Digitalisation of banking service in Bangladesh

---

FE Team | Published: April 11, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

---

The age of digitalisation in banking has introduced a new horizon in the sector. As a result, it is changing the nature of banking services, both in terms of how customers access and use their accounts and how banks deliver their services. Basically, internet and mobile banking is blooming as a result of rapidly changing and increasing public confidence as well as expectations for which they can rely on IT-based banking. Modern technology has given opportunities to overcome the systems and provide different banking services easily. Digital banking offers opportunites and challenges to growing profits, improving customers’ experiences.
It is great innovation in the banking sector to open the window which is fit for customers’ confidence. Bangladesh Bank, the central bank of the country, has guided banks and finacial institutions for increasing digital services as financial inclusion in the industry is being supported by increased payment settlement, credit information and countrywide infratructure connectivity. Fully automated clearing and settlement of inter-bank paper-based and electronic payments and transfers has hugely facilated online banking and e-commerce.
The above initiatives are always providing greater impetus to lowring carbon emission and acheiving the goal of green banking. Not only central bank but also most private banks provide various services through digital wayslike online, SMS, internet, phone or cell banking, ATM debit & credit card, hajj card, international traveller’s card and many other virtual banking instruments.
Main features of digitalisation of Bangaldesh Bank:
The cental bank of the country has taken great initiatives for almost all sectors. These are described briefly as follows:
Digitalisation of CIB service:
Bangladesh Bank inaugurated its Credit Information Bureau (CIB) online on 19th July, 2011. Main objective behind setting up the bureau was to minimise the extent of default loans by providing banks and financial institutions with credit reports of loan applicants thereby reducing credit risk. The CIB has achieved significant success in fulfilling the objective of reducing the amount of classified loans.
Networking development:
All the departments of the Head Office and branch offices of Bangladesh Bank have been connected through LAN/WAN. More than three thousand computers are connected to its highly sophisticated Data Centre (DC) and Data Recovery Site (DRS). BB executives are enjoying internet and e-mail facilities through this network. Data security and availability are ensured by real time replication between DC and DRS.
Digital tender (e-tender):
Bangladesh Bank has developed and implemented an e-tendering system through which all tendering procedures have been undertaken. The announcement of tenders, distribution of schedules, collection of bid documents, preparation of shortlists of valid bids and comparison statements etc are done through this system which decreases complexity and brings transparency in the overall tendering system.
e-recruitment process development:
The recruitment process in BB and many private banks have been modernised through web-based submission of CV by the incumbents. After a job opening and submission of CV, a self-generated tracking number and CV identification number guide the next phases of screening.
Data disclosure for public through web site:
BB recently made its vast repository of data accessible to the general public. Data on time series, balance of payments, money supply, various consumer price indices, national accounts, stock price indices, interest rates, remittances, exchange rates, commodity prices, tax revenues etc from the various publications of BB can now be easily downloaded by anyone free of cost.
Web upload system:
All scheduled banks submit Weekly Statement of Position by uploading data at the close of business on every Thursday to the Department of Off-site Supervision.
e-returns system development:
An Online Portal Service for scheduled banks has been set up to submit Electronic Returns using predefined template for the purpose of supervision and economic analysis through related BB departments. Rationalised Input Template (RIT) has been provided to all scheduled banks in this regard.
Online export/import monitoring system:
All scheduled banks (AD branches) upload their export/import data through this web-based system. BB and stakeholders (EPB) can get daily/periodic information to monitor the overall export from the country.
Matching prize bond digitally:
By using this service stakeholders can easily search and match the draw results of Prize Bond (single or multiple series) from historical database of all previous results by a single click.
e-library development:
e-library service is provided to all BB officials to access library catalogue, book reservation and book requisition from their desks. E-library also provides access to archive of ample e-Books, e-Journals, e-Magazines etc.
Digital news portal:
News items published in the journals and newspapers especially on banking, finance, economics and other socio-economic issues are clipped by e-news clipping software digitally.
Digital pass:
Bangladesh Bank having the KPI status, the entry of the visitors to the premises and building is restricted. The issuance of access pass has been modernised through online request by the designated officials on behalf of the visitors to enter the building.
Digital cobranded ATM card for BB employees:
BB Cooperatives has been modernised to manage its employees’ salary accounts at Dhaka and Chittagong offices with technical assistance from Dutch-Bangla Bank Ltd. By using their infrastructure of ATM network throughout the country all BB employees can draw their salary from any of the ATM booths and get account information, personal loans, provident fund balances etc instantly.
Digital Shanchay information:
The very recently developed Shanchay Patra System has been maintaining all information of sold shanchay patras and interest. The purchaser can purchase, sell and get interest through this system quickly and efficiently.
e-noting and digital office:
All internal office/administrative circulars or orders of BB are now uploaded directly on the internet with simultaneous discontinuation of hardcopy circulation of the same. BB is now moving towards a digital office with document management system, central inward-outward system e-noting etc.
Digitalisation of private banking services in Bangladesh:
Any branch banking services:
Many banks provide large online connectivity among all the branches that are capable of providing better customer service to their clients. Main services provided are Cash Deposit, Cash Withdrawal, Fund Transfer, Account Statement, Balance Inquiry and Investment Recovery at any branch.
SMS banking:
Almost all banking companies provide SMS banking services like Mulitple Account Registration, International Push-Pull Facility, Account Balance, Mini Account Statement and Account Information.
Internet banking service: Many private banks are providing their customers with internet banking services like account balance, account statement, transaction summary, fund transfer, mobile recharge, wimax recharge, credit/investment account statement, customer-wise liability, mode-wise liability, liability at a glance of party, cost sheet for negotiation, cost sheet for realisation, cost sheet for retirement.
Mobile banking: Despite making significant improvements in all the areas relating to financial viability, profitability, innovation and competitiveness, there are concerns that banks have not been able to include the vast segment of population, especially the under-privileged sections and rural people into the fold of basic banking services. On the other hand, rapid growth of mobile phone users and wider range of the coverage of Mobile Network Operators (MNOs) have made their delivery channel an important tool of the trade for extending banking services to the unbanked/banked population.
In order to ensure the access of unbanked people by taking advantage of countrywide mobile network coverage, Bangladesh Bank has given the permission to start the mobile banking operation for adoption of the unbanked people who have mobile connection. Like b-kash, m-cash,U-cash, OK banking etc.
Phone banking and call centre services: Phone Banking and Call Centre are a modern banking service by which, clients can get 24 hours of service over any mobile/T&T phone without going to any branch and can avail all sorts of queries/ requests/complaints about services.The features and services of phone banking and Call Centre are as follows:
01. Phone Banking Services are Fund Transfer, Checking Account Balance, Checking Mini Statement, Mobile Recharge, Utility Bills Payment.
02. At Call Centres clients can get services related to their queries, request and complaints from one centre such as simplified and modern banking transaction, cheque book requisition, stop payment request, 7 days notice input, standing instruction input, restriction to account, queries about different deposit schemes, inquiries about profit rate, different investment related information, SMS banking/i banking/ mobile banking related information and services, ATM related queries/request and complaints services, foreign remittance related information and services, Debit card/ Credit Card/ Remittance card information and services, Online Banking related information and services, HRD related information and many more etc.
ATM service:
ATM debit card: About 5,000 ATM booths operating in Bangladesh provide Cash Withdrawal, Fund Transfer, Mini Account Statement, Balance Inquiry etc. Top ATM booth providing banks are DBBL, IBBL & BRAC.
Credit card: Almost all banks of Bangladsh provide ATM credit card services. Islamic Shariah-based banks had developed by their products within the guidelines of Islamic Shariah. It operates on the ‘Ujrah’ concept which is based on a fixed fee structure, meaning that only a fixed fee will be charged to the customer. It gives an option to the customers for payment of utility bills.
SWIFT Services: Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT) is a bank-owned co-operative serving the financial community worldwide. The SWIFT Transport Network (STN) is a dedicated global network for secure communication between SWIFT customers.
SWIFT supports the financial data communication and processing needs of financial institutions, through a range of financial messaging services and value-added processing, as well as, access through the STN and interface and application software. In short, SWIFT is a pioneer in the automation of the global financial industries. The main services provided by SWIFT are: Personalised service, Facilities to access outside scheduled time, Parcel handling, Safe custody of goods and bonds/shares, Lockers available in various sizes—small, medium and large.

Mohammad Abu Bakar Siddique is Senior Officer, Islami Bank Bangladesh Limited. absiddique83@yahoo.com