Welcome to the Presentation on

Digital Banking

Digital Banking
Revolution in Bangladesh

(Samrin Ahmed Riya)

 What is Digital Banking

• An electronic payment system.

Digital Banking

• Enables customers conducting a range of

financial transactions through institutional
website on electronic device.
• Based on SMAC (Social, Mobile, Analytics,
Cloud) model which makes banking
business more agile and customer centric.
 Amount of money transferred
by Digital Banking
Digital Banking
 Features
Non transactional tasks through online banking, including
Digital Banking

 Viewing account balances

 Recent transactions
 Downloading bank statements
 Viewing images of paid cheques
 Ordering check books
 Download periodic account statements
 Downloading applications for M-banking, E-banking
 Features (Contd…)
Transactional banking tasks through online banking, including
Digital Banking

 Funds transfers between the customer's linked accounts

 Paying third parties, including bill payments and third party fund
transfers
 Investment purchase or sale
 Loan applications and transactions, such as repayments of enrollments
 Credit card applications
 Register utility billers and make bill payments
 Forms of Digital Banking

• Internet Banking
• Online Banking
Digital Banking

• ATM Banking
• Point of Sale Terminal (POST)
• Mobile Financial Services (Mobile
• Banking)
• Agent Banking
 Average Transaction Cost (in Billion USD)
Digital Banking

Source: Javelin Strategy and Research

 Forms of Digital Banking (Contd…)
Internet Banking :
A method of banking in which transactions are conducted electronically
via the Internet.
Digital Banking

Banking service provided by Internet Banking –

 Account balance inquiry
 Fund transfer among accounts of the same customer
 Bills payment
 Loan re-payment
 Password change
 LC application
 Fund transfer to third party
 Cross border transaction
 Internet Banking in Bangladesh
Digital Banking
 Forms of Digital Banking (Contd..)
Online Banking :
A process of banking carried out online using internet and computer
terminal.
Digital Banking

Banking service provided by Online Banking-

 Transaction through any branch under the respective bank’s online
network
 Payment against pay order
 Opening or redemption of FDR from any branch of the same bank
 Cash deposit or withdrawal
 Account statement
 Clearing and balance inquiry within branches of the same bank
 Opening LC
 Online Banking in Bangladesh
Digital Banking
 Forms of Digital Banking (Contd..)
ATM Banking :
– An electronic banking outlet
– Allows customers to complete basic transactions without the aid of a branch
representative or teller
Digital Banking

Role of ATM in banking –

 Financial transactions
o Cash deposit
o Cash withdrawal
o Transfer fund
 Obtaining account information
 ATM Banking in Bangladesh
Digital Banking
 Forms of Digital Banking (Contd..)
Point of Sale Terminal (POST) :
– A hardware system used to process card payments at retail locations
– Key takeaways
– NCR developed the first POS system
Digital Banking

A POS terminal generally does the following -

 Reads the information off a customer’s credit or debit card
 Checks whether the funds in a customer’s bank account are sufficient
 Transfers the funds from the customer’s account to the seller’s account (or a
least, accounts for the transfer with the credit card network)
 Records the transaction and prints a receipt
Digital Banking
 Forms of Digital Banking (Contd..)
Mobile Banking :
Conduct financial transactions remotely using a mobile device
such as smart phone or tablet having an app provided by the
financial institution for the purpose”
Digital Banking

• Services provided:
 Monitoring account balances
 Transferring funds between accounts
 Bill payment
 Locating an ATM
 Mobile Banking in Bangladesh
Digital Banking
 Mobile Banking
• Channels of Mobile Banking :
o bKash
o Rocket
o Ucash
Digital Banking

o MyCash
o OK
o SureCash etc.
 Mobile Banking in Bangladesh
Main competitor of Mobile Banking in
Bangladesh now-
Digital Banking
 Forms of Digital Banking (Contd..)
Agent Banking :
- An outlet which conducts banking transactions on behalf of a bank.
- providing limited scale banking and financial services to the underserved
population through engaging agents under a valid agency agreement, rather than
Digital Banking

a teller/ cashier

Services Provided:
 Collection of cheques , dividend, interests etc
 Payment of subscription, rent, insurance premium etc
 Conducting of stock exchange transaction
 Preparation of income tax return
 Conducting foreign exchange
 Agent Banking in Bangladesh
Digital Banking
 Agent Banking in Bangladesh (Contd…)
Digital Banking
 SWOT Analysis
• Strengths:
 Can be accessed anywhere anytime
 Saves a lot of time
Digital Banking

 Faster transaction through lower costs

 Customer friendly
 Provides better convenience and more efficiency

• Weaknesses:
 Security concerns over he digital mode
 People acceptance level of involving money via digital
mode not favourable
 Demographics with age groups above 45 less inclined
towards digital world
 SWOT Analysis (Contd…)
• Opportunities:
 Increasing awareness about digital banking benefits amongst
people
 High growth been seen in the sector and can be leveraged by
Digital Banking

providing value added services

 Higher growth in the mobile smart phone users – a big market
 Changing acceptance level for digital medium
 Better digital infrastructure

• Threats:
 Better Customer services and advices provided in bank branching
 Any security related issues or news can pose as threat
 Bank branches tapping the people not using digital medium
 Consumer benefits of Digital Banking

• Easy setup
• Lower fees
Digital Banking

• Greater financial inclusion

• Focus on security
• Added features
 Revolutions
• To reduce costs
• To increase revenue
Digital Banking

• To attract and retain customers and stay ahead of the

competition
• To remain compliant with new legislation
• To explore the benefits of new technologies
Digital Banking

Thank you…