The number of transactions, the volume of transactions and people who made the transactions via the Internet increased in August compared to July, according to the central bank, thanks to user-friendly banking apps, nominal fees for online transactions and growing client confidence in web banking.
In August, Tk 520.99 billion was transacted via online banking, marking an impressive 12.66 per cent rise from July's Tk 462.43 billion.
The number of Internet banking transactions increased by around 7.78 per cent in August to 8.41 million, compared to 7.80 million in July.
Similarly, the number of Internet banking customers increased by nearly 2.55 per cent in August, reaching over 7.63 million compared to 7.44 million in July. Up until January of this calendar year, the number of internet banking customers stood at around 6.43 million.
AKM Fahim Mashroor, former president of Bangladesh Association of Software and Information Services (BASIS) and CEO at bdjobs.com, pointed out that certain banks such as City Bank, Dutch-Bangla Bank, BRAC Bank and Islami Bank have successfully developed user-friendly mobile applications, which the clients find user-friendly.
Online banking offers customers almost every service traditionally available through a local branch, including deposits, transfers, and online bill payments.
However, unlike mobile financial services such as bKash or Nagad, transactions through the apps do not deplete one's wallet, Fahim Mashroor pointed out, adding zero to minimal charges have attracted a significant number of people to opt for online banking transactions.
While online banking had been available in the country for two decades, its growth gained unprecedented momentum during the pandemic-induced lockdown. With consumers forced to stay home to avoid the virus, the convenience and safety offered by internet banking became paramount.
As a result, there was a drastic and rapid increase in people relying on online platforms to access and manage their finances.
According to Fahim Mashroor, an increase among private companies distributing monthly salaries online has contributed further to the surge in transaction volumes.
In FY19, internet banking recorded transactions from 1.9 million customers, amounting to Tk 476.2 billion. In the following fiscal year, the number of customers increased to 2.7 million, with transactions totalling Tk 715.6 billion.
Moving into FY21, the customer base expanded further to 3.6 million and the total transaction volume reached Tk 1.0 trillion. By FY22, the number of internet banking customers reached 5.4 million and the overall transactions surged to Tk 2.25 trillion.
Despite the positive strides made by some banks, Mashroor believes there is still a substantial number of scheduled banks that have yet to enhance their online services.
Syed Mahbubur Rahman, managing director and chief executive officer (CEO) of Mutual Trust Bank (MTB) Limited, attributed the surge in web banking to the convenience and security offered by user-friendly bank apps.
He said the offerings by the banks have met with growing comfort and confidence among the customers, together leading to a steady rise in web banking transactions.
The MTB CEO suggested that expanding agent banking services nationwide could contribute to boosting online transactions and transaction volumes.
Among the challenges, Mahbubur Rahman noted the limited digital literacy among a substantial portion of the population.
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