The Contribution of Internet Banking to the Economy of Bangladesh

Badhan Saha
ID: 51738039
 Introduction

 Internet banking is a relatively new concept in Bangladesh. Like any new technology, along
with the potential, it brings with it a rush of questions relating to its design, acceptability and
potential risks. In the global banking scenario, cheques are passé now, and new methods of e-
banking are widely welcomed.
 In this age of information technology, electronic communication is the cornerstone of a
country for its business, every government agency and economy. Modern banks play a pivotal
role in promoting economic advancement of a country. Internet banking is a modern banking
system that delivers the new and traditional banking products and services to the customers
electronically.
 OBJECTIVES

■ The principal objectives of this report are to an obvious the reason of life insurance
policies are not popular in Bangladesh. Preparing this paper is to partial success of the
requirements of MBA degree. There are few objectives given in below:

Specific objective:
■ To know the concept of Internet banking
■ To assess the existing internet banking scenario in Bangladesh
■ To explore the prospects of Internet Banking in Bangladesh context.
■ To identify major challenges of Internet Banking
■ To explore the role of internet banking and contribution to the society
■ To make the necessary recommendations to solve the problems of Internet Banking.
 Methodology

Primary Sources
 Collect Data through Questionnaire.

Secondary Sources
 Recent annual reports.
 Different articles and financial performance analysis statements.
 Different book and journals & newspapers.
 Internet sources & website of the organizations.
 Findings
■ Infrastructural barriers were one of the most important challenges for e-banking in
Bangladesh. Here, there is not enough infrastructural support for providing efficient internet
banking services.
■ Internet business is still not very much progressed in Bangladesh. Mass awareness is not
feasible.
■ Nationalized commercial banks and specialized banks were lagging behind of online
banking services. Moreover, customers were not satisfied with the quality of the services.
■ Local Banking software should be developed properly and must have greater accessibility
within the country and outside the country
■ Bangladesh Bank should adopt latest technology but due to lack of vision they were
adopting old technology i.e. introduction of MICR for Bangladesh Bank automation
procedure.
■ Although online banking has bright prospects, it involves some financial risks as well.
 Conclusion

 Internet banking, the latest generation of electronic banking transactions, opened up new window of
opportunity to the existing banks and financial institutions. Most of the banks have their own websites but not
all of them offered internet facilities. The main reason of this was that the banks did not have the IT
infrastructure and proper security features. The Ministry of Science, Information and Communication
Technology went out the policy for the development in the IT sector. Another important issue in extending the
internet banking services throughout the country was gaining popularity.
 In Bangladesh most of the people were illiterate and obviously they were technology ignorant. But among the
literate portion many of them had computer phobia. So these people could not trust on the internet banking
services. To gain the confidence on internet banking the overall computer literacy must be developed. With
that goal government had taken initiative even in the root level to develop it literacy in the country.