The future of banking

In recent years, as technology reshapes industries worldwide, the traditional banking model in Bangladesh risks falling behind. In addition to being a tool for improving operational efficiency, smart banking is more important than ever as a way to transform financial inclusion, customer satisfaction, and economic sustainability. The phrase "smart banking" is not just a buzzword; it describes the evolution of banking into a technology-driven, customer-focused ecosystem.
In order to meet the demands of a tech-savvy and more digital population, this change integrates blockchain technology for secure transactions, mobile-based platforms, and AI-powered services. Smart banking adoption is a need, not a luxury, for a nation like Bangladesh, where financial inclusion is more of a challenge than an opportunity. Leveraging the population's increasing connectedness is one of the main potentials. Banks can use mobile platforms to provide smooth and customised experiences as a result of the historically high rates of internet penetration and smartphone usage. Consider AI-powered loan approvals that, in real time, examine the borrower's spending patterns and behaviour to identify delays and reduce risks, or think of blockchain that ensures tamper-proof ledgers, increases transparency, and reduces fraud in a country where trust in financial institutions is sometimes shaken. However, as banks become increasingly smart, the role of their physical branches should not go unnoticed. Many services, like handling large transactions, offering personalised financial advice, and solving complex banking needs, still require personal interaction. Physical branches are vital in building trust, particularly in a country where most of its population still relies on traditional ways of banking.
Smart banking should complement the physical branches, not replace them, to create a hybrid structure that serves all groups of people effectively. The regulatory authorities of Bangladesh also have a great role to play. Proactive, innovation-friendly policies can provide a fertile ground on which banks feel encouraged to invest in smart technologies. Collaboration by banks, fintech companies, and regulators can unlock solutions for the local market, leaving no one behind in the digital transformation. Furthermore, a strong commitment to cyber security is necessary due to the growing threat of cyber crime, making sure that smart banking does not compromise safety and confidence. Finding the right balance between adopting digital advancements and maintaining the human touch that physical branches provide is crucial to the future of banking in Bangladesh.

Tanvir Mahmud
North South University
Department of Accounting and Finance
[email protected]