Bangladesh for everything-from buying groceries to paying utility bills. Today, with just a few taps on a phone, money moves instantly. The rise of bKash, Nagad, Rocket, and online banking has transformed financial transactions. But with this rapid shift, an important question arises: Is Bangladesh truly ready for a cashless future?
Digital banking is growing rapidly, driven by convenience, cashback offers, and security. A recent survey of students and professionals highlights this shift, with over 80 per cent actively using digital payment services and more than half relying on them weekly or daily. The younger generation is leading this change, frequently using mobile wallets and QR payments. However, cash remains dominant in rural areas, where digital literacy and internet access are significant barriers.
Despite the rise in digital payments, concerns remain. High transaction fees are a common complaint, as many users feel they are paying too much just to transfer money. Security is another issue, with nearly 30 per cent of users worried about fraud and hacking, even though 70 per cent trust digital platforms. While digital banking is making life easier, these challenges must be addressed for widespread adoption.
Several factors are holding back a fully cashless economy. Cybersecurity threats require stronger regulations and consumer awareness. Transaction costs need to be lowered to make digital payments a more accessible option. Financial literacy gaps, particularly in rural areas, must be bridged to ensure that people understand and trust digital banking.
For Bangladesh to fully embrace digital banking, key improvements are needed. Reducing transaction fees, strengthening cybersecurity, increasing financial education, and expanding banking infrastructure will be crucial steps forward. While the country is not yet cashless, it is well on its way. With young consumers driving change and businesses adapting, digital banking is not just a passing trend-it is the future of finance in Bangladesh.
Tasmia Tahseen Samiha
Undergraduate Student, IBA-JU
tasmiatahseensamiha@gmail.com
