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Future Banking Technology

Presentation · January 2019

DOI: 10.13140/RG.2.2.10946.63683

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 INTRODUCTION
1.1 Background of the Report:

Exploration on the dominate of New Information and Communication Technologies

(NICT), and networks in individuals, on the banking sector oncoming in the years: it has
already wielded two several prosperities in banks. First, technology supported gradually
the internal processing of information and networks within the industry by developing
interbank networks. Second, NICT-based new systems fastened the access to capital
markets, qualified the creation of global electronic markets and modernized stock exchange
markets. Nowadays, technology is used to support commercial work at delegate and to
develop new distribution channels especially through the use of Internet. However, Internet
is not only a new channel of dish up established on the pre-existing channels: its dominance
the evolution of the bank profession and authorizes the Isolate between manufacture and
distribute of banking products.

1.2 Objectives of the study:

The broad objective and specific objectives of the study are given below:
The broad objective:
To find out what is the present status of banking technology and what will be
happen in the future.
The specific objectives:
To finds out the forecasting technology which Bangladesh commercial bank adopt
in future for increase their productivity and sustain in the emulation of banking era.
And know what technological trends are coming in future.
To make recommendation about the future changes in banking technology.

1.3 Scope:

According to the international survey’s results, 18% of banks believe they have a mean
number of 500 machines of technology processing units (ATMs, microcomputers, printers,
scanners, etc.). We can find the double of this number in 46% of banks while 36% of them
estimate they have more than 1000 machines. These fairly large numbers require significant
investment in technology.

1.4 Methodology:

This study collect data from secondary data sources and modify them for building a new
concept of Future Banking technology. I used R studio (Programing Language) and MS-
Excel 2019 for forecasting this trend and visualized the data.

1.5 Data Collection:

I have processed by contacting Bank Asia executives and officers. The objective was to
organize a meeting with them for know what type of technology they using and also find
out what is their need to provide their service easier and what technology will discover in
future in contest of NICT. And also, I will research on internet to find out the possibility to
forecasting what NICT discover in future. The sites address I provide below on 5th Chapter.

2
2.1 Definition of Bank:
Whoever, being an individual firm, company or corporation generally deals’ in the business
of money and credit is called a bank. In our country, any institution, which accepts for the
purpose of lending or Investment deposits of money from public, repayable on demand or
otherwise, and with transferable by checks draft order & otherwise Is called a bank?
The purpose of Banking is to ensure transfer of money from surplus unit to deficit units
Banks In all countries work as the repository of money. The owners look for safety and
amount of Interest for their deposits with Banks. Entrepreneurs try to obtain money from
the banks as working capital and for long term investment These entrepreneurs welcome
effective and forward-looking advice for Investment Banking sector thus owe a great deal
to the deposit holders on the one hand and the entrepreneurs on the other. They are expected
to play the role of friend, philosopher, and guide for the deposit holders and the
entrepreneurs.
2.2 Banking Sector in Bangladesh:
Since liberation, Bangladesh passed through fragile phases of development In the Banking
sector. The nationalization of Banks In the post liberation period was Intended to safe the
Institutions and the Interest of the depositors. Those handling the banking sector have borne
the burden of putting banks on reliable footings. Despite all that was done, some elements
of irregularities appeared. With the assertion of the role of the Central Bank, the Bangladesh
Bank started adopting measures for putting banking institutions on right track Yet the
preponderance of public sector management of banks left some negative effects In the
money market In particular and the economy In general The agility among the borrowers
manipulates the banking sector as a whole. In effect, a default culture, among other effects,
appeared on the scene.
The opening of private and foreign participants to the banking sector was Intended to obtain
desirable results from banking. The authorization of private banks was designed to create
competition among the banks and competition in the form of efficiency within and the
productivity in enterprises funded by banks. Unfortunately, for the people, at large, banking
sector is yet to obtain the credit for efficiency, credibility and growth.
The clever, among the user of banking services, have Influenced the management of banks,
for obtaining short term and long-term loans. They sometimes showed inflated equity to
get money for Investment in businesses and industry. Few diverted their loan money to
purposes different from the loan proposals, and Invested In non-profitable units have failed
to repay their loans to the banks. For this reason, new entrepreneurs are not getting capital
while defaulting entrepreneurs have started obtaining either relief In the form of
rescheduling of the repayment program or additional inevitable money for diversified units.
But now, the situation Is changing day by day, Bangladesh Bank is taking more initiative
for reducing the bad loan. The banks are also taking smart techniques and decision to reduce
the bad loan and Investing In more secured place. This Is not only good for the banks but
also good for Bangladesh economy, because Investors are trying to improve their business
decision & Innovating more constructive business plan.

4
 For the improvement of banking sector, Bangladesh Bank took some changes in Banking
Company Ad in the recent year and some changes also In progress. Which are as follows:
Every bank has to increase their paid-up capital and reserve from 10 million to 20
million.
There should not be more than 13 directors in a bank (except the Investors).
If any family holds more than 5% of share, then two directors may be appointed from
that family at best.
Excepts the Managing Director, other directors should not hold his post more than two
times continuously.
Excepts these rules, Bangladesh Bank enhanced the penalties more Ideal for the miss
users of these Act.
Bangladesh Bank is trying to Improve the strength of banking sector of Bangladesh, for
this reason It wants to Increase banks paid up capital and reserve from 20 million to 40
million between few years. Because in India its now 30 million and in Pakistan its 50
million. If any bank face difficulty to improve their paid-up capital and reserve then
Bangladesh Banks suggestion Is to merge with another bank.

2.3 Banks in Bangladesh:

There are 48 (forty-eight) banks in Bangladesh. The banks and the number of branches is as
follows:

NATIONALIZED COMMERCIAL BANKS (4)

Urban Rural Total

RUPALI BANK LTD 235 256 491

AGRANI BANK LTD 298 568 866

JANATA BANK LTD. 324 519 843

SONALI BANK LTD. 381 803 1184

0 500 1000 1500 2000 2500

Sonali Bank Ltd. Janata Bank Ltd. Agrani Bank Ltd Rupali Bank Ltd
Urban 381 324 298 235
Rural 803 519 568 256
Total 1184 843 866 491

Sub Total 1238 2146 3384

5
 Specialized Banks (5)
Urban Area Rural Area Total
140%

120%

100%

80%

60%

40%

20%

0%
Urban Area Rural Area Total
Basic Bank Ltd 29 1 30
Rajshahi Krlshi Iinnayan Bank 33 331 364
Bangladesh Krishi Bank 77 871 948
Bangladesh Shilpa Rin Sangstha 2 0 2
Bangladesh Shilpa Bank (Industrial) 15 0 15

Sub Total 156 1203 1359

Foreign Commercial Banks (9)

Bank Alfala Ltd

Woori Bank Ltd

National Bank of Pakistan

Habib Bank Ltd

Commercial Bank of Ceylon Ltd

0 5 10 15 20 25 30 35 40

The
Commercial National
Standard Habib Bank State Bank City Bank N. Woori Bank The HSBC Bank Alfala
Bank of Bank of
Chartered Ltd of India A. Ltd Ltd Ltd
Ceylon Ltd Pakistan
Bank
Urban Area 6 19 4 4 2 4 1 8 5
Rural Area 0 0 0 0 0 0 0 0 0
Total 6 19 4 4 2 4 1 8 5
Approval 0 0 0 0 0 0 0 1 0

Urban Area Rural Area Total Approval

Sub Total 53 0 53 1

6
 Urban Area Rural Area Total Approval
Sub Total 1386 549 1935 147
Grand Total 2833 3898 6731 143

7
2.4 Banking in Bangladesh:
Banking is the backbone of national economy. All sorts of economic and financial activities
revolve round the axis of the bank. As the industry produces goods and commodities, so
does the bank create and controls money-market and promotes formation of capital. From
this point of view, banking-a technical profession- can be termed as industry. Services to
its customers are the products of banking industry besides being a pivotal factor in
promoting capital formation in the country. As all economic and fiscal activities revolve
round this important ‘Industry, the role of banking can hardly be over emphasized.
Circumstances being such, it becomes Imperative to find out the role that now planning in
the country and analyze its operational aspects so as to ascertain the Importance of this
delicate financial sector and Its overall Impact on our national economy. To ascertain the
role of banks and to analyze Its operational aspects and its overall Impact on our national
economy a thorough study as to Its distribution, expansion and contribution Is essential to
comprehend Its past, present and future bearings for the growth and development of the
banking sector of the country. In the global context, the role banks are far – reaching and
more penetrating in the economic and fiscal discipline, trade, commerce, Industry, export
and import- all carried through the bank. Banks are the only media through which
international trade and commerce emanate and entire credit transactions, both national and
International.
2.5 Bangladesh Bank Establishment:
Bangladesh Bank, the central bank and apex regulatory body for the country's monetary
and financial system, was established in Dhaka as a body corporate vide the Bangladesh
Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. At present
it has ten offices located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi,
Sylhet, Barisal, Rangpur and Mymensingh in Bangladesh; total manpower stood at 5807
(officials 3981, subordinate staff 1826) as on March 31, 2015.
2.6 Functions:
BB performs all the core functions of a typical monetary and financial sector regulator, and
a number of other non-core functions. The major functional areas include:
Formulation and implementation of monetary and credit policies.
Regulation and supervision of banks and non-bank financial institutions, promotion
and development of domestic financial markets.
Management of the country's international reserves.
Issuance of currency notes.
Regulation and supervision of the payment system.
Acting as banker to the government.
Money Laundering Prevention.
Collection and furnishing of credit information.
Implementation of the Foreign exchange regulation Act.
Managing a Deposit Insurance Scheme.

8
2.7 Nationalized Commercial Banks:
Nationalized Commercial Banks (NCBs) were established in Bangladesh in 1972 through
amalgamation of twelve commercial banks that were operating in pre-independent
Bangladesh allowing the poor access to fund, reducing capital flight to foreign countries,
and increasing domestic investment were some of the basic objective of this nationalization.
That means a society with wealth distributed as equitably as possible. But with time
difference those banks has changed their policies and strategies, which were not fulfilling
the class banking policies of the government. On an evaluation of the activities of
commercial banks, it has been observed that the progresses made by the banking industry
since nationalization was not impressive. The nationalized banks could not play the due
role in the implementation of government programs and policies. Hence, a trend of de-
nationalization of banks started from mid-80’s.
In the meantime, the policy of the government towards banking industry regarding
economic management has changed since 1976. That year private sector had been entrusted
to play a bigger role in the economy than before. Accordingly, in order to provide more
credit to local investors the private sector banking had been introduced. Government
decided to allow setting up of local Private Commercial Banks (PCB) in addition to
Nationalized Commercial Banks (NCB) operating in the country.
2.8 History of Banking in Bangladesh:
Bangladesh Bank acts as a central bank for our country and it controls, supervises, and
looks after the scheduled banks in the private commercial banks as well as the nationalized
commercial banks formed by amalgamating the business of the twelve banks doing
business in Bangladesh before liberation as per schedule given below:

Existing Bank (in Lac Tk.)

600 500 500 500 500 500 500
500
400
300 200
200 100 100 100 100 100
100
0
The National The Premier
The Muslim The Austrasia
Bank of Bank Ltd., The The United The Eastern
Commercial Bank Ltd., The
Pakistan, The Habib Bank Bank Ltd., The Banking
Bank Ltd., The Eastern
Bank of Ltd., The Union Bank Corporation
Standard Bank Mercantile
Behawalpur Commerce Ltd Ltd
Ltd Bank Ltd
Ltd Bank Ltd
Authorized Capital 500 500 500 500 500 500
Paid-up Capital 200 100 100 100 100 100

After the liberation of Bangladesh, the twelve Banking companies who were doing
business in Bangladesh, were nationalized by the Government of the People’s Republic
of Bangladesh under president’s order No.26 of 1972 entitled The Bangladesh Bank
(Nationalizations) Order, 1972” on March 26, 1972.

9
2.9 Banking service in Bangladesh:
With years, banks are also adding services to their customers. The Bangladesh banking
industry is passing through a phase of customers market. The customers have more choices
in choosing their banks. A competition has been established within the banks operating in
Bangladesh. With stiff competition and advancement of technology, the services provided
by banks have become easier and more convenient. The past days are witness to an hour
wait before withdrawing cash from accounts or a cheque from north of the country being
cleared in one month in the south.
This section of banking deals with the latest discovery in the banking instruments along
with the polished version of their old systems.
2.10 Types of Bank Account:
The most common and first service of the banking sector. There are different types of bank
account in Bangladesh banking sector. The bank accounts are as follows:
Bank Savings Account – Bank Savings Account can be opened for eligible person
/ persons and certain organizations / agencies (as advised by Bangladesh Bank from
time to time)
Bank Current Account – Bank Current Account can be opened by individuals /
partnership firms / Private and Public Limited Companies / Specified Associates /
Societies / Trusts, etc.
Bank Term Deposits Account – Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / Specified
Associates / Societies / Trusts, etc.
Bank Account Online – With the advancement of technology, the major banks in
the public and private sector has facilitated their customer to open bank account
online. Bank account online is registered through a PC with an internet connection.
The advent of bank account online has saved both the cost of operation for banks
as well as the time taken in opening an account.

2.11 Future of Banking in Bangladesh:

A healthy banking system is essential for any economy striving to achieve good growth
and yet remain stable in an increasingly global business environment. The Bangladeshi
banking system has witnessed a series of reforms in the past, like deregulation of
interest rates, dilution of government stake, and increased participation of private sector
banks. It has also undergone rapid changes, reflecting a number of underlying
developments. This trend has created new competitive threats as well as new
opportunities. This paper aims to foresee major future banking trends, based on these
past and current movements in the market.
Given the competitive market, banking will (and to a great extent already has) become
a process of choice and convenience. The future of banking would be in terms of
integration. This is already becoming a reality with new-age banks such as Banking,
Mobil Banking etc. Technology will prove to be the differentiator in the short-term but

10
 the dynamic environment will soon lead to its saturation and what will ultimately be
the key to success will be a better relationship management.
2.12 Risk Management:
The future of banking will undoubtedly rest on risk management dynamics. Only those
banks that have efficient risk management system will survive in the market in the long
run. The effective management of credit risk is a critical component of comprehensive
risk management essential for long-term success of a banking institution.
Although capital serves the purpose of meeting unexpected losses, capital is not a
substitute for inadequate decontrol or risk management systems. Coming years will
witness banks striving to create sound internal control or risk management processes.
With the focus on regulation and risk management in the Basel II framework gaining
prominence, the post-Basel II era will belong to the banks that manage their risks
effectively. The banks with proper risk management systems would not only gain
competitive advantage by way of lower regulatory capital charge, but would also add
value to the shareholders and other stakeholders by properly pricing their services,
adequate provisioning and maintaining a robust financial structure.
‘The future belongs to bigger banks alone, as well as to those which have minimized
their risks considerably.’

2.13 Banking Sector Performance, Regulation Supervision and Changes:

Industry Statistics of the banking sector and the performances trends have been
discussed in this chapter. The banking sector of Bangladesh comprises of four
categories of scheduled banks. These are nationalized commercial banks (NCBs),
government owned development finance institutions (DFIs), private commercial
banks (PCBs) and foreign commercial banks (FCBs). The number of banks
remained unchanged at 48 in 2006. These banks had a total number of 6562
branches as of December 2006. The number of bank branches increased from 6402
to 6562 due to opening of new branches by the PCBs mainly during the year.

In 2006 the nationalized commercial banks (NCBs) held 32.7 percent of the total
industry assets as against 37.4 percent in 2005. Evidently, NCBs’ domination in this
area is showing a declining trend, while PCBs’ share rose to 47.7 percent in 2006
as against 45.6 percent in 2005. The foreign commercial banks held 11.8 percent of
the industry assets in 2006, showing a satisfactory increase by 4.5 percentage points
over the previous year. The DFIs’ share of assets was 7.8 percent in 2006 against
9.7 percent in 2005.

Total deposits of the banks in 2006 rose to Taka 1860.6 billion from Taka 1554.7
billion in 2005 showing an overall increase by 19.7 percent. The NCBs’
(comprising of 4 largest banks) share in deposits decreased from 40.0 percent in
2005 to 35.2 percent in 2006. On the other hand, PCBs’ deposits in 2006 amounted
to Taka 955.5 billion or 51.3 percent of the total industry deposit against Taka 731.3
billion or 47.0 percent in 2005. FCBs’ deposits in 2006 rose by Taka 38.2 billion or

11
 33.9 percent over the previous year. The DFIs’ deposits in 2006 were Taka 100.2
billion against Taka 89.5 billion in 2005 showing an increase of 12.0 percent over
the year.
2.14 Assets of Scheduled Banks:
Aggregate industry assets in 2006 registered an overall increase by 17.8 percent over 2005.
During this period, NCBs’ assets increased by 3.1 percent and those of the PCBs’ rose by 22.9
percent. Loans and advances played a major role on the uses of fund. Loans and advances
amounting to Taka 1543.6 billion out of aggregate assets of Taka 2406.7 billion constituted a
significant portion (64.1 percent). Cash in tills were Taka 21.8 billion (below 1.0 percent);
deposits with Bangladesh Bank were Taka 135.2 billion or 5.6 percent; other assets were Taka
454.0 billion or 18.9 percent and investment in government bills and bonds accounted for 10.5
percent (Taka 252.1 billion) of the assets.
2.15 Liabilities of Scheduled Banks:
The aggregated liability portfolio of the banking industry in 2006 was Taka 2406.7 billion of
which deposits constituted Taka 1860.6 billion, or 77.3 percent and continued to be the main
sources of fund of banking industry. Capital and reserves of the banks were Taka 122.9 billion
or 5.1 percent of aggregate liabilities in 2006, as against Taka 89.9 billion or 4.4 percent in
2005.
2.16 Liquidity of Scheduled Banks:
Commercial banks deposits are at present subject to a statutory liquidity requirement (SLR) of
18 percent inclusive of average 5 percent (at least 4 percent in any day) cash reserve
requirement (CRR) on bi-weekly basis. The CRR is to be kept with the Bangladesh Bank and
the remainder as qualifying secure assets under the SLR, either in cash or in government
securities. SLR for the banks operating under the Islamic Shariah is 10 percent and the
specialized banks are exempt from maintaining the SLR. Liquidity indicators measured as
percentage of demand and time liabilities (excluding inter-bank items) of the banks indicate
that all the banks had excess liquidity
2.17 Total Capital of Scheduled Banks:
The overall capital situation of the banks improved in December 2008. The capital of all banks
stood at Tk. 205.8 billion in December 2008 as compared with Tk. 123.4 billion in December
2007 and Tk. 76.1 billion during the end of 2006. The year-end capital position in 2008
witnessed an increase of 66.8 percent as compared with 62.0 percent in the preceding year.
Grouped by ownership, total capital (unadjusted) of SCBs, PCBs, SBs and FCBs stood at Tk.
32.0 billion, Tk. 141.4 billion, Tk. (-) 9.2 billion, and Tk. 41.5 billion respectively in December
2008 as compared with Tk. (-) 29.1 billion for SCBs, Tk.16.2 billion for SBs, Tk.101.7 billion
for PCBs, and Tk.34.5 billion for FCBs in December 2007 (Figure 3.5.1). Out of total capital
for all banks, 73.4 percent was maintained as core capital in December 2008 which was 71.8
percent in December 2007. The amount of core capital in December 2008 was 47.7 percent
higher than the requirement (5.0 percent of the risk weighted asset). Disaggregated figures
show that actual core capital was 79.5 percent and 318.4 percent higher than the required core
capitals for PCBs and FCBs respectively.

12
2.18 Present Digital Banking in Bangladesh:
2.18.1 Electronic Banking:
Electronic Banking is transforming the financial services industry through various impossible
innovations. The quantity of cross-border trading and other financial activities is increasing
geometrically make possible by technology. It has been made possible by technology,
particularly information technology to generate, collect and process information about bank
operation and bank customers efficiently and effectively. It provides the ability to create more
effective systems of controls in individual institutions and in the market themselves. Compared
to the paper-based operation, Electronic Banking Systems, in its most proficient form, offer
instant verification and transfer and reduces the flow of costly paper in the record keeping
process. Application of technology in banking offer opportunity for reduction of both paper
and people. Banks have developed EBS for three main reasons (Horseman, Michael J. 1979)
Electronic banking allows banks to expand their markets for traditional deposit taking and
credit extension activities, and to offer new products and services or strengthen their
competitive position in offering existing payment services. In addition, electronic banking
could reduce operating costs for banks. More broadly, the continued development of electronic
banking and electronic money may contribute to improving the efficiency of the banking and
payment system and to reducing the cost of retail transactions nationally and internationally.
Although many financial instrument and systems are now considered as “Electronic Banking”
came into the terminology of the financial world in the late 1980s, with the possibility of
emergence of true electronic money. All sorts of back-office information management
technology and financial services using electronic devices can be included into the term
“Electronic Banking”. The development in information technology has contributed positively
to economic growth through several channels. ICT
2.18.2 Structure of electronic banking:
E-banking is a general term referring to various computer-based technologies for delivering
banking services. Electronic banking systems can be divided into two categories by the
functional characteristics, viz. back-office electronic banking, and electronic financial
instruments or front-office electronic services. Back-office electronic banking provides
information management services, and quick fund transfer facilities both for traditional
banking and financial instruments and electronic financial instruments. Science inception of
primary forms of electronic banking it has been passed through a comprehensive evolution
process. Electronic banking services can be grouped into three generations of evolution:
Categorization of electronic banking services, Generation of electronic banking, Back-office,
Front-office, First generation, Ledger , Cash management, Head office MIS, Cash dispensers,
Second generation, Transaction processing [offline], ACHs, Generation of information for
record keeping, Fund transfer, Telephone bill payment, POS systems, Check verification,
ATMs, Authorization, Third generation, On-line transaction processing, Centralized
processing at country level, Internet banking, Interbank transaction processing, Automatic
Fund, Transfers, On- line Banking, Home banking electronic, Direct Deposit, Check
Truncation, Lock Box Check, Truncation, Electronic Fund Transfer, Internet Banking.

13
2.18.3 Electronic facilities given by different bank in Bangladesh:
The following Electronic facilities are providing by different Foreign and Private Commercial
banks (PCBs) in Bangladesh Bank accounts: Savings, Current, FDR, PDS, and Term Deposit
Scheme. All these accounts are maintained in electronic way for the sake of customer
satisfaction in Bangladesh. People can deposit their money through electronic device and also
can withdraw their money such way. These are the common bank accounts which maintained
by the bank customer every now and then and bank is also given high priority or facilities in
these regards to their customer.
2.18.4 Debit Point- of-Sale:
An advanced payment system which enables consumers to use an AT M Card to pay for goods
and services, electronically debiting the cardholders account and crediting the account of the
merchant.
2.18.5 Cards: Credit/Debit Card:
There are two different types of card. One is debit which designate to withdraw own money
from the bank in any time. Another one is a credit system which provided by bank to their
customer. Customer can enjoy their credit amount while they are in shopping, withdraw cash
etc.
2.18.6 Internet Banking:
Customers need an Internet access service to handle this type of banking. As an Internet
Banking customer, he/she will be given a specific user ID and a confidential/secret or secured
password so that they can access to their own account. Here customer can able to see the ledger
balances, transfer his money, request something towards bank, etc.
2.19 DIGITAL BANGLADESH [A vision of the Government]:
BB has adopted advanced ICT to be digitized in all spheres of its functions including monetary
policy, banking supervision and internal management. BB has already introduced e-commerce,
e-banking, automated clearing house etc.; a historic move towards achieving higher
productivity across all economic sectors including agriculture and SME through use of ICTs.
Engineers could be pioneers innovating new applications of ICT, and reaching them to the
doorstep of the common people.
The universal role of Information and Communication Technology (ICT) is vital for socio-
economic development of a developing country like Bangladesh. Availability of information
helps increase productivity, ensures fair and competitive market and empowers marginal
people. Digital technology makes doing things easily from any place — using mobile phone as
a medium of money transfer and payment of utility bills, for example.
If Bangladesh goes digital it will be an e-state combined with e-governance, e-banking, e-
commerce, e-learning, e-agriculture, e-health and so on. However, the vision encompasses
much more. There is a strong correlation between economic and social development of a
country and its proficiency in science and technology, so we need a knowledge-based society,
efficient management and skilled human resources as well.

14
We need to extend ICT facility to every village in Bangladesh, so that even farmers can get
access to internet connectivity; acquire related information regarding his/her crop or product
development, pricing etc. In this connection, the government has already taken initiatives to
connect Bangladesh with the second Submarine Cable Network to have secured connectivity
with the information superhighway. Realizing the potential of ICT for national development,
the government has approved the National ICT Policy, 2009 on priority basis.
We need to extend ICT facility to every village in Bangladesh, so that even farmers can get
access to internet connectivity; acquire related information regarding his/her crop or product
development, pricing etc. In this connection, the government has already taken initiatives to
connect Bangladesh with the second Submarine Cable Network to have secured connectivity
with the information superhighway. Realizing the potential of ICT for national development,
the government has approved the National ICT Policy, 2009 on priority basis.
It is expected that by 2021, Bangladesh will have a countrywide ICT network and high-speed
information flow between center and periphery. Instructions will be transmitted electronically,
which will accelerate the national decision-making process and monitor the performance of all
agencies.
Bangladesh Bank, being the monetary authority of the country, is at the forefront of the
government’s firm drive to digitize. We have already formulated a 5-year strategic plan for the
financial sector based on advanced technological applications to deliver services with utmost
efficiency. The ultimate goal is to make BB a world-class central bank with high applications
of technologies. It should, in fact, transform itself into a paperless organization within this plan
period.
BB has achieved a historic milestone in the trade and business arena, departing from
conventional banking with the introduction of e-commerce recently; a giant stride towards
digital Bangladesh. Banks have been allowed to make online money transactions, payment of
utility bills through internet, transfer of funds (account to account), payments for trading goods
and services, and facilitate online credit card payments in local currency.
Indeed, electronic payments will be considered as cash transactions, which will be regulated
under the Anti-Money laundering Act as well as other relevant rules and regulations. It is
expected that a national payment gateway, connecting all banks for inter-bank transactions (e-
banking), will be established soon. Electronic fund transfer will also be possible in near future.
Necessary preparations have already been taken in this direction.
Installation of Bangladesh Automated Clearing House (BACH) is another remarkable event in
the history of the financial sector in Bangladesh. It will simplify the remittance channel and
payment system and, therefore, bring dynamism in business activities. The system was started
in early November 2009 on experimental basis, participated by some well-prepared banks, and
will be inaugurated formally soon. Applying sophisticated methods, the system needs only
images and corresponding information of the submitted cheque leaves instead of a physical
one, and will send them to the Bangladesh Automated Cheque Processing System (BACPS)
using a secured communication link.
Paying banks will examine the pertinent images and information, and send back to the
BACPS for payment (further examination if any inconsistency like fund insufficiency or

15
mismatch of signature etc.) Then BACPS will accumulate all the information, work out a
single net amount for each bank, and send it back to the collecting banks. As such, the cheque
clearing time is expected to be reduced to one day for countrywide payment. In other cases,
this will be a matter of couple of hours only.
Mobile banking, using cell phone as a tool, extends banking services to the doors of the people.
An account holder can check account history/statement, status on cheques, and payment order,
or stop payment, and so forth.
However, initially, three commercial banks have been allowed mobile banking to accelerate
inward remittance transfer with the help of the outlets of mobile companies. Recently, BB has
strengthened its monitoring and supervision activities on agricultural and SME loans with the
help of the existing countrywide mobile network, keeping records of cell phone numbers of
farmers and small entrepreneurs.
Online Credit Information Bureau (CIB) report, a pivotal component of risk management
measures, is expected to be launched by 2010. Banks and financial institutions will be able to
access the CIB data base online, and get the credit report of the concerned borrower. The
database will consist of detailed information of individual borrowers, owners and guarantors.
A central bank reform program-initiated ICT packages include networking, banking
application, enterprise resources planning solution, enterprise data warehouse etc., with a view
to ensuring efficient management of assets including human resources.
Under the networking program, all the departments of Bangladesh Bank Head Office and its
nine branch offices have already been brought under a computer network (LAN/WAN),
connecting almost 3,100 PCs. Therefore, any official sitting anywhere (head office or branches)
has access to the same kind of resources, and can share knowledge and information and ensure
knowledge-based management.
Enterprise Resources Planning (ERP) solution covers digitization of procurement (e-
procurement), cash management, access control etc. Meanwhile, recruitment process under BB
has been digitized (online application, sorting, validation etc.).
Banking application includes automation of all the accounts with BB (banks, financial
institutions and government), foreign exchange management, currency management, treasury
and securities systems/module, public debt management module, and also establishment of a
central depository system (CDS) to build a platform for secondary trading of treasury bills and
bonds.
Enterprise Data Warehouse (EDW) creates an electronic data bank, which will provide all
information and statistics of monetary, trade and fiscal areas of the national economy, where
all the concerned people of BB will have access to use it for further policy analyses. BB is
going to commence web-based e-tendering system, which covers announcement of tender,
distribution of schedules, bidding etc., to ensure simplicity and transparency of tendering
process.
These are only a few examples of how fast the BB is progressing in the process of digitization
of its activities. In addition, it is also taking other banks and government agencies on board to
ensure speedy, credible, user-friendly financial services to all.

16
Moreover, BB has been encouraging green engineering by installing solar panels on its own
premise and providing re-financing windows to support speedy development of solar energy,
biogas and effluent treatment plants all around the country. And in all these activities the role
of green engineers will be vital.
2.20 Challenges:
The major challenges for Bangladesh are poverty reduction and sustainable development, but
neither of these is possible without a strong science and technology base underpinned by
excellence in education at all levels and a well-trained work force in ICT. There needs to be
infrastructure development and technology transfer throughout the country to disseminate
knowledge to even remote areas of the country.
However, the government has taken initiatives to promote ICT among all spheres of people,
including the hard-to-reach areas; tax and duty cut on computers, promoting ISP services etc.
A broadband infrastructure is needed with access for all Bangladeshis from their homes, work
places, schools and tele-centers with WiMAX and 3G network. We also need a digitally literate
population and workforce, digital business development, and a legal framework that assures
freedom of expression while protecting the rights of creators and innovators towards building
an indigenous knowledge and technological base.
At the beginning, we must concentrate on the development of infrastructure in terms of
hardware, software and manpower. Skilled manpower from local market must be available to
keep the system running without depending on foreign “experts.” Sustainability of digital
Bangladesh depends on our enhanced ability to maintain, repair and expand once the system is
installed.
In order to manage a sustainable digitized Bangladesh, we need a long-term plan to produce
adequate number of scientists, computer and communication engineers, software engineers;
technology management experts etc., for further development of our ICT sector and keeping
pace with the technological advancement in the developed world.
Otherwise, digital Bangladesh would be highly vulnerable and dependent on foreign
manufacturers and experts. Simultaneously, we must encourage our young engineers to move
towards utilization of less or no fossil fuels. This green engineering will have to be one of the
strategic components of digital Bangladesh.
Certainly, we will opt for a technology-based economy. But that economy must also be socially
responsive to the needs of the disadvantaged. In other words, we pledge to build a more
inclusive digital Bangladesh where engineers too will play the desired strategic role.
The vision is to see BB paperless within the shortest possible time — all correspondence (both
internal and external) will be online — and achieve higher productivity across all economic
sectors including agriculture and SME through use of ICTs. Steps have been taken already to
bring overall functions and activities of BB under automation. Its supervisory functions have
been further strengthened applying advanced banking techniques with innovative technology.

17
BB has already engaged banks in major programs of upgrading their IT platforms, with ample
processing powers and online connectivity, to enable efficient data management, processing
and analyses in banks for their own risk management purposes and for reporting to BB.
A holistic approach needs to be taken by all the stakeholders to reach the ICT facilities to the
doorstep of the common people. Engineers could be pioneers in this regard, innovating new
applications of ICT, and thus move the nation towards digital Bangladesh.
Simultaneously, they should also be responsive to the challenges of climate change, and hence
move towards green engineering. BB is well aware of its responsibility in promoting green
finance for greener Bangladesh. I am sure engineers too will play their desired role in this fight
for a greener energy based digital Bangladesh’s.
2.21 According to Internet, Network’s Security of Bangladesh Commercial banks:
The computerization of banks provided them with more powerful tools, but at the same time,
increased their vulnerability. This is why computerization required a total logical security of
banks’ networks, whether centralized (54%), decentralized (27%) or both hybrids centralized
(19%). This security has not escaped the Bangladesh commercial banks. In fact, they set up
new IT tools and specialized men able to measure, monitor, control, manage and better reduce
risks brought by these new technology systems. Banks also shaped a security team and put in
place confirmed technical solutions: passwords, anti-virus, etc.
2.22 Development Strategy of the IT System:
What are the choices to be done within technology? How far should it go? Before questioning
their IT strategy, Lebanese commercial banks must define their overall strategy by enquiring
the wide diversity of functions they generally carry. Technological choices will then be
simplified and better justified. As for the results, 37% of banks adopt a development strategy
for their computerized systems according to the modernization criteria and the achievement of
economies of scale. Similarly, 37% of banks are based on the criteria of modernization and
wider dissemination of products and services in their development strategy of their computer
systems, whereas 26% of the surveyed banks adopt a developing strategy of their computer
system under the three development following criteria: achieving economies of scale, ensuring
a wider distribution of products and services and modernization.
A good “IT strategy” can certainly help improve these scores. But a good strategy for
information technologies is the one that expresses clearly choices and technological changes
that designate a specific banking strategy. For this purpose and before deciding whether to
introduce a new technology in the banking system, all surveyed banks undertake pre-
implementation studies.

18
 LITERATURE REVIEW
3.1 Evolution of Banking Businesses:
A business can be defined as “the ability to manage a supply system, which is a set of tasks
offering to a customer a product or a service” (Sahut, 2013).
This involves not only having the skills and the resources needed to perform specific tasks, but
also the ability to articulate contributions of various origins. However, when managers try to
define their business, they refer either to the market or to the sector or to their positioning. “The
business is then defined as the meeting of the supply and the demand with the need to integrate
the external and internal analysis of the firm” (Sahut, 2013).
Based on this definition, businesses exercised by a bank are brought together in three different
categories: financial intermediation, intermediation in the management of the means of
payments and selling products (Sahut, 2013).
Based on a study of Saidane D. (2001), “the intermediation process has changed in nature and
the rates of financial intermediation declined over the last twenty years”. But this does not
modify the essential role of the bank which is to provide today the economy with expertise
concerning financial risk management. The bank’s activity consists more in intermediating
market transactions (purchase and sale of securities, settlement operations, securities
conservation), in performing financial engineering transactions (IPO: Initial public offering,
capital increase and capital restructuring, etc.), in managing market risks for its own behalf and
on behalf of third parties (private management, salary savings, etc.).
Clients are able today to access and conduct transactions anywhere and anytime (24/24 hours
and 7/7 days) and receive information instantly and punctually. This was previously reserved
to the institution.
Banks have today a better understanding of the client (behavior, needs and attached risks). This
has increased their opportunity of selling personalized products and services and increased their
“chalendise” area.
These advantages have led to the emergence of new remote sales channels and in particular on
the Internet. In summary, NICTs play an increasing role in the evolution of the banking
businesses. Moreover, NICTs are modifying the grounds of competition between banks. They
are also integrating non-banks players into the competition. It is clear that leads will belong to
those who will understand the potential of change related to new technologies and implement
it to generate real competitive advantages.
3.2 Evolution of Banking Models:
Banking businesses as presented in the previous section help us to understand better diverse
bank models detailed by Llewellyn (2010, 2011) in his stylized review. One of the most
powerful pressures influencing transition and evolution of the bank’s business models
according to Llewellyn (2010) is technology.
New bank models focused on financial innovation to set a better regulatory framework on the
credit risk management through two vital business strategies: securitization of loans and credit
derivatives of loans (CDs) as means to alleviate and control credit risks. It was no longer a

21
function concentrated on accepting the risk and working on monitoring trying to alleviate it
internally. These new bank models have a function concentrating on shifting the risk and
insuring it through off-balance sheets operations. Llewellyn (2011) and Roux (2013)
emphasized these models as pre-crisis bank models.
After the financial crisis, regulation created less complex bank models: on the international
level, Basel III recommended higher capital regulatory requirements, therefore squeezing the
profitability of banks coming from trading activities. On the European level, in 2012, the
Leikanen report recommended a separation between proprietary trading and high-risk trading
for commercial banks and a reinforcement of capital requirements on trading assets and real
estate lending. The same recommendations were re-addressed in January 2014. Thus,
regulatory decisions can have important implications for future banking business models in the
world.
3.3 Effects of Technological Change on the Functioning of the Bank:
Effects of technological change on the functioning of the bank has been studied in many
countries by several researchers: Webster (1997) examined the relationship between
technological change and the bank performance and found a positive significant relationship.
He also explained that the higher the level of technological change the higher is the profitability
of the bank. Berger (2003) proved through his study that technological progress helps the
banking industry through its geographical expansion and facilitates it by reducing distant-
related agency costs both on the national and international level of expansion. His study was
concentrated on US banks.
According to Mizrahi (2000) the convergence of Internet banking and mobile networks within
the bank functioning creates both opportunities and threats. His paper discussed this issue for
a small sample: a Tunisian bank. Casolaro (2007) analyzed the effects of investing in
information technology on the productivity of the Italian banking sector. He found that banks
embracing IT capital-intensive techniques are nearer in average to the top functioning of the
banking industry and this would result in a high rate of efficiency. More recently, Frame and
White (2009) studied the effects of technological change and found that financial innovation
can improve social welfare and efficiency of banks. This was proven for the past 25 years for
US banks also.
3.4 At the Production Level:
In this area, banks are using NICTs to achieve together the following three objectives:
decreases in the production costs, industrialization of processes and transition to a management
of flows.
The pool of activities in the banking field concerns mainly payments, loans and investment
securities. This allows banks to group their investments and to achieve economies of scale (by
spreading fixed costs over larger dimensions). However, another characteristic is more specific
to NICT: NICTs permit meaningful increases in the production capacity of banks. The increase
in the processing capability is faced by the problem of its use in order for banks to remain
competitive in terms of costs. Therefore, the solution is to find new channels for extra set
capacities by creating new products or by exporting them to competitors. In fact, the mutuality
of certain activities is no longer considered as a last alternative, but as a real strategic choice.

22
Finally, NICTs modify banking management by developing transition from a traditional
management of stocks to a management of flows which means the monitoring and control of
trade with a double effort: integrating operations from A to Z and their continuous treatment.
In fact, in most of their operations, such as market operations or operations in request for
payment authorization by credit cards, banks have not the ability to select operations unless
gradually as they incur. Thus, the risk management is part of intervals getting shorter. It shows
the bank as an information manager whose function and criterion of performance is to collect,
process and transform information.
3.5 At the Distribution Level:
The greatest effect when considering the impact of NICT on banks is that on their distribution.
“Excellence in channel management will be a source of competitive advantage for market share
and value creation” (Gueret & Kunstler, 2000). Affected by the shock wave of internet, banks
are experiencing virtual change. Reducing operations cost, managing customers relationship,
selling online products and the risk of new entrants are all big challenges.
Initially, banks who are based on the Pareto principle (20% of customers generate 80% of
profits) installed standardized banking services primarily for a mass of clients expecting to
assist agencies in providing personalized servicing with high level of added-value and stronger
potentials in terms of margin. Yet, it is precisely clientele who turned first to Internet. Hence,
the offer of traditional banks has proved to be inadequate in terms of wealth and quality, leaving
the field open to new entrants. These have addressed the clientele segment with highly targeted
products of credit and investment.
In fact, NICT offers the right tools for understanding customers and their needs in a better way.
Thus, collecting information from clients and using it (defined as marketing one-to-one) are
key elements for selling online products with high added-value. This encourages banks to
reorganize their work around the client and more generally to shift from a production to a
distribution logic of tasks. “The challenge of competition is the ability to identify and anticipate
customer needs and develop distribution models that meet their needs”. “…The bank must
implement a new development strategy, by organizing its networks and channels, so that each
client can choose his way of contact, depending on his specific behavior, whether to establish
a relationship or to get a benefit” (Cheteux, 2000). The success of the bank in front of its clients
depends on handling changes of its organizational device overall. Indeed, “to keep their place
in the economy and the confidence of their clients, banks must begin a mutation affecting their
organization” (Mizrahi, 2000).
3.6 At the Productivity Level:
Improving productivity has been always and remains a strategic goal for banks. In a very
competitive environment, productivity has become a key element in the process and capacity
of banks development. Technological innovations such as advances in heavy computers,
telecommunications, microcomputers and more recently development of speech synthesis
techniques have changed the framework of exercising the profession of a banker.
Technological innovations result in an increase of automation and operations outsourcing, in
particular of those related to the network. Automation is the automatic processing of repetitive
operations previously performed manually. Outsourcing is the carrying out of transactions
outside the traditional network. For instance, cash withdrawals, cash and check deposits,

23
accounts consulting, etc. are made lesser in the agency and increasingly in ABMs (Automatic
Banking Machines) and ATMs (Automated Teller Machines).
In all cases, effects of outsourcing are positive on the network productivity as it reduces the
number of operations that were treated previously within the network. Using productivity gains
is the basis of any strategic thinking regarding the development of a network. Overall, effects
of automation and operations outsourcing are positive both on the bank and the network’s
productivities because it reduces the number of employees necessary for the achievement of
some operations. If these productivity gains are common to almost all networks, a fundamental
difference persists in their application’ strategy: a) Improving productivity by reducing the
number of employees gradually; b) Increasing available commercial time by using “time
saved” developed commercial operations.
It is interesting to specify the variables and the indicators used by economists and managers as
they try to capture the impact of technical change on productivity. Marrakchi (2000) pointed
out to the fact that “indicators measuring the impact of technology as a working tool on
productivity are unfortunately not available”. This is not a specific situation for Lebanon. In
fact, the famous saying that “we see technology everywhere except in statistics” is universal
and sums up the difficulty.

24
 ANALYSIS AND FINDINGS
4.1 Digitalization Within the Banking Sector:
Today, information and communication technology has become the heart of banking sector and
banking organization is at the heart of every robust economy. Electronic banking system (EBS)
has become the main technology driven revolution in conducting financial transactions. The
modernization of ICT has set the echelon for extraordinary improvement in banking procedures
throughout the world. For instance, the improvement of worldwide networks has considerably
decreased the cost of universal funds transfer.
Banks that are using ICT adhered products such as online banking, electronic payments,
security investments, can deliver high quality customer services with less effort. Technology
has already enabled most of the banks in Bangladesh to introduce innovative products to their
customers in the form of ATM/POST facility, Mobile/Tele banking, Web banking, ‘Anytime’
and ‘Anywhere’ banking, etc. Customers of banks have felt the positive impact of technological
solutions implemented by banks. Banks play an emergent role in developing the economic and
social conditions of a country. The major share of the profit of banks usually comes from
spread.
But the profitability of banks is under extraordinary pressure because of continuous shrinking
of spread. It becomes essential for banks to abate the cost per transaction for increasing spread
that in turns will increase the profitability of banks. Use of technology in banks reduces the
cost. Banks have convinced that cost of transaction drastically reduces from brick and mortar
formation of the branch to online delivery channels like Automated Teller Machine (ATM), A
point-of-sale (POS) Terminal, Mobile Phone, Internet, etc. Each of these channels has its own
specific advantages in terms of improved customer service and reduced transaction cost. The
basic difference within online banking and traditional banking is that, in traditional banking
the customer has to visit the branch for the basic banking needs viz. withdrawal or deposit of
cash, metastasis of funds, statement of accounts etc.
Online-business saves customers’ time. Bank also enjoys lower overheads, foundation,
premises and maintenance costs, which results in reduction of transaction cost. Low transaction
cost is one of the main causes why online business is getting popularity. Global; transaction
cost of ADCs is decreasing as number of online (branch less) transactions are increasing very
rapidly. Average Transaction Cost overview (in USD) is given below:

(Source: Javelin Strategy and Research)

26
4.2 ICT Infrastructure of Banks:
Banking sector of Bangladesh consists of six state-owned commercial banks (SOCBs), thirty-
nine private commercial banks (PCBs), nine foreign banks (FBs), two specialized banks
(SBs), and four non-scheduled banks which we mention the part two section. At the end of
2015, the nationwide outreach of scheduled banks is limited to 9,271 branches. With the pace
of time banks are brought under online operations and Alternative Deliver Channels (ADCs)
are also introduced.
4.2.1 ADCs at the end of 2018:
Consequence to the Bangladesh Bank (BB) guideline, commercial banks are reckoned as
Category-1 and Category-2.
Category-1 means Centralized ICT Operation for managing core business application solution
through Data Center (DC) with backup assets for continuation of ticklish services including
Disaster Recovery Site (DRS)/Secondary Data Center to which all other offices, branches and
booths are connected through WAN with 24/7 attended operation.
Category-2 means Decentralized ICT operation for guiding distributed business application
solution hosted at DC or operational offices/branches with backup assets for continuation of
ticklish services connected through WAN or having standalone operations. It is seen that at the
end of 2018 around 88 per cent banks have introduced real time online banking, meeting the
Category-1 architecture. The rest of the banks have proposed either Category-2 (5%) or Mixed
Category (7%) architecture. Banks of Mixed Category partially accomplished Category-1
architecture and gradually transferring the branches to meet the Category-1 architecture from
Category-2 architecture. SOCBs and SBs mainly fall in this category.

POST 32364
ATM 8582
Agent Banking Customer 77437
Agents of Agent Banking 194
Mobile Banking Customers

Mobile Banking Agents 565147 33119460

Internet Banking A/C 1515847
Total Card 9192640
Prepaid Card 132023
Debit Card 8474072
Credit Card 586545

Mobile
InternetMobile Agents of Agent
Credit Debit Prepaid Banking
Total Card Banking Banking Agent Banking ATM POST
Card Card Card Customer
A/C Agents Banking Customer
s
Series1 586545 8474072 132023 9192640 1515847 565147 33119460 194 77437 8582 32364

27
 Economic Trend, (January 2018), BB. Source: BIBM

7%
88% 100%
5%

Category 1 Category 2 Mixed

4.2.2 Branch Automation:

Notwithstanding the fact that the SOCBs are massive in terms of shares in assets and number
of branches, they could cover only around 72.3 per cent of their branches under
computerization by 2015 while the PCBs and FCBs brought 99.5 and 100 per cent of their
branches, gradually, under computerization. The following graph shows computerization status
of bank branches during 1998-2015 in Bangladesh. We see that, total computerization of bank
branches for all banks in 2015 stood at 85.1% due to the growth of computerization of govt.
banks in last few years.

28
4.2.3 T Investment and Sector-wise IT Budget:
In tune with the global trends, Bangladeshi banks have been investing ponderously in
technology infrastructure, solutions and manpower. Possibly, the key purpose of such high
investments in IT is to achieve increased productivity, proficiency, profitability and
competitive advantage through prosperous internal and external transaction flow, better access
to clients and markets and enhanced reach and quality of products and services. Total
investment for IT operations in the banking sector up to 2018 was estimated at Tk. 25,007 crore
since 1968 (considering the installation of computer at Agrani Bank in 1968 which was the
first installation of computer in the banking sector of Bangladesh). And in 2023, approximately
Tk. 1545.6 crore will invest on IT processes in the banking segment, excluding central bank in
2023, it is seen that a major portion of the IT budget will use to procure hardware and it will
61.7% of total budget. Second highest budget went to software sector. However, budget for
security, training and audit was very poor in last five years. The rest of the budget went to
power management, vehicles purchase, stationary procurement and decoration purpose.

1800
1600
1400
1200
1000
800
600
400
200
0
2011 2013 2015 2017 2019 2021 2023
Series1 759 987 1342 820 1138 1286.5 1545.6

Distribution of IT Budget from 2011 to 2023 (% of Total Budget), Source: BIBM:

80

70 2011
2013
60
2015
50
2017
40 2019
2021
30
2023
20
Linear (2011)
10 2 per. Mov. Avg. (2013)
Linear (2015)
0
0 2 4 6 8 10 Expon. (2017)
-10
Linear (2019)
-20 Linear (2023)

-30

29
4.2.4 Percolation of Computer and E-mail ID:
Quantity of computers and official E-mail account per hundred employees are two important
parameters to understand the automation status of a bank. At the end of 2018, it is seen that
about 87% of the bank employees have working terminal (PCs) whereas approximately 80%
of the employees (perhaps most of the non-officers have no e-mail id which is not unusual)
have official e-mail addresses. Immediately we have about 1.73 lac employees in the banking
sector and total number of 1,77,253 PCs and 7700 Servers are being used in this sector.
4.2.5 Corporate Intranet System and Internal Communication:
Some of the banks have their in-house developed system having a revolutionary impact in
implementing the paper-free traffic inside the bank. An internal web portal that holds features
like circulars, messaging, news, instant notices, employee profiles, on-line leave processing,
on-line requisition, on-line cheque requisition, MIS reports from Core Banking Software
(CBS) data and many more. In 2018, approximately 73% banks had this corporate intranet
facility which was 20% in 2013. By decreasing administrative cost this system will increase
the productivity and efficiency of employees of banks. All banks should come forward to get
the benefit of this system.
4.2.6 Human Resource in IT Department:
Today ‘IT Department’ is the most important department in any bank which was hardly found
a decennial ago. This departments works like a power-hose of a bank. Most of the IT
departments are headed by DMD equivalent executives. Approximately, 3900 IT professionals
has been assigning in those departments. It is found that Average, Minimum and Maximum
quantity of employees of IT department is 55, 15 and 278, respectively in 2018.
4.2.7 Core Banking Software (CBS):
Using the CBS Systems, banks are providing for real-time online banking services to its
customers. It has also the capability to provide with centralized MIS and ad hoc reports. In
addition, it is also helping to ensure seamless flow of information in a secured manner at all
levels of the management. In today’s highly volatile and competitive business environment, a
centralized robust CBS that can accommodate all the electronic delivery channels is a must for
survival in the race of competition. In 2011, 45% banks were using foreign CBS and 32% local
CBS. Only 8% banks developed their CBS by their own experts and 18% banks were using a
combination of local and foreign CBS. In 2012, we see that 49% and 28% banks used foreign
and local CBS, respectively. But in 2018, use of foreign software increased slightly and stood
at 75% of total CBS. Clearly, use of foreign software has been increasing over the period 2011-
2018 defeating the local software market. Though, in 2018, market share of local software
slightly increased compared to 2014, use of in-house software increased up to 7%.

30
 Classification of Banking Software (% of Banks):

2011 2013 2015 2017 2019 2021 2023

25 60

20 50
40
15
30
10
20
5 10
0 0
2011 2013 2015 2017 2019 2021 2023
Mixed 7 8 11 15 18 20.5 23.4
In House 4 6 6 8 8 9.4 10.4
Local 32 28 24 28 32 28.8 28.8
Foreign 57 53 53 49 45 43 40.2

Mixed In House Local Foreign Linear (Mixed)

4.2.8 Application Software:

Other than CBS, banks use a large number of application software being developed by its own
resources or external vendors such as Reconciliation System, Payroll System, Employees Tax
Management System, Foreign Exchange Return Software, Cash Transaction Reporting System
etc. for their day to day operations. It is seen that, on an average 33, minimum 11 and maximum
91.7 application software are being used in banks. Among the software, 55% are developed by
the banks themselves, 22% are local and rest of the 23% are foreign software.
Types of Application Software, 2018, Source: BIBM

31
 4.2.9 Data Communication Infrastructure:
Authenticity of data communication link is a matter of the utmost importance for smooth
operation of online banking. Optical fiber transmission system is more reliable compared to
other transmission links. A decade ago it was a dream to get an optical fiber connectivity in
Bangladesh. But, recent development of the optical-fiber network of the country have brought
huge opportunities for banks to run online banking activities easily. Following table shows that
banks are now trying to give more priority to use optical fiber link compared to other links to
ensure stable online data services. Moreover, around 94% banks use dual links for online
branch, ATMs or ADCs.
Use of Communication links in Banking Network
Source: BIBM

100 12
10
80
8
60 6
4
40 2
0
20
-2
0 -4
2011 2013 2015 2017 2019 2021 2023

2011 2013 2015 2017 2019 2021 2023

Optical Fiber 58 67 69 77 79 85.6 90.8
Radio Links 24 23 23 15 13 10.6 7.6
VSAT 8 3 3 2 2 -0.3 -1.6
Others 10 7 5 6 6 4.1 3.2

4.2.10 Internet Banking:

Bangladeshi customers are now able to do banking from any place of the globe at any time by
using Internet technology. At the end of 2018, about 75% banks were able to provide some sort
of Internet banking services in Bangladesh, which was 74% at the end of 2017. In December
2013, it was 71%, showing a 4% growth compared to 2012 (77%). Amount of money
transferred by this channel is shown in the following graph. Internet Banking, 2011-2018 (In
Billion taka),
Source: Financial Stability Report (2011-23), Economic Trend, (December 2018), BB.

400 367.68
In Billion
308.36
300 253.9 2011
217.3
2013
200
2015
90.5
100 2017
41.6 48.7
2019
0

32
4.2.11 ATM Banking:
The end of 2018 total 11,573 ATMs has been installed in Bangladesh. That shows a moderate
increase from previous year (10,331). Most of the ATMs are installed in the divisional cities
and district level. Around 59% ATMs are installed in Dhaka. A very few ATMs are being
operated in rural areas, less than 5.84%. It is mentionable that 41% ATMs is set up by the
DBBL alone. Total number of plastic card (Debit, Credit, Pre-paid) was recorded at 1,07,
92,640. At the end of 2018, total number of transactions was recorded at 21.49 crore and total
volume of ATM transactions was recorded at Tk. 1,03,910 crore.
Volume of Transactions through ATM, 2011-2023 (In crore Taka)

120000
104342
100000 93856.6
83912 2011
80000 2013
68590
65430
2015
60000 56580
2017

37490 2019
40000
2021

20000 2023

0
ATM

Source: Financial Stability Report (2011-18), Economic Trend, (December 2018), BB

4.2.12 Point of Sale Terminal (POST):
Besides expanding the ATM networks, the banks are also giving emphasis on increasing their
POST network covering the major outlets for ease of purchase for the customers. Many banks
have installed POS terminals in major shops, hotels, sale center, etc., all over the country. POST
allows all types of debit card and credit cards for making transactions. In 2011 total number of
POST in Bangladesh was 11,852 whereas at the end of 2018, it stood 50,033. In 2018, total
number of transactions was recorded at 11.54 crore and volume of transaction was Tk. 31,570
crore. Most of the POSTs are being operated in divisional towns. Dhaka is the city where 87%
POST are in operation.
4.2.13 Mobile Financial Services (Mobile Banking):
Mobile banking is a term used for performing banking activities via a mobile device such as a
mobile phone. The developments in mobile phone density in Bangladesh, with 132 million
subscribers, present a unique opportunity to leverage the mobile platform to meet the objectives
and challenges of financial inclusion. MFS started in Bangladesh on 22 September 2011. In the
few years since the launch of the MFS, the sector has shown significant growth.

33
 Volume of MFS Transactions and Customers: Apr 2013-Sep 2015
(Source: Bangladesh Bank)

Banks are already carrying out activities such as disbursement of inward remittances, financial
transactions through agent/ bank branch/ ATM/ mobile operator outlet, payments of business
organizations (such as utility bills) by individuals, payment of individuals by business
organization (such as salary distribution) payment of individuals by Government (such as old-
age allowance, freedom fighter allowance, etc.), payments of Government by individuals (such
as tax payments), individual to individual transactions (from one registered mobile account to
another registered mobile account) and other transactions such as microfinance, overdraft
facilities, insurance premiums, etc.
Trends in Mobile Financial Services in Bangladesh
Source: Financial Stability Report (2012-2023), Bangladesh Bank

50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
No of Total Total
No of No of Banks
No of No of Active Transaction Transaction
Approved Offering No of Agents
customers customers in millions Amount
Banks MFS
BDT billions BDT
2015 10 3 51078 3018989 1101424 29.19 71.23
2017 27 18 88647 13179814 6543710 228.85 517.83
2019 28 19 540944 25186250 12154492 583.48 1031.55
2021 28 18 561189 31845658 13218356 1166 1772.76
2023 37 26 806122 42929288.5 18744890 1443.145 2252.92

34
Above the table presents the status of mobile banking in Bangladesh. A tremendous growth of
the number of agents, client, and volume of transaction has been observed during the period
2015 to 2023.
4.3 Agent Banking:
To expand the outreach of financial services to the remote rural areas and marginalized
populations, BB has taken initiatives in agent banking. Regulations and guidelines for agent
banking operations were issued on 9 December 2013. Agent Banking (AB) means providing
limited scale banking and financial services to the underserved population through engaging
agents under a valid agency agreement, rather than a teller/ cashier. It is the owner of an outlet
who conducts banking transactions on behalf of a bank. Collection of small value cash deposits
and cash withdrawals (ceiling should be determined by BB from time to time), Inward foreign
remittance disbursement, Facilitating small value loan disbursement and recovery of loans,
Facilitating utility bill payment, Cash payment under social safety net program of the
Government, Facilitating fund transfer (ceiling should be determined by BB from time to time),
Balance inquiry, Collection and processing of forms/documents in relation to account opening,
loan application, credit and debit card application from public, Post sanction monitoring of
loans and advances and follow up of loan recovery, Receiving of clearing cheque, other
functions like collection of insurance premium including micro‐ insurance etc. Six banks have
been licensed so far for starting agent banking services. They have already started appointing
agents, and 194 agents’ outlets are in operation now. At the end of 2018, total number of
subscribers was 97,437 whereas total volume of transaction was recorded at Tk. 5710 crore.
4.3.1 Bangladesh Automated Clearing House (BACH):
The Bangladesh Automated Clearing House (BACH) started automated cheque clearing from
07 October 2011 by replacing the ancient manual clearing system with automation, which
allows inter-bank cheques and similar type instruments to be settled instantly. As member of
Bangladesh Automated Clearing House (BACH), all the banks have responded proactively by
expanding its BACH operation facility to all regions where Bangladesh Bank has its branch
and all areas where the clearing operation was done by Sonali Bank on behalf of Bangladesh
Bank. As such, ACHS has ensured quick clearing of customers’ financial instruments. The
banks have also increased the number of cheque scanning points to alleviate the task of
scanning at one point. It is helping the banks to clear the financial instruments efficiently within
a very short time. Gradually the banks are expanding this facility under the guidance of
Bangladesh Bank to all the regions of Bangladesh so that all the branches of all banks in our
country can come under a single clearing house being operated in Dhaka.

35
 Clearing through BACH, 2011-2023

2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
2011 2013 2015 2017 2019 2021 2023
High Value 67960 417780 597742 687790 881230 979451 1209110.8
Regular Value 75110 509390 82744 516550 547740 570734 686408.9333
Total 143070 927170 680486 1204340 1428970 1550185 1895519.733

Source: Financial Stability Report (2011-2018), BB

4.3.2 Bangladesh Electronic Funds Transfer Network (BEFTN):
The commencement of the Bangladesh Electronic Funds Transfer Network (BEFTN) added a
new milestone in the country’s payment and settlement system. BEFTN is the paperless
electronic exchange that ensures transfer of funds from one account to another, either within a
single institution or across multiple institutions through computer-based systems. After a
successful pilot implementation of BACPS, BEFTN started its live journey on February 28,
2011. BEFTN drives the payment mechanism towards a green and almost risk-free dimension.
It accommodates both credit and debit transactions. The impact of credit or debit entries on
receivers’ account can easily be recognized form BEFTN. Government entities are the largest
stakeholders of BEFTN for disbursing staff salaries, benefits, vendor payments, etc. In
addition, salary disbursements, business payments, dividend and refund warrant payments,
insurance premiums and installment payments of the private sector, and also foreign remittance
disbursements are being facilitated by BEFTN. In 2014, on average, 27,988 transactions were
settled per day, which is 33 percent higher than that of 2013. Total monetary amount of such
transactions was 598 billion BDT, which is 51percent higher than that of the previous year. In
2018, total number of transactions was recorded at 3.32 crore having a volume of Tk. 97.38
thousand crore.
4.3.3 Real Time Gross Settlement (RTGS):
Bangladesh Bank is committed to provide a safe, efficient, inclusive and authorized payment
and settlement system for the country. The introduction of the Real Time Gross Settlement
(RTGS) system is another milestone of the country’s financial sector development. RTGS is a
central processing and settlement facility system which was launched on 29th October 2015. It
settles money or securities in which both processing and final settlement of funds transfer can
take place with immediate effect (i.e., in real time and gross in amount). From 29 October 2015
to 31 December 2015, it settled approximately 8,820 transactions amounting Tk. 1,387.8 billion
(Financial Stability Report, 2015, BB).

36
4.3.4 Online MIS in Banks:
A separate MIS department can ensure precise, timely and accurate generation of MIS report.
Generation of MIS report from various departments and sending it to the management at right
time is a challenging job. For this reason, a separate MIS department gives benefit to an
organization especially if the organization is very large. At the end of 2018, 75% banks have
established separate MIS departments having average, minimum and maximum no. of
employees 15, 03 and 37, respectively. But among the banks, only 25% banks have separate
Business Intelligence Software (BIS) for the generation of MIS report.
4.3.5 Call Center:
Giving importance to customer satisfaction and easy access to banking services, 48% banks
have established its high-tech contact Centre. IVR, integrated with CBS and Card system that
enables customers to do banking by any phone system as well as consultation with Call Centre
agents (Phone banker). The minimum, average and maximum number of employees engaged
in call centers is 7, 40 and 170 respectively. Near about 2100 employees are working there.
4.3.6 Trends in Technology Adoption:
The following Figure shows the trend in technology adoption in the country’s banking sector
over the period 1998 to 2015. It is evident from the graph that, out of different innovative
technology driven products and services, significant response among the banks is observed in
adopting ATM, online, call center, mobile banking and SWIFT during the period 1998-2015.
Trends in Technology Adoption, 1998-2015

Source: BIBM

37
4.4 Challenges:
4.4.1 ICT Infrastructure: In different studies it is found that lack of long-term vision, proper
planning and initiatives; shortage of manpower, poor IT budget, weakness of business process
reengineering, delay in procurement process and lack of advanced training are the main
problems for the development of the state-of-the art ICT infrastructure of the banks. To
overcome these problems, every bank should have an ICT budget of certain portion of their
annual profit. This budget may be spent for ICT infrastructure development and manpower
training. IT Professionals can be recruited to fill up the gap between actual demand and existing
manpower. Leadership quality and efficiency of IT project implementation team should be
developed for successful design and implementation of banking automation projects.
4.4.2 Skills Development: Bank management should increase their level of understanding and
appreciation that there is no alternative to develop IT skill in banks because ICT is rapidly
changing platform and more diversified and sophisticated Cyber-attacks/frauds are also
increasing. There is no alternative to develop ICT skill (especially on IT Governance, IT
Project Management, IT Audit, IT Risk Management and IT/Cyber Security) with a view to
maintain e-banking system with reliability and security.
4.4.3 Security: The security of the information flow both inside and outside of the bank should
be focused. It is the security issue that must be addressed properly with adequate hardware,
software and manpower. Every bank should strengthen its ICT security department in ICT
division. Recruitment of ethical hacker; placing a proper IT security control and monitoring
system etc., are the crying need of banks. Security awareness of both bank customers and
employees’ is a great concern for banking sector. It is seen over the years that online banking
frauds have been increasing due to the lacking of proper knowledge regarding banking
information security. Customers’ awareness can be increased by counseling, advertising and
distributing leaflets/brochures. Multi-factor/adaptive authentication method can be introduced
by banks quickly. Data theft and leakage can be stopped by increasing morality/ethics of bank
employees and increasing internal data security.
4.4.4 IT Governance: Implementation status of ITG in banks is not very good yet. Banks
should give proper attention to follow appropriate guidelines, standards and framework such
as COBIT, ISO/IEC 38500:2008, ITIL, COSO etc. for successfully implementing ITG. An IT
roadmap is the governing document that dictates specifically how technology will support the
business strategy and drive businesses priorities over the next 3-5 years. A technology roadmap
can help the CIO to act more in line with the business strategy of the organization.
4.4.5 IT Audit: Every year, ICT infrastructure of each bank should be audited by qualified IT
auditors. It is clear that poor auditing system of banks may create another risk for security if
auditors fail to identify security holes. Banks should not compromise on this issue. Insufficient
IT Auditors could be one of the IT risk factors. A shortage of sufficient IT Auditor is also a
serious issue and need to be addressed as soon as possible. They must be internationally
certified having inadequate training and sufficient experience. IT Auditors without relevant
banking knowledge is also an issue. Bank management should give special attention to this
issue.

38
4.4.6 Corporate Intranet System: An internal web portal holds different features like
circulars, messaging, news, instant notices, employee profiles, on-line leave processing, on-
line requisition, on-line cheque requisition, MIS reports from CBS data and many more. With
a view to increase productivity of bank’s employees and reduce administrative cost, banks
should take immediate steps to develop effective Corporate Intranet System.
4.4.7 Role of Bangladesh Bank: BB has been working with a great care for a long period to
develop the overall IT infrastructure of banking sector. Proper guidelines and monitoring of
central bank is also helping the IT department of different banks to expand in right way. As a
result, expectation from BB is increasing day by day. Bangladesh Bank may take initiatives
to develop an Information Sharing and Analysis Centers (ISAC) where all the members can
discuss and share their opinion regarding the various IT audit and IT security issues to
mitigate the risks and aware about the latest security threats. Moreover, Bangladesh Bank can
play a vital role in setting up a cell/wing including a Data Bank for all of the commercial
banks. That will help to collect and share up-to-date information regarding current status,
growth and problems of the online banking of Bangladesh. IT Heads of 97% banks agreed
that banking sector should have a center for sharing electronic banking experiences, problems
and solutions. Bangladesh Bank may take initiatives in this regard. An institution like IDRBT
(Institute for Development and Research in Banking Technology) which is set up by the
Reserve Bank of India can be formed immediately in Bangladesh. Moreover, a Computer
Emergency Readiness Team may be formed for disaster recovery of the banking sector.
4.5 Banking technologies we will see in the next 5 years:
New technology in banking is already transforming the financial sector, and the traditional
banking landscape is set to rapidly change in the next five years. Safety features, such as
advanced cryptography and biometrics or biological information, will help protect against bank
scams, and remote applications will make it easier than ever to do your banking without visiting
a branch — but if you do, the experience is likely to be much more customer-friendly. Here’s
a look at the how banking technology will change data sharing and the way your money is
handled.
Blockchain Technology: Blockchain technology is set to fundamentally transform
banking and financial services. It decentralizes financial management from a central
authority to a widespread network of computers. Financial transactions are broken
down into encrypted packets, or “blocks,” which are then added to the “chain” of
computer code and encrypted for enhanced cybersecurity — it’s been compared to
“email for money” by blockchain startup CEO Blythe Masters. Because the technology
has the potential to improve numerous facets of banking — and is the basis for other
banking technology trends like bitcoin — it’s no longer a question of if blockchain will
change the banking industry, but when, according to the Wharton School of the
University of Pennsylvania.

Upgraded ATMs: ATMs transformed the bank tech system when they were first
introduced in 1967. The next revolution in ATMs is likely to involve contactless
payments. Much like Apple Pay or Google Wallet, soon you’ll be able to conduct
contactless ATM transactions using a smartphone.

39
Some ATM innovations are already available overseas. For example, biometric
authentication is already used in India, and iris recognition is in place at Qatar National
Bank ATMs. These technologies can help overall bank security by protecting against
ATM hacks.

It might take some time to see ATM upgrades in the U.S. financial system because of
the strict regulations governing North American banks, according to biometric, which
is a leading global provider of biometric security systems.
Eliminate Unnecessary Fees: ATMs That Don’t Charge Fees.

Proliferation of Non-Banks: Banks are hoping that technology will allow them to
deliver a faster, more transparent experience to consumers. A large portion of their
resources, however, is necessarily dedicated to security, compliance and other industry-
specific requirements, which has allowed non-banks — or financial service providers
that are not regulated by the banking industry — to flourish, according to a 2018 report
from market intelligence firm Greenwich Associates. Since these companies can devote
a greater percentage of their assets to cutting-edge financial technology, they might be
able to innovate more rapidly than traditional banks, attracting tech-savvy customers in
the process.

Automated Financial Services Employees: Vikram Pandit, who ran Citigroup Inc.
during the financial crisis, said up to 50 percent of banking jobs could disappear within
the next five years due to developments in technology, in a 2018 interview with
Bloomberg television. Many employees of Wall Street’s largest firms are already
having to adapt or look for other positions due to the use of technologies such as
machine learning and cloud computing, which automate their operations, according to
Bloomberg.

Wearables: Wearables — such as smartwatches — are poised to become the future of

the retail banking experience, according to Samsung Insights. One example is that
banks could use Bluetooth beacons to push personal greetings to customers’
smartwatches when they enter a banking location.

Another type of wearable might be smart glasses for bank tellers, according to a report
from Deloitte, which could process customer banking information for the employee as
the employee is simultaneously doing other customer service tasks.

Overall, consumer behavior and smart device trends are steering banking technology
advances in the direction of convenience. An increasing number of remote technologies
will allow you to interact with your bank right from the palm of your hand. And from
your email inbox to visiting an actual branch, you can expect to encounter a whole new
customer experience, perhaps even sooner than you think.

Continuous Integration (CI): CI is a development practice that requires developers

to integrate code into a shared repository several times a day. Each check-in is then
verified by an automated build, allowing teams to detect problems early.

40
 FINDINGS
New technology in banking is already transforming the financial sector, and the traditional
banking landscape is set to rapidly change in the next five years. Safety features, such as
advanced cryptography and biometrics, will help protect against bank scams, and remote
applications will make it easier than ever to do your banking without visiting a branch — but
if we do, the experience is likely to be much more customer-friendly.
Rise of the Robots (and APIs): “More automation and personalization. Banking as a
platform,” one respondent wrote. This could mean more chatbots and artificial
intelligence accelerating the onboarding process, but it also refers to API ecosystems
being built on top of bank systems. To many in banking, this implies giving away the
customer experience to fintech startups and the tech giants, but perhaps it will just mean
enhancing the customer experience by tying in one’s finances to services and systems
that are already used and loved. Plus chatbots. Lots and lots of chatty little chatbots.

Blockchain will shake things up: Several industry groups have come together to
commercialize technology and apply it to real financial services scenarios. We expect
this surge in funding and innovation to continue as blockchain and FinTech move from
a largely retail focus to include more institutional use. And while many of these
companies may not survive the next three to five years, we believe the use of the
blockchain “public ledger” will go on to become an integral part of financial
institutions’ technology and operational infrastructure.

Digital becomes mainstream: Two decades ago, many large financial institutions built
“e-business” units to ride a wave of e-commerce interest. Eventually, the initial “e”
went away, and this became the new normal. Internet development, and large
technology investments, drove unprecedented advances in efficiency. Today’s “digital”
wave has the same markers: separate teams, budgets, and resources to advance a digital
agenda. This agenda extends from customer experience and operational efficiency to
big data and analytics. In financial services, we have seen this approach applied to
payments, retail banking, insurance, and wealth management, and migrating toward
institutional areas such as capital markets and commercial banking.

Customer intelligence: Do you know what your customers value? Are you sure? Once,
customer intelligence was based on some relatively simple heuristics, built from focus
groups and surveys. These were proxies for real, individualized data about consumer
behavior, and the results were pretty hazy. Now, technology advances have given
businesses access to exponentially more data about what users do and want. It is an
amazing opportunity for whomever can use analytics to unlock the information inside,
to give customers what they really want.

41
 Conclusions and Recommendations

5.1 Conclusion: Information Technology, a revolutionary force has not left the banking sector
untouched. The business operations in the banking and financial sector have been increasingly
dependent on the computerized information systems over the years. It has now become
impossible to separate Information Technology (IT) from the business of the banks and the
financial institutions. In last 15 years a tremendous growth is seen in the digitization of the
banking sector of Bangladesh. Government initiatives to develop a ‘Digital Bangladesh’ also
boosted up this process highly. A recent study of BIBM shows that investment on IT have
raised efficiency of banks over time in Bangladesh regardless of their ownership. These gains
in efficiency have also improved bank’s productivity and profitability. Still, efficiency and
profitability of state-owned and nationalized banks are less compared to other groups. As many
financial products and services directly or indirectly depend on ICT, banks have to think how
to involve IT to minimize the cost, increase the efficiency and how to provide better services
to the customers ensuring reliability, safety and security. There are several basic requirements
for ICT which must be met; these include a sound technical infrastructure, efficiency of the
employees, and interaction with technical developments. Moreover, IT security and
governance must be ensured for next generation online banking in Bangladesh.
Strengthening the financial sector is a vital concern for an economy. Efficient banking or sound
financial system serves as an effective channel for mobilizing funds from savers to productive
sectors and thus helps to achieve economic growth. However, the idea of ‘Bank’ is so ancient
and this concept is evolving over time. The reforms that have taken place over the past two
decades helped the commercial banks to evolve to a stronger position compared to the past. It
has gradually developed the rules and procedures along with the fit and proper test criteria to
maintain financial sector discipline. These changes can increase financial intermediation and
enhance financial deepening. However, it seems that many of the changes are donor dictated
rather than to be domestically formulated. The chronology of the reforms and the evaluation of
the various reforms associated with central bank and financial sector suggest and indicate donor
participation.

5.2 Recommendations: If we want to survive in the competition of future banking sector,

Bangladesh will have to build IT infrastructure in banking sector as earlier as possible. If we
don’t do this, we will be obsolete in the future banking era. We need the public cloud for the
dominant infrastructure model, develop our CRM, HR, KYC, COOs, CIOs. Cyber-security will
be one of the top risks facing financial institutions in next banking sector, so we need to use
hyper-security mode and use biological information, blockchain and highly cryptographic
information to keep our data secure from the hackers. For secure our data we can use BloB
database system as an unstructured data reservation form, we can use Sha-256 for encrypt our
data and we can use PGP and GPG model for communication with branch to branch or bank to
bank.
We should be introducing new branches and invest more on IT infrastructure. If we want to
survive in the future of banking sector then we have to invest more and more in IT sector
because there have no alternatives.

43
 Bibliography/ References

Websites:
www.assignmentpoint.com/business/banking/present-banking-sector-status-of-
bangladesh.html
www.assignmentpoint.com/business/entrepreneurship-development-business/future-prospect-
of-it-consultant-limited-as-a-third-party-processor.html
www.assignmentpoint.com/business/banking/changing-banking-sector-in-bangladesh.html
www.bb.org.bd/aboutus/index.php
www.assignmentpoint.com/business/banking/history-banking-bangladesh.html
www.fintechbd.com/the-digital-banking-revolution-in-bangladesh/
www.Bangladesh/Bank/reform
www.E-Banking and online Banking
www.Bangladesh Bank Order_1972
www.google.com
www.weikipedia.org
www.weikidata.org
www.weikitech.org
www.igolder.com/PGP/

Keywords:
#New information and communication technology
#Banking industry
#Production
#Distribution
#Productivity
#PGP
#GPG
#CI
#Blockchain
#IT Infrastructure
#Modern Technology
#KPI
#Future Bank
#Future Tech
#Hybrid Security
#Cryptography
#Artificial Neural Network
#Banking Intelligence

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