Digital banking soars as people adapt to the new normal

Digital banking transactions have almost doubled amid the Covid-19 pandemic as people are getting used to digital banking instead of physically visiting bank branches.

Transactions of internet banking amounted to Tk10,371.1 crore in March this year, up 57.42% year-on-year, according to the latest data from the Bangladesh Bank.

The amount of internet banking transactions was at Tk6,588.0 crore in the same month of last year.

People started heavily depending on internet banking since March last year when the government imposed a bar on public movement to control the spread of the global pandemic.

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Internet banking users also increased amid the pandemic. As of March this year, the number stood at 3.47 million, up 31.08% year-on-year, as per the BB data.

In the face of the growing first wave of the pandemic last year, most banks introduced mobile banking apps, WhatsApp banking and online account-opening platforms.

“The next four to five year’s development of digital banking has already been completed within a year, owing to the global pandemic,” said Brac Bank Managing Director Selim RF Hussain.

He also said that the transaction in digital banking of Brac Bank was 16-17% just a year ago, but now it has increased to 42%.

Recently the bank introduced a Mobile App-“Brac Bank Astha”. Clients of the bank can make all kinds of banking transactions through the app.

Brac Bank's investment in technology has averaged approximately $20 million, or Tk170 crore in three years, from 2018 until 2020.

Meghna Bank is also en route to digitalizing its banking operations, said its managing director Sohail RK Hussain.

He also said that the fourth generation bank plans to invest about Tk20 crore to upgrade its system and digital financial services.

“The bank is expanding its internet banking, agent banking, upgrading its mobile financial services and going to introduce social media banking within the next four to five months,” said Hussain.

“Digital banking is essential in reducing operational cost,” said Hussain, adding that all types of digital banking will be available at the bank from next year.

“Amid the pandemic last year, Dhaka Bank introduced mobile banking app “DBL GO”, and also introduced a few tech-based products for its small and medium enterprise customers as well,” said its managing director Emranul Haq.

“We were the first to introduce ‘WhatsApp Banking’, through which our customers can access their accounts and execute their transactions without any hassle amid the pandemic,” he added.