Online banking (or Internet banking) allows customers to conduct financial trans actions on a secure website operated by their

retail or virtual bank, credit uni on or building society. Online banking solutions have many features and capabilities in common, but traditionally also have some that are application specific. The common features fall broadly into s everal categories Transactional (e.g., performing a financial transaction such as an account to ac count transfer, paying a bill, wire transfer, apply for a loan, new account, etc .) o Payments to third parties, including bill payments and telegraphic/wire tra nsfers o Funds transfers between a customer's own transactional account and savi ngs accounts o Investment purchase or sale o Loan applications and transactions, such as repayments of enrollments Non-transactional (e.g., online statements, c heque links, cobrowsing, chat) o Viewing recent transactions o Downloading bank statements, for example in PDF format o Viewing images of paid cheques Financial Institution Administration Management of multiple users having varying levels o f authority Transaction approval process

Features commonly unique to Internet banking include Personal financial management support, such as importing data into personal acco unting software. Some online banking platforms support account aggregation to al low the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions. [edit] History The precursor for the modern home online banking services were the distance bank ing services over electronic media from the early 1980s. The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Home banking can als o refer to the use of a numeric keypad to send tones down a phone line with inst ructions to the bank. Online services started in New York in 1981 when four of t he citys major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanov er) offered home banking services[1] using the videotex system. Because of the c ommercial failure of videotex these banking services never became popular except in France where the use of videotex (Minitel) was subsidised by the telecom pro vider and the UK, where the Prestel system was used. The UK's first home online banking services[2] was set up by Bank of Scotland for customers of the Nottingh am Building Society (NBS) in 1983.[3] The system used was based on the UK's Pres tel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td14 00)

connected to the telephone system and television set. The system (known as 'Home link') allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Homelink system. Typical recipients were gas, electricity and telephon e companies and accounts with other banks. Details of payments to be made were i nput into the NBS system by the account holder via Prestel. A cheque was then se nt by NBS to the payee and an advice giving details of the payment was sent to t he account holder. BACS was later used to transfer the payment directly. Stanfor d Federal Credit Union was the first financial institution to offer online inter net banking services to all of its members in October 1994.[citation needed] Tod ay, many banks are internet only banks. Unlike their predecessors, these interne t only banks do not maintain brick and mortar bank branches. Instead, they typic ally differentiate themselves by offering better interest rates and online banki ng features. [edit] Security Security token devices Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exi st two different security methods for online banking. The PIN/TAN system where the PIN represents a password, used for the login and T ANs representing one-time passwords to authenticate transactions. TANs can be di stributed in different ways, the most popular one is to send a list of TANs to t he online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authe ntication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there dfis no additional encryption need ed. Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a s hort period of time. Especially in

Germany and Austria, many banks have adopted this "SMS TAN" service as it is con sidered very secure. Signature based online banking where all transactions are signed and encrypted d igitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation. Attacks Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those a ttacks are phishing and pharming. Cross-site scripting and keylogger/Trojan hors es can also be used to steal login information. A method to attack signature bas ed online banking methods is to manipulate the used software in a way, that corr ect transactions are shown on the screen and faked transactions are signed in th e background. A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, w ith an average loss per incident of $30,000. That adds up to a nearly $16-millio n loss in the second quarter of 2007. Computer intrusions increased by 150 perce nt between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, t he report states.[2] The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the des tination account number and also the amount. Online Banking in Multi National Banks of Bangladesh: Online Banking functionalities offered by Multi national banks operating in Bang ladesh: 1. Payment transaction initiation: a. issuance of Corporate cheque b. issuance o f managers cheque / Pay Order c. Utility Bill Payment d. Fund Transfer within acc ounts of the same entity 2. Trade Transaction initiation: import LC issuanc

3. Real time reports and statement: a. Account statement b. Payment transaction issuance and outstanding reports c. Collection reports for reconciliation d. Tra de related reports for import and export Major Multi national commercial banks o perating in Bangladesh: HSBC Standard Chartered Bank Citibank, N.A.

Online Banking in HSBC: Online Banking Platform: HSBCnet HSBCnet provides access to transaction banking functionality ranging from paymen ts and cash management to trade services features as well as to research and ana lytical content from HSBC. It also includes foreign exchange and money markets t rading functionality. This is a global service platform that caters to local bus iness needs by offering specialised functionality for different regions worldwid e. The system is used widely by HSBC's high-end corporate and institutional clie nts served variously by the bank's global banking and markets, commercial bankin g and global transaction banking divisions. HSBCnet is also the brand under whic h HSBC markets its global e-commerce proposition to its corporate and institutio nal clients. Features: 1. 2. 3. 4. 5. Browser based tool that helps manage customer implement ation Customer and bank have same single view of tasks, plans and timeframes. Pe rsonalizaed portal: Can be customized according to users personal preference Can deal with Foreign exchange and Money markets instruments online Trade tracking website: separate component of HSBCnet that enables user to identify status of L etter of Credit transactions. 6. Integrations of clients ERP can be done. 7. Pay ment advices Security: Audit trail reports for transactional activities Data encryption using Secure Socket layer (SSL) 128 bit encryption technology Access Control: system administrators determine what info each user has access to. System log in and in stallation: Smartcard based authentication and statis ID/ Password option for sy stem logging in. HSBCnet software must be installed on users computer.

24/7 security monitoring and centralized incident management team. Online Banking in Standard Chartered Bank: Standard Chartered Banks Online Banking Platform: Straight2Bank Features: Web bas ed internet banking service that can be accessed from anywhere using a personal computer connected to internet. Can be interfaced with SWIFT. One single platfor m to access cash management, custody, continuous link settlement, trade finance and online treasury management. Only supported on Internet Explorer for windows. Transactions can be done in over 100 currencies Security: 128 bit encryption Company administrator has full controm of user admi nistration: User set up, user access, password reset etc. User Login: Smart card based on Global Trust Infrastructure (GTI) encryption solutions

Citibank, N.A.s Online Banking Platform: CitiDirect Features: Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used f or performing balance checks, account transactions, payments, credit application s and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were o ffered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers[1]. Mobile banking has until recently (2010) most often been performed via SMS or the Mobil e Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special cli ent programs, called apps, downloaded to the mobile device. Contents [hide]

1 A mobile banking conceptual model 2 Trends in mobile banking 3 Mobile banking business models o 3.1 Bank-focused model o 3.2 Bank-led model o 3.3 Non-bank-led model 4 Mobile Banking Services o 4.1 Account Information o 4.2 Payments, Depos its, Withdrawals, and Transfers o 4.3 Investments o 4.4 Support o 4.5 Content Se rvices o 4.6 Future functionalities in Mobile Banking 5 Challenges for a Mobile Banking Solution o 5.1 Handset operability o 5.2 Security

5.3 Scalability & Reliability 5.4 Application distribution 5.5 Personalization 6 Mobile banking in the world 7 See also 8 Notes 9 References o o o [edit] A mobile banking conceptual model In one academic model,[2] mobile banking is defined as: Mobile Banking refers to provision and availment of banking- and financial services with the help of mob ile telecommunication devices.The scope of offered services may include faciliti es to conduct bank and stock market transactions, to administer accounts and to access customised information." According to this model Mobile Banking can be sa id to consist of three inter-related concepts: Mobile Accounting Mobile Brokerage Mobile Financial Information Services Most services in the categories designated Accounting and Brokerage are transact ion-based. The non-transaction-based services of an informational nature are how ever essential for conducting transactions - for instance, balance inquiries mig ht be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information servic es. Information services, on the other hand, may be offered as an independent mo dule. Mobile phone banking may also be used to help in business situations as we ll as financial [edit] Trends in mobile banking The advent of the Internet has enabled new ways to conduct banking business, res ulting in the creation of new institutions, such as online banks, online brokers and wealth managers. Such institutions still account for a tiny percentage of t he industry.[citation needed] Over the last few years, the mobile and wireless m arket has been one of the fastest growing markets in the world and it is still g rowing at a rapid pace. According to the GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now (2009) exceeds 2.5 billion (of which more than 2 billion are GSM).[citation needed]

This article appears to contain unverifiable speculation and unjustified claims. Information must be verifiable and based on reliable published sources. Please remove unverified speculation from the article. According to a study by financial consultancy Celent, 35% of online banking hous eholds will be using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center call volume is projected to come from mobile phones. Mobi le banking will eventually allow users to make payments at the physical point of sale. "Mobile contactless payments will make up 10% of the contactless market by 2010.[3] Another study from 2010 by Berg Insight forecasts that the number of m obile banking users in the US will grow from 12 million in 2009 to 86 million in 2015. The same study also predicts that the European market will grow from 7 mi llion mobile banking users in 2009 to 115 million users in 2015.[4] Many believe that mobile users have just started to fully utilize the data capabilities in t heir mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fi xed-line infrastructure, and in European countries, where mobile phone penetrati on is very high (at least 80% of consumers use a mobile phone), mobile banking i s likely to appeal even more. [edit] Mobile banking business models A wide spectrum of Mobile/branchless banking models is evolving. However, no mat ter what business model, if mobile banking is being used to attract low-income p opulations in often rural locations, the business model will depend on banking a gents, i.e., retail or postal outlets that process financial transactions on beh alf telcos or banks. The banking agent is an important part of the mobile bankin g business model since customer care, service quality, and cash management will depend on them. Many telcos will work through their local airtime resellers. How ever, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakerie s, etc. These models differ primarily on the question that who will establish th e relationship (account opening, deposit taking, lending etc.) to the end custom er, the Bank or the NonBank/Telecommunication Company (Telco). Another differenc e lies in the nature of agency agreement between bank and the Non-Bank. Models o f branchless banking can be classified into three broad categories - Bank Focuse d, Bank-Led and Nonbank-Led. [edit] Bank-focused model The bank-focused model emerges when a traditional bank uses non-traditional lowcost delivery channels to provide banking services to its existing customers. Ex amples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to banks custom ers. This model is additive in nature and may be seen as a modest extension of c onventional branch-based banking.

[edit] Bank-led model The bank-led model offers a distinct alternative to conventional branch-based ba nking in that customer conducts financial transactions at a whole range of retai l agents (or through mobile phone) instead of at bank branches or through bank e mployees. This model promises the potential to substantially increase the financ ial services outreach by using a different delivery channel (retailers/ mobile p hones), a different trade partner (telco / chain store) having experience and ta rget market distinct from traditional banks, and may be significantly cheaper th an the bank-based alternatives. The bank-led model may be implemented by either using correspondent arrangements or by creating a JV between Bank and Telco/nonbank. In this model customer account relationship rests with the bank [edit] Non-bank-led model The non-bank-led model is where a bank has a limited role in the day-to-day acco unt management. Typically its role in this model is limited to safe-keeping of f unds. Account management functions are conducted by a non-bank (e.g. telco) who has direct contact with individual customers. [edit] Mobile Banking Services Mobile banking can offer services such as the following: [edit] Account Information 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Mi ni-statements and checking of account history Alerts on account activity or pass ing of set thresholds Monitoring of term deposits Access to loan statements Acce ss to card statements Mutual funds / equity statements Insurance policy manageme nt Pension plan management Status on cheque, stop payment on cheque Ordering che que books Balance checking in the account Recent transactions Due date of paymen t (functionality for stop, change and deleting of payments) PIN provision, Chang e of PIN and reminder over the Internet Blocking of (lost, stolen) cards [edit] Payments, Deposits, Withdrawals, and Transfers 1. Domestic and internatio nal fund transfers 2. Micro-payment handling 3. Mobile recharging

4. 5. 6. 7. 8. Commercial payment processing Bill payment processing Peer to Peer payments With drawal at banking agent Deposit at banking agent A specific sequence of SMS messages will enable the system to verify if the clie nt has sufficient funds in his or her wallet and authorize a deposit or withdraw al transaction at the agent. When depositing money, the merchant receives cash a nd the system credits the client's bank account or mobile wallet. In the same wa y the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchan t's account. Kenya's M-PESA mobile banking service, for example, allows customer s of the mobile phone operator Safaricom to hold cash balances which are recorde d on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha , a US-based nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from le nders in the United States to the borrowers in rural Africa using nothing but th e internet and mobile phones.[5] [edit] Investments 1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices [edit] Support 1. 2. 3 . 4. Status of requests for credit, including mortgage approval, and insurance c overage Check (cheque) book and card requests Exchange of data messages and emai l, including complaint submission and tracking ATM Location [edit] Content Services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based services Based on a survey conducted by Forrester, mobile banking will be attractive main ly to the younger, more "tech-savvy" customer segment. A third of mobile phone u sers say that they may consider performing some kind of financial transaction th rough their mobile phone. But most of the users are interested in performing bas ic transactions such as querying for account balance and making bill payment.

[edit] Future functionalities in Mobile Banking Based on the 'International Review of Business Research Papers' from World busin ess Institute, Australia, following are the key functional trends possible in wo rld of Mobile Banking. With the advent of technology and increasing use of smart phone and tablet based devices, the use of Mobile Banking functionality would en able customer connect across entire customer life cycle much comprehensively tha n before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to ena ble new objectives targeting higher level goals such as building brand of the ba nking organization. Emerging technology and functionalities would enable to crea te new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications. Illustration of objective based functionali ty enrichment In Mobile Banking

Communication enrichment: - Video Interaction with agents, advisors. Pervasive T ransactions capabilities: - Comprehensive Mobile wallet Customer Education: - Test drive for demos of banking services Connect with new customer segment: - Connect with Gen Y Gen Z using games and social network ambushed to surrogate banks offer ings Content monetization: - Micro level revenue themes such as music, e-book do wnload Vertical positioning: - Positioning offerings over mobile banking specifi c industries Horizontal positioning: - Positioning offerings over mobile banking across all the industries Personalization of corporate banking services: - Pers onalization experience for multiple roles and hierarchies in corporate banking a s against the vanilla based segment based enhancements in the current context. B uild Brand: - Built the banks brand while enhancing the Mobile real estate. [edit] Challenges for a Mobile Banking Solution Key challenges in developing a sophisticated mobile banking application are : [edit] Handset operability There are a large number of different mobile phone devices and it is a big chall enge for banks to offer mobile banking solution on any type of device. Some of t hese devices support Java ME and others support SIM Application Toolkit, a WAP b rowser, or only SMS. Initial interoperability issues however have been localized , with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have de faulted to the USSD as a basis of communication achievable with any phone. The d esire for interoperability is largely dependent on the banks themselves, where i nstalled applications(Java based or native) provide better security, are easier to use and allow

development of more complex capabilities similar to those of internet banking wh ile SMS can provide the basics but becomes difficult to operate with more comple x transactions. There is a myth that there is a challenge of interoperability be tween mobile banking applications due to perceived lack of common technology sta ndards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few c ountries have more than one mobile banking service provider. In practice, bankin g interfaces are well defined and money movements between banks follow the IS0-8 583 standard. As mobile banking matures, money movements between service provide rs will naturally adopt the same standards as in the banking world. On January 2 009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTr ust and VeriSign Inc., published the Mobile Banking Overview for financial insti tutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Appli cations, SMS with Mobile Web and Secure SMS.[6] [edit] Security Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated ch allenges that need to be addressed jointly by mobile application developers, wir eless network service providers and the banks' IT departments. The following asp ects need to be addressed to offer a secure infrastructure for financial transac tion over wireless network : 1. Physical part of the hand-held device. If the bank is offering smart-card bas ed security, the physical security of the device is more important. 2. Security of any thick-client application running on the device. In case the device is sto len, the hacker should require at least an ID/Password to access the application . 3. Authentication of the device with service provider before initiating a tran saction. This would ensure that unauthorized devices are not connected to perfor m financial transactions. 4. User ID / Password authentication of banks customer. 5. Encryption of the data being transmitted over the air. 6. Encryption of the data that will be stored in device for later / off-line analysis by the customer . One-time password (OTPs) are the latest tool used by financial and banking servi ce providers in the fight against cyber fraud[7]. Instead of relying on traditio nal memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the requ est is received the password is sent to the consumers phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financia l institutions in regards to SMS services. Therefore, the provision of service l evel agreements (SLAs) is a requirement for this industry; it is necessary to gi ve the bank customer delivery guarantees of all messages, as

well as measurements on the speed of delivery, throughput, etc. SLAs give the se rvice parameters in which a messaging solution is guaranteed to perform. [edit] Scalability & Reliability Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile b anking infrastructure to handle exponential growth of the customer base. With mo bile banking, the customer may be sitting in any part of the world (true anytime , anywhere banking) and hence banks need to ensure that the systems are up and r unning in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and sec ure mobile enabling of various banking services. Recently in India there has bee n a phenomenal growth in the use of Mobile Banking applications, with leading ba nks adopting Mobile Transaction Platform and the Central Bank publishing guideli nes for mobile banking operations. [edit] Application distribution Due to the nature of the connectivity between bank and its customers, it would b e impractical to expect customers to regularly visit banks or connect to a web s ite for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over The Air" updates). However, there could be ma ny issues to implement this approach such as upgrade / synchronization of other dependent components. [edit] Personalization It would be expected from the mobile application to support personalization such as : 1. 2. 3. 4. 5. 6. Preferred Language Date / Time format Amount format Default tr ansactions Standard Beneficiary list Alerts [edit] Mobile banking in the world Mobile banking is used in many parts of the world with little or no infrastructu re, especially remote and rural areas. This aspect of mobile commerce is also po pular in countries where most of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hund reds of miles to the nearest bank. In Iran, banks such as Parsian, Tejarat, Mell at, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial prov ides the service in Guatemala. Citizens of Mexico can access

mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (pa rt of the Vodafone Group) has the M-Pesa Service, which is mainly used to transf er limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies pro vide mobile banking, the most prominent being Hormuud Telecom and its ZAAD servi ce. Telenor Pakistan has also launched a mobile banking solution, in coordinatio n with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SB I) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance se rvices, micro-insurance, and micro-finance facilities to its customers (nearly 8 0% of whom are migrants or the unbanked section of the population) through mobil e banking.[8] In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[9] Dutch Bangla Bank launched the very first mobile banki ng service in Bangladesh on 31 March, 2011. This service is launched with Agent an d Network support from mobile operators, Banglalink and Citycell. Sybase 365, a su bsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per ce nt are mobile phone users. Under the service, any mobile handset with subscripti on to any of the six existing mobile operators of Bangladesh would be able to ut ilize the service. Under the mobile banking services, bank-nominated Agents perfor m banking activities on behalf of the banks, like opening mobile banking account , providing cash services (receipts and payments) and dealing with small credits . Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by mobile phone & PIN instead of card & PIN. Other services that ar e being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), bus iness-to-person (e.g. salary/commission disbursement), government-to-person (dis bursement of government allowance) transactions

Introduction: Bangladesh is still lagging behind to avail the opportunity of e-b usiness. However, banking sector as a whole has been introducing on line banking system which plays complementary role to spread of e-business. Internet has ope ned a new horizon of e-business, creating immense opportunities for marketing pr oducts as well as managing organizations banking internationally. Gradually wire less Internet system has been creating a new paradigm and electronic fund trans fer can have a suitable formation. E-business can improve the quality of the ser vices, save customers valuable time, movement from one place to another and rece iving the goods accurately. Ebusiness brings a new channel of distribution proce ss. But this leads to change in the regulatory issues, cross border trade throug h emerging new marketing distribution channel. This reduces transaction time, bo undary less trade, and accuracy. In developed nations, e-business creates an opp ortunity to directly selling of the product to the customer without using any in termediaries. This process occurs mainly in the four systems: businesses to busi ness (B2B), business to consumer (B2C), business to government (B2G) and consume r to consumer (C2C).E-business expedite the process of better customer relations hip management. It also helps to attain enterprise resource management as well a s e to e process. As such on line banking system can add value and value chain can b e created in the e-business process. In turn it helps to raise gross domestic pr oduct of the country. Governments as well as different international organizatio ns have also identified that underdeveloped banking technology creates hindrance on economic progress of the country. On line banking system is a way of conduct ing, managing, and executing banking transactions utilizing information and comm unication technology (ICT) and electronic communication networks such as the Int ernet, intranet and extranet. Environment of electronic banking requires authent ication procedures for electronic payment system, network environment, computer hardware and software, electronic hardware, legal bindings, etc. The security an d authentication of modern banking are very much dependent on cryptography and i ts applications. Ramakrishnan(2001) argued that many banks have assumed that Int ernet banking primarily increases information security risks and have not suffic iently focused on the effect on other banking-specific risks. Risk management di sciplines have not evolved at the same speed and many institutions, especially t he smaller ones, have not been able to incorporate Internet banking risk control s within their existing risk management structures. As information symmetry and free flow of information is gaining more importance due to globalization process , Bangladeshi companies have to compete in the world market to serve corporate a nd other clients with round the clock services. Access to computer would be bene ficial to Bangladesh like any other country. Social and economic disparity and l ack of Internet accessibility which creates digital divide is a great hindrance towards customer dissatisfaction of the business organization which ultimately r esults negative customer relationship management. As a result it creates negativ e impact on economic development of the country. E-business process creates an o pportunity for doing business through arranging real time sharing business. Orga nizations can take help of transaction process through e-business solutions from around the world where on line facility can be available. 4 Due to advancement of technology, business process of the globe is gradually

becoming complex for which e-business especially in the banking sector can super sede the traditional business process. Through e-business the country can compet e with the changing global business trend and on line banking can facilitate ebu siness. Literature Review: Buffam(2000) depicted that companies that build the b etter e-business solutions will outperform their competitors. Companies that bui ld the very best e-business solutions will transform themselves into zero-latenc y enterprises. Companies that choose not to embrace e-business, or do so ineffec tively, will underperform or be driven out of business. Turban et al. (2000) arg ued that following points of managerial issues are very important: Focus of Elec tronic commerce management; Sales promotion; Purchase process reengineering; Jus t-in Time delivery; New electronic intermediary business; Provision of solutions; Business ethics. Rahman (2001-2002) observed that issues relating to electronic fund transfer require security, availability, authenticity, non-repudiability a nd audibility. He suggested for appropriate control and efficient security measu res and also for proper utilization of audit trail in the e-commerce system. Ali (2003) argued that Bangladeshi companies, organizations have several problems to start full swing e-business. These include limited resources, backwardness in t echnology, managerial inefficiency, socio-infrastructural problem such as corrup tion, default culture law and order situation, rampant corruption, strike etc. w hich penetrate for long time. Ali, Mohsin, and Yasmeen( 2004) observed that maxi mize e-business efforts to focus on information dissemination, knowledge transfe r, and technical assistance are required .Steps need to create appropriate knowl edge among various procedures of e-business. Huda, Momen and Ahmed(2004) comment ed that the banking sector in Bangladesh is clearly recognizing the importance o f information technology to their continued success. Hoq, Kamal and Chowdhury (2 005) argued that a key reason why ecommerce, especially the business-to-business segment, is growing so quickly is its significant impact on costs associated wi th inventories, sales execution, procurement, intangibles like banking, and dist ribution costs. If these reductions become pervasive, e-commerce has the potenti al to be the application that ushers in the large productivity gains. Achieving these gains is therefore contingent on a number of factors, including access to e-commerce systems and the needed skills. However, what is unique about ecommerc e over the Internet and the efficiency gains is that it promises the premium pla ced on openness. To reap the potential cost savings fully, firms must be willing to open up their internal systems to suppliers and customers. This raises polic y issues concerning security and potential anti competitive effects as firms int egrate their operations more closely. 5 Uddin and Islam(2005) observed that the multifarious projections of ICT in human life plead a wining case for institutional integration of ICT related component s in rural support programs taken by Governments and NGOs. Chaffey (2006) dealt with strategy and applications of E-Business and ECommerce in a logical but robu st manner. He stressed that e-business and e-commerce is very important for mana gement implications as such a bridge to link leading edge research and professio nal practice is required.

Mia, Rahman and Debnath(2007) observed that the latest development in marketing financial services by banks is online banking, where banks have now put themselv es in the World Wide Web to take advantage of the Internets power and access to c ope with the accelerating pace of change of business environment. Pires and Stan ton (2007) commented that policy wise government must recognize that the ability of countries to engage in e-commerce is tied both directly and indirectly to th eir attractiveness for FDI. Ahmed and Islam (2008) observed that adopting e-bank ing services, banks in developing countries are faced with strategic options bet ween the choice of delivery channels and the level of sophistication of services provided by these delivery channels. Chandrasekhar and Sonar (2008) depicted th at banks will reap the benefits of IT truly and totally, if and only if they pay adequate attention to technological progress as well as efficiencies on the inp ut and output sides. Shamsuddoha(2008) argued that in Bangladesh, banking indust ry is mature to a great extent than earlier period. It has developed superb imag e in their various activities including electronic banking. Now modern banking s ervices have launched by some multinationals and new local private commercial ba nks. Electronic banking is one of the most demanded and latest technologies in b anking sector. Ahshan(2009) agued that online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium De velopment Goals (MDGs). In the era of globalisation, the Internet makes the worl d smaller and e-commerce facilitates marketing and shopping from home. E-commerc e facilitates business with customers over the internet. In e-commerce, customer s can buy goods and services over the Internet. Islam and Yang(2009) observed th at service quality satisfaction and informational trust had important mediating effects on the Balance score card performance process. These two mediating roles explain that, when an institution creates and raises the levels of service qual ity satisfaction and informational trust, the results lead to a favorable custom er interaction relationship and thus could help the institution achieve higher l evels for Balance score card performance measure. Nyangosi , Arora , Singh (2009 ) argued that banking through electronic channels has gained increasing populari ty in recent years. This system, popularly known as 'e-banking', provides altern atives for faster delivery of banking services to a 6 wide range of customers. The overall result indicates that customers in India an d Kenya have developed positive attitudes and they attach much importance to the emergence of e-banking. Shah and Clarke (2009) focused on human, operational, m anagerial, and strategic organizational issues in e-banking. They argued that ebanking management can help to expedite doing business through using electronic medium. Rahman(2010) who is the Governor of Bangladesh Bank argued that Banglade sh Bank has achieved a historic milestone in the trade and business arena ,depar ting from conventional banking with the introduction of e-commerce recently; a g iant stride towards digital Bangladesh . From the aforesaid literature review, i t is evident that on line banking can act as a complementary towards e-business. With the help of e-business the country can create opportunities as this will h elp both producers and customers. But these theoretical observations may not be feasible in this country .As such the study seeks

to evaluate whether the country has proper infrastructure for doing e-business? What are the statuses of e-business and on line banking of the country? Does on line banking really works as a complementary to e-business in Bangladesh? Afores aid questions arises which the study intends to examine. Objectives of the Study : The study has been undertaken with the following objectives: i) To examine inf rastructural situation of the country to prosper e-business and on line banking system in Bangladesh; ii) To observe present status of on line banking in Bangla desh; iii)To evaluate whether on line banking system can work as a complementary to ebusiness process ; iv)To provide some recommendations so that e-business ca n bring fruitful results in the country. Methodology of the Study: The study is based on secondary sources and also primary sources. As such the study has revie wed different published articles, books, newspaper, and websites. However, exact references are mentioned in this article. The study will also collect related i nformation regarding present status of the on line banking through field visit i n forty eight banks (forty- seven banks after merger of two banks on 3rd January ,2010) head office and in charge of IT and MIS Dept. Moreover, also visited Cent ral Bank i.e. Bangladesh Bank to collect related information. The study collects data on following points: Services provided by the banks, software use by the b anks, name of the vendors and banks name which is given in Appendix in Table: A. M oreover, the study also did a survey through preparing a questionnaire. For coll ecting data from the respondents, the study used snowballing sampling technique w hich is also known as a chain referral sampling type. Snowball sampling techniqu e is used to discover and enlist hidden populations, who may be difficult to locat e. The survey was conducted among 500 customers comment those have been using on line banking system. Customers are of following banks: Sonali Bank Ltd., BASIC Ba nk Ltd., Dutch Bangla Bank Ltd., Standard Chartered Bank, Trust Bank Ltd., Prime Bank Ltd., Uttara Bank Ltd. Detail list of no. of respondents of each banks 7 (including male and female customers) are given in Table: B in Appendix. These cu stomers are from Dhaka and also Chittagong city. Fact that on line banking is mai nly concentrated in the Dhaka city .However, in Chittagong city also on line ban king system is also being expanded .Out of 500 respondents, 381 persons are from Dhaka city while 119 person from Chittagong city. Observations through field st udy were obtained are being reported at the present status of the on line bankin g system. Time period of the study is up to February 2010.The study did not use any sort of correlation or regression analysis as this study is mainly based on qualitative nature. Present Status: Bangladeshi companies, organizations are fac ing problem to start full swing ebusiness. Network is a mode of communications w ith the computers. Networks of computers can be classified in following ways: Lo cal area network, Metropolitan area network, and World Wide area network. Multip le computers connected through telephone lines, cable systems, and in wireless t echnology are also required. According to a report published in The Daily Star(4 th April,2010) Bangladesh ranked 118th in the global Network Readiness Index in 2009-10 up from 130th a year ago, showing an

upward trend in the information and communication technology sector. In South As ia, India ranked 43rd, Sri Lanka 72nd, Pakistan 87th and Nepal 124th in the 'Glo bal Information Technology Report 2009-2010' released by The World Economic Foru m (WEF) on 3rd April,2010.As such Bangladesh has to go long way to develop its n etwork for arranging Digital Bangladesh by the year 2021 and public and private cooperation and strategic alliance is required to develop e-business system in t he country. Electronic Payment Systems for e- business includes characterized by broad geographic presence and acceptance by a large number of merchants or prog rams. Participants in an electronic payment system may include users, financial institutions, business personnel, industrialist, merchants, third party processor etc. WiMAX stands for Worldwide Interoperability for Microwave Access which off ers wireless transmission of data via different transmission modes, from point-t o-multipoint links to portable and fully mobile internet access.The Finance Mini ster recently argued at trial launching of operation of the countrys first-ever w ireless broadband technology WIMAX. He commented that entrepreneurs of the telec ommunications sector must reach the digital communications system to the doorste ps of the rural people. He hoped that the WiMax technology will be available at every divisional headquarters within a year(Source: http://www.bangladeshinfo.co m/gadgets/news_inner.php?nid=2343, July 22, 2009) Telephone density is awfully l ittle in Bangladesh. It is far much less in comparison with other developed nati ons of the world as well as neighboring countries. Kabir(2008) depicted that Mob ile Phones(millions) are 36.4, Fixed Lines (PSTN) (millions) are 1.2 Total telec om users (millions) are 37.6, Teledensity (%) is 26.8 in the year 2008. Outside Dhaka, at present a few computer network infrastructures have been developed so far. Apart from some educational institutes outside Dhaka, observation finds tha t most of the LAN setups are Dhaka centric. Bangladesh has been connected to wor ldwide Internet Super High Way from 2006 through an under sea submarine cable. B ut this single submarine cable frequently faces disruption resulting in slow ban dwidth. 8 A huge digital divide exists among the city of Dhaka , Chittagong and other part s of the country. Private-public partnership is a crucial issue for information and communication technology (ICT) development and application. Private enterpri se and capital can lead ICT revolution in Bangladesh. This, however, would requi re the government to provide the basic business environment. Rapid growth in ICT is not possible without massive investments for ICT infrastructure and human re source development in the computer and electronics l and telecommunication engin eering courses through ensuring quality education. Still now call charge of cell phone is not competitive in Bangladesh. Bangladesh Telecommunication Regulatory Commission (BTRC) is not playing due role in the development process of communi cation sector. Infrastructural problems are creating less scope to successfully implement e-business. Under the private initiative, Internet was started in 1996 by ISN in Bangladesh. ISN is the first ISP operator in this country. Still now all the Internet service providers have the server in abroad, for which they are facing competitive disadvantage, as cost remains high. Security problem is stil l high in this country. Lack of digital accessible personnel is real problem for the country. Moreover, some software developers of the country arent well conver sant with the market demand for which they cannot supply application software wi th faultlessness. Policy makers of the country are not aware about the benefits of e-business .As such they

dont put significance on proper and systematic development of the process of e-bu siness. In this connection it may be stated that Bangladesh bank is trying to im plement automated clearinghouse through utilizing (Magnetic Ink Character Recogn izer) MICR procedure. But in developed nations MICR procedure is now replaced by more sophisticated procedure such as cheque truncation process. Total numbers o f Banks in Bangladesh are forty seven. Banking sector in Bangladesh on the basis of utilization of electronic devices can be subdivided into three groups: i)For eign Commercial Banks and Private Commercial banks especially 2 nd(except few ba nks) and 3rd generation Private Banks :Fully Online banking; ii)1st generation p rivate banks and some 2nd generation Private Commercial Banks: Medium range Onli ne banking system ;iii)Nationalized Commercial Banks , Specialized Banks and Few foreign Bank branches of this subcontinent :Low grade online banking system.. A t present the banks in Bangladesh are using the limited electronic banking servi ces. It is expected that bank can attain more profit and offer better services t o its customers by, introducing on line banking facilities. The foreign commerci al banks operating in Bangladesh like Standard Chartered Bank , Citi Corp. N.A. and the HSBC are the pioneers to introduce the electronic banking facilities. Th ey provide ATM, Debit Card, Credit Card, Home Banking, Internet Banking, Phone B anking, on line banking etc. services. Among the indigenous banks, the Private B anks are ahead of the public banks. Prime bank ltd. , Dhaka bank ltd., BRAC bank ltd., Dutch-Bangla bank ltd.,, Eastern and Mercantile bank ltd., are already st epped on towards electronic banking facilities. Apart from these banks, Mutual T rust Bank ltd., also introduced ATM service. Among the four Nationalized Commerc ial Banks (NCBs), Janata bank ltd., has some access to the electronic banking fa cilities. Bangladesh Bank, the Central Bank of Bangladesh, is also trying to for mulate the wide structure of electronic banking facilities. All of these private banks offering limited on line banking services. Most of these banks only offer services by providing ATM card. Most of them do not offer wide range of interne t banking facilities which is the main advantages of e-banking. Can deposit mone y in any branch and withdraw money from ATM machine- is treated the best e-banki ng facility available in Bangladesh While electronic money transfer starts in a limited edition. Sonali and Agrani bank ltd., is also providing on line banking services in a limited scale. Rupali Bank ltd. is also developing on line banking . BASIC bank which is 100 percent public owned but served as private sector bank ing has a technological advancement. Detail types of banking services offered by various banks are given in appendix. 9 A broad spectrum of Internet banking services, a subset of electronic finance, i s available in Bangladesh with different degree of penetration. The credit card is available from VISA, MasterCard and VANIK. Some foreign banks provide electro nic fund transfer (EFT) services. It is at an early stage and used on a very lim ited scale. Microchips embedded Smart Card is also becoming popular in the count ry, particularly for utility bill payment. Automated teller machine (ATM) is exp anding rapidly in major cities. A group of domestic and foreign banks operate sh ared ATM network, which drastically increase access to this type of electronic b anking service. The network will gradually be extended to other parts of the cou ntry. Last couple of years shows dramatic improvement in the awareness situation in the banking sector regarding the comprehensive application of ICT. Local sof tware companies have been starting competition to supply useful complete banking software with all the basic features of banking module. However, many forms of electronic banking services are

not possible to offer in Bangladesh at this moment due to the technology backwar dness, infrastructural underdevelopment and legal infrastructure. Those products would be very useful for export-oriented industry to reduce lead-time in export and keep comparative advantage in the international market. For sending foreign remittance four nationalized banks and fifteen private banks are working collab oratively with mobile phone service operators. Recently remittance could be sent in Bangladesh by banking channel through account transfer (normally takes 3 wor king days) or in the form of instance cash (takes 24 hours). Foreign resident pe ople can send their money and PIN (personnel identification number) through mobi le phone. As a result money transfer becomes relatively easy, quick and hassle f ree. But this system also superseded by mRemittance system. According to a Ahemd (15th April,2010) in a revolutionary step on April 13,mobile remittance service or mRemittance was introduced in the country opening doors to millions migrants workers to help transfer their hard earned money easily ,effectively and most i mportantly ,swiftly. The first ever remittance service for Bangladesh was jointl y launched by two local banks Dhaka Bank ltd. and Eastern Bank ltd. and the count rys second largest mobile operator ,Banglalink. Credit card facility fully can no t be extended in the country, as common gateway between financial institutions c an not be established. Pricing mechanism of the products of country is not compe titive, rater it is very much volatile. This creates a negative impact on the cu stomers. To eradicate digital divide process has been started very slowly. Bogora , Kushtia, Barisal and Modhupur village of Tangil was bringing under preview of Internet banking is a complete virtual bank which started on 2nd May of 2000. Th is will gradually give following services: e-marketing, e-shopping mall, e-marri age scheme, e-mail, e-tender , evoting/ polling, search engine, chat, e-commerce , e-stamp, e-Cash, e-music, eentertainment, e-treatment, e-Advocacy etc. E-gover nance can help us to achieve good governance of the country. If Govt. doesnt take proper incentives to spread the computerization process then there will be no b enefit. The parliamentary members of the country must be aware of the benefits o f Information and Communication Technology (ICT) otherwise it can not be success ful. It wont bring any dramatic changes in the economy. Entrepreneurship Developm ent fund (EDF) of Bangladesh bank is should be utilized properly. Only a few com panies can avail the fund. ICT related companies are trying to develop e-busines s processes but their activities are limited. If proper procedure of e-business can be developed in the agribusiness sector especially in the rural areas throug h utilizing etechnology then it will be beneficial for the producers of the agri cultural commodities. Acute shortages of human resources interested to do online banking business are also one of the main reasons for lagging behind. However, as law and order situation is deteriorating so there is a positive impact on the e-banking considering the safety of the people. From the field visit, it reveal s that banking sector requires rapid modification and adaptation to keep harmony with the world business. It becomes more obvious by 10 observing the increased number of customers in some modern banks while others ar e losing them. In the context of Bangladesh, a country of more than 150 million people, it is to be realized that there is no other option for us than to join t he current trend According to news report published in the new Nation on 28 th A ugust 2009 the government has formulated a policy on the national information an d communication technology as part of its announced plan for digitization of the nation. The policy has

earmarked activities in three phases in the short, medium and long-term plans to be implemented within 2021.The government aims at doubling the gross domestic p roducts (GDP) during this time to achieve the goal. The policy details suggest a number of activities including spreading the use of keyboard by functionaries a t different levels, encouraging the use of standard code by software sellers, de veloping a national web-portal and popularizing the use of e- citizen services, paying service charge through mobile phones or ticketing etc. Land registration, passport renewal, digitization of police case dairy and case position in the co urt, spreading the use of broadband internet throughout the country and such oth er essential services may also be brought under the scheme. The new policy will be the common property of all departments and organs of the state targeted to de velop a digitized nation within the stipulated time. Most of the existing bankin g system in the country outside Dhaka and Chittagong city is manual (paper based ) thats why is awkward, slow and error-prone. It, in one hand, fails to meet the customers demand and, on the other hand, it causes some significant losses both f or the banking authority and traders. Electronic banking, on the other hand, sol ves the above problems. Furthermore, it opens up some other salient aspects such as increased foreign trade and foreign investment. At present weekly bank holid ay in Bangladesh is in Friday and Saturday where as in rest of the world it is i n Sunday. As such Bangladesh has only 4 banking days for foreign exchange transa ctions. With preliminary stage e- business facilities and this limited time peri od (banks transaction days) how long we can survive- is a debate. Bangladesh gove rnment should consider this case carefully. According to a report on Bangladesh i s developing electronic payment infrastructure(May 20,2008) the Securities and Ex change Commission (SEC) in Bangladesh proposed IT Consultants Limited (ITC), a m anager of Q-cash brand of ATM and different cards, to raise their paid-up capita l up to Tk 500 million if the company is to proceed to initial public offerings. The Securities and Exchange Commission (SEC) has asked us to raise the company' s paid-up capital Tk 50 crore from the current Tk 37 crore. In case the company fails to comply with the SEC requirements to increase the paid-up capital within the time specified, it will have to gain the approval of the SEC again. This me asure is believed to extend the sphere of the company's influence. The company b egan as a private limited business in 2001. But now it is the local leader in el ectronic payment systems which are developing in the country with increased spee d. ITC possesses necessary tools to process transactions for banks and retailers . It has the largest independent network of more than 100 ATMs in the country. T here is also a wide network of point-of-sales (POS) centers operated by the comp any.(Source: http://www.ecommercejournal. com/news/bangladesh_is_developing_elec tronic_payment_infrastructure_0?drgn=1 ) According to the report published in Th e Financial Express(3rd November,2009) Bangladesh Bank gave the ground breaking directives to commercial banks through a circular issued on 2nd Novemebr,2009, s aying that from now on their clients can pay power, water, gas and phone bills f rom bank accounts and transfer funds within a bank or to other banks. The centra l bank said that online payments will be treated like any other cash transaction although it reminded the banks that these money transfers would be regulated by the country's strict Anti-Money Laundering Act. The country had only about 400, 000 credit card holders at the end of June last year, according to Bangladesh Ba nk Payments and transactions by credit cards were nearly Tk11 billion in June 20 08 --- one of the lowest in the world. However, banks still need massive ICT bac kbone to ensure that online transaction can not be misused.Meanwhile, Bangladesh bank started Automated 11

Clearing house on trail basis from 8th November, 2009.Bangladesh Bank also decla red that the clearing house wont accept any cheque from 1st April 2010 if size of the cheque is not as per the guideline of the MICR system. However, in Banglade sh digital divide among the Dhaka city and rest of the country is conspicuous. E -business as a whole is confined among very few business organizations and on li ne banking business is expediting process of the e-business of the country. File d level study: Total numbers of different categories of banks are currently fort y -seven. The Bangladesh Development Bank Ltd (BDBL) began operations, on 3rd Ja nuary, 2010 through merger of Bangladesh Shilpa Bank and Bangladesh Shilpa Rin S angstha. From the filed survey we observe that following banking services are be ing provided by different banks: Core Banking Cluster Banking Phone Banking SMS Banking Internet Banking Various Cards ATM Shared (VISA/MASTER) ATM own (VISA/MA STER) EFT SWIFT PC Banking POS Terminal Banking KIOSK Offline Branch Computeriza tion Detail of the field survey regarding software uses, vendors name and services are given in the appendix in Table: A. However, from the field survey it is evi dent that foreign commercial banks and private commercial banks are relatively i n a better position to provide on line banking services. Moreover, when contacte d with Bangladesh Bank then it was informed that BACH (Bangladesh Automated Clea ring House) is yet working in SIT (System Integration Testing) phase. SIT is exp ected to be completed within first half of January 2010. In the first phase, onl y Dhaka will be under this umbrella and all bank branches in Dhaka region must b e part of BACH. Bangladesh Bank (BB) in its Dhaka office is using 7 inch * 3.50 inch MICR encoded cheques in BACH. Cheque truncation will be done, some banks wi ll truncate fully (meaning at branch level) while some partially (meaning at a c entral point). BB will also provide bureau service, if needed by any bank initia lly. Clearing is for interbank transaction. It will be settled by BB after t+1 d ays. Customers Response: Out of five hundred customers who have been using on line banking system, following results have been gathered from the questionnaire thr ough using snowball sampling technique. Table:1 Customers Response who have been using on line banking system (% of Respondents who expressed Yes comment) Comment Dhaka(In percentage)

Chittagong(In percentage) On line Banking services is relatively good than manua l system 79% 65% On line banking provides good Customer service 72% 61% 12 Just in time services in Banking can be provided 56% 48% Bank Personnel behave proper ly 52% 56% Dealing officer is well conversant about their respective Desk work 4 8% 47% Technologically improved but quality of banking services worsen off 51% 4 4% Better E-business environment 67% 61% (Source: Compiled on the basis of Customers response) From the aforesaid findings it is observed that impact of on line bank has a mixed result though most of th e customers support that it provides good customer services. This supports our nu ll hypothesis. But the problem lies that customers thought that technologically i mproved but quality of banking services are worsen off. In case of other opinion survey most of the customers are providing yes results which also indicate that nu ll hypothesis is correct However, in the opinion pull survey there is a question regarding dealing officials of the commercial banks whether they are well conve rsant about their desk work? The reply indicates that 52% and 53% customers of D haka and Chittagong thoughts that dealing officers of the banks are not well con versant about their desk work. Now we are showing diagrammatic representations. Fig:1Opinion of the Cusomers' who are habituated On line Banking system On line Banking services is relatively good than manual system On line banking p rovides good Customer service Just in time services in Banking can be provided B ank Personnel behave properly Dealing officer is well conversant about their res pective Desk work Technologically improved but quality of banking service worsen off Better E-business environment Analysis of the Findings: E-business is still not very much progressed in Bangla desh. Mass awareness is not feasible. The country faces problem of developing hu man-ware. Without preparing human capital at the level of international standard , we cannot be able to compete in global market and successful e-business cannot be feasible. From the filed level study we observe that still nationalized comm ercial banks and specialized banks are lagging behind of on line banking service s. Moreover, customers are not satisfied with the quality of the services. They are not also very happy with the behavior of the bank personnel. However, it rev eals that e-business especially with the help of on line banking can manage econ omy of Bangladesh in a far better way as customer relationship management increa ses. Local Banking software should be developed properly and must have greater a ccessibility within the country and outside the country. Moreover, to produce ha rdware especially computer and its accessories, local entrepreneurs are not taki ng any sort of strategic planning. Bangladesh Bank should adopt latest technolog y but due to lack of vision they are adopting old technology i.e. introduction o f MICR for Bangladesh Bank automation procedure. MICR system should be substitut ed by cheque truncation system. The shortage of technology-based human resources and poor telecommunication infrastructure needs to be overcome to break low equ ilibrium trap. Bridging the digital divide would provide technology-based human resources, who can contribute to raise gross domestic product (GDP), national sa vings ,investment ,creation of employment and

13 moving out from the vicious circle of underdevelopment. . Numerous problems have been identified from the field survey on line banking system in Bangladesh. Som e of them are in the followings: Inefficiency and inadequate knowledge of the ba nk management about the on line banking. Lack of proper Strategic plan to gain a nd retain market share of the indigenous banks. Lack of international standard c ommunication channel. High cost of establishing on line banking system. Inadequa te back and front office management. Lack of integrated plan among the banks and the Central Bank authority. Inefficient Clearing House Facilities. Inappropriat e software and less trust by the Bank authorities on local software. Biased-ness of the management of bank towards foreign software. Legal barriers and appropri ate policy framework. The number of customers taking banking services does not c apable to bear the cost of additional equipments like computer, computer accesso ries , Internet etc. from their own organization or at home. Biometrics should b e more strengthened. Using Internet facility still very costly and people has li ttle knowledge in operating computers. A few numbers of cyber caf is available bu t for banking purpose customers do not feel safe to use these facilities. As a r esult total numbers of customers who are habituated in on line banking systems a re limited. In these circumstances investment for establishing e -banking facili ties seems profitless. Although on line banking has bright prospects, it involve s some financial risks as well. The major risk of on line banking includes opera tional risks (e.g. security risks, system design, implementation and maintenance risks); customer misuse of products and services risks; legal risks (e.g. witho ut proper legal support, money laundering may be influenced); strategic risks; r eputation risks (e.g. in case the bank fails to provide secure and trouble free e-banking services, this will cause reputation risk); credit risks; market risks ; and liquidity risks. Therefore, identification of relevant risks, and formulat ion and implementation of proper risk management policies and strategy formulati ons and implementations are important for the scheduled banks while performing o n line banking system. Ramakrishnans(2001) suggestion may be followed for risk ma nagement. Benefits of Electronic Business and on line banking system: Managers a t various levels of organizations especially in underdeveloped country like Bang ladesh will have to play vital roles to successfully implement e-business. They may act as strategic leaders at different stages of managerial capabilities. The y are the key forces to initiate dedicated strategy to change from the tradition al business processes to the technology driven business processes. This is not i nvolving only huge costs as a transition period of organizations but adaptabilit y of the human being in the new processes to adding values are required. Due to global changing environment, to succeed in the global arena as well as domestic business, organizations often forced to do business in the electronic ways. More over, to succeed over the competitors organizations needs to be changed their str ategy and they are gradually become bound to adopt e-business. At these stages s uccessful implementations depends on all the stages of the Hierarchy of the Mana gement i.e. starting from the Top Management level to the lower level management . On line banking system works as a complementary factor of electronic business. Though electronic business has a greater set of field but on line banking can w ork as a

14 subset of the e-business .Benefits derived form the e-business largely depends o n successful implementation of the business process. Managing external pressure as well as internal pressure should be coordinated by the management so that e-b usiness can supersede traditional business processes of organizations .Moreover, transformation process requires huge cost especially organizations of Banglades h. Greater and cautious resource management especially financial capability shou ld be handled by the management of the organizations. Flexible innovative change s processed by the management of the organizations are required for the organiza tions to succeed in the transformation process. Changing processes should consid er socio-economic and cultural environment as well as labor surplus country. Bus iness process reengineering may be designed with the aim that personnel of the o rganizations will use the technological functionalities which will lead to furth er enhancement of the organizations. As such strong motivations by the managemen t towards all level of personnel of the organizations are required. Managers func tionality to implement e-business is a stressful task for which their mindset sh ould be strong and they should consider not only global considerations but also consider domestic situations. E-business can add value through knowledge managem ent as it helps to attain new services to the customers. Successful e-business d epends on sharing of strategic knowledge for which dissemination of the informat ion and free flow of knowledge around the globe is required. On line banking can provide twenty four hours banking facilities. Through electronic data interchan ge customers are able to draw money from one branch to another. Letter of credit s can be sent through SWIFT or electronic fund transfer from one country to anot her can be feasible. Actually on line banking provides faster, reliable services . Encryption and decryption can be used to send money from one place to another. As such on line bank management handles customers in a far better way. In Bangl adesh decision makers are generally reluctant about advancement of technology. I t is difficult for people who do not have much technical knowledge to understand the necessity of adoption of new technology. So the pace of computerization in various offices, business enterprises and sectors are low. Another problem of in itiating E- business is that in our country policy makers, managements are gener ally reluctant to accept something new. As such management prefers to maintain c urrent business model and thats why they are reluctant to introduce some thing ne w. To avail the advantage of E- business, organizations including banks have to invest for software, hardware, infrastructure development etc. The owners are un certain about the positive return on investment as transformation from manual sy stem to electronic transaction involves huge cost. This is a great drawback to i mplement E-business at a full swing. But the organizations are not interested to invest because they consider huge expenses. In Bangladesh most of the business organizations are running centralized manner. As such visions, missions, goals o f the top management of various organizations are very important. Top management should change their mindset and like Bangladesh Bank, they should encourage e-b usiness process. Top management views are reflected to the mid level management and lower level management. Unfortunately most e-business efforts fail for non-p erforming visions, missions, goals and tactics at the business processes of the organization. Discussions and Conclusions: Due to advent of e-business especiall y on line banking system, the distribution

channel is also changing. But quality of banking services should be internationa l standard. 15 To attain more effective and efficient business procedure, Bangladesh has to pro duce commodities of global standards. Ali, Mohsin, and Yasmeen( 2004) observatio n may be followed to attain e-business efforts through information dissemination , knowledge transfer, and technical assistances. However, Bangladeshs global Netw ork Readiness Index should be improved from present situation. From the responde nts opinion in the area of Dhaka City and Chittagong city of the on-line banking user customers we observed that null hypothesis is accepted while alternative hy pothesis is rejected. It indicates that on line banking can provide better custo mer relationship management. As per findings behavior pattern of the bank person nel should be improved. Not only technological improvement is desirable but also banking service as a whole should be better off. Chandrasekhar and Sonars(2008) comment should be considered as not only technological progress but efficiency o f the banking services are required as on line banking customers are not still fu lly satisfied with the services. Study on customers feedback is partially support ed by the findings of Nyangosi , Arora , Singh (2009) as they argued that bankin g through electronic channels has gained increasing popularity in recent years. However, policy makers should consider Shah and Clarke (2009) observation. Becau se from the customers feedback, the study observes that paying attention on human , operational, managerial, and strategic organizational concern in e-banking is required. Moreover, bank personnel should be well conversant about their respect ive desk work. This is also applicable to other organizations which are implemen ting e-business in the country. Otherwise customer relationship management canno t be improved. Buffams (2000) comment is more practical for the companies of Bang ladesh as e-business will lead to attain competitive advantage as will they can outperform their competitors. The study also done to observe different types of services and use of softwares by the banks. From the field level study we observe that Core Banking, Cluster Banking, Phone Banking, SMS Banking, Internet Bankin g, Various Cards, ATM ,SWIFT,PC Banking, POS Terminal, Banking KIOSK, Offline Br anch Computerization are being provided. From the point of view of on line banki ng, still foreign banks are providing more on line banking services than private commercial banks. Then nationalized commercial banks and last being on line ban king services are being provided by specialized banks. Ahshans(2009) observation is important for Bangladesh as it will help to enhance economic development. Cre ation of appropriate personnel/professional can improve the economic condition o f the country. As such stress should be given to develop human ware. E-business can play important role to reduce poverty only when it can be effectively utiliz ed for spreading the business both in rural and urban areas, creation of job opp ortunities, removing middlemen in the business process and one to one direct sel ling process and increasing both income and saving. Internet accessibility shoul d be used for poverty reduction. Following should keep more emphasis on e-busine ss: IT firm; Export/Import traders; Export oriented/Potential export business; F acility provided ISP/Internet; Infrastructure development- Govt.; Ministry of Co mmerce, Ministry of Law, Ministry of Science & ICT, Export promotion bureau; Tel ecommunication / Infrastructure ;Awareness on IT benefits among the mass. In thi s regard Governor of Bangladesh Bank Rahman (2010) rightly points out that a hol istic approach needs to be taken by all the stakeholders to reach the ICT facili ties to the doorstop of the common people. Actually e-technology can be utilized with other computer peripherals to

enhance communication, skill ness and understanding and provide a sound basis fo r implementing e-business. It can be helpful to accelerate the learning process, including the acceleration of the development and application of knowledge and technology. This includes development of the system and infrastructural developm ent and support where 16 followings are required: (a) E-procedure, (b) Browser based system development, (c) Web enable of legacy and/or client server systems, (d) Enterprise applicatio n integration, (e) Implementation or use of application server technology. Ahmed and Islams (2008) observation should be cautiously taken so that adopting on lin e banking services for which banks in Bangladesh can develop strategies for expe diting not only banking business but also providing customers satisfaction. Busin ess sector should be encouraged that make their own investment in the applicatio n of ICT in production, trade and services. Procurement and utilization of funds from national sources, both public and private should be pursued. International development and donor agencies should be approached to provide funds to set up necessary infrastructure and development of human resources, confirming to the o bjectives of ICT policy. Shah and Clarke (2009) observation about the e-banking can be transformed for successful e-business policy formulation as it depends on human, operational, managerial, and strategic organizational issues. Islam and Yang(2009) rightly observed that service satisfaction and information trust can play positive role to attain e-CRM and balance score card model which is not onl y valid for the financial institutions but in a large extent i.e. business proce ss of the country. Economy of Bangladesh is still underdeveloped and one of the main reasons is banking system is not properly developed. Technology is one part but personnel should be well conversant with their respective desk work and beh avior pattern should be improved. Government as well as different international organizations have also identified that underdeveloped banking causes some costl y obstacles on the way of even economic progress of the country. Investors are f requently scared in invest because of its sluggish banking system. Hence the tas k of making the banking system of Bangladesh at per international standard deser ves the highest priority. Business processes should be reengineered. Banks will have to face stiff competition in the world market with increasing of impact of globalization and the banks will be forced to offer twenty four hours banking ser vices online. Regulatory issues relating to security measures of electronic bank ing can be improved through the following ways: a) Analyzing the potential risks in the electronic payments systems; b) Existence of tradeoff between the effici ency of the financial system and the amount of risk incurred; c) Competitive pre ssures that may encourage the banks to engage in competitive deregulation; d) Ef fective provision and arrangement for cryptography and its applications; e) More customers are willing to accept e-business as psychological patterns of the cust omers have been changing. Global financial system has getting stronger day by day and it is strengthening by the e-business. Around the globe, consumer market ha s greater potentialities and producers must be active otherwise they may lose th eir share in the marketing strategies. Customer retention is feasible through ar ranging e-business otherwise if switching cost is low and other factors in betwe en two companies are similar then customer will switch from one company to anoth er where technological advancement is relatively higher. Moreover, rate of call charge of cell phone should be lowered. Hidden cost in cell phone should be remo ved. However, on line banking as well as electronic fund transfer and electronic data

interchange is not free from risk. Not only security risk, but cost of transacti ons may also be raised .In this regard Rahmans (2001-2002) observation regarding risk should be cautiously handled. The country can be benefited through successf ul utilization of e-business .This will help to enhance productivity and custome rs will be satisfied. Producers will also be benefited and monetary gain can be attained. E-business especially with the help of on line 17 banking can manage economy of Bangladesh in a better way as customers satisfactio n can be increased. Recommendations: To implement e-business successfully in Ban gladesh following recommendations are given below: Digital Bangladesh may be act ivated by 2021 to develop the economy of Bangladesh. Successful team building wi th a coherent manner for developing human ware, hardware, software and web ware are required to increase e-business process in a systematic way. Moreover, great er emphasis should be given on security system and to prevent fraud so that any sort of financial transactions including on line banking payment or any other el ectronic fund transfer can be properly handled. Career path of hardware and soft ware engineers should be properly designed. Otherwise professionals will be de-m otivated and they wont work with job satisfaction. In Bangladesh, on line banking systems are yet at a take off stage. The Clearing House operation in Bangladesh should be fully automated system. Banks and business organizations especially c orporate houses should have adequate research, skilled manpower and technology d riven strategies in this regard. Initiatives to develop integrated e banking sof tware through in house built may be taken. Preference should be given by the ban k authority to use local software over foreign software. Common gateway is requi red so that inter bank transactions can be feasible. Bank can charge normal prof it to enlarge the market size on the on line banking products. Banks should have their own strategic plans to implement on line banking system. Creating awarene ss and consciousness among the clients of the banks are also required. The count ry needs to develop e-business with the help of ICT facilities. ICT application and development of software are very much dependent on the quality of the workfo rce, and supportive infrastructure and environment. Upzilla level may be conside red as the base unit which may be connected with district and then connectivity with the capital of the country can be done. However, more stress should be give n on wire free connectivity for which priority should be given on WIMAX technolo gy. Public and private participation (PPP) for e-business should be encouraged f or economic development. Spread of on line banking is a very good initiative. Bu t it is not only sufficient. Business sector as a whole should be focused on usi ng E-business. It should be accompanied with e-governance system and should be m oved towards other areas of the e toe system like e-tender, e-trafficking, e-ticket , e-learning etc. More stress should be given to the wireless transactions and w orking environment due to rapid technological advancement. E-business should be used both for agricultural sector and industrial sector. Equal importance should be given so that domestic trade and international trade can be effective. Disto rtion from the market should be driven out and information should be passes syst ematically. E-business can help to improve total quality management. This can al so ensure quality assurance of the business sector. As such business policy form ulation and strategies are

required and this should be properly implemented. Adequate training and technolo gical support to be developed so that trained manpower and technology driven org anizations can be created with the help of partnership between Govt. and non Govt . organizations. Quality maintenance of local software should be arranged. Initi atives should be taken to set up hardware industry so that computer and computer accessories can be prepared in the country and easily purchasable for the lower and lower middle class people. Quality education and training in the field of I CT to develop human resources are essential. 18 Moreover, entrepreneurship should be developed for developing hardware and compu ter peripherals. More high-speed fiber optical data communication infrastructure s should be well established for speedy data communication for domestic and glob al high speed communication system. This will help to attain better e-business i ncluding on line banking system. Competitive situation should be arranged so tha t e-business management can be improved through efficiency and effectiveness of customer services. BTRC as a regulatory body should work with long term vision, mission and fulfillment of goal oriented strategies. They should work as a facil itator rather not creating hindrance. VOIP should be legalized after examining a nd finalizing proper rules and regulations in the country. References: Ahmed,Feroz and Islam,Md.Tarikul(2008):E-Banking: Performance, Problems and Poten tials in Bangladesh, Business Review,Vol.06,No.1&2,January to December. Ahmed,Naf id Imran(2010):Encashing mobile remittance ,The Daily Star,April,15. Ahsan, AFM Ma inul (2009):E-commerce in Bangladesh, The Financial Express, Bangladesh, January 1 2 Ali ,Muhammad Mahboob(2003):E-Business in the age of Globalization: Bangladesh perspective, The Bangladesh Observer,September,13. Ali,Muhammad Mahboob,Mohsin,Ch owdhury ,Sifat-E and Yasmeen Farzana (2004).E-Business in the Globaized world wit h special reference to Bangladesh: An analysis, Business Review,Vol.4,No.1&2. Buf fam,William J.(2000):E-business and is solutions :An Architectural approach to B usiness Problems and Opportunities, Addison-Wesely, USA. Chaffey , Dave(2006). E -Business and E-Commerce Management, Prentice Hall: Financial Times Press, UK , 3rd edition Chandrasekhar,M and Sonar, Rajendra M(2008).Impact of Information Tec hnology on the efficiency and total factor productivity of Indian Banks ,South As ian Journal of Mangement,Vol.15,No.3,July-September,pp.74-95. Hoq, Ziaul, Kamal, Md. Shawkat and Chowdhury, A H M Ehsanul Huda(2005). The Economic impact of E-co mmerce, BRAC University Journal, Vol. II, No. 2. http://www.bangladeshinfo.com/ga dgets/news_inner.php?nid=2343, July 22, 2009) http://cnews.canoe.ca/CNEWS/TechNe ws/NewStuff/2006/05/25/1597447-ap.html http://www.jobsproject.org/content/public ation/E-Commerce_in_Bangladesh_status.pdf http://www.ecommercejournal. com/news/ bangladesh_is_developing_electronic_payment_infrastructure_0?drgn=1 Huda,Shakil, Momen,Mohammad Abdul,Ahmed,Mushtaque(2004):On Line Banking System, Finance and Ban king,, Vo.6,No.1 & 2. Islam ,Majidul and Yang,Yi-feng(2009). Service Satisfaction , Information trust and e-CRM Performance in BSV model in the Empirics of Financ ial Institutions ,Journal of Business & Policy Research,Vol.4,No.1,July. Kabir, M d. Anwarul(2008): Designing ICT Roadmap: A holistic approach, The New Nation,23r d July.

Nyangosi , Richard, Arora , J.S. ,Singh , Sumanjeet(2009). The evolution of e-ban king: a study of Indian and Kenyan technology awareness, International Journal of Electronic Finance. Vol.3,Issue:2 Mia,Md.Abdul Hannan, Rahman ,Mohammad Anisur and Debnath, Nitai Chandra(2007).Consumer behaviour of Online Banking in Banglade sh, Journal of Business Studies, Vol.XXVII, No.2,December. Pires ,Guilherme, and Stanton,John(2007):"Macro Issues in Electronic Commerce and Foreign Direct Inves tment", Global Business & Economics Anthology ,Volume II,December,2007. Rahman,A tiur(2010):Digital Bangladesh Bank, The Daily Star,January,13. 19 Rahman,M.Lutfar(2001-2002):E-Commerce and Concern for E-commerce in Bangladesh, Jo urnal of The Institute of Bankers Bangladesh,Vol.48. Ramakrishnan, Ganesh(2001): Risk Management for Internet Banking, Information Systems Control Journal, Volume 6. Shah , Mamood and Clarke , Steve(2009):E-Banking Management: Issues, Solutio ns, and Strategies ,Information Science Publishing, UK. Shamsuddoha, Mohammad(20 08). Electronic Banking in Bangladesh, Journal of Business Solutions, Vol. 1, No . 2, December . The Financial Express(Bangladesh),03rd November,2009. The New Na tion,28th August,2009. The Daily Star,4th April,2010. Turban,Efraim et al.(2000) . Electronic Commence A Managrial Perspective,Pearson Education. Uddin,Md.Kamal an d Islam,ABM Shahidul(2005):Contribution of Information and Communication Technolo gy to the Development of Rural Bangladesh, Dhaka University Journal of Business S tudies,Vo..XXVI,No.2. Appendix: Table: A Banks Name, services, software uses and vendors Name Service Software use Vendors name Banks Name Core Banking Equation Misys Internati onal Banking System Ltd. UK AB Bank Limited STELAR ERA InfoTech Limited Bank Asi a Limited Standard Bank Ltd. Flexcube (IBM AIX, Oracle) Oracle Financial Service s Software Ltd., India (Local Representative: Dataedge limited) Dhaka Bank Ltd. Eastern Bank Ltd. Citibank N.A. (In-house.. ) Dutch Bangla Bank Ltd. PC Bank 200 0 Leads Corporation Ltd First Security Islami Bank Social Islamic Bank Ltd. HUB Core Bank In-house The Hongkong & Shanghai Banking Corporation Ltd. Temonas Data Soft Limited Janata Bank Ltd. Flora Bank Flora Systems Ltd. Mutual Trust Bank Lt d. Jamuna Bank Ltd.

A2Z Multiuser Banking System A2Z Computer Service,BD National Bank Ltd. PC Bank2000 LEADS Corporation Limited National Bank of Pakistan Micro Banker VPro/5 Dat a-edge ONE Bank Ltd. Bank Ultimus Leads Corporation Ltd Southeast Bank Ltd. eBBS In-house Standard Chartered Bank ABABIL Millinum Information System Ltd (MISL)B D Al Arafah Islami Bank The City Bank Ltd. Finacle Infosys Solution BRAC Bank Ltd . The City Bank Ltd. 20 T24 Temenos Switzerland EXIM Bank Ltd. Prime Bank Ltd. A grani Bank Ltd. Flora UBS Flora System National Credit and Commerce Bank Ltd. Eq uation Branch Server Misys International Banking System Ltd. UK International Fi nance Investment and Commerce Bank Ltd. Equation Branch Automation DO Trade Inno vation DO Infinity Banking System Rupali Bank Ltd. Cluster Banking PC Bank 2000 Leads Corporation Ltd First Security Islami Bank United Commercial Bank Ltd. Pho ne Banking Tele Banking ERA InfoTech BD Bank Asia Ltd. Call Center Integrated Sy stem In-house The Hongkong & Shanghai Banking Corporation Ltd. Flora Bank Phone Banking Flora Mutual Trust Bank Ltd IVR Suprico Standard Chartered Bank Access P hoenix Soft Switch, International Acumen BRAC Bank Ltd. CISCO System LEADS Dutch Bangla Bank Ltd. Telebanking Flora System ltd Jamuna Bank Ltd.

SMS Banking Mobile Banking Management SSL Wireless Limited AB Bank Ltd. SMS Bank ing ERA InfoTech BD Bank Asia Ltd. Flexcube Oracle Financial Services Software L td., India Dhaka Bank Ltd. Dutch Bangla Bank Ltd. SMS Banking LEADS Corp. First Security Islami Bank Ltd. United Commercial Bank Ltd. Win2000 LEADS Mercantile B ank Ltd. Flora Bank SMS Banking Flora Mutual Trust Bank Ltd. Balance query by Ce ll Phone Business Automation ONE Bank Ltd. Tagged with Banking LEADS Shahjalal I slami Bank Ltd. SMS Banking Upload Systems Southeast Bank Ltd. Mobile Banking In -house Standard Chartered Bank 21 Web Service, Windows Service In-house BRAC Ban k Ltd. For SMS Banking Software Shop Ltd. International Finance Investment and C ommerce Bank Ltd. O/S WAP M/S S.S.L Sonali Bank Ltd. City Bank Ltd. Internet Ban king OmniEnterprise InfrasoftTech Limited AB Bank Ltd. MyBank ERA InfoTech BD Ba nk Asia Ltd. Flexcube Dhaka Bank Ltd. Eastern Bank Ltd. Dutch Bangla Bank Ltd. H SBCnet Advising In-house The Hongkong & Shanghai Banking Corporation Ltd. HSBC W in+SQL Server Desktop Limited Janata Bank Ltd. Flora Internet Banking Flora Mutu al Trust Bank Ltd Web Statement In-house One Bank Ltd. iBank Ultimus LEADS South east Bank Ltd. iBanking In-house Standard Chartered Bank Phoenix Soft Access Int ernational Acumen BRAC Bank Ltd. CitiDirect USA Citibank N.A. TIB(Temenos Intern et Banking) Temenos Holdings Corporation, Switzerland Prime Bank Ltd. Various Ca rds BAs proprietary Debit Card ERA InfoTech BD Bank Asia Ltd.

CARDPRO BEPS Dhaka Bank Ltd. National Credit and Commerce Bank Ltd. Trans Master for Prepaid Credit and Debit Card Tietonator Eastern Bank Ltd. Proprietary Debi t Card, PC Bank ATM Interface LEADS First Security Islami Bank Ltd. Dabit Card + Credit Card ITCL, BD Janata Bank Ltd. Win+SQL Server, LEADS Mercantile Bank Ltd . CTL Prime & CTL Online TSYS International, USA Mutual Trust Bank Ltd Cardpro S ungard System, Malayasia National Bank Ltd. BRAC Bank Ltd. Prime Bank Ltd. VISA Debit Card, VISA Prepaid Card (International), VISA Gift Card Shahjajal Islami B ank Ltd. 22 eCAPS In-house Standard Chartered Bank VISA(Card-Pro) BEPS, Banglade sh Exim Bank Ltd. ACCESS Card Management International Acumen Standard Bank Ltd. Card Suite(AIX, Oracle) Tleto Enator, Latvia Dutch Bangla Bank Ltd. Q-cash ITCL Jamuna Bank Ltd. Probashi Agrani Remittance card Cash Link, BD Agrani Bank Ltd. Tranzware card management system IT Consultants Ltd., Russia International Fina nce Investment and Commerce Bank Ltd. City Ltd. Finacle Connect24 CityBank Ltd. ATM Shared (VISA/MASTER) ITCL AB Bank Ltd. STELAR ERA InfoTech BD Bank Asia Ltd. ITM, Euronet Switzerland local-CASH LINK Bangladesh Dhaka Bank Ltd.

Agrani Bank Ltd. ITCL, Q-Cash Singapore Mercantile Bank Ltd. IST switch of DBBL Mutual Trust Bank Ltd Tranzware,Compass Plus IT Consultants Ltd, Russia National Bank Ltd. National Credit and Commerce Bank Ltd. International Finance Investme nt and Commerce Bank Ltd. Sonali Bank Ltd. City Bank Ltd. VISA, Q-Cash, OMNIBUS & DBBL switch & ATM Network Shahjajal Islami Bank Ltd. Q-Cash Shared ATM Card Ut tara Bank Ltd. National Credit and Commerce Bank Ltd. Cardpro Sun Gard BRAC Bank Ltd. City Bank Ltd. Card Management System (CMS) for PC Cashlink Bangladesh Ltd Social Islamic Bank Ltd. VISA ITCL Jamuna Bank Ltd. ATM own (VISA/MASTER) STELA R Bank Asia Ltd. Wincor Nixdorf Protopas ITCL Eastern Bank Ltd. ATMP 6.0 In-hous e The Hongkong & Shanghai Banking Corporation Ltd. 23 Q-Cash Singapore Mercantil e Bank ltd. Under process -CTL Prime & CTL Online, ATM Controller TSYS Internati onal, USA Mutual Trust Bank Ltd TietoEnator Card Suite Dataedge One Bank Ltd. IT CL Shahjajal Islami Bank Switching Software Cynergon Intelisys Ltd Southeast Ban k Ltd ATM SPARROW/HAWK, CR2 Standard Chartered Bank Ltd. Phoenix Soft Internatio nal Acumen BRAC Bank Ltd. Standard Bank Ltd. IST 7.5 HMA STARware,India Origin-C anada Prime Bank Ltd. Iswitch Interblocks, Srilanka United Commercial Bank Ltd. IST(AIX, Oracle) FIS, USA Dutch Bangla Bank

Ltd. Tranzware Compass Plus, IT Consultants Ltd, Russia City Bank Ltd. EFT Featu re available on Internet & SMS Banking Bank Asia Ltd. Eldorado Interblocks (Sri Lanka) Dhaka Bank Ltd. Al Arafah Islami Bank Ltd. Western Union Money Transfer BR AC Bank First Security BankLtd. Bangladesh Commerce Bank Ltd. Ease Limited BD an d Desktop Limited, BD Janata Bank Ltd. Through IVR Servion System DataEdge BRAC Bank Ltd. Through ATM Own Phoenix Soft International Acumen Through Internet Ban king- Internet Banking BRAC Bank Through Mobile Banking- Mobile Banking BRAC Ban k FTI In-house Citibank N.A. Online Remittance s/w In-house Agrani Bank Ltd. Mon ey Gram IME RemitOne Infinity Remittance Money Gram International Finance Invest ment and Commerce Bank Ltd. X-press UAE Exchange, UAE Placid Express Plasic N.K corporation USA Coinstar Money Transfer Coinstar Money Transfer, India SWIFT Mes saging, SWIFT AB Bank Ltd. SWIFT Alliance Bank Asia Ltd. 24 Service SWIFT Syscom Information Systems Limited Dhaka Bank Ltd. SWIFT

Eastern Bank Ltd. One Bank Ltd. BRAC Bank Ltd. Dutch Bangla Bank Ltd. Jamuna Ban k Ltd. National Credit and Commerce Bank Ltd. SWIFT Belgium First Security Bank Ltd. Mercantile Bank Ltd. Uttara Bank Ltd. Al Arafah Islami Bank Prime Bank Ltd. Social Islamic Bank Ltd. Standard Bank Ltd. United Commercial Bank Ltd. Internat ional Finance Investment and Commerce Bank Ltd. City Bank ltd. Group Messaging G ateway In-house The Hongkong & Shanghai Banking Corporation Ltd. SWIFT Alliance Janata Bank ltd. Mutual Trust Bank Ltd. Southeast Bank Ltd. International Financ e Investment and Commerce Bank Ltd. SWIFT Alliance Belgium National Bank Ltd. Ag rani Bank Ltd. Sonali Bank Ltd. Rupali Bank Ltd. PC CONNECT NBP Karaci, Pakistan National Bank of Pakistan International Finance Investment and Commerce Bank Lt d. SWIFT Alliance Access 6.0 Cambridge Worldwide, India Shahjajal Islami Bank Ba ngladesh Commerce Bank SAM In-house Citibank N.A. 25 SAA SAM SWIFT EXIM Bank Ltd . PC Banking PC Bank-2000 LEADS Corporation Mercantile Bank Ltd. National Bank o f Pakistan

POS Terminal Q-Cash Singapore Mercantile Bank Ltd. Under process -CTL Prime & CT L Online Mutual Trust Bank Ltd. Hypercon Aamra Technology, USA National Bank Ltd . VISA, Q-Cash, OMNIBUS & DBBL switch & POS Network Shahjajal Islami Bank Ltd. S witching Software Cynergon Intelisys Ltd Southeast Bank Ltd. TNMS Aamra Technolo gies STIS International Acumen BRAC Bank Ltd. Hypercom Aamra(USA) Prime Bank Ltd . Ingenico ATCL(France) Dutch Bangla Bank Ltd. ITCL Jamuna Bank Ltd. OS/400, Cas h Link Agrani Bank Ltd. Tranzware Online Switching IT Consultant, BD, Russia Int ernational Finance Investment and Commerce Bank Ltd. City Bank Ltd. Banking KIOS K ERA- KIOSKBanking ERA InfoTech Bank Asia Ltd. International Acumen Ltd. Easter n Bank Ltd. Colors of Bangadesh Southeast Bank Ltd. Customized S/W International Accumen, BD Dutch Bangla Bank Ltd. Offline Branch Computerization E-Bank Ethics Advance Technology Ltd. (EATL), BD Bangladesh Shilpa Bank JBSoft Banking Applic ation In-House Janata Bank Ltd. Easy Banking Desktop Limited Flora Bank Flora Be xiBank Beximco Computers Janata Bank Ltd. Sonali Bank Ltd. A2Z Multiuser Banking S/W A2Z Computer Service National Bank Ltd. PCBANK2000 Leads Corporation Shahja jal Islami Bank Ltd. In-house Developed Uttara Bank Ltd. BexiBank4000 Beximco Co mputers Agrani Bank Ltd. International Finance 26 Investment and Commerce Bank L td.

IBS Infinity Technology Rupali Bank Ltd. Agrani Bank Ltd. Sonali Bank Ltd. Janat a Bank Ltd. Krantibank Kranti Associates Ltd Agrani Bank Ltd. FloraBank Flora Sy stem Ltd Daffodil bank Daffodil Computers Ltd ABLsofT In-house AgraniSolution In -house Flora Bank Software Flora Bangladesh Commerce Bank Ltd. (Source: Prepared by Filed Observations on 30.12.09)