International Journal of Information, Business and Management, Vol. 8, No.

3, 2016

EXPLORATORY STUDY ON E-BANKING IN BANGLADESH:

STATUS AND NEEDS

Atikur Rahman Baizid 1, Lutfunnahar Lutfa2
1,2
Business Administration, Leading University, Sylhet, 3100, Bangladesh

Abstract- E-banking is now a global phenomenon. It is an invaluable and powerful tool driving
development, supporting growth, promoting innovation and enhancing competitiveness. Technological
innovations have been identified to contribute to the distribution channels of banks and these electronic
delivery channels are collectively referred to as electronic banking. To a country banking services for
modernized technology should be emphasized. But unfortunately a very few studies has been made for
Banking services for electronic banking sector compare with other sectors although the contribution of
Bank to e-banking service is increasing in our economy day by day. In this article we have studied the
present status of E-banking services, problems in this sector and the needs to overcome these problems
which will provide more benefit to all banks in comparison with foreign banks, local banks and
nationalized banks of Bangladesh.

Key Words: Tele banking, PC banking, Terms used in E-banking, Advantage of E-Banking

1. Introduction
Now-a -days Information technology is an important factor financial services industry, especially the
banking industry. The Information and Communication technology is crucial for information analysis and
enables the banking sector to differentiate its offer from competitors and thereby make it a market leader.
In this context, banking sector are obliged to continuously innovate and update their marketing strategies
in order to closely meet the demands and the requirements of the individual customers. It also provides
safe and confidential services which best suit customers’ needs. Therefore, when media (e.g. computers,
EDI, ATM, Internet, TV etc) and transmission mediums (e.g. telecommunications, cable, electronics etc)
complement and overlap one another, the banking agency is no longer considered to be an expected right
for the customers. The customer wants more flexibility without paying more, and his demands are clear:
Make transactions wherever and however he wants. Hence, the development of the concept of electronic
financial services, more commonly known as “E-banking”. Many banks have adopted the “E-banking”
concept for their day-to-day transactions which meets the expectations of its internal users (employees)
and external users (customers, suppliers, or institutional partners). A business can simplify or improve its
human resources by introducing various internet technologies [1].

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ISSN 2076-9202