Term Paper

On
“Electronic Banking Operation of Dhaka Bank Ltd.”

Submitted To:
Mohammad Ariful Islam
Assistant Professor
Department of Banking and Insurance
Dhaka University

Submitted By:
Rezaul Islam
Id: 51737028. 37th Batch
Retail Banking & E-Banking (FB-608)

Date of Submission: 20th September, 2021

Abstract: Major focus of this report is to analysis the Online Banking System of Dhaka Bank
Limited. Other objectives are finding out the strength and weakness of online banking services and
discuss how it’s performed through the internet also find out what are the benefit of online
banking. By online banking system Dhaka Bank provide different type of services like Cash
management, Wire transfer, Bill presentment and payment, Balance inquiry, Fund’s
transfer, Downloading transaction information, Loan applications, Investment activity etc.

Introduction: In present E-Banking or Electronic banking is most knowingly word for all. E-
Banking is a method of banking in which the customer conducts banking transactions
electronically through the Internet. Online banking is the practice of making bank transactions or
paying bills via the Internet. Thanks to technology, and the Internet in particular, we no longer
have to leave the house. We can shop online, communicate online, and now, we can even do our
banking online. Online banking allows us to make deposits, withdrawals and pay bills all with the
click of a mouse. It doesn’t get much more convenient than that the benefits are many.

Overview of Dhaka Bank: Bangladesh economy has been experiencing a rapid growth since the
early 90s. Industrial and Agricultural development, international trade, inflow of expatriate
Bangladeshi workers’ remittance, local and foreign investments in construction, communication,
power, food processing and service enterprises ushered in an era of economic activities.
Urbanization and lifestyle change concurrent with the economic development created a demand
for banking products and services to support the new initiatives as well as to channelize consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established Dhaka Bank Limited in the year 1995.

Dhaka Bank Limited (DBL) is one of the leading second-generation commercial banks in
Bangladesh. Under the Companies Act, 1994. The Bank started its commercial operation on July
05, 1995 with the Authorized Capital of Tk. 1,000 million and Paid-up Capital of Tk. 100 million.
The present Authorized Capital of the Bank is Tk. 10,000 million. The Paid-up Capital of the Bank
stood at Tk. 7,223 million as on December 31, 2017. The total equity (capital and reserves) of the
Bank as on December 31, 2017 stood at Tk. 15,828 million. As on May 2021, the Bank has 105
Branches,15 sub-branches including 2 Islamic Banking Branches, 3 SME Service Centers, 64
ATMs, 20 ADMs, 2 Offshore Banking Units, 1 Kiosk and 6 Branches under Dhaka Bank Securities
Limited across the country and a wide network of correspondents all over the world. The Bank has
plans to open more Branches in the days ahead to expand the service delivery network.

What is E- Banking: E-banking is a blanket term used to indicate a process through which a
customer is allowed to carry out, personal or commercial banking transactions using electronic
and telecommunication network.

Page 1 of 8
It is a product offered by banks which facilitates online banking, with the help of which the
customer can have access to the bank account in just one click.

E-banking covers facilities such as – fund transfer, checking account statements, utility bill
payments, opening of bank account, locating nearest ATM, obtain information on financial
products and services, applying for loans, etc. using a personal computer, smartphone, laptop or
personal digital assistant.

Prospects of Digital Banking in Bangladesh: Usage of technology in every sphere of life is in

the core of 4th Industrial Revolution (4IR). The financial sector is at the forefront of 4IR globally
and Bangladesh is not an exception. Technological Innovations in financial services popularly
known as Fintech brings disruptions to the conventional banking system. However, the wide
acceptance of technology by this millennium generation forced financial market to revisit and
adjust the way of doing business by adopting technology. Two aspects of such digital revolution
in banking business are: (i) Digitization and (ii) Digitalization.

Banking digitizing means converting currently manual or paper-based documentation into digital
format and changing the business rules/procedures to accommodate those. Whereas digitalizing of
banking is a whole new way of doing business. Digitalization of banking or digital banking is the
application of technology to ensure seamless end-to-end electronic processing of banking
operations/ transactions. Digital banking is also known as electronic banking, cyber banking, or
virtual banking which can be conducted from anywhere.

Usually, it works in state through processing manner, initiated by the client, ensuring maximum
utility to the client in terms of availability, usefulness and cost. For bank, it reduces operating
costs, minimizes errors and enhances services i.e., overall provides a better user experience as a
whole.

Financial technologies e.g., Internet of Things, Block chain Technology, Augmented reality (AR),
virtual reality (VR), Open APIs, Big Data, Machine Learning, Robo advice, Smart contracts and
Cloud computing, etc. could be used separately or all together to bring numerous benefits to the
financial system as well as to consumers.

Electronic banking of Dhaka Bank: Dhaka bank is one of the leading commercial banks in
Bangladesh. It has a large range of digital banking product. Which is very popular to the customers.

The world witnesses an information and technology revolution. This revolution has touched every
aspect of people’s life including banking. Technology has introduced new ways of delivering
banking services and products to the customers, such as ATMs, and Internet Banking (IB). Hence,
banks have found themselves at the forefront of technology adoption for the past few years. These
changes and developments in the banking industry have impacts on service quality, future of the
banking activities, and consequently its continually competitive ability in the market since going
along with technology is one of the most important factors of economic organization’s success in
general and banks in particular. It motivates banks to spend more on technology and information
to achieve maximum returns and attract large number of clients.

Page 2 of 8
Electronic Banking product of Dhaka Bank: There are large verity of Digital Banking product
in Dhaka Bank. The product is stated below.

❖ Internet Banking
❖ Interactive Banking
❖ M- Banking / SMS Banking
❖ DBL Go (Apps)
❖ C- Solution
❖ Tuition Fees Payment Solutions
❖ Dhaka Bank Trade Cloud
❖ Bills to Cash
❖ Bank to BIKASH
❖ 24/7 Call center
❖ Green Pin
❖ ATM & ADM
❖ CRM (Proposed)
❖ I- khata (MSME Customer)
❖ EASY BANK (e-kyc base account open)

E-banking Product Feature: Dhaka Bank is one of the pioneers in digital banking service. It has
wide range of digital product. Those products are user friendly and secure too.

Dhaka Bank – Go:

Dhaka Bank proudly introduces its industry leading mobile banking app – Dhaka Bank Go. It gives
the customers secure access to his Dhaka Bank Accounts and Credit Cards, etc. anytime,
anywhere. Explore and enjoy the infinite (∞) opportunities.

Key Feature:

Customer will get easy and quick access to his account, loan and credit card information such as
balance, outstanding, limits, last transactions and many more. It also helps clients to track his
spending and monitor his credits establishing full control over his finances. Managing his money
has never been so easy before.

Security and control at your fingertips:

Dhaka Bank Go establishes a secure connection between your mobile device and the bank. With
your secured TPIN, your account and card information is absolutely confidential and controlled
for your view only. Moreover, you will get SMS notifications for transferring any fund or making
any bill payment via this mobile app if you are subscribed to SMS Alert Service.
Quick Details about this Banking App:

• Account Details
• Balance/Transaction Inquiry
• Bill Payment
• Mobile Top-up
• Fund Transfer

Page 3 of 8
 • Service Request
• Existing Offers
• Discount Partners
• Swipe It/EMI Partners
• Branch/ATM Locator
• Dhaka Bank Contacts
• and many more

Interactive Banking Services (WhatsApp): Dhaka Bank introduced first time in Bangladesh
Interactive Banking which is Whats App Banking.

Dhaka Bank introduces interactive banking services using WhatsApp for you. Your convenience
and confidentiality are at the center of all the initiatives, the Bank takes every day. While you
register for the service please go through the security tips and T&Cs. Safeguarding your
information is a shared responsibility. Please be guided with the security tips and T&Cs for using
the interactive banking services.

WhatsApp is one of the most popular internet based instant messaging (OTT) Apps of the
world and Dhaka Bank is now Live on WhatsApp. For the first time in Bangladesh, Dhaka
Bank has launched WhatsApp Banking services as a new way to interact with its clients.

Our clients can easily register to this service instantly and get to access his / her account
balance, card details, transaction details, promotional offers, ATM / Branch locations and
even perform transactions including transfer funds.

Key Feature:

• Account opening
• Fund Transfer
• Balance Inquiry
• DPS Open
• Account Balance and Transactions
• Card Outstanding, Dues, Billing Date and Transactions
• Mobile Top-up / Utility Bill Payment / DTH TV Bill Payment
• Fund Transfer from your Account (within Dhaka Bank and outside the Bank too, via
• both EFTN and instant NPSB transfer)
• Fund Transfer to any bKash Number instantly
• Campaign / Promotions of the Bank
• Other queries and Help
• Change PIN number
Moreover, there are some new features introduced in WhatsApp Banking:
• Fund Transfer from Dhaka Bank Credit Card to your Dhaka Bank Account (* new
feature)
• Tuition Fee Payment (* new feature)
• Passport Fee Payment (* new feature)
• Opening of new FD & DPS (* new feature)

Page 4 of 8
Necessary Documents for Opening WhatsApp Banking:

1. You need latest ‘WhatsApp Messenger’ in your mobile phone (available for
downloading from Google Play Store, Apple App Store, or similar app stores)
2. Your ‘WhatsApp Messenger’ should be activated using the same mobile number which
has been recorded in Dhaka Bank Account.
3. You need to connect to internet (via mobile data or Wi-Fi) while using this service
4. Keep good practices of using mobile device for your safety & convenience:

i. Lock your mobile screen using PIN, Pattern, Figure Print etc.
ii. Check for the green tick badge next to Dhaka Bank’s name and start chatting.
This green ‘tick’ denotes the authorized WhatsApp account of Dhaka Bank Limited.
iii. After using this service, type ‘Q’ to quit the session
iv. After using the service clear chat log. [Chat window > More > Clear Chat]

Dhaka Bank C- Solutions: AN AUTOMATED PAYMENT GATEWAY TO MEET DAILY

BULK PAYMENT NEEDS OF THE CORPORATE CLIENTS.

Dhaka Bank proudly brings forth Dhaka Bank C-Solution to meet the corporate clients’ all kind
of payment needs, e.g. salary payments, fees, commissions, suppliers’ bills, etc., through an
automated and online based payment gateway. This payment solution ensures maximum flexibility
and enhanced security while making payments through all the available payment modes, e.g.
BEFTN, RTGS, DBL Account to Account Fund Transfer, bKash, Cheaque Issuance, Pay Order
Issuance, etc. from any place.

You will be able to make payments from anywhere of the globe. You just need to sign in to
Dhaka Bank C Solution by using your user IDs and make the payments from there just by
uploading your payment files.

The numbers and limit of payments will be as flexible as your payment needs.

Dhaka Bank C Solution includes all the available payment options of the country. In addition to
providing you a complete payment solution, C Solution also ensures ease at making bulk
payments. Now you don’t need to create multiple payment files for payment through different
payment channels, e.g. BEFTN, RTGS, bKash, etc. Instead, you will be able to upload a single
file onto the portal and make payments through multiple payment channels in a onetime bulk
payment transaction.

C Solution helps you make your payments in a more secured fashion. To make every bulk payment,
you will make the transaction through 03 levels of processing. An up-loader will upload the
transactions and authorizers of two different hierarchies will authorize the transactions. Alongside,

Page 5 of 8
at the time of every log in, a One Time Password (OTP) will be sent to user’s indemnified cell
phone and email address.
Last but not the least, after making a transaction you will get a completion alert to your cell phone
and email before deducting your account to ensure further security of your making the payment
request.
C Solution will furnish you with all the necessary reports and a dynamic information board. You
will be able to instantly find your current payment trends by referring to these reports.

Your reconciliation process for your payments would never become so easy. “Dhaka Bank C
Solution” helps you reconcile all your payments through all the payment channels. You can also
reconcile your cheque payments if you use the portal to print your cheques.

Tuition Fees Payment Solution: Dhaka Bank introduces the first-ever Tuition Fees Payment
Solution for collection of tuition fees of different educational institutions.

Dhaka Bank Tuition Fee Payment Solution is an integrated solution for payment & collection of
tuition fee for the educational institute, guardians and students. With this single system in place
and the backbone of Dhaka Bank network, institutes (e.g. universities or colleges) can collect the
tuition fee of students via Dhaka Bank counter collections and other digital payment methods such
as Debit / Credit Cards, bKash, Mobile App. This solution brings convenience, transparency,
control and confidentiality of the tuition fee payment for both the guardians and institutes. The
solution is also capable to handle automated communication of students’ tuition invoice and
payment alerts. This is just the beginning and the opportunity is limitless

Every semester, students and guardians will receive SMS and email with invoice as soon as the
institute completes its registration. Students and guardians can easily access the system from
mobile / computer to refer the invoice anytime at their convenience. There is also payment alerts
via SMS and email to confirm the guardians. So, communication is seamless with Dhaka Bank
Tuition Fee Solution.

Institutes can track the payment on a regular basis and perform reconciliation of fund. With its
enhanced reporting tool, the information is crisp and on time. Dhaka Bank Tuition Fee Solution
has it all.

Ezy Bank: Ezy Bank is a Digital Account Opening Platform wherein customer can open Dhaka
Bank Ezy Account, MudarabaEzy Account as well as Regular and Muadaraba Bundle Accounts.
It is a local currency transactional account that account holder uses for interest/profit- earning and
savings purpose. The main aim of this account is to facilitate clients to open this account online
using mobile app/Web/assisted platform using instant verification of NID.

Account Opening Eligibility: Any Bangladeshi citizen having a valid NID number and is 18 years
and above is eligible to open an account using the Ezy Bank Platform of Dhaka Bank Limited.

Page 6 of 8
*Note: Only new accountholders are eligible to open an account with Dhaka Bank using the Ezy
Banking App facility.

*Minimum Balance requirement: TK.200.

Necessary Documents required for application: For a successful application, client needs to
upload pictures of your NID card and self-image and upload nominee NID number and picture for
registration.

Benefits of Ezy Account:

• Creating account from anywhere in Bangladesh using valid Mobile Number.

• No opening balance required for opening Ezy Account.
• Minimum Balance of Tk. 1,000 has to be deposited to avail 1st free Debit Card and free 10
leaves Cheque.
• Free Cheque book 10 leaves for 1st issuance.
• Free VISA/MasterCard Debit Card 1st Year.
• Free Cash withdrawal facility at Dhaka Bank ATM.
• e-Commerce transaction facility.
• Free monthly e-Statement facility.
• e-Banking: Internet Banking, Call Center, SMS Banking, etc.

Dhaka bank Direct (Internet Banking): Dhaka Bank IT Division in collaboration with multiple
business units has a development a state-of-the-art Online Banking System with futuristic visions
and plans for all retail and corporate customers with the most secured policies and channels and
delivers the outmost service to our valuable customers.

Facilities of Internet Banking:

• Real time Online Transaction

• Transfer Funds
• Bill Payment (Titash Bill, Dpdc Bill, School Fees Payment)
• Card Bill Payment
• BIkash Payment
• Other Bank Fund Transfer
• E Commerce Transaction

i-khata: “i-khata”, a digital CMSME business solution, is an internet based book-keeping

accounting register, initiated by Dhaka Bank MSME team. This platform assist the Customers to
maintain structured and comprehensive financial records and business activities, replacing
maintenance of multiple kaacha khatas, making it much easier for generating necessary Business
statements, i.e. Income Statement, Profit & Loss Statement, Balance Sheet, Purchase Order,
Challan Copy, Invoice etc. i-Khata is a dependable financial tool to have better control for record
keeping and monitoring of various business activities and increase efficiency having accurate

Page 7 of 8
updated business information. Customers utilizing “i-khata” platform are required to record
(initiate inputs) their daily Sales, Purchases, Payables, Receivables, Inventories etc.

i-SAMADHAN: “i-Samadhan” is a platform for MSME Entrepreneurs, interested to avail credit

facility for better management of their respective business portfolio. It is made available on Dhaka
Bank official webpage, under MSME & AGRI. segment where an entrepreneur may obtain
notional/tentative by submitting his/her basic business information within 24 business hours.

There are So many digital products introduce by Dhaka bank which are

• Account from home

• Credit Card from home
• Loan from home
• Student file from home etc.

Conclusion: The global digital banking market registered a revenue of nearly $803.8 billion in
2018 and is anticipated to grow at a 10.0% CAGR, surpassing $1,702.4 billion by 2026. The
market has witnessed a significant growth previously, but due to the unexpected COVID-19
outbreak, the market will witness additional growth in 2020, owing to the rising adoption of mobile
payment solutions. This growth will be majorly driven by changing customer behavior, increasing
focus of the people from visiting bank branches to online access of bank services.

With the worldwide spread of COVID-19, the bank operations have been hampered. Borrowers
and businesses have faced losses, there has been sluggish growth in sales, and decline in profits.
On the other hand, this pandemic has been considered as an opportunity by some to launch digital
offerings. Thus, banks have been effectively using the digital tool and providing alternatives to in-
person banking and physical exchanges attractively. Our analysts have estimated the condition of
the digital banking market during the COVID-19 outbreak and have come to the following
conclusions.

Page 8 of 8