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Banking sector to be digitalised by 2024


Published : 17 Jan 2020 09:20 PM | Updated : 06 Sep 2020 03:01 PM

In a major move to make the banking sector technology-fed, the government is eyeing to bring the country's banking sector under digital interoperability and transaction. Besides, the government has embarked on a plan to make the banking system paper and cashless. Widespread interoperability of digital payment service is widely being used around the globe to maximise financial inclusion. On the other hand, the digital transaction between banks and mobile will help increase the branchless banking system. This will also help reach remote areas across the country.

Rapid advancement in information and communication technology has significantly influenced the banking industry of the country during the last decade. Banks and financial organizations are adopting various IT solution services to improve their financial services. Yet the country's banking sector, which has come a long way over the last 44 years, still lacks the capacity to do much other than the management of cross-border trade volume increase.

According to sources, digitalisation in banking does not only mean online banking, internet banking, mobile banking or paperless banking, rather it is the application of new technologies to transform the existing banking business model into a new banking business model. A model that will itself produce new customer base, unveil new financial services, ensure faster and seamless services to clients with reduced operational cost, zero error, ease of use and apparently maximum security.

State minister for ICT Zunaid Ahmed Palak about digitalisation banking sector said the government under the visionary leadership of Prime Minister Sheikh Hasina is working relentlessly to fully digitalise the banking sector by 2024. "With the smart mobile and internet users increasing rapidly, we have huge potentials to make our banking sector paperless and cashless," he added.

Fahim Mashroor, CEO of bdjobs.com, recently in a roundtable discussion on banking sector digitalilzation said, the regulators and authorities concerned should establish a new platform to ensure the interoperability of all digital payment channels. Prime Bank's deputy managing director Md Touhidul Alan Khan said, "As part of Bangladesh Bank’s drive for financial inclusion, school banking facilities has been introduced in November 2010.

 In 2013, Bangladesh Bank created ‘Agent Banking’ guidelines to accelerate a safe, hassle-free, and secured alternative channel to deliver financial services to the unbanked population and many more in the pipeline". According to a recent World Bank report, half of Bangladeshis aged 15 or above remain without a bank or mobile money account. The findings were part of a triennial study called "The Global Findex Database", which is a wide-ranging data set on how people in 144 economies use financial services.

However, significant progress started from 2014 when only 31 percent adult population of the country had an account. The percentage of people who have an account at a financial institution has also risen during this period-from 29 percent in 2014 to 41 percent in 2017.