With the constantly changing global economy, the demand for online banking has become mandatory. People wish to get banking services at their fingertips because life has become hectic now.

E-banking in Bangladesh is a pretty new concept like any new technology. Even then, many banks in Bangladesh have come up with their own internet banking app. They aim to ensure e-banking anywhere, anytime, and anyhow banking.

Paying bills, transferring funds, and mobile top-ups – everything is possible if you have internet and a smart device. E-commerce and e-business have become essential components of the strong banking industry.

Also, it can have a significant effect on economic development. As the wave of the future, it is now widely practiced throughout Bangladesh. Like many other developing countries, Bangladesh is also experiencing strong growth in e-banking.

In this article, we will discuss the economic prospect of e-banking from the marketing point of view in Bangladesh.

What is E-Banking in Bangladesh?

Electronic banking is a modern computerized banking system that aims to provide banking services using electronic delivery channels. It, also called Electronic Fund Transfer (EFT), uses electronic media to transfer funds directly from one account to another.

E-banking has created a revolution by making banking services fast, accurate, and more convenient. It includes many transaction services like;

· Telebanking

Telephone banking allows the customer to perform a range of financial transactions over the telephone. The process does not involve cash, and you don’t need to visit ATM or a bank branch.

· Mobile Banking

Mobile banking allows financial transactions remotely using a smartphone or tablet. It uses software, which is called an app, provides by the bank for transactions.

· ATMs

ATM (Automatic Teller Machine) is a computerized machine used to manage a bank account holder’s account. It allows the user to check account balance, deposit or withdraws money, etc.

· Internet Banking

Also known as online banking and web banking, it is an electronic payment system. It allows the account holder to conduct different financial transactions through the institution’s website.

· Digital PC Banking

PC banking allows bank account holders to access their financial information and transactions using a personal computer. The service offers real-time account activities. So you can manage your finances without needing daytime bank visits.

· Credit Cards and Debit Cards

A credit card is a piece of plastic or metal issued by a bank. It allows the user to buy items and to able different services without cash. However, the debit card is a payment card used to purchase products without carrying cash. The money is directly transferred from the user’s bank account.

Present Status of e-Banking in Bangladesh

E-banking is changing the financial banking industry with different impossible innovations. The amount of border trade and other financial activities is increasing due to technology.

A significant portion of Bangladesh’s population is using internet banking facilities while some are being deprived of it. So, classifying the networks of computers can be a solution to this.

The network can be classified as follows; local area network, metropolitan area network, and wide area network. There are still many challenges on the way to e-banking growth.

Currently, many PCBs (Private Commercial Banks) and FCBs (Foreign Commercial Banks) in Bangladesh offering limited services of e-banking. They are working with their branches in a closed network environment.

Prospects of E-banking in Bangladesh

The network is the key to a successful e-banking system. Besides, the optical fiber acts as the backbone network of e-banking in Bangladesh. That’s why; the Bangladesh govt. Owns a high-speed optical fiber network parallel to the Bangladesh railway path.

Many of the PCBs and FCBs have started using the optical fiber network for conducting their banking services. The government establishes digital telephone exchanges in 389-Upazilas and 17 growth centers.

In 2006, Bangladesh joined the Information Super-Highway by connecting itself to the international submarine cable system. Meanwhile, almost 159 ISPs have been linked with the system. Among which, 64 are providing the service actively.

As a part of building digital Bangladesh, the government is focusing on;

  • Setting up ICT parks
  • Waiving taxes on computer peripherals
  • Raising allocation for developing ICT infrastructure
  • Automation program of the banking sector led by the Bangladesh Bank
  • Competition among schedule bank in improving customer services

Economic Aspect of E-banking In Bangladesh

E-banking has now become an essential component of business strategy and an excellent stimulator for economic development. Bangladesh, as a third-world developing country, is far behind to reach the standard level in the global banking system.

Hence, there is an urgency to upgrade the banking system. Below are some scope and benefits to the existing e-banking system.

Short-term Benefits

The short-term benefits of e-banking are;

  • Minimize extra time
  • Increase productivity and efficiency
  • Cut-down maintenance cost
  • Eliminate duplication
  • Eliminate shortage cost and wastage
  • Restrict security cost

Long-term Benefits

There are many long-term benefits of e-banking in Bangladesh, such as;

  • Proper planning and monitoring
  • Create new job opportunities for jobless
  • Use resources properly
  • Contributes to country’s economic health

Contribution to GDP

Electronic banking banks with a national economy and helps to build national capital. It also increases national savings and organizes investments in trade.

Job Creation

Because of the increased use of computers and technology, many people become jobless. It is excruciating and not good for a county’s economy. Though automation eliminates jobs like record keeper, it also creates jobs for programmers, administrators, operators, system analysts, etc. Thus, e-banking helps to reduce the unemployment issue.

Economic Benefits

On the whole, e-banking serves benefits to the bank itself as well as to society. It makes finance economically possible by;

  • Automated process
  • Lower bank’s operational costs
  • Accelerated credit decisions
  • Lower cost of entry
  • Improved transparency
  • Expanded financial reach
  • Minimize transaction cost
  • Anytime access to the account and loan information

Policy Implications

E-banking services help running the business effectively by automating many critical banking activities. However, the initial cost of e-banking may be high, but later it needs minimal costs for operation. It may play an essential role in promoting an automated service to the customers.

For future improvement, the ministry of finance can arrange seminars to make awareness about the technology. The bank itself should develop its own software instead of depending on others.


E-banking in Bangladesh has opened up emerging opportunities to the financial institutions and existing banks. Though most banks have their own websites, not all of them provide internet facilities. It is because the banks still have poor IT infrastructure and security features.

At the same time, a majority portion of Bangladesh’s population cannot trust e-banking services. So the bank should take the necessary step to gain trust and develop literacy at the root level.