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Electronic Banking in Bangladesh-Problems and Prospects
Submitted To:
Dr. Md. Akhtar Uddin Professor of IBA University of Rajshahi

Submitted B : !roup - " Submission #ate: $%th April& $%'(
Name Fatima Tujjahan Tasmim Nusrat Ahmed Nadia Nowrin Md.Mahmudul Haque Ullash Shabbir Ahmad Chowdhury Tanmoy Saha ID (B050006) (B050004) (B050019) (B050030) (B050032) (B050041)

20th April, 201

Dr.Md. Akthar Uddin, !"MA Professor of IBA, University of Rajshahi.

Sub: Permission for submitting the Group Term Paper Dear #ir, $e are pleased to s%&'it o%r (ro%p ter' paper on ) Electronic Banking in BangladeshProblems and Prospects”. *%r report fo+%sed on the "%rrents stat%s of ,-&ankin. in Ban.ladesh. /here are several pro&le's related in ,-&ankin. and find o%t so'e f%t%re prospe+ts that +reates h%.e possi&ility in Bankin. se+tor. $e have .athered infor'ation as '%+h as possi&le. /his report is 'ainly &ased on se+ondary data. Most of o%r se+ondary data +a'e fro' different &ooks and different 0e&sites. $e enjoyed 0orkin. on this ter' paper and hope yo% 0ill find it effe+tive and effi+ient.

#in+erely yo%rs,
Name Fatima Tujjahan Tasmim Nusrat Ahmed Nadia Nowrin Md.Mahmudul Haque Ullash Shabbir Ahmad Chowdhury Tanmoy Saha ID (B050006) (B050004) (B050019) (B050030) (B050032) (B050041) Si nature


At the very &e.innin., 0e 0o%ld like to e1press o%r deepest .ratit%de to A !"G#T$ for .ivin. %s the and the +o'pos%re to finish the ter' paper 0ithin the ti'e. $e are .ratef%l to o%r honora&le #ir %r. !d. Akhtar &ddin, Professor of IBA, University of Rajshahi, for providin. %s the opport%nity to 0ork on a topi+ like ),le+troni+ Bankin. in Ban.ladesh- Pro&le's and Prospe+ts2 as /er' Paper. $e are fort%nate for the aid and en+o%ra.e'ent that 0e re+eived fro' all of o%r tea+hers and friends and st%dents of Instit%te of B%siness Ad'inistration-IBA, University of Rajshahi.

3ast &%t not the least4 0e are thankf%l to o%r lovin. parents for their s%pport in every step of o%r life.

Executive Summary

,-Bankin. is 0e&-&ased Bankin.. 5o0 a day d%e to e' .lo&al e+ono'y, e+o''er+e and e-&%siness have &e+o'e a ne+essary +o'ponent of &%siness strate.y and a stron. +atalyst for e+ono'i+ develop'ent. As a third 0orld developin. +o%ntry, Ban.ladesh is far &ehind to rea+h the e1pe+ted level of .lo&al &ankin. syste'. At present the &anks in Ban.ladesh are %sin. the li'ited ele+troni+ &ankin. servi+es. ,&ankin. prod%+t and servi+es in+l%de 0holesale prod%+ts for +orporate +%sto'ers as 0ell as retail and fid%+iary prod%+ts for individ%al +%sto'ers. !orei.n +o''er+ial &anks and private +o''er+ial &anks are relatively in a &etter position to provide on line &ankin. servi+es. "%sto'ers 0ho are ha&it%ated 0ith online &ankin. thinks that online &ankin. servi+es are relatively .ood then 'an%al syste', &%t they not satisfied 0ith the 6%ality of servi+es and &ank personnel &ehavior to that e1tent. Altho%.h , &ankin. a+tivities are e1perien+in. lots of li'itation and +onstraints s%+h as la+k of a0areness and h%'an +apital, inade6%ate infrastr%+t%re, this se+tor has a hi.h prospe+tive. People are no0 .ettin. interested in online transa+tion and .overn'ent has laid o%t so'e plans for developin. I"/ infrastr%+t%re. Ban.ladesh &ank takes so'e 'ajor initiative in this re.ard and nationali7ed &ank sho%ld +on+entrate in i'provin. their online servi+es spread and 6%ality.

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/ecommendations 'onclusions %$ %$ %& %& %' %( %)*%+ %+ %. $. &.& $..*%%-*$( $)*$.*$&%*&& &'*&( &)*&.& (.+ &. &. '-*(% (% (. Scope and limitation 'hapter-"ntroduction .0 S. &-*'$ '& '&*'.( '.sis of 1i+e Bank in Bangladesh Problem of E-banking in Bangladesh 'onstraints of E-banking in Bangladesh Prospects of E-banking in Bangladesh 'hapter-2 1indings of the stud.( Abstract: 5 .$ $.$ (.'. '.pes of E-banking in B% /isk of E-banking in B% 'hapter.'hapter-( $.) (.( &.)T anal.sis 'omparati+e anal.' &.hat is E-banking )b*ecti+e of E Banking Structure of E-Banking Basic 'omponent of Electronic Banking Present status of e-banking in Bangladesh %ifferent form of Electronic banking T..' $.( &.) &.' '.$ &.& &.' Abstract )b*ecti+es !ethodolog.$ '.& '.

ladesh.ladesh.-&ankin.le+troni+ &ankin.ent devi+e.reat e1tent than earlier period.2 refers to syste's that ena&le &ank +%sto'ers to a++ess a++o%nts and .ly &e+o'e a ne+essary +o'ponent of &%siness strate. in Ban.n +o''er+ial &anks in Ban.ra' in :th &at+h.y is &e+o'in.e a&o%t present stat%s. /o identify the operational pro+ess and the perfor'an+e of . ). • • • • • /o e1plore the #tr%+t%re of ele+troni+ & ade6%ate kno0led. pra+ti+e in Ban. pro&le's and prospe+t of . .y and a stron..- )b*ecti+es of the stud. 6 . servi+es have la%n+hed &y so'e '%ltinationals and ne0 lo+al private +o''er+ial &anks. the 'a+ro level &enefits of ele+troni+ &ankin. se+tor. . in Ban. • • • • /o . /he st%dy is des+riptive in nat%re.e'ent in MBA pro. pro&le's and prospe+ts of .ladesh. /he ne0 infor'ation te+hnolo. Bankin.ladesh and forei.ladesh. 5o0 a day d%e to e'er..ladesh . (. /o identifyin. /o +on+ept%ali7e the evol%tion of ele+troni+ &ankin. in Ban.e in their vario%s a+tivities in+l%din.ladesh.ladesh /o find o%t the +o''on feat%res of ele+troni+ &ankin. ind%stry. operations in Ban. in &ankin.-&ankin. in Ban.ladesh. +atalyst for e+ono'i+ develop'ent.lo&al e+ono'y.: There are se+eral ob*ecti+es to conduct the stud. /o 'eet the +%riosity in this stated s%&je+t.eneral infor'ation on &ank prod%+ts and servi+es thro%.ladesh /o e1plore the ele+troni+ servi+es offered &y vario%s &ank in Ban. /his paper tried to %nearth the present stat%s of ele+troni+ &ankin.ladesh. an i'portant fa+tor in the f%t%re develop'ent of finan+ial servi+e ind%stry. 5o0 'odern &ankin. is one of the 'ost de'anded and latest te+hnolo.h a personal +o'p%ter 8P"9 or other intelli.-&ankin. ele+troni+ &ankin. &ankin. and espe+ially &ankin. /he 'ain fo+%s of this st%dy is to e1a'ine the perfor'an+e.nhan+e individ%al perfor'an+e. ind%stry is 'at%re to a .ies in &ankin.In Ban. e-+o''er+e and e-&%siness have in+reasin. se+tor in Ban. It has developed s%per& i'a. in Ban. These are: • /o f%lfill the partial re6%ire'ent of the 3Electronic Banking in BangladeshProblem and Prospects” +o%rse offered of Bank Mana.

in Ban. the +o'pletion of o%r report. forei.ladesh perspe+tive parti+%larly. -. Ban. +onditions.( "ntroduction: 7 . $e %se sa'plin.. report.: The information for the report 4as collected from secondar. 'a.very st%dy has so'e li'itations. 5o field 0ork to &e re6%ired. .ladesh Bank p%&li+ations have &een s%rveyed. Books. !or this p%rpose 0e %se stratified sa'plin. taskfor+e report of resear+h or.2 imitation of the Stud.ladesh. • .0 !ethodolog.ani7ations and so'e periodi+als. • • #e+ondary data has &een +olle+ted fro' vario%s p%&li+ations and s%rvey reports. &ankin.n &ank and nationali7ed &ank. +%rrent stat%s of .ladesh.(.ario%s se'inar papers and s%''ary of dis+%ssions in those se'inars. /i'e d%ration for preparin. /he 'ajor li'itations are<  3a+k of e1perien+e a+ted as +onstraints in the 0ay of +aref%l e1ploration on the topi+. +onsists of five &ank fro' three different se+tors of private +o''er+ial &ank.: /here has no plethora resear+h 0ork in Ban. $e fa+ed so'e %s%al +onstraints d%rin. ne0spapers. for analy7in. sources. *%r sa'plin. national and international jo%rnals. (. 3a+k of availa&ility of related infor'ation. se+tors in Ban.     B%sy 0orkin.a7ines. /he st%dy +overed a very li'ited n%'&er of area and other &ankin.

'ana.-Bankin.2 has &e+o'e a ne+essity for &anks4 it offers the 'ajor opport%nities in ter's of +o'petitive advanta. it i'proves effi+ien+y and operational effe+tiveness 0ithin the +o'pany and develops a stron. *n the other hand.. private. and ho0ever he 0ants. varies a'on. 2 ho%rs &ankin. M%ltinational &anks are offerin. servi+es 0ith ele+troni+ &ankin. infor'ation te+hnolo. analy7e and deliver data to all relevant %sers. pay and +ash 'ana.-&ankin. Infor'ation te+hnolo.. +redit depart'ent. is 0e&-&ased Bankin.ladesh.. servi+es of nationali7ed.hat is E-banking5 . Under this +ondition. &esides o%r nationali7ed. 0hi+h is done over $orld $ide $e&.e'ent thro%. 8e-&ankin. and his de'ands are +lear< Make transa+tions 0herever. personal finan+ial servi+es. /he &ankin. 'ore. '%ltinational &anks are operatin.. /he definition of e-&ankin. &etter servi+es than others. +orporate fa+ilities.9 is the ne0est delivery +hannel for & and 'ore d%ra&le &%siness relationship 0ith its +%sto'ers.h . television or 'o&ile phone des+ri&es .-Bankin. servi+es.le+troni+ &ankin. 0henever. Presently they are thinkin.y depart'ent and the 'ost i'portant depart'ent is the 'arketin.y 8I"/9 in order to a+6%ire. It also provides safe and +onfidential servi+es 0hi+h &est s%it +%sto'ers= needs. refers to the &ankin.In Ban.. the &ankin. an i'portant fa+tor in the f%t%re develop'ent of finan+ial servi+es ind%stry.y is &e+o'in.e and +ontrol finan+ial transa+tions. se+tor is &ased on sharin. is an ele+troni+ +onne+tion &et0een &ank and +%sto'er in order to depart'ent. trade servi+es 0ith the help of effi+ient operational depart'ent. the resear+hes partially &e+a%se ele+troni+ &ankin. . refers to several types of servi+es thro%.-!inan+in. . and '%ltinationals are different &y 6%ality of their servi+es. is the one of the 'ajor part of . for lon. the transition to ). ind%stry.-&ankin.-Bankin. -. operations.h 0hi+h &ank +%sto'ers +an re6%est for infor'ation and +arry o%t 'ost retail &ankin. 8 . private and spe+iali7ed &anks. /hey offer &etter +%sto'er servi+es. servi+es via +o'p%ter. In other 0ords .. /he +%sto'er 0ants 'ore fle1i&ility 0itho%t payin.Bankin. espe+ially the &ankin. to offer door-to-door servi+es. Besides. 0hi+h itself heavily relies on infor'ation and +o''%ni+ation te+hnolo. of infor'ation.

 Internet &ankin. Under this &ankin.  . not to 'ention prod%+ts and servi+es fro' other se+tors of &%siness 'ay &e sold ele+troni+ally as 0ell. tele&ankin. the &ran+hes of a &ank are +onne+ted ele+troni+ally in s%+h a 0ay so that a +lient or a +%sto'er of a parti+%lar &ank +an dra0 the 'oney or 'ake deposits anyti'e any0here of the +o%ntry or the 0orld. and Internet or online &ankin. in+l%des the syste's that ena&le finan+ial instit%tion +%sto'ers.nations.. are analo.nifi+an+e and +onvenien+e of the e-&ankin. .. finan+ial prod%+ts and servi+es 8e. . the Internet.. 9 . their +ons%'ers to &e &enefited fro' e-&ankin.  Re'ote ele+troni+ &ankin. Banks and others finan+ial instit%tions advertise fre6%ently on the si.. to a++ess a++o%nts.. that the ter's %sed to des+ri&e the vario%s types of ele+troni+ &ankin. ter's refers to one for' of ele+troni+ &ankin.. or internet &ankin.h a p%&li+ or private net0ork.  *nline &ankin. /he follo0in.-&ankin.  >o'e &ankin. ele+troni+ delivery +hannels s%+h as A/M.. are often %sed  And Phone &ankin. ho0ever. and P" &ankin.-&ankin. fa+ilities.. pro+ess. or online &ankin. is the 'ost fre6%ently %sed desi.irt%al &ankin.-&ankin. Banks are en+o%ra. It sho%ld &e noted.ea&ly.. servi+es. P" &ankin.. servi+es &y %sin.<  Personal +o'p%ter 8P"9 &ankin.'ent of e-&%siness to the e1tent that &anks are involved in the +ond%+t of &%siness transa+tions via ele+troni+ 'edia4 other non&ankin. individ%als or &%sinesses. in+l%din.o%s and defined as the +ond%+t of &ankin. or o&tain infor'ation on finan+ial prod%+ts and servi+es thro%. transa+t &%siness. is +onsidered to &e a se. ins%ran+e9..

0 )b*ecti+e of E-Banking: 10 .-.

• Benefits from the customers6 point of +ie4: /he 'ain &enefit fro' the &ank +%sto'ers= point of vie0 is si. /he 'ain . • Better +ash 'ana. • • Private +%sto'ers seek sli. a f%nd transfer. and %sin. prod%+ts and servi+es.-transa+tions +an &e 'ade 2 ho%rs a day. any transa+tion on the 0e&. servi+es is &etter &randin. • #peed< /he response of the 'edi%' is very fast4 therefore +%sto'ers +an a+t%ally 0ait till the last 'in%te &efore +on+l%din.e'ent instr%'ents is availa&le on Internet sites of & A%to'ated e-&ankin. the physi+al intera+tion 0ith the &ank. • "onvenien+e< All the &ankin. • !%nd=s 'ana.-&ankin.. servi+es pro+essin. 0itho%t re6%irin. are as follo0s< In+reased +o'fort and ti'esavin.• Benefits from the banks6 point of +ie4: !ro' the &anks= vie0 point. +%sto'er=s 'oney.e variety of +ash 'ana. and &etter responsiveness to the 'arket. the first &enefits for the &anks offerin.oal of every +o'pany is to 'a1i'i7e profits for its o0ners and &anks are not any e1+eption. the vario%s &ankin. profits. they +an +he+k on '%ltiple a++o%nts at the +li+k of a &%tton. /he 'ain &enefits of e-&ankin.nifi+ant savin. of ti'e &y the a%to'ation of &ankin. e-&ankin. Red%+ed +osts< /his is in ter's of the +ost of availin. fa+ilities speed %p +ash +y+le and in+reases effi+ien+y of &%siness pro+esses as lar.htly different kind of &enefits fro' e-&ankin.e'ent< "%sto'ers +an do0nload their history of different a++o%nts and do a )0hat-if2 analysis on their o0n P" &efore affe+tin.e'ent< . 11 . /he other &enefits are possi&le to 'eas%re in 'onetary ter's. servi+es offer a perfe+t opport%nity for 'a1i'i7in. • ?%i+k and +ontin%o%s a++ess to infor'ation< "orporations 0ill have easier a++ess to infor'ation as. transa+tions +an &e perfor'ed fro' the +o'fort of the ho'e or offi+e or fro' the pla+e a +%sto'er 0ants to. and introd%+tion of an easy 'aintenan+e tools for 'ana.

-&ankin. &a+k-offi+e ele+troni+ &ankin.le+troni+ &ankin.. to vario%s +o'p%ter-&ased te+hnolo.e'ent. . and finan+ial instr%'ents and ele+troni+ finan+ial instr%'ents. vi7. #+ien+e in+eption of pri'ary for's of ele+troni+ &ankin.2 Structure of E-Banking: . and 6%i+k f%nd transfer fa+ilities &oth for traditional &ankin.-. &ankin. Ba+k-offi+e ele+troni+ &ankin.ories &y the f%n+tional +hara+teristi+s. provides infor'ation 'ana. syste's +an &e divided into t0o +ate.e'ent servi+es. 12 . . servi+es. it has &een passed thro%. is a .le+troni+ &ankin.eneral ter' referrin. and ele+troni+ finan+ial instr%'ents or front-offi+e ele+troni+ servi+es. !ire0all +onfi.%ration and ' into three .h a +o'prehensive evol%tion pro+ess. /he follo0in.enerations of evol%tion< 'ategori7ation of electronic banking ser+ices: -. servi+es +an &e .. syste's rely on a n%'&er of +o''on +o'ponents or pro+esses.n and hostin. list in+l%des 'any of the potential +o'ponents and pro+esses seen in a typi+al instit%tion< • • $e&site desi.8 Basic 'omponents of Electronic Banking: .-&ankin.ies for deliverin.

servi+es. s%pport. one or 'ore te+hnolo. Internet &ankin. server. 5et0ork ad'inistration. appli+ation and n%'ero%s net0ork +o'ponents as ill%strated in the follo0in.%ration for the vario%s +o'ponents of an e-&ankin. the overall syste' +onfi.a+h +o'ponent represents a +ontrol point to +onsider. and A%to'ated de+ision s%pport syste's.• • • • • • • • • Intr%sion dete+tion syste' or ID# 8net0ork and host-&ased9. syste'.e'ent. "ore pro+essin.e9. Pro. this &ooklet presents only t0o &asi+ variations. Internet &ankin. syste'.y servi+e providers +an host the e-&ankin.... /hro%.-+o''er+e appli+ations 8e. dia. lendin. $hile the instit%tion does not have to 'ana. and intr%sion dete+tion syste'. and se+%rity of the e-&ankin. >o0ever.%ration. perfor'an+e. !irst. &ill pay'ent. 'ana. for the sake of si'pli+ity.e'ent has 'any alternatives 0hen deter'inin.ra''in. syste'. . #e+%rity 'ana.e the daily ad'inistration of these +o'ponent syste's. its 'ana.ra'.h a +o'&ination of internal and o%tso%r+ed sol%tions. 13 . Internal net0ork servers. In this +onfi.e'ent and &oard re'ain responsi&le for the +ontent. &rokera. server. fire0all. /hese +o'ponents 0ork to. the instit%tion@s servi+e provider hosts the instit%tion@s 0e&site.ether to deliver e-&ankin.. .

Figure 1: Third-Party Provider o!ted E-"anking #iagram Figure $: %n.ou!e E-"anking #iagram 14 .

)nline banking II. Ban. in Bangladesh: /otal n%'&ers of Banks in Ban. Bankin. to a report p%&lished in /he Daily #tar 8 th April.ladesh is far &ehind to rea+h the e1pe+ted level of .eneration private &anks and so'e 2nd . !orei. -.o. se+tor in Ban. A++ordin.-.9 Present status of E-banking in Bangladesh: As a third 0orld I.ladesh are forty seven. syste'.9. sho0in. an %p0ard trend in the infor'ation and +o''%ni+ation te+hnolo.eneration Private "o''er+ial Banks< !edium range )nline banking s.stem 15 .eneration Private Banks <1ull.y se+tor. 20109 Ban.lo&al &ankin. 1st .lo&al 5et0ork Readiness Inde1 in 200B-10 %p fro' 1C0th a year a. +o%ntry.ladesh on the &asis of %tili7ation of ele+troni+ devi+es +an &e s%&divided into three .n "o''er+ial Banks and Private "o''er+ial &anks espe+ially 2nd8e1+ept fe0 &anks9 and Crd .ladesh ranked 11Ath in the .( Banking industr.

In ter's of adoption of .ladesh #hilpa Bank8B#B9 Rajshai Grishi Unnayan Bank Bank of #'all Ind%striesand "o''er+e Ban. #onali Bank FanataBank A.III.stem.ain +o'petitive advanta. -.ladesh. se+tor in to three &asi+ +ate. fa+ilities. III. !or'erly only the forei. 5ationali7ed "o''er+ial Banks. Electronic Banks. for the first ti'e in Ban.n +o''er+ial &anks. II. Ban.ory 'ainly in+l%des 'ainly D E :ationali7ed 'ommercial banks: I.ladesh #hilpa Rin #an.n &anks operatin. (.'urrent scenario of e-banking in Bangladesh: . servi+es even solely. . !irst ti'e it 0as +o'&ined. no0 so'e of the &anks are offerin.n &anks 'ana. #pe+iali7ed Banks and !e0 forei. -.. 'lassical Banks.9.ladesh like #tandard "hartered Bank. I.e 0ith the introd%+tion of ele+troni+ &ankin.le+troni+&ankin.n Bank &ran+hes of this s%&+ontinent< 3o0 grade online banking s. I.astern Bank 3td. on line &ankin. et+ provided it. >#B".le+troni+ &ankin. I.. is relatively ne0 +on+ept in Ban. fa+ilities. . At present the &anks in Ban.ladesh to offer 0orld-+lass ele+troni+ &ankin. In o%r +o%ntry these +ate.-Bankin. 0hi+h don=t provide or provide very little . As res%lt the lo+al +o''er+ial &anks started to lose their 'arket to these forei. C.-&ankin.rani&ank R%pali Bank E Speciali7ed banks Ban.ories< (. is the leadin.. /hese forei.ladesh are %sin. III.ladesh3td. 0e +an divide o%r &ankin. #o they rea+ted very 6%i+kly. servi+es.ed to . introd%+in. 'lassical banks: "lassi+al &ank in+l%des those +o''er+ial &anks. the li'ited ele+troni+ &ankin. II. servi+es. lo+al +o''er+ial &anks in Ban. It is e1pe+ted that &ank +an attain 'ore profit and offer &etter servi+es to its +%sto'ers &y.ladesh. in Ban. !odern Banks.stha8B#R#9 16 .

n e1+han.ladesh Bank. >o'e &ankin. . Both of these t0o &anks has la%n+hed A/M +ard sharin.h overhead +osts.1+ept A. C. /he &ran+hes of these +lassi+al &anks are not +onne+ted thro%..!/# like Ready +ash. H.rani &ank and Fanata &ank these &anks are still in infant level a%to'ation. !odern banks: "%rrently so'e of the &anks of Ban. Be+a%se they offer so'e of the f%n+tionalities of the +o'plete ele+troni+ &ankin. . As a res%lt they al0ays la+k the re6%ired effe+tive +oordination a'on. ele+troni+ servi+es to their +%sto'ers 0e +annot say they are +o'pletely follo0in.-Bankin.s all these &anks in the +lassi+al sta. the val%a&le infor'ation and assets of +%sto'ers. All the 5"Bs in Ban. /hese +lassi+al &anks have no +entrali7ed data&ase syste'. different %nits. Internet Bankin. +entral &ank a%thority handles the pro+ed%re all the &anks are ter'ed as 'odern &anks this is the lar. these &anks has no other . like intra-&ank transa+tions. re6%ired infor'ation to 'ake ti'e.e are tryin. In +ase of inter-&ank transa+tions. 0ith other &anks and . 17 .'ent of +o''er+ial &anks a'on.ladesh Grishi Bank 8BGB9 E ocal pri+ate commercial /hese &anks are ter'ed as +lassi+al &e+a%se this Ban.ladesh "o''er+e Bank 3td. Besides this they also %se t0o 'ost 0idely %sed soft0are na'ed P" &ank and 5IGA#> developed &y the Ban.ladesh %se the soft0are na'ed as Be1i&ank. Ban.. ?-"ash other than these t0o fa+ilities.. /he #tandard Bank 3td. #o+ial invest'ent &ank ltd. to +onvert the'selves into the 'odern ele+troni+ &anks and 'ake the' a&le to +o'pete 0ith other +o''er+ial &anks de+ision at ri.ladeshi &ank still no0 'ainly follo0s the 'an%al pro+ed%re for se+%rin. fa+ilities like *nline &ankin.h 3A5 or $A5 or MA5. Al Arafah &ank :.ladesh are providin. /he *riental &ank ltd. In spite of the short+o'in. 2. the three. in+%rs hi. ele+troni+ 0ay.. 3etter of "redit 83"9 and forei. !irst se+%rity &ank ltd.est se..e et+. Ban.

I. 'odern &ankin. .. . 6%i+k transfer of re'ittan+es 0ith the help of international 'oney transfer %nions like $estern Union. in our countr. branch banking. Mer+antile &ank ltd..II. #o'e of the ele+troni+ &ankin. 5ational Bank of Pakistan 5ational Bank 3td. +on+epts like one-stop servi+es. to la%n+h or at least have planned to initiate online &ankin. 5ational Bank of Pakistan #o%theast Bank 3td. and +ontin%o%sly %pdatin.rani &ank is providin.ies of others E Providin.. Uttara Bank 3td. International !inan+e Invest'ent and "o''er+e &ank 3td United "o''er+ial Bank 3td. servin. II. . Mer+antile Bank 3td.1press Money and Money (ra'. strate. IIII. their servi+e and prod%+t portfolio.. 5ational Bank of Pakistan #tate Bank of India >a&i& Bank 3td Ara& Ban. E Providin. 18 . I. II. E /ryin. 1ollo4ing are some of those commercial banks. III. Pri'e Bank 3td. . II.I.All these modern banks ha+e some4hat common features likeE /ryin. P%&ali &ank ltd. P%&ali Bank 3td. 4hich pro+ide AT! ser+ices on shared basis and planning to pro+ide online banking and an. the %nderserved 'arket. servi+es provided &y these 'odern +o''er+ial &anks are des+ri&ed &elo0< E Electronic fund transfer ser+ices: I!I" &ank ltd.ladesh Bank 3td. I. II. AB &ank ltd A.. /he M%t%al /r%st Bank 3td. A/M +ard and in so'e +ases +redit +ard fa+ilities E Initiatin. to follo0 'arketin. ele+troni+ f%nd transfer servi+es on shared &asis in the na'e of ?-+ash. III. 4hich fall 4ith in modern banks categor. . I. 5ational "redit and "o''er+e Bank 3td.III. /ele &ankin. I.I. et+ in near f%t%re.

h ele+troni+ net0orks. B%t the +ard pro+essin. 19 . the "ity &ank ltd.I#A. telephones. !ollo0in.ladesh Bank has the a++ess to all other &anks so it is very easy task to 'aintain an inte. • Soft4are used: All the 'odern &anks %ses t0o +o''on soft0are developed &y Ban.ories. Besides the "ity &ank ltd. are those &anks. a%to'ati+ teller 'a+hines. Mer+antile &ank ltd. . 0. their +redit and de&it infor'ation 0ith ea+h &ank E AT! 'ard: M%t%al tr%st &ank. /he Pre'ier &ank ltd. %ses !3*RA Bank. Pri'e Bank ltd.ladesh Bank ltd. individ%ally de&it +ard fa+ilities %nder the &rand na'e of . and .le+troni+ &ank in+l%de those +o''er+ial &anks. and M%t%al /r%st Bank ltd. te+hnolo. as a se. p%rposes and P" &ank for 'aintainin. are the nat%re of the delivery +hannel thro%. and Ara& Ban.ladesh &ank na'ed 5IGA#> for +he+k +learin..h 0hi+h a+tivities are perfor'ed. All of their &%siness pro+ess in 'aintained and e1e+%ted ele+troni+ally.le+troni+ &ankin. another de&it +ard 0hi+h offers d%al +%rren+ies 0ithdra0al fa+ilities. en+o'passes all types of &%siness perfor'ed thro%. is +%rrently providin.h 0hi+h e-&ankin.rated data&ase of all +%sto'ers spe+ifyin. Banks in this +ate.ory are 'ore ele+troni+ally servi+e oriented than the a&ove-'entioned +o''er+ial &anks. in t%rn.y to +arry on their day-to-day &ankin.le+troni+ Banks /0o f%nda'ental aspe+ts of ele+troni+ &ankin.E '"B /eport Generation: Ban. P"s. and the 'eans for +%sto'ers to . prod%+ts and servi+es +an &e provided to +%sto'ers in+l%de point of sale ter'inals.I"UB. >ere 0e divide the ele+troni+ &anks in to t0o +ate. "o''only delivery +hannels in+l%de J+losed= and Jopen= net0orks devi+es thro%. Besides Dhaka Bank ltd.'ent of ele+troni+ &%siness. &%siness.thy than that of #tandard "hard Bank. is providin. Electronic Banks: . period of these &anks is relatively len. 0hi+h fall in the +lass of .astern &ank of +lients. 0hi+h.ain a++ess to those +hannels. %ses !3. 0hi+h %ses sophisti+ated +o'p%ter and net0orkin. %ses !I5A"3. the led.

Many resear+hers e1pe+t rapid . "o''er+ial Bank of "eylon 3td. BRA" Bank 3td. in se+ond and third pla+e respe+tively. &anks to eval%ate their te+hnolo.y. te+hnolo.<. #tandard "hartered Bank ltd.i+ o&je+tives.2 Gro4th in E-Banking Banking: 5%'ero%s fa+tors in+l%din.a. 'ay help e1a'iners deter'ine the &ank=s strate. >#B" C. Fa'%na Bank H. Isla'i Bank Ban. Bank Asia ltd .ro0th in +%sto'ers %sin. D%t+h Ban.astern Bank 3td. strate. %se of Internet &ankin.y and assess their ele+troni+ +o''er+e and Internet &ankin. a &ank=s data on the %se of their $e& sites. for+e &ehind in+reasin.ladesh 3td. ocal Electronic 'ommercial banks: 1. 8#"B9 2. prod%+t plan. its Internet &ankin. +o'petitive +ost. . Bank 3td :. online &ankin. 2. C. Present Status of =arious forms of E-Banking in Bangladesh: Total 2> banks ?both public and P+t.val%atin. "iti &ank 5A .ies. Bank Alfalah et+. 1oreign Electronic 'ommercial banks: 1. and 0hether the &%siness is e1pe+ted to &e profita&le #t%dies sho0 that +o'petitive press%re is the +hief drivin. . :. and de'o.ed and the results are summari7ed as belo4: 20 . 'ommercial banks@ 4ere sur+e. &. -. ho0 0ell the &ank is 'eetin. $oori Bank H.raphi+ +onsiderations are 'otivatin. +%sto'er servi+e. prod%+ts and servi+es. ahead of +ost red%+tion and reven%e enhan+e'ent.

=. (.-&ankin. &%siness ele+troni+ally. JInternet &ankin. to &e physi+ally present at the &ran+h of a &ank.= or J'o&ile &ankin. servi+e is provided &y phone. Jonline &ankin. /o a++ess an a++o%nt it is re6%ired to dial a parti+%lar telephone n%'&er and there are several options of servi+es. savin. J/elephone &ankin.= refer to a n%'&er of 0ays in 0hi+h +%sto'ers +an a++ess their &anks a++o%nt 0itho%t havin. Tele-banking /ele-&ankin.-.A %ifferent 1orms of E-banking: /he ter's JP" &ankin. a++o%nt &alan+e !%nds transfer &et0een +%rrent. *ptions in+l%ded • • • • • • "he+kin.e transa+tion Re+eive state'ent via fa1 3oan pay'ent infor'ation -.=. . P' Banking 21 . 'ay &e %nderstood as the ter' that +overs all the 0ays of &ankin.s and +redit +ard a++o%nts Bill pay'ents #to+k e1+han.=.

independen+e of ti'e. Internet &ankin. Basi+ally.-&ankin. or ho'e &ankin. !or s%&s+ri&in.. sin+e the 'id-nineties.h the only prod%+t they 0ere offerin. "%sto'er &ehavior is +han. there are t0o types of P" &ankin. /he ter' JP" &ankin.i+ 0eapon= to satisfy the ever-+han. /he first type is online banking. "nternet Banking Internet &ankin. 0. %se of personal +o'p%ters thro%. Usin. no0 +%sto'ers +an %se their personal +o'p%ters at ho'e or at their offi+e to a++ess their a++o%nts for transa+tions. rapidly.h the entire 0orld.%re 1< /ypes of . /hese fa+ts represent h%. at the ti'e of infor'ation. Unlike +losed net0orks. +%sto'ers= de'and and innovative &%siness needs. 0hi+h (er'an &anks have &een offerin. /he se+ond type is "nternet banking./he in+reasin. !%rther'ore.= is %sed for &ankin. 5o0 the finan+ial servi+e is +hara+teri7ed &y individ%ality. #o the Internet is no0 +onsidered to &e a Jstrate. per'its the +%sto'er to +ond%+t transa+tions fro' any ter'inal 0ith a++ess to the Internet. in+redi&le pl%''et of +ost of 'i+ropro+essor has a++elerated the %se of +o'p%ter.e +hallen. 2. into the &anks= Intranet proprietary soft0are syste' is %se for altho%. !obile Banking 22 . in 0hi+h &ank transa+tions are +ond%+ted 0ithin +losed for the finan+ial servi+e providers. pla+e and fle1i&ility. 0o%ld free &oth &ankers and +%sto'ers of the need for proprietary soft0are to +arry on 0ith their online &ankin. &%siness transa+ted fro' a +%sto'er=s P". a0areness of the i'portan+e of litera+y of +o'p%ter has res%lted in in+reasin. to and dialin. the P" &ankin. /he +%sto'er needs spe+iali7ed soft0are provided &y his &ank. !i.

.!/P*# 8ele+troni+ f%nd transfer at point of sale9 ter'inal +onta+t the +o'p%ter net0ork 8over a phone line and 'o&ile +onne+tion9 to verify the a%thori7ed the transa+tion. D%e to the ne0 trans'ission te+hnolo. prod%+ts 0hi+h are des+ri&ed &elo0< K /etail Electronic Banking Ser+ice: 1. after 0hi+h the +%sto'er s0ipes the +ard and enters the pin n%'&er.< Electronic banking product a+ailable in Bangladesh or T.pes of E-banking: . p%r+hases. /he slo0er trans'ission speed of the $AP standard and the li'ited a'o%nt of infor'ation availa&le are j%st t0o of the fa+tors inhi&itin. prod%+t and servi+es +an in+l%de 0holesale prod%+ts for +orporate +%sto'ers as 0ell as retail and fid%+iary prod%+ts for individ%al +%sto'ers. 'redit card: A +redit +ard is a syste' of pay'ent na'ed after the s'all plasti+ +ard iss%ed to %sers of the syste'. /here is %s%ally a short delay 0hile the .ital assistant 8PDA9 or s'all hand-held P"s are providin. A +redit +ard is different fro' a de&it +ard in that it does not re'ove 'oney fro' the %ser=s a++o%nt after every transa+tion. Mo&ile &ankin. -.. In 23 . the %se of those ter'inals. porta&le ter'inal like 'o&ile phones personal di. the %se of 'o&ile &ankin.A+t%ally 'o&ile &ankin.-&ankin.ood e1a'ple of ho0 the lines &et0een the vario%s for's of e-&ankin. /he a'o%nt of a transa+tion is typi+ally displayed on a +ard reader.h internet &ankin. 'ay 'irror prod%+t and servi+es offered thro%. is still in a nas+ent state. &ank +%sto'ers 0ith a++ess to the Internet and th%s pavin.ies s%+h as $AP 8$ireless Appli+ation Proto+ol9. Automated teller machine: An a%to'ated teller 'a+hine 8A/M9 is a +o'p%teri7ed tele+o''%ni+ation devi+e that provides a finan+ial instit%tion=s +%sto'ers 0ith a 'ethod of finan+ial transa+tion in a p%&li+ spa+e 0itho%t a need for a h%'an +lerk or a &ank teller.-&ankin. is a variation of Internet &ankin. 2.h other &ank delivery +hannels. . A &rief des+ription of . >o0ever. %ebit card: A de&it +ard is a plasti+ +ard 0hi+h provides an alternative pay'ent 'ethod to +ash 0hile 'akin. the 0ay to Internet &ankin. Ulti'ately the prod%+t and servi+es o&tained thro%.rad%ally &l%rred. C. is a . are &e+o'in.

It is also different fro' a +har. this ti'e period a +%sto'er +an adj%st Lre+tify the a++o%nt if any i'&alan+e is fo%nd &et0een his o0n re+ord and the &ank state'ent provided &y the &ank. .the +ase of +redit +ard the iss%er lends 'oney to the +%sto'er. . B%sinesses are also in+reasin. %sed in an esta&lish'ent. :. A"> de&it transfers in+l%din. H.holesale Electronic Banking: (.ister syste' &ein. 'ort.e +ard tho%. +redit or de&it +ards. /he internet is e1pe+ted to &e a 'ajor fa+tor for ho'e &ankin. M. a+tivities fro' their ho'e. A"> pro+ess lar. #ome banking: At first &ank introd%+ed telephone &ill pay'ent 8/BP9 so that +%sto'er +o%ld &e a&le to do their &ankin. Point of sale ?P)S@: /his 'eans a retail shop or a +he+ko%t +o%nter in a shop or a varia&le lo+ation 0here a transa+tion o++%rs in this type of environ'ent. dire+t deposit. A"> to +olle+t the +%sto'ers= online rather than %sin. /he &anks store the reje+ted +he+ks for a +ertain ti'e period 8%s%ally B0 days9. /etail Automated 'learing #ouse Ser+ice: It is an ele+troni+ net0ork for finan+ial transa+tion. it +an &e sold 0here a point of sale syste' is in %se.a. 8. if so'ethin.e loans and other kinds of &ills.inated in &at+hes. rather they provide state'ent of reje+ted +he+ks 0ith their 'onthly state'ents. /his re6%ires the &alan+e to &e paid in f%ll ea+h 'onth. D%rin. /he ne1t version for the ho'e &ankin. hotels and stadi%'s as 0ell as retail environ'ent in short . +an &e sold.. A"> +redit transfers in+l%din. 'heck Truncation: /his is s%+h a servi+e in 0hi+h a finan+ial instit%tion doesn=t ret%rn the reje+ted +he+ks 0ith the 'onthly state'ent to their +%sto'er.h this na'e is so'eti'es %sed &y the p%&li+ to des+ri&e +redit +ards. K . Point of sale syste' are %sed in resta%rants.ire transfer: 24 .ideo >o'e Bankin.e vol%'e of &oth +redit and de&it transa+tions 0hi+h are ori. +%sto'er pay'ent of ins%ran+e pre'i%'s. Additionally point of sale so'eti'es refers to the ele+troni+ +ash re. payroll pay'ent and pay'ents to +ontra+tors and vendors.>B9. 0as .

h a++o%nt transfer 8nor'ally takes C 0orkin.n re'ittan+e fo%r nationali7ed &anks and fifteen private &anks are 0orkin. ho%se 8A">9 is an ele+troni+ net0ork for finan+ial transa+tion. /he first ever re'ittan+e servi+e for Ban. !obile remittance: !or sendin.B The common features of Electronic Banking of Bangladesh: 25 .est 'o&ile operator is Ban.inated in &at+hes other retail and fid%+iary prod%+ts and servi+es 'ay in+l%de &alan+e in6%iry. +hannel thro%. A"> pro+esses lar.ladesh &y &ankin.e vol%'es of &oth +redit and de&it transa+tions. As a res%lt 'oney transfer &e+o'es relatively easy. B%t this syste' also s%perseded &y re'ittan+e syste'. net0ork< • • • • !.$ire transfer is a pro+ess 0hi+h ens%res fast and appropriate ti'in. 'orporate automated clearing house: /he a%to'ated +learin. 6%i+k and hassle free. D and the +o%ntry=s se+ond lar. +olla&oratively 0ith 'o&ile phone servi+e operators. of f%nd transfer fro' the sender to the re+ipient. &ill present'ent and pay'ent.D 0ire 8 federal reserve +o''%ni+ation syste'9 Bank 0ire ">IP# 8+learin.h 'o&ile phone. f%nds transfer. /his kind of transfer of 'oney +o%ld &e either 0ithin the +o%ntry or a&road. and .ladesh 0as jointly la%n+hed &y t0o lo+al &anks DDhaka Bank ltd. loan appli+ation.astern Bank ltd. do0nloadin. invest'ent a+tivity and other val%e added servi+es. ho%se inter&ank pay'ent servi+e9 #$I!/ 8 the so+iety for 0orld0ide inter&ank finan+ial tele+o''%ni+ation9 < -.n resident people +an send their 'oney and PI5 8personnel identifi+ation n%'&er9 thro%. forei.lalink. !%nds are transferred %nder the follo0in. Re+ently re'ittan+e +o%ld &e sent in Ban. -. days9 or in the for' of instan+e +ash 8takes 2 ho%rs9. !orei. $hi+h are ori. 0. transa+tion infor'ation.

/he different types of risk of internet & $ithdra0 'oney fro' dollar a++o%nt 0hi+h . in Ban.le+troni+ &ankin. "an a&le to pay %tilities &ill 1C. "ash deposit 0hi+h 0ill ori. ?%i+k +ash 0ithdra0al 0itho%t havin.The common features of electronic banking in Bangladesh are as follo4s: .n &anks are 'aintained ele+troni+ &ankin. 6%e%e C. that appropriate se+%rity +ontrol pro+esses are in pla+e for e-&ankin.h A/MLDe&itL"redit "ard :. Mini state'ent 0hi+h +ontain A-10 previo%s transa+tion re+ords 12. are as follo0s< (.. forei. 1.ho%rs posed &y e26 .ladesh sin+e 1BB2 thro%. B.I#A. P3U#. Deposit or Mail +ash or +he6%e 8s9 8"ross +he6%e9 thro%. >ere the resear+her fined so'e +o''on feat%res of ele+troni+ &ankin. B%t 'ost of the lo+al and forei.n +%rren+y -.ives taka &y +onvertin. MA#/. MA. 2 .#/R* and other +redit +ard 1 .o to the &ran+h for every o++asion.(> The /isk !anagement of Electronic Banking: $ith the rise of internet and ne0 te+hnolo.e'ent attention &e+a%se of the enhan+ed se+%rity +hallen.ho%rs +ash deposit N 0ithdra0al fa+ility 2. #tate'ent re6%est thro%. More than1H. Securit.e'ent. A++o%nt a+tivities en6%iry in any 'o'ent . the s%&stan+e of these pro+esses needs spe+ial 'ana.h several '%ltinational &anks.ladesh. Present Balan+e en6%iry M. Personal Identity 5%'&er 10. 11. fa+ilities A.inally deposit very ne1t day of deposit that 'eans do not need to .h 'e+hani+al devi+e. idea developed in are +reated for the &anks senior 'ana. $ithdra0 'oney &y %sin. 5e0 +hallen. "han. .ies ne0 threats have arisen.R. in their all &ran+hes. /ransfer o0n f%nds to other a++o%nt n%'&er in sa'e &ank H. 'ontrols /isk : $hile the Board of Dire+tors has the responsi&ility for ens%rin.

rity of transa+tions. +ash o%t and deposit in other &anks if a 'ore favora&le rate is offered.ainst &%siness. le. and the ina&ility to deliver servi+es or prod%+ts.e pool of deposits and loans. /ransa+tion risk that 'ay e1ist 0ith internet &ankin. &anks sho%ld therefore have effe+tive +apa+ity. of rate +han.e infor'ation. 27 . syste's and servi+es. appropriate a%thori7ation privile. not properly i'ple'ented and not properly 'onitored. prod%+ts if these are not properly and rep%tation risk. e-&ankin. -.h transa+tion de'and. Transactions risk: /his risk to earnin. /he &ank '%st have the a&ility to deliver e-&ankin. /he differen+es &et0een the ti'in. le. #o'e +%sto'ers si'ply 'aintain their deposit a++o%nts solely on the &asis of favora&le interest rates.& and the ti'in. /he internet +an allo0 +%sto'ers to +o'pare interest rates of different &anks fro' the 0e&sites. and they often &rin..s and +apital that arises fro' fra%d. 0. ade6%ate infrastr%+t%re se+%rity to 'aintain appropriate &o%ndaries and restri+tions on &oth internal and e1ternal %ser a+tivities and data inte. in+reases asset and deposit volatility. Internet &ankin. /his sho%ld in+l%de esta&lishin. +an attra+t a lar. of the different +ash flo0s +an also affe+t the interest risk. iCuidit. lo. /o 'eet +%sto'ers@ and rep%tational risks arisin. error. II. Traditional /isk: I. servi+es '%st &e delivered on a +onsistent and ti'ely &asis in a++ordan+e 0ith hi.en+y plannin.i+al and physi+al a++ess +ontrols. fro' 'ove'ents in interest rates. to 'eet its o&li. internal and e1ternal atta+ks that 'ay affe+t the provision of e-&ankin. /isk< #o'eti'es &anks fa+e a diffi+%lty of failin. fro' %ne1pe+ted events.ffe+tive in+ident response 'e+hanis's are also +riti+al to 'ini'i7e operational.ations. egal and /eputational /isk !anagement: /o prote+t &anks a.h +%sto'er e1pe+tations for +onstant and rapid availa&ility and potentially and a%thenti+ation 'eas%res. . "nterest /ate /isk< *ne of the risks of internet &ankin.. Internet &ankin. in+l%din. &%siness +ontin%ity and +ontin. or to 'aintain a +o'petitive position or to 'ana. III. re+ords and infor'ation.s or +apital arisin. is the risk to earnin. servi+es to all end-%sers and &e a&le to 'aintain s%+h availa&ility in all +ir+%'stan+es.

. Strategic /isk: /his is risk of earnin. A proper +ost-&enefit analysis is re6%ired for this p%rpose. Banks sho%ld &e +aref%l in %nderstandin.s or +apital that arises fro' ade6%ate &%siness de+isions and the i'proper i'ple'entation of &%siness de+isions. the la0s of different +o%ntries.s or +apital that arises fro' the violations of.ladesh the follo0in. in the 'inds of its +%sto'ers. Banks sho%ld also &e +aref%l in the priva+y of +%sto'er and takin. re.i+ and te+hni+al aspe+ts of internet &ankin. 0. 'ompliance /isk: /he risks to earnin. #$*/ Analysis is +onsidered< Strength 28 . &%siness opport%nities and positionin.. r%les.)T anal.sis of Electronic Banking: As e'piri+al eviden+e here a #$*/ Analysis +an &e an effe+tive 'eas%re. +%sto'er +onsent 0herever ne+essary.%lations. in Ban.( S. non+onfor'an+e 0ith the la0s.ers and senior offi+ers do not %nderstand ho0 to i'ple'ent the strate. /his risk +an affe+t the rep%tation of a &ank. the perfor'an+e of the Internet Bankin. . !or analy7in. Many &ank 'ana. the pres+ri&ed pra+ti+es ethi+al standards of a +o%ntry. and interpretin..I.

Weakness Opportunity 29 .

*ne of the &anks is DBB3 0hi+h is pioneer in online &ankin.ladesh. in Ban.ladesh 0e pi+k eastern &ank li'ited and Dhaka &ank.'ents.sis among fi+e banks: !or o%r analyti+al p%rpose 0e pi+k : &anks fro' three different se.'omparati+e anal..Threat 0. !ro' 30 . !ro' other lo+al +o''er+ial &anks in Ban.

%BB EB %haka Bank Standard 'hartered Bank imited A 2: 1M Sonali imited Bank :umber of AT! :umber of branches :umber of branches ha+ing S. *ra+le9 *ra+le !le1+%&e UB# !le1+%&e eBB# I. *L# $AP "ARDPR* e"AP# Shared AT! /ran70are."o'pass Pl%s K 'ards and others: %BB EB %haka Bank Standard 'hartered Bank imited O Sonali Bank imited %ebit card O O O O 31 .n &anks 0e +hose #tandard "hartered Bank 3i'ited and #onali Bank 3i'ited fro' the p%&li+ &anks.R !le1+%&e !le1+%&e /rans Master for Prepaid "redit and De&it "ard !le1+%&e !le1+%&e iBankin."1T code 'ore banking soft4are Phone banking S!S banking "nternet banking =arious cards 12B: BH 12 M B 2C 2 : 1B 22 11B1 C1 !le1+%&e "I#"* #yste' !le1+%&e !le1+%&e "ard #%ite8AII.forei.

'redit card O =isa and O master card Tra+el card I O O O O O I O O O I I I K )thers: %%B EB %haka Bank imited O I I Standard 'hartered Bank imited O O I Sonali Bank imited !obile banking 1ast Track Electronic Student Booth ?ESB@ "nternet Pa.ment banking program O O O I O O O I I O O O O O O O I O I I I I I 32 . ?"PG@ 'all center :e4 %ata 'enter and %/S Green "T )nline remittance transfer Emplo.

Gh%lna Rajshahi #hylhet Borishal • Ran. 33 .ladesh.K ocation of AT!: Basis of comparison<  !etro political areas< (overned &y "ity "orporations.p%r  !unicipal areas: (overned &y.on. #%+h as< • • • • • • Dhaka "hitta. these are the +ities of Ban. M%ni+ipal "orporations.ladesh. these are the to0ns in Ban.

34 .

lish. >avin.y 8I"/9 infrastr%+t%re is prior 'ost to offer and to i'ple'ent e-&ankin. as 0ell as to &e en+o%ntered in Ban.y litera+y is still very li'ited in 'ost developin. lot 35 . for0ard 0ith %sin.s< ". "".n. B%t in Ban. servi+es.e of skilled 0orkers a'on. 'ass +%sto'er &ase even fro' r%ral areas. d%e to %navaila&ility of +o'p%ter syste's and Internet infrastr%+t%re &y the 'ajority of people. $A5.ladesh is illiterate in . it is the 'ost i'portant pro&le' for &ankers to i'ple'ent online &ankin. &anks need skilled 'anpo0er. in order to offer and 'aintain e-&ankin.ladesh.. "nfrastructure: /he other +hallen. B%t.y in &%siness. """. d%e to inade6%ate skilled 'anpo0er. handlin. sophisti+ated soft0are tools to &e provided &y different &anks for online p%rpose. infor'ation te+hnolo.0. As e-&ankin. /elephone lines '%st &e ade6%ate for e-&ankin. e+el: /he 'ajority portion of people in Ban. se+tor is fa+in.ladesh. "o''%ni+ation infrastr%+t%re s%+h as Internet. &anks.n +o%ntries to over+o'e this pro&le'. !ass "lliterac. &ankin. is 0ell developed infrastr%+t%re.0 Problems of Electronic Banking in Bangladesh: /he pro&le's prevailin. servi+es.e for e-&ankin. headin. In Ban.eneral ed%+ation. +o%ntries. /hey have to hire 'anpo0er fro' forei. Infor'ation and "o''%ni+ation /e+hnolo. /here is a shorta. servi+es 0itho%t any fa%lt. it is al'ost i'possi&le for different &anks espe+ially +overin. ack of "'T Dno4ledge and Skills: /e+hnolo. a key iss%e in 'ovin.ets s%&je+t to fra%d%lent a+tivities d%e to la+k of a&ility of people fro' different 0alks of life to 'aintain a++o%nt a+tivities re6%irin. &een %na&le to read and 0rite in .ladeshi perspe+tive +an &e analy7ed %nder the follo0in. servi+es . the &anks are s%fferin.

="". Po4er %isruption: Another 'ajor pro&le' is fre6%ent .spe+ially. /hey have to &%y and install the re6%ired syste's and fa+ilities 0hi+h lead in+reased esta&lish'ent e1pense. !or 0ell-esta&lished &anks +o''er+ial &anks of Ban.ladesh for %navaila&ility of Internet fa+ilities &y people.ladesh have not taken %p the %se of the Internet as their &ankin. /hey have to in+%r heavy 'aintenan+e +osts also. a $e& site. egal 1rame4ork: 36 .o online. It 0ill for+e the &anks to depend on . 0ay &e+a%se they fail to see the val%e of e-&ankin. *ther reason 'ay &e that 'ass people are not a++%sto'ed 0ith %sin. Internet platfor' for day-to-day shoppin. Many think e-&ankin. &anks have to invest h%.e a'o%nt of 'oney in order to provide e-&ankin. &na+ailabilit. e-&ankin.. any 'ajor ret%rns on invest'ent. a+tivities.of pro&le's or +hallen.ladesh.eno%s &anks in Ban. "=. Establishment EEpenses: Initially. =. in hi. a 0ell-visited $e& site. of E-Business Practices: >avin. =".le+tri+ Po0er disr%ption. to . &ankin. *ne reason is that there 'ay &e no +riti+al 'ass of %sers in a+tivities 0hi+h are &asi+ally dependin. to their &%sinesses. the esta&lish'ent +ost 'ay not &e a pro&le'. +%sto'ers transa+tin. . on po0er s%pply. Internet is the 'ajor pro&le' &e+a%se of 3o0 &and0idth and lo0 speed for &anks intendin. is not e6%ivalent to havin. ack of A4areness and &nderstanding of the =alue of E-Banking: Most indi. /his 0ill +reate lot of pro&le's in e-&ankin. Besides. and so on. needs an additional +ost that 0ill not &rin. =""". 0hi+h is a pre-re6%isatories for online operation.h operational +ost.enerators 2 ho%rs M day res%ltin. fro' ho'e 0ill fa+e pro&le' d%e to disr%ption 0hile +ond%+tin. servi+es.

in India for s'ooth transa+tion and +he+k tr%n+ation p%rposes. ind%stry is a ne+essary +ondition. syste's soft0are and appli+ation soft0are thro%. in this a. and ha+kin. 0hi+h 'ay have to &e p%rs%ed.eneral and e-& fra'e0ork for e-+o''er+e in . Ban. ho%se 'e+hanis' and +he6%e settle'ent till today 'an%ally.3e. it 0o%ld &e totally i'possi&le for &anks to transa+t online. Banks sho%ld take effe+tive steps for the interests of +%sto'ers fro' data ta'perin.ro0th of e-&ankin. the standardi7ation of operatin. syste' and in its . Reserve Bank of India initially took step to inter+onne+t all &anks operatin.%latin. e-&ankin. le. the .ro0th. #e+%rin.ladesh. Proven hi. in parti+%lar.ho%t the &ankin. B%t in Ban. in Ban. /he %navaila&ility and skill needed to operate s%+h soft0are are also i'pedin. the pro+ess in e-&ankin. ack of AT!: 37 . $hile 0e see. syste' in its .ladesh has not yet set a +o'prehensive le. /his a%thenti+ation +an &e done %sin. Instead of stri+t re.overnin. servi+es.. B%t it +an &e said that 0itho%t online +he6%e settle'ent and other +learin.-&ankin.: #e+%rity is another fore'ost re6%ire'ent of e-&ankin. %ser ID and fra'e0ork is plyin. is the standardi7ation of soft0are 0hi+h is ne+essary to offer e-&ankin.islation. pra+ti+es.ladesh.. a +r%+ial role in fa+ilitatin. F".. as the internet is inherently %nse+%red. all &anks are re6%ired to +ond%+t +learin. Securit. servi+es.h 6%ality soft0are is a '%st for hi. they have developed a +o'prehensive le.ladesh has not +learly 'entioned yet its role in re. involves a%thenti+atin.%lation. 'e+hanis'.hte+h &ankin. a +o%ntry sho%ld 'ake so'e a'end'ents in order to +oin+ide 0ith the e-&ankin. F"". F.e of 21 st +ent%ry. Standardi7ation of Soft4are: *ne of the 'ajor iss%es in . &oth +%sto'er and &anker and prote+tin. syste's. /he "entral Bank of Ban. the e&ankin. the infor'ation to &e trans'itted fro' inter+eption. !or the sophisti+ated servi+es. "F. In fra'e0ork for e+o''er+e 0hi+h in+l%des e-&ankin. B%t 'ostly in developed +o%ntries. ack of "nitiati+e from 'entral Bank: All &anks are in need of s'ooth +learin.

e of 'oney. K A&sen+e of . fa+ilities.. 0ider ran. K Poor tele+o''%ni+ation net0ork poli+ies and slo0 pa+ed re. If +reate heavy rain.ladesh are providin. K /he &ankin. *nly +%sto'ers livin. .al syste'.ery 'ini'%' n%'&er of %sers of internet. K >i./ho%. K #lo0 %ptake of internet a++ess and P"s.n and private &anks offered a &road ran. K 3a+k of skilled I/ 0orkfor+e. +o'p%ter hard0are and &ankin.e of internet &ankin. P%&li+ se+tor &anks la.islation.%latory initiatives.le+troni+ &ankin. 0. 0. K A/Ms 'ay have net0ork pro&le's.2 'onstraints to E-Banking in Bangladesh: !orei. iss%e.overn'ent level of e-&ankin. K At present. K .h a fe0 &anks in Ban. %navaila&ility and shorta. K A&sen+e of +y&er la0.e of servi+es over the internet.le+troni+ !%nd /ransfer9 le. infrastr%+t%re in ter's of ele+troni+ pay'ents and inter&ank +onne+tivity is poor.ladesh. iss%e.!/ 8. in fo%r +ity +orporation areas avail to rea+h s%+h A/M fa+ility. &ehind in offerin. initially A/M fa+ility &%t this fa+ility is rare in distan+e areas even not availa&le in distri+t to0n. G $eather has a dire+t effe+t to0ards e-&ankin. servi+es and prod%+ts.8 Prospects of Electronic Banking in Bangladesh: 38 .h pri+e of +o'p%ter. a+tivities in Ban. K 3i'itations of s%pportive le. K A&sen+e of need &ased &%siness plan for online &ankin. soft0are. flood or +y+lone then the entire net0ork is do0n. there is no proper infrastr%+t%re for perfor'in. $itho%t this type of &asi+ re6%ire'ent &anks and its +%sto'ers are hardly a&le to +apitali7e on e-&ankin. K 3a+k of a0areness at +%sto'er level of e-&ankin. K 3a+k of a0areness at .

It is en+o%ra.n &anks of o%r +o%ntry are %sin. syste's in Ban. C. the s+ope of e-&ankin. 39 .h0ay &y syste's. the e1istin.her ratio./he Ban. in Ban. As a 0hole A1.ladesh. all forei.overn'ent de+ision of &%ildin. *n the other hand.H . and so'e are ele+troni+ f%nd transfer. +apa&ilities of I"/ se+tor is likely to in+rease rapidly in &rin. .h-speed opti+al fi&er net0ork 81. $ork is %nder0ay to +over the rest of the %pa7ilas %nder di.ladesh has joined the infor'ation s%per-hi.A1 per+ent &ank does not have any lo+al area net0ork 83A59. !or forei. Under this s+enario. thro%. as a part of . di. !or e1a'ple.ho%t the +o%ntry. Ban. so'e are /ele-&ankin. syste'4 they are invested a lot for their a%to'ation &ankin. ele+troni+ &ankin. 'o&ile phone operators s%+h as (ra'een Phone and Ranks I// of Ban. de&it +ard.h 0hi+h they rea+h even in r%ral areas 0ith their servi+es 8Isla' 200:9. all %pa7ilas %nder internet servi+es and this 0ill +ontri&%te in 0idenin.ladesh. A total of 1:B Internet #ervi+e Providers 8I#Ps9 have no0 &een +onne+ted 0ith this syste' of 0hi+h H are a+tively providin. In o%r +o%ntry different &anks are offerin. A/M 8A%to'ati+ /eller Ma+hine9 servi+es. that so'e of the !"Bs and P"Bs are already %sin. online transa+tions. /hey are the pioneer of i'ple'entin. so'e are offerin.n +o''er+ial &anks 8!"Bs9 the +o'p%ter density is :. itself 0ith international s%&'arine +a&le syste' in 200H.ladesh.ital e1+han.ladesh %se this opti+al fi&er net0ork thro%.ital private +o''er+ial &anks have +o'paratively hi. ele+troni+ &ankin. 1. /he spe+iali7ed &ank s+enario is al'ost sa'e as the 5" have &een esta&lished in CAB %pa7ilas and 1M .ro0th +entres. Internet +onne+tion is slo0 0ith &and0idth ran. se+tor is 1.A00 k'9 parallel to the rail0ay path that +overs 'ost of the i'portant parts of Ban. servi+es. Mean0hile. ele+troni+ &ankin. +redit +ard et+.ladesh Rail0ay o0ns a hi.e C2 k&ps to :H k&ps for dial %p and H k&ps to A '&ps for &road&and.ital telephone e1+han. /he overall +o'p%ter density in the &ankin. At present.B .C . Di. /his opti+al fi&er net0ork +an &e %sed as the &a+k&one net0ork of e-&ankin. A/M and P*# servi+es.e syste'. this opti+al fi&er net0ork for +ond%+tin. 0here as for 5"Bs the ratio is only 0. online &ankin. 0. servi+es.ladesh. C0 per+ent have $A5 8$ide Area 5et0ork9 &%t for so'e &anks 'any &ran+hes are o%tside of $A5 +onne+tivity. servi+es in different 0ays. &%t no0 'ost of the private &anks of o%r +o%ntry are %sin.

All the 'ajor I#Ps of Ban. the internet servi+e %sin. in Ban. 0aivin.overn'ent-o0ned spe+iali7ed &anks dealin. the &ankin. se+tor +o'prises of fo%r 5"Bs. the prospe+ts re.#A/ poli+y &y 40 . in Ban.ladesh. %p I"/ park. raisin.overn'ent=s e'phasis on &%ildin.ladesh are providin. *0in.ladesh. allo+ation for developin. a di. +o%ntries is still done the +onventional 0ay. "o'pared to private and forei. headin. -.Re+ently. the . . Private 0ere allo0ed to enter the 'arket and t0o nationali7ed +o''er+ial &anks 85"Bs9 0ere de+entrali7ed and another nationali7ed &ank 0as +onverted into a li'ited lia&ility +o'pany and partially privati7ed. like 'ost developin. Sound Banking Sector: !inan+ial se+tor of Ban. +o%ntries. syste' in &ankin. "nformation "nfrastructure ?Telecommunications@: Mo&ile net0ork in Ban. a+tivities. Most &ankin. settin. the s+hed%led &anks in i'provin. "%rrently. .ra' of &ankin.ho%t the +o%ntry +reates s+ope for $AP-&ased &%siness appli+ations. e-&ankin. +%sto'er servi+es have a++elerated the prospe+ts of e-&ankin. 'e+hanis'. 0ith an e1ponential . Ban. 0ith develop'ent finan+e in spe+iali7ed se+tors.%lation of . #o'e 'o&ile +o'panies already provide 'o&ile internet servi+es in the +o%ntry. >o0ever. ta1es on +o'p%ter peripherals and other 'eas%res in+l%din.ladesh. to de-re.1pansion of 'o&ile net0ork thro%.ladesh is e1pandin. transa+tions.ladeshi &anks are still rel%+tant to %se f%ll internet &ase &ankin. internet &ankin.#A/s9. nationali7ed +o''er+ial &anks are far &ehind i'ple'entin.n +o''er+ial &anks 8!"Bs9.s<D (. in developin.ital Ban. the satellite links very s'all apert%re ter'inal of develop'ent. in developin.n &anks. five . enterprises. I"/ infrastr%+t%re. +o%ntries is in the early sta. /his infrastr%+t%re +an easily +ope 0ith the dyna'is' of e&ankin.ladesh Bank and +o'petition a'on. the a%to'ation pro.ardin.-&ankin.ladesh +an &e dis+%ssed %nder the follo0in. is do'inated &y &ankin.ro0th rate. C0 private +o''er+ial &anks 8P"Bs9 and ten forei. se+tor led &y the Ban.

>o0ever.overn'ent take initiative properly. M per+ent are %sin. 2 types of &ankin.0H per+ent are off-the-shelf 8*/#9. so I"/ penetration is 'ore +r%+ial for this +ate. 'essa. /he overall pi+t%re of +o'p%teri7ation in the &ankin. At the head offi+e level.h D#3L>D#3 'ode's.ional offi+es %sin.ratin. Most of the &anks have 'ana. "'T Penetration in 1inancial Sector: /he finan+ial se+tor of Ban.ladesh have &e+o'e the 'e'&er of Bel. /a&le< D *ther than !"Bs. speedy and relia&le +onne+tivity for 3L" transa+tion. &road&and internet servi+es thro%. no0 #$I!/. a n%'&er of +o''er+ial &anks of Ban.e'ent infor'ation syste'. All H distri+ts and C: per+ent %pa7illas 8s%&-distri+ts9 in Ban. B:. /his esta&lished Internet infrastr%+t%re +an easily deploy and a++elerate e&ankin. fro' H k&ps to 2 M&ps. M per+ent have &een developed in ho%se. lo0-+ost. syste'. &anks as 0ell as . 5"Bs is the %ni6%e 'arket player 0ith 'ore than :0 per+ent of 'arket share. Re+ently. *nly 1.overn'ent in !e&r%ary 2000. syste'. soft0are.ory of &anks. to i'prove the I"/ penetration thro%. the n%'&er of I#Ps has . the &ankin.ro0n to 1B: 0ith individ%al &and0idth ran. $ith the a+tivation of the #$I!/ syste' &ank enjoy instant.i%'-&ased #o+iety for $orld0ide Inter-&ank !inan+ial /ele+o''%ni+ation 8#$I!/9. */# and in ho%se soft0are.h inte. CC per+ent of &anks are %sin.ladesh is do'inated &y the &ankin.h I"/ net0ork 8$A59. offerin.h-ran. !or international pay'ent settle'ent.e +o''%ni+ation and 41 . re. soft0are %sed in the &anks :1.e &y B//B thro%. soft0are are %sed. M.ladesh providin. servi+es in Ban. the +o'p%teri7ation stat%s is +on+entrated only in li'ited n%'&er of &ran+hes 'ainly in 'ajor +ities. 0.1C1 &ran+hes have at least one +o'p%ter net0orked-&ased syste' is very li'ited in the 5"Bs and P"Bs. : per+ent of &anks %se &ankin.e 'ainfra'e syste's.h dial-%p +onne+tions. only CA per+ent MI# are inte.ladesh has &een &ro%. 5"Bs are tryin. A' %nder internet +overa.rated to the transa+tion pro+essin.the . f%nd transfers. *nly C0 per+ent of &anks have inter-&ran+h +onne+tivity thoro%. only 1. se+tor is presented in the follo0in.

y &y attra+tin.e and %sed on a very li'ited s+ale. per+ent9. parti+%larly for %tility &ill pay'ent. per+ent9.e to pro. &a+kin. 2.e. /he +redit +ard is availa&le fro' . servi+es.Lspreadin. /he la+ks of intelle+tion property prote+tion. pop%lar in the +o%ntry. It is at an early sta. de&it +ard 8C.n &anks are %sin. and da'a. *nline +orporate &ankin. Prospect to E-Banking: /he iss%es of infor'ation prote+tion and . A/M 8C1. inter-&ran+h and inter-&ank linka. +o'p%ter vir%ses sho%ld &e +overed &y appropriate penal +odes. . a s%&set of ele+troni+ finan+e. 8M. 8. A &road spe+tr%' of internet &ankin.ative i'pa+t on &oth the %se of I/ and in+entive to introd%+e I/ prod%+ts into the 'arket. 20019. only forei.A5IG. 82C. Mi+ro+hips e'&edded #'art "ard is also &e+o'in.ra's and data and introd%+in.%arantee of relia&ility and se+%rity is i'portant.n &anks thro%. data se+%rity and interopera&ility have ne.!/9 servi+es.ladesh. +%sto'ers and providin. %na%thori7ed %seL+opyin. Most of the forei. its +%sto' of do'esti+ and forei.M per+ent9. . and any &ran+h &ankin. the +o'p%teri7ed transa+tion syste' and takin. egal and /egulator.h s%++essf%l %se of a . 42 . the fa+ility. Electronic Banking in Bangladesh: /he forei. servi+e.arlier.n &anks are the pioneers in adoptin.ladesh 8"PD. 0hi+h drasti+ally in+rease a++ess to this type of ele+troni+ &ankin. internet &ankin.M per+ent9. #o'e forei. !orei.ree of penetration. se+tors in Ban. 8M.rad%ally &e e1tended to other parts of the +o%ntry. Master"ard and .n &anks of this +o%ntry 0ere availin.I#A. ele+troni+ &ankin.ladesh 0ith different de. A%to'ated /eller Ma+hine 8A/M9 is e1pandin. of soft0are +o'p%ter fra%d. rapidly in 'ajor +ities.!/ 81:. e'ployees and also 'ana. advanta. &enefitin.n &anks provide ele+troni+ f%nd transfer 8. per+ent9. /he net0ork 0ill .0orld0ide finan+ial a+tivities. in Ban.1 per+ent9 are the 'ajor internet &ankin. "o'p%ter +ri'es s%+h as soft0are pira+y.lo&al net0ork have in+reased the ti'eliness and a++%ra+y of infor'ation.e of the s%perior te+hnolo. A .n &anks operate shared A/M net0ork. servi+es provided &y the &ankin.e'ent. is availa&le in Ban.

ladesh have 'ade si.. I"/-&ased &ankin.%lations 8s%+h as the IPR &ill..ress in fa+in. /e+hnolo. these iss%es into the IPR is needed for the advan+e'ent of internet &ankin.(1indings of the stud. of the potential &enefits of internet &ankin. inter+onne+tion at fair pri+es. and ens%rin.: 43 . +an &e over+o'e if e1istin.h e-+o''er+e and internet &ankin. +o'petition to 'onopoly phone 'arkets. la0s and re.%e 8"PD9 arti+%lated several prin+iples that +o%ld &e the fo%ndation for . in A%. /here sho%ld &e a +o'prehensive plan to 'oderni7e the operation of the +entral &ank to s%pport a%to'ated +learin.%latory r%les for a&sor&in. servi+e and %pdate s%pervisory and prote+tion. "entral &ank sho%ld provide so'e 'arket in+entive for the &anks to i'ple'ent I"/ in the finan+ial se+tor.lo&ali7ation and +on+%rrently. • • • • !or attra+tin. servi+es in d%e +o%rse.i+al and infrastr%+t%ral +onstraints to internet &ankin."ertain re.ladesh. e'&ra+in.e of infor'ation and servi+es.ladesh +on+entrates 'ainly on soft0are +opyri. (%aranteein.viden+e A+t9 have the +apa&ility of of . forei.ests that Ban. An initiative for in+l%din. 2.: In order to e1pansion of internet &ankin. &y the poli+y 'akers and &%rea%+rats is essential for a speedy i'ple'entation and f%rther refor's.overn'ent poli+y in Ban.ladesh Bank sho%ld %ndertake a pilot proje+t to e1peri'ent the +ross+%ttin. 9.%st 2001. so that %sers have a++ess to the &roadest ran. the +hallen. the internet &ankin.-related +opyri. in+l%des< • Pro'otin. A &etter %nderstandin. internet in the & prote+tion is not +overed in the ne0 IPR. "enter for Poli+y Dialo.%lations are i'ple'ented.. the s+ope of internet & and re. iss%es.%latory stat%tes s%. /he ne0 IPR &ill of Ban.. Go+ernment Polic. >o0ever. and preservin. A.n +%rren+y thro%..nifi+ant pro. )+erall Prospects: /he overvie0 of the le. +o'petition &y introd%+in. open a++ess to net0orks on a dis+ri'inatory &asis. the . Ban.

syste' is spreadin. • • . • All of the &anks in o%r sa'ple tend to have and esta&lish 'ore A/M &ooth in 'etropolitan areas 0here pop%lation density is hi. a+tivities 0hi+h are %ne1pe+ted to the %sers of the syste'.ladesh 8fro' o%r point of vie0 +onsiderin. $ith the help of internet &ankin. soft0are then nationali7ed &anks.le+troni+ transa+tion in Ban.ladesh and . in Ban. 44 .-&ankin. • / 'oney 6%i+kly fro' a&road +o%ntry. 6%i+kly in Ban.9 is s%pportive for &%ildin.-&ankin. • Private +o''er+ial &anks and forei. servi+es then state o0ned &anks.9 red%+es the 0asta. People feel se+%re the .e of ti'e.le+troni+ &ankin.-&ankin.ladesh2. 8..ital Ban. • . • $ith the help of internet &ankin.le+troni+ &ankin. in Ban.her. 8. a )Di.n and private +o''er+ial &anks.le+troni+ Bankin. it is easy for Bankers to provide de+ent servi+es to their +lients. the report9 are< • Private +o''er+ial &anks and forei. • 5ationali7ed &anks operate 'ore &ran+hes havin.h the 0eaknesses of se+%rities of so'e &anks it is easy for ha+kers to +ond%+t their ha+kin. /he 'ajor o%t+o'es of internet &ankin.n &anks offer a &roader .n &anks %se 'ore %pdated &ankin. #$I!/ +ode then forei.ladesh.9 is still . 8.-&ankin.le+troni+ &ankin. +lients +an .ladesh.

i+al s%pport to develop the 'anpo0er. .h providin.ation poli+ies and strate..then I"/ depart'ent thro%. I"/ related operational a+tivities %nder the s%pervision of the I"/ depart'ent.&ankin. BB 'ay offer short in this re.ard.  Banks sho%ld have ade6%ate resear+h and te+hnolo.ies need to &e adopted as a part of the pa+ka.  #tren.i+al &a+k.y and +reate the re6%ired spa+e for adoptin..le+troni+ &ankin.-/ecommendations: In addition.< K The Bangladesh Bank ma. it is important to:  Revie0 their &%siness strate. re6%ired hard0are and soft0are.  /o avoid risks involved in . K 1or the scheduled banks.-&ankin. trainin. risk 'iti. 45 .  "reate separate %nit in ea+h &ran+h for renderin. and te+hnolo.le+troni+ &ankin.. !or instan+e. . servi+es in order to re'ain +o'petitive and attra+t ne0 +%sto'ers. consider the follo4ing steps:  /ake steps to orient &ank offi+ials on &enefits of internet &ankin. Provide ade6%ate trainin.e approa+h to i'ple'entin.2. several steps 'ay &e +onte'plated in order to a++elerate the adoption of . to I/ personnel and pro+%rin.

oin. espe+ially in . in +olla&oration 0ith the &anks.e nor'al profit to enlar.-&ankin.. and >on. ho%se operation in Ban.ni7ed &y international &%siness +o''%nity.ies are still in its infan+y sta. %ninterr%pti&le servi+e.  (overn'ent. K 1or the Go+ernment.e in Ban. to0ards e-everythin. /his 0ill in+rease the +onfiden+e level of +%sto'ers. et+. /he f%t%re of ele+troni+ 46 .-&ankin.. prod%+ts. #in. $ith the se+%rity and priva+y iss%es resolved. in Ban. it is important to:  (overn'ent sho%ld i'ple'ent the +y&er la0s to ens%re proper se+%rity a&o%t +%sto'ers infor'ation 8i. so 0e sho%ld try to over+o'e all the &arriers and also try to develop s%+h environ'ent that is favora&le for the develop'ent of .ladesh sho%ld &e f%lly a%to'ated syste'.. 5orth A'eri+an and so'e of the other developed nation like Fapan. espe+ially international trade has already &een re+o. 2.e the 'arket si7e on the ele+troni+ &ankin.. the se+%rity and the priva+y aspe+ts need to &e i'proved. /rain all staff in &asi+ I"/ related 'atters in phases. the &anks sho%ld e'phasi7e on providin.%ropean Union.ladesh.  (overn'ent sho%ld +o'pel the &ankin. Provide ade6%ate trainin.ladesh. sho%ld ed%+ate and infor' its +iti7ens and +%sto'ers on the 0orka&ility and effe+tiveness of . and its related te+hnolo. In order for .  Politi+al +o''it'ent to i'prove . Gon. online &y a spe+ifi+ period.  Bank +an +har.overnan+e and instit%tional stren. to +ontin%e to . +an &e very prospero%s. as a vehi+le to &oost %p trade. >o0ever e-& is essential for s%++essf%l appli+ation of e-&ankin.  /he +learin.ro0.e.-&ankin. "redit +ard n%'&er9  (overn'ent sho%ld esta&lish proper ed%+ational instit%tion to +reate effi+ient I/ professionals to s%pport e-&ankin.-&ankin. se+tors to a%to'ate their operation and .-&ankin.i+al s%pport to develop the 'anpo0er. #in+e the 0orld is 'ovin.0 'onclusions: . and te+hnolo.apore. the f%t%re of .  As e-&ank %sers 'ostly %se A/Ms and P*# in 'ost +ases.

internet &ankin. in the +o%ntry. &oth individ%al and joint efforts are needed to over+o'e the +onstraints in pro'otin. #7'i. 1:.le+troni+ &ankin.a'eri+an. . A&d%l >annan Mia.vol%tion. #tat%s and Prospe+ts Moha''ad Mi7an%r Rah'an. /herefore. Main Uddin . fro' a pr%dential s%pervisory perspe+tive. Moha''ad A7i7%l Baten.-Bankin. . the 0hole +o%ntry4 relia&le and se+%re infor'ation infrastr%+t%re in+l%din. no.. . PhD. International Fo%rnal of Bank Marketin...%st 2010.ladesh. Moha''ad Anis%r Rah'an. ).:'9 II.-&ankin.D. ). 0ill &e a syste' 0here %sers are a&le to intera+t 0ith their &anks P0orry-freeP and &anks are operated %nder one +o''on standard. . A%. vol. Bibliograph.82000. net0ork is dependent on availa&ility of a &a+k&one net0ork +onne+tin.&ankin. 47 .%latory fra'e0ork.Bankin. tele+o''%ni+ation infrastr%+t%re4 I"/ penetration in the &ankin. T M"B University Press.+ono'i+al Prospe+ts in Ban.I. .ed%Linite&Lr0B2:MaL&ankin.ladesh Bank and s+hed%led &anks are related to these iss%es.2 Md.De+e'&er9. and "o''er+e.. .< . se+tor4 skilled operational personnel4 and le.II..ladesh< #o'e Poli+y I'pli+ations2 $e&sites of +on+erned &ank Isa&elle /. UR3< 8http<LL000. /he . I. of .le+troni+ +ash< a 6%alitative assess'ent of its adoption2. in Ban. Fo%rnal of Internet Bankin. A 0ell-f%n+tionin. and re.overn'ent. Md. De%ts+he B%ndes&ank Monthly Report. internet &ankin. Ban. 1ML Q1BBBR et al.-Bankin.