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TERM PAPER ON

:

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
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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

Acknowledgement
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At the very &e.innin., 0e 0o%ld like to e1press o%r deepest .ratit%de to A !"G#T$ for .ivin. %s the stren.th 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
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,-Bankin. is 0e&-&ased Bankin.. 5o0 a day d%e to e'er.in. .lo&al e+ono'y, e+o''er+e and e-&%siness have in+reasin.ly &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+ &ankin.in.ather 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 &ankin.er 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 prepare.es. 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 inter+han.in.  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 &anks.in. 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 'ana.ro%ped 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 developin.ro%ps 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 ri.ht 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 banks1.et+ /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 -.ht 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 ltd..er 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. . rankin.la 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 pass0ord.in. altho%. !obile Banking 22 . in 0hi+h &ank transa+tions are +ond%+ted 0ithin +losed net0orks.es 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. transa+tions.in. /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 a++eptin.ly %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 &ankin.in. $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 shoppin.es 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 Ban.es 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 planned.al 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.&ankin.es 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@ e1pe+tations.al 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 hi.es 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 Gate4a.ee 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 Ban.es. 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-&ankin.al 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 pass0ords.al 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 India.al 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 +onne+tin.in. 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 Ban.in. 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"Bs.es 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 8.es 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'. hi.in. 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'on.ht %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'ers.ro%p 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 re.ht 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 fa+ilitatin.es 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 &ankin.ht prote+tion is not +overed in the ne0 IPR. "enter for Poli+y Dialo.%lations are i'ple'ented.. the s+ope of internet &ankin.al 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. • /hro%.ro0in.et '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 +o%rses.ro%nd 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-&ankin.th 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. ).: I.ht'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. III.al and re.overn'ent. Md. De%ts+he B%ndes&ank Monthly Report. internet &ankin. Ban. 1ML Q1BBBR 1B2S202.in et al.-Bankin.