Digital Banking System in Bangladesh, what experts say

Published : Wednesday, 13 March, 2024 at 12:00 AM Count : 2432

Digital Banking System in Bangladesh, what experts say

Bangladesh Bank has issued licenses to two companies to operate digital banks and few others are waiting in pipe line for license. This is a new era in financial inclusion and transactions in Bangladesh aiming to build a cashless society. The Daily Observer talks with related professionals on this issue

Hassan O. Rashid, Chief Executive Officer and Managing Director of Prime Bank PLC said it has a big advantage. We can provide better customer services at low costs and attract many customers. As an example a Grameen Phone or any other operators phone users monthly usage data could be a tool on which basis we can provide him digital loans.

We can use AI algorithm to know about the users monthly or three month basis usage data and it is helpful to allow digital banks to provide small loans to users. Digital banking will introduce paperless transactions.

Arrangements between digital banks and mobile service providers are helpful in recognizing digital customers status from phone users data. Introduction of digital bank will accelerate financial inclusions among people.

Syed Almas Kabir, former president, Bangladesh Association of Software and Information Services (Basis) said digital banking is a new step towards the economic growth.

"I hope digital banks will do better than conventional banks. It will accelerate financial inclusion in big a jump from existing 56 per cent to say 80 percent in a year. It will transform us into a cashless society. But from the very beginning we should be careful about security to avoid breaching or hacking of the financial data. It is imperative to adopt high-tech measures before any disaster.

To build confidence among people on digital banking, strong firewall technologies are a must. Otherwise our advancement in smart Bangladesh may face setback. We need to heavily invest in technology as per international standards and follow protocol. Currently, the world have ample technologies for cyber security and we need to devise our systems without compromise.

Tanvir A Mishuk, Chief Executive Officer, Nagad said digital bank will be the next game changer for Bangladesh that can even change the overall financial system in the country. It will ensure the overall financial inclusion and uplift the citizens daily life on the digital space.

With its latest facilities we will offer 24X7 banking service and I am quite hopeful that money movements will be much faster for that, and the economy will get a boost with that. At the same time digital bank will be a super technological service; that will ensure customized services to all our consumers.

As traditional financial institutions yet have to expand their footprints to remotest part so there is a gap in grassroots level, and we will try to address these challenges and it will be a priority for us. On the other hand, ecommerce, startup and SMEs culture will get priority for digital banks business.

Shabnam Nida Wazed, Founder and Chief Executive Officer, Agam International Limited said digital banking is to accelerate financial inclusion and more people will come in formal money transaction channels. It will derive a good number of digital products and will curb costs in banking sector.

The new era of paperless banking systems isn just convenient anymore. It is about empowering users with financial tools and will grow confidence in financial solvency. The round the clock services will help banks to be able to accept movable property as collateral. Use of artificial intelligence will help a lot in this banking system. For quality services sound knowledge is required and there must be available digitally skilled people to protect data and customers privacy.