Monthly digital banking deals past Tk 1.0t mark in January

For the first time in Bangladesh, internet banking transactions in a single month have surpassed the Tk 1.0-trillion mark in January, signalling a major shift in consumer behaviour towards digital financial services.

According to data available with the Bangladesh Bank (BB), deals through internet banking totalled Tk 1.047 trillion in January 2025, up from Tk 989.18 billion in December 2024, reflecting month-on-month growth of 5.9 per cent.

The number of transactions also surged to an estimated 17.1578 million in January 2025, marking a 10.2-per cent increase from December.

Internet banking, also known as online or e-banking, allows customers to access and manage their bank accounts and conduct financial transactions remotely through a bank website or mobile app via the internet.

According to banking experts, many customers now prefer online banking to avoid long queues and irksome paperwork associated with physical transactions at bank branches.

"Customers, especially younger ones, are rapidly embracing digital banking services, thanks to their convenience, speed and security," said Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC.

For small transactions like Tk 50,000 or Tk 100,000, he said, customers increasingly prefer online banking to visiting physical branches, as digital services are more secure and they save both time and cost.

"Banks have fixed operating hours, but internet banking is available 24/7. Many customers make transactions even while residing abroad," added Mr Rahman.

Banks are now on a long vacation on the occasion of Eid-ul-Fitr, but digital banking is open round the clock.

Financial transactions are now more accessible, said Mr Rahman, adding: "For instance, if someone wants to pay zakat, they can now do so seamlessly from abroad through mobile financial services."

About promotions by the banks, he said banks were actively promoting digital services to attract more users.

"We are offering various incentives to encourage customers. For example, our bank provided 1.0 GB of free internet to new online banking users," the MTB chief executive replied via WhatsApp as he is currently living abroad.

The banking sector has invested heavily in technology to enhance internet banking, making transactions smoother and more efficient.

Despite the impressive growth, challenges remain.

Cybersecurity threats, a digital divide between urban and rural areas, and a need for enhanced digital literacy continue to be major concerns.

Experts suggest that banks should focus on improving security measures to prevent online fraud and cyberattacks.

KMZ Hasan Mahmud, managing director of Cyber Aeronautics Ltd, told the FE that technology upgradation is required for AI-driven threat detection and advanced endpoint protection.

There is a need for enforcing multi-factor authentication (MFA) access all digital channels to reduce unauthorised access, according to him.

"All banks adhere to international standards-such as NIST cybersecurity framework and ISO 27001-by conducting regular vulnerability assessment."

On the other hand, independent economist Dr Zahid Hussain believes the trend will continue if regulatory frameworks support digital banking innovations.

"To sustain this growth, banks and regulators must ensure that digital transactions remain safe and accessible for all, especially in rural areas where internet penetration is still low," he said.

Dr Hussain said digital divide and digital literacy were matters of concern.

Urban people enjoy seamless digital transactions, but rural population may continue to face high transactions costs and limited banking options.

With adequate digital literacy, rural customers may become more vulnerable to online frauds and scams leading to discourage them from adopting digital banking.

With Bangladesh's digital financial landscape evolving rapidly, industry insiders expect internet banking to further expand as banks roll out more user-friendly services and businesses increasingly shift to cashless transactions.

However, the customers started adopting internet banking soon after spreading of Covid-19 in Bangladesh in 2020 at a time when people were restricted to go out or physical movement.

jasimharoon@yahoo.com