Mis PDF 1

Impact of Information and Communication Technology (ICT) on Enhancement of Business
and Profitability of Banks

1.1 Introduction
Now-a-days banking industry is considered as the heart of any robust economy whereas Information and
Communication Technology (ICT) becomes the heart of any bank. ICT has created a new opportunity for
banks to become truly global and also provided a competitive advantage over their rivals. However, banks
have made huge investments in ICT and customers have also accepted electronic banking system as swift,
transparent, secure, useful and easy to use. Businesses worth billions of dollars can only take place in
seconds throughout the globe by pressing a single button.
The modernization of ICT has set the stage for extraordinary improvement in banking procedures
throughout the world. For instance the development of worldwide networks has considerably decreased
the cost of global funds transfer. Banks that are using ICT related products such as online banking,
electronic payments, security investments, can deliver high quality customer services with less effort.
Information and Communications Technology is introduced to change the operating environment of

banks significantly. Technology has already helped most of the banks in Bangladesh to introduce
financial technology (FinTech) and alternative delivery channels (ADCs) like ATM, POST, MFS,
Internet banking, e-wallet, Apps banking, Agent banking, social media banking, chat-bot, etc. to provide
innovative products and services to their customers. Customers of banks have felt the positive impact of
technological solutions implemented by banks. Technology can also be harnessed in automating and
networking the branches that will ensure timely flow of information and aid quick decision making
process. Prompt adoption of information technology resources allows banks to maintain a competitive
advantage over their rivals. The enlarged demand for ICT in banking sector becomes unavoidable in
home and abroad. Consistently, the future lies in the FinTech driven banking systems and services.
Bangladesh Bank (BB), as a regulatory body, has been playing distinguished role to uphold smooth and
secured online banking operations. Bangladesh Bank has taken necessary initiatives to start e-banking, e-
commerce and e-payment, automated clearing house system, mobile phone banking etc. Banks have been
allowed to make online money transactions, payment of utility bills, transfer of funds, payments for
trading goods and services through e-channels like Internet, ATM, mobile phone etc. Considering the
vital importance of ICT security in banks Bangladesh Bank has issued “ICT security guidelines for
banking and financial institutions”. Access to Online Credit Information Bureau (CIB), installations of
Bangladesh Automated Clearing House (BACH), Bangladesh Electronic Fund Transfer Network
(BEFTN), National Payment Switch (NPS) and Real Time Gross Settlement (RTGS) are other
extraordinary achievement of the Central Bank.
In tune with the global trends Bangladeshi banks have been investing heavily in technology infrastructure,
solutions and manpower. Possibly, the key purpose of such high investments in ICT is to achieve
increased productivity, efficiency, profitability and competitive advantage through improved internal and
external transaction flow, better access to clients and markets and enhanced reach and quality of products
and services.
Many studies have been done to see the relationship of the investment in Information and Communication
Technology (ICT) with the increases in productivity, efficiency and profitability of banking business.
Numerous studies in different countries have added different understandings of this phenomenon.
Worldwide the policy makers, bankers, researchers and scholars are curious to see the association
between ICT and banks performance.
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The impact of ICT on banking performance has remained a mystery for Bangladeshi banks. Policy
makers did not widely accept traditional ratios like ICT expenditures as percentage of operating cost, ICT
investment per employee, etc. to see the impact of ICT investment on banking business. Though many
studies carried out in different developed and developing countries, such studies are rare in Bangladesh.
This study is perhaps the first one that examines the effect of ICT investment on the efficiency,
productivity and profitability of Bangladeshi banks using panel data. In this regard, this study explores the
influence of investment in ICT on the performance of banks in Bangladesh.
1.2 Objectives of the Study

The specific objectives of the study are: one, to look into the pace and pattern of ICT expansion in banks
of Bangladesh; two, to find the impact of information and communication technology on enhancement of
banking business in terms of financial inclusion by reducing cost and satisfying customers ; three, to see
the empirical relationship of ICT investment with efficiency, productivity and profitability of banks in
Bangladesh.
1.3 Methodology and Data

Both primary and secondary data have been collected to accomplish the purposes of the study. Secondary
data has been collected from annual reports of respective banks, various publications of Bangladesh Bank
and BIBM, research articles, and websites of Bangladeshi banks. Primary data have mainly been collected
from the ICT department of banks on the basis of a structured questionnaire. A total of 21 banks have
been selected as sample banks. The selection of banks has been determined purposively based on the
consideration that the sample banks should represent all categories of banks in terms of ownership,
number of branches and state of computerization.
In categorizing the sample banks, we considered the automation level defined by the ICT security
guidelines of Bangladesh Bank. According to the Bangladesh Bank guideline, depending on the
architecture of core business application solution, ICT infrastructure, operational environment and
procedures, commercial banks are categorized as Category-1 and Category-2. Category-1 means
Centralized ICT Operation for managing core business application solution through Data Center (DC)
with backup assets for continuation of critical services including Disaster Recovery Site
(DRS)/Secondary Data Center to which all other offices, branches and booths are connected through
WAN with 24x7 hours attended operation. Category-2 means Decentralized ICT operation for managing
distributed business application solution hosted at DC or operational offices/branches with backup assets
for continuation of critical services connected through WAN or having standalone operations. The
distribution of 21 sample banks is given in Table-1.
Table-1: Sample Distribution of Banks

Bank Category Sampled Banks
State-Owned Commercial Banks (SOCBs) 3

Specialized Banks (SBs) 1
Private Commercial Banks (PCBs) 14
Foreign Commercial Banks (FCBs) 3
Total 21
To analyze the customers’ satisfaction, a total of 500 respondents have been selected from all over the
country. Sample size distribution with respect to bank-types, divisions, and background characteristics of
the respondents are given in Appendix-A. Data has been collected covering all divisions of Bangladesh.
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In each division 2 to 4 districts have been selected purposively and then from each selected district 2 to 4
Upazila/Thana have also been selected purposively. Respondents have been selected randomly in each
stage, i.e., from divisional cities, district headquarters and Upazila/Thana/Union/Pourasava level. Finally,
7 Divisions, 18 Districts and 60 Upazila/Thana have been covered to select respondents. All selected
respondents have been interviewed individually.
The questionnaire of the survey has been designed using 30 statements relating to the objective of the
research. A five point ‘Likert’ scale ranging from ‘strongly agree’ to ‘strongly disagree’ was used as the
scale of measurement for each question in the questionnaire. Analysis of the study is done with the help
of the relevant statistical techniques like regression analysis, factor analysis, gap analysis and analysis of
variance (ANOVA). The data has been analyzed by using MS-Excel 2010 and SPSS 17.0 software.
To run the regression models we used data from 2000-2019 for 21 banks. The data are then pooled and
estimated by using R, EViews and Stata.
1.4 Organization of the Research Report

The paper is organized into five sections. After an introductory section with objectives, methodological
issues and literature review, section 2 discusses the impact of ICT on banking business enhancement and
financial inclusion. The typical activities performed by the ICT department are also summarized in this
section. Section 3 presents the major findings of the study, i.e. the impact of ICT on profitability of banks
by using regression analysis. Finally, section 4 and 5 puts forward some recommendations and
concluding remarks, respectively.
1.5 Literature Review

This part reviews relevant literature and findings of previous researches that addressed the impact of ICT
on the profitability of banks. The studies conducted in the context of developed and developing countries
are presented herein to highlight the existing knowledge.
Gwashi and Alkali (1996) observe that, “ICT covers all forms of computer and communications
equipment and software used to create, store, transmit, interpret, and manipulate information in its various
formats e.g., business data, voice conversations, still images, motion pictures and multimedia
presentations. It also refers to the electronic devices used to collect, process, store and disseminate
information. Similarly, the deployment of ICT is skyrocketing with many organizations using it in office
automation, i.e. word processing, electronic mail, telecommunicating and teleconferencing. In business
management, computerized database management system (DBMS) and management information system
(MIS) are now making commerce and Industry pleasurable and ensuring decision making.”
According to Twati and Gammack (2006), “ICT initiated a radical change in the latest style of banking
business in a way that is threatening the traditional form of banks. Technological advances are the most
important variables which have contributed to the radical shift in the patterns of the banking business in
the era of globalisation; technology has focused the keen interest of banks to intensify attempts to take
advantage of the latest information technologies, communications and computers, and to adapt efficiently
in order to invent banking services and the development of novel methods of submission.”
Oni and Ayo (2010) found that “electronic banking structure has tuned into the key technology-driven
change in carrying out financial operations. Nonetheless banks have invested substantially in electronic
and communication structures and users have also verified the electronic banking structure as helpful and
convenient. Indeed, internet banking as an important part of a new technology has presented a
competitive advantage via cost reduction, and better satisfaction, trust and loyalty of clients.”
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Mastoori, 2009; Xu, et al., 2009; Ahmed, et al., 2009; Evans and Sawyer, 2009, identified that “the
internet has given banks the ability to communicate with customers in a personalised way without the
need for face to face interaction, thus saving communications costs. In reality, it has led to an increase in
service efficiency of banks, with lower costs of operations towards customers, thus reducing costs and
improving profit margins for banks. Thus, commercial banks consider the adoption of ICT as a means to
increase the banks’ efficiency and performance as well as quality of service.” In this context, Ho and
Mallick (2006 p. 1) cited that "It is believed that ICT can improve bank’s performance in two ways: ICT
can reduce operational cost (cost effect), and facilitate transactions among customers within the same
network (network effect).”
According to Morrison and Berndt (1990), “it has been a matter of much debate whether or not
investment in Information Technology (ICT) provides improvements in productivity and business
efficiency.” Arguing that “estimated marginal benefits of investment (in ICT) are less than the estimated
marginal costs”, Morrison and Berndt (1990) concluded that “additional ICT investments contributed
negatively to productivity.” Others, such as Loveman (1994) and Barua et al. (1991), suggest that “there
is no conclusive evidence to refute the hypothesis that ICT investment in inconsequential to productivity.”
Lichtenberg (1995), for his analysis, draws data from annual surveys conducted between 1988 and 1991
by Information Week and Computer World magazines and found that “there is significant benefit from
investment in ICT.” Using a Cobb-Douglas production function, he estimates that “there are substantial
excess returns to investment in computer capital and one Information Systems (IS) employee is
equivalent to six non-IS employees in terms of marginal productivity.”
Using a Cobb-Douglas production function, Brynjolfsson and Hitt (1996) conclude that “computers
contribute significantly to firm-level output and computer capital contributes an 81% marginal increase in
output, whereas non- ICT capital contributes 6%. Similarly, IS-labor is more than twice as productive as
non-IS labor.”
Using a sample of 55 community banks providing online services in the five midwestern states of the
United States of America, Acharya, et al., (2008), examined the “Impact of ICT on community bank’s
performance.” The author employed multiple regression models and shows that “banks with higher
usability of ICT perform significantly better than those with low ICT usability.”
The study of Dos Santos and Peffers (1993) revealed that “the introduction of ATM technology improves
the bank's performance.” Akram and Hamdan (2010) examined “The effects of information and
communication technology (ICT) on Jordanian banking industry for the period of 2003 – 2007.” The
authors used a sample of 15 banks to analyze the data obtained by applying multiple regression model and
diagnostics test to check the normality and multicollinearity problems. The results of the study indicated
that “there is a significant impact on the use of ICT in Jordanian banks on the market value added (MVA)
earnings per share (EPS), Return on Assets (ROA) and Net Profit Margin (NPM).”
Kagan, et al. (2005) examined “The impact of online banking applications on community bank
performance in the United States” using data collected from 1183 banks operating in Iowa, Minnesota,
Montana, North Dakota, and South Dakota. The authors employed an econometric model (Structural
Equation Model) for the data analysis. The findings of the study revealed that “online banking helps
community banks improve their earning ability.”
Studies on the effects of ATMs on profitability provide evidence of cost savings and better services for
customers. Survey of banks conducted by Abdullah (1985) in Malaysia, Katagiri (1989) in Japan and
Shawkey (1995) in the USA, revealed that “investing in ATMs reduces banking transaction costs, the
number of staff and the number of branches. Therefore, investing in ATMs increases the value of deposit
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accounts, which are cheaper in terms of costs of funds than other sources, such as borrowing money from
other institutions, hence reducing the overall cost of funds. This indicates that there is a role for ICT
investment in the explanation of bank profitability.”
Kozak (2005) analyzed the values of return on asset (ROA) for the period of 1992 – 2003. According to
Kozak, “the value of the return on assets for the U.S, the banking sector has increased by 51 percent. This
result suggests that ICT improvements, associated with extensive office networks and range of offered
services have helped to generate additional revenues for banks. For the same period much smaller
reduction of the non-interest costs has been achieved. It means the value of cost efficiency fell by 13
percent. This means that a huge number of diverse operations require higher ICT investments and
additional non-interest charges.” In order to assess relationships between the degree of the ICT progress,
and the profitability (ROA) and cost efficiency, the regression analysis was used to achieve more precise
statistical results, based on quarterly values obtained from the FDIC.
Several researchers like Kamath, et. al. 2003 and Jayamaha, 2008 established that “ICT channels have a
profitable effect on the banks that just have internet startups compared to the traditional banks.” Agbolade
(2011) and Uppal (2011) assert that “ICT was a key aspect that influences profitability of banks.” A study
by Furst, et. al., (2002) found that “federally chartered banks in USA had positive level of profitability
and this attributed to use ICT.” Agbolade (2011) discloses that, “Internet banking as an important part of
a new technology has presented competitive advantage via cost reduction, better satisfaction, trust and
loyalty of clients. Moreover, a positive correlation is found between ICT and Nigerian banks'
profitability.” Indeed, Evans and Sawyer (2009) identified that “the Internet has given banks the ability to
communicate with customers in a personalised way without the need for face to face, saving
communications costs with generation of revenues when communications occur through emails and live
chats.” Rajput and Gupta (2011) illustrated that “the association linking ICT and the banks’ performance
and efficiency have positive results.” DeYoung, et. al., 2004 think that, “the most significant impact of
ICT on the banking system might be seen on the payments system, in which traditional method (paper-
based payments) have switched to modern technique (electronic-based payments)”. Berger, 2003; Frank
and Oluwafemi, 2012 found some evident in developed and developing economies regarding “the
dramatic reduction in costs by using advanced electronic payments.”
Ho and Mallick (2006) documented the two positive effects regarding the relation between Information
Technology and banks performance, “First, ICT can reduce banks’ operational costs. Second, ICT can
facilitate transactions among customers within the same network.” According to Ho and Mallick “Banks
have used Information Technology to enhance profitability, productivity and customer satisfaction.”
“ICTs have direct effects on how managers decide, plan and what products and services are offered in the
banking industry. Such technologies have continued to change the way banks and their corporate
relationships are organized worldwide and the variety of innovative devices available to enhance the
speed and quality of service delivery”- Agbolade, 2011.
The study of Prasad & Harker (1997) examined “The effect of ICT investment on both productivity and
profitability in the US retail banking sector.” The paper concluded that “additional investment in ICT
capital may have no real benefits and may be more of a strategic necessity to stay even with competitors.
However, the results indicated that there are substantially high returns on increase in investment in ICT
labor, and that retail banks need to shift their emphasis on ICT investment from capital to labor.”
In their study on the contribution of information technology to banks' profit, the authors, Shu &
Strassmann (2005) revealed that the data gathered in 1980 might not have pointed to a strong ICT
productivity in the banking industry, but their research using data from 12 US banks covering the period
between 1989 to 1997 showed that “ICT is the only variable with positive marginal gain and its
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productivity is far better than labor.” Holland, Lockett & Blackman (1997) argued that “the broad
competitive forces of information technology, globalization and deregulation destabilizes the banking
industry, this leads to irrevocable changes and allow new entrants, disintermediation, innovation and
customer changes on a much greater scale than has occurred in the past.”
The research of Ho & Mallick (2006) analyzed how ICT-related spending affect (both theoretically and
empirically) bank profits via competition in financial services that are offered by the banks. The paper
utilized a Hotelling model to examine the differential effects of the information technology ( ICT) on
moderating the relationship between costs and revenue. The impact of ICT on profitability was estimated
using a panel of 68 US banks over 20 years. The paper found that bank profits declined due to the
adoption and diffusion of ICT investment, reflecting negative network effects in the banking industry.
As for studies on the topic concerned with the developing world, Mittal & Dhingra, (2007) used the
method of Data Envelopment Analysis (DEA) to study the impact of computerization on Indian banks’
profitability and productivity. Private sector banks, which took more ICT initiative, were found to be
more efficient in productivity and profitability parameters than public sector banks.
Mashal (2006) examined “The effect of ICT investment in productivity and profitability” by analyzing
data from the Arab Bank, one of the leading banks in Jordan, during the period between 1985 to 2004.
The results indicated that “there are substantial returns due to an increase in investment in ICT capital, a
fact which incentivizes the bank’s management to shift its emphasis on ICT investment from labor to
capital.”
Siam (2006) examined “The effects of electronic banking on bank's profitability”. The author concluded
that “the impact of electronic banking on bank’s profitability will be a feature of the short run due to the
capital investment by the banks on infrastructure and training, but, it will be positive in the long run.” In
the same regard, Khrawish & Al-Sa'di (2011) tested “The effect of e-banking services provided by banks
on the internet on the profitability” of these banks. The regression analysis showed that, “there is no
significant impact of e-banking services on the profitability of recent adopter's banks in terms of ROA,
and ROE. For early adopters, the results were much better than those for the early adopters, but still not
significant with the profitability of these banks.”
2.0 ICT Infrastructure of Banks, Its Impact on Banking Business Enhancement and
Financial Inclusion
Financial Technology (Fintech) based on ICT saves more time and cost and creates new alternatives. The
Central Bank plays a vital role in promoting the use of financial technology through different initiatives.
As a result banks have developed a strong ICT infrastructure under the guidance and monitoring of the
central bank. Consequently, besides online branches different ADCs like ATM, POST, MFS, Agent
Banking, Internet Banking, Call Center Banking, Banking through Apps, etc. has been introduced in
Bangladesh.
Having access to a transaction account of banks by an individual is a first step towards broader financial
inclusion. As a bank account primarily allows people to save money, and send and receive payments, it
serves as a gateway to other financial services. Depending on policy supports, reforms and product design
of Bangladesh Bank, banks have implemented several initiatives to attain financial inclusion for
individuals starting from No Frill Accounts to technology-based delivery channels. This section examines
the current ICT infrastructure of banks, its impact on financial inclusion and banking business
enhancement.
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2.1 ICT Investment and Sector-wise ICT Budget
In 2015, about Tk. 1703 crore was invested for ICT operations in the banking sector, excluding the
Bangladesh Bank. Total investment up to 2019 was estimated at Tk. 40,943 crore since 1968 (considering
the installation of computer at Agrani Bank in 1968 which was the first installation of computer in the
banking sector of Bangladesh). And in 2019, around Tk. 2478 crore was invested on ICT System in the
banking sector, excluding the Bangladesh Bank (Figure-1).
Figure-1: ICT Investment in Banks; 2015-2019 (In Crore BDT)
2019 2478
2018 2021
2017 2035
2016 1793
2015 1703
Source: Survey Information
2.2 Centralized Operations using DC, ADC, DRS and Branch Automation
According to the Guideline of Bangladesh Bank on ICT Security For Banks and Non-Bank Financial
Institutions (Version 3.0, which was released on May, 2015) 58 banks have fully introduced real time
online banking, meeting the Category-1 architecture at the end of 2019. One bank fall in the Category-2
and another one have introduced Mixed Category (Some branches operate under centralize system and
rest are totally decentralized) architecture. Bank of Mixed Category partially implemented Category-1
architecture and gradually transferring the branches to meet the Category-1 architecture from Category-2
architecture. SBs mainly fall in this category. Table-2 shows computerization status of bank branches in
Bangladesh at the end of 2019.
Table-2: Centralized Online Branches by Types of Bank (2019)
No. of Total No. of Fully Online
Types of Bank % of Online Branches
Branches Branches
SOCBs 3,777 3,706 98.12
SBs 1,421 439 30.89
PCBs 5,283 5,282 99.98
FCBs 64 64 100.00
Total 10,545 9,491 90.00
Source: Financial Stability Report, 2019, Bangladesh Bank (p. 87)
Bank branches density provides a rough proxy for financial inclusion (Global Financial Development
Report, 2014). More branches in rural areas compared to urban areas actually indicate financial inclusion
in rural areas. Bank branches in rural areas dropped from 57.4 in 2010 to 48.5 per cent in 2019 in spite of
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the Bangladesh Bank’s initiatives to ensure financial inclusion of rural people 1. On the other hand, share
of bank branches in urban areas enlarged by 8.9 per cent in 2019 compared to 2010 ( Scheduled Bank
Statistics, Bangladesh Bank). The results refer that 51.5 per cent branches serve 37.4 per cent population
of the country whereas the remaining 48.5 per cent banks’ branches work for 62.60 per cent population of
the country who are staying in rural areas2. The share of online branch, 90 per cent in 2019 raises hope for
quick expansion of bank based financial services for mass people across the country in future.
2.3 Alternative Delivery Channels (ADCs)
2.3.1 Internet Banking

The development of internet banking encourages people to do virtual banking activities for account
inquiry, funds transfer; payment of utility and credit card bills; loan installments, insurance premium etc.
even from remote areas. Apart from urban people, individuals involved in agri-business and SME
business are gradually using internet banking. At the end of 2019 it is seen that 84% banks provides some
sort of informational and transactional Internet Banking services, which was only 48% at the end of 2014.The
soaring growth rates of number and volume of transactions show how effectively it does financial
inclusion and penetrates traditional branch-based banking activities (Table-3). A rise in the number of
smartphone users also encouraged the use of internet banking through mobile Apps.
Table-3: Internet Banking

Volume of Transaction
Year Number of Users Number of Transaction
(in Crore BDT)
2015 1525642 6392282 21757.11
2016 1526588 7756893 30751.89
2017 1742429 7278521 36482.08
2018 2040418 9544759 32466.66
2019 2472151 15228247 64979.08
CAGR 12.83 24.24 31.46
Source: Monthly Economic Trends, Bangladesh Bank
2.3.2 Plastic Card (Debit, Credit and Prepaid)

Electronic payment instruments such as credit, debit and prepaid cards in banking transactions
substituting money-based transaction have gained wide attention in financial inclusion in Bangladesh
(Table-4). However, this attention is mostly confined in urban individual financial inclusion as it is
evidenced from the share of ATM in urban (70.2%) and rural areas (29.8%) at the end of 2019.
Significant growth rates of plastic cards and its use indicate its extensive acceptability among individuals.
1
To bring more rural people under banking services, Bangladesh Bank adopted a policy allowing PCBs to open branches 1:1 in
urban and rural areas in place of 4:1 permitted in 2006 with a new definition of urban areas (city corporation, municipalities, the
suburbs will be considered as urban areas).
2
As per World Bank collection of development indicators, rural population (% of total population) in Bangladesh was reported at
62.6 % in 2019.
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Table-4: Number of Plastic Cards and Total Transactions including Amount * (2015-2019)
Types Year 2015 2016 2017 2018 2019 CAGR

Number 8622507 9948690 11653879 14302966 18231093 20.59
Debit
Transactions 126568036 157795633 164913734 195209740 224337103 15.38
Amount* 96093.30 115252.50 123080.30 142076.10 166801.80 14.78
Number 620328 946954 908507 1180414 1537202 25.47
Credit Transactions 10096670 12389944 16220582 20704917 26060650 26.75
Amount 6518.70 7571.65 9602.00 11922.90 13441.20 19.83
Number 135119 176185 138500 210358 413582 32.27
Prepaid Transactions 568876 725434 1025288 1575882 3025149 51.86
Amount 412.0 607.1 871.1 947.3 1491.0 37.93
Transactions 141948700 172781366 184618797 220510951 255572706 15.84
Others**
Amount 107322.63 125362.09 135726.37 157886.8 183931.8973 14.42
Number 9377954 11071829 12700886 15693738 20181877 21.12
All Transactions 137233582 170911011 182159604 217490539 253422902 16.57
Amount 103024 123431.25 133553.43 154946.3 181734 15.25
*Amount in Crore Taka. **Others include Internationally Issued Cards Transactions
2.3.3 POST
A Point of Sale Terminal (POST) is a hardware system for processing card payments at retail locations.
POST allows all types of debit and credit cards for making transactions. The growth of POST in
Bangladesh is shown in the following table (Table-5).
Table-5: Total POSTs, Number of Transactions and its Volume
Volume of Transactions
Year No. of POST Number of Transactions
(Crore BDT)
2015 30336 14082447 12093.74
2016 32953 17356869 12391.89
2017 37379 21161592 13302.53
2018 45896 26021058 15081.72
2019 58527 31667168 17677.36
CAGR 17.86 22.46 9.95
Most POSTs (91.8%) are being operated in urban areas. Dhaka is the city where 86% POSTs is in
operation. It is notable that this service is provided by the PCBs only. Moreover, about 35% banks have
branch POS facility. Average number of transaction per day is 530. Total number of branch POS is
approximately 2100.
2.3.4 ATM
Automated Teller Machine (ATM) provides electronic access to customers not only for cash withdrawals
but also for a number of other services outside of bank branch. An automated teller machine (ATM)
enables banks’ customers to perform transactions, like cash withdrawal, deposit, funds transfer, or
inquiries about account information, at any time and without the need for direct communication with bank
employee. The growth of ATM Banking in Bangladesh is shown in the following table (Table-6).
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Table-6: Total ATMs, Number of Transactions and its Volume
Volume of Transactions
Year No. of ATMs Number of Transactions
(Crore BDT)
2015 7839 141948700 107322.63
2016 9019 172781366 125362.09
2017 9522 184618797 135726.37
2018 10355 178265554 138529.7
2019 10924 205589671 162740.9
CAGR 8.65 9.70 10.97
SOCBs have only 264 ATMs whereas PCBs have 10495. In fact PCBs own more than 96% of total
ATMs in Bangladesh. It is mentionable that 46.9% ATMs is set up by the DBBL alone.
2.3.5 Mobile Banking
Mobile banking and payment technologies assist banks to provide basic financial services to previously
unbanked clients and locations. Bangladesh Bank has taken steps to introduce bank-led Mobile Financial
Services for massive financial inclusion. At present, 16 banks are providing mobile financial services.
Bangladesh Bank has earned ‘Alliance for Financial Inclusion (AFI) Policy Award’ for its successful
regulation of mobile financial service.
Mobile Financial Services is a medium of offering financial services with mobile networks which enable
users to make deposits, withdrawals and send or receive funds from another account. Considering the
potentials in promoting financial inclusion, Bangladesh Bank introduced Bank-led MFS in 2011. Since
the inception of MFS, the flow of money into the rural parts of Bangladesh has been increasing
significantly. A high growth per year is observed in terms of number of customers, volume of transactions
and number of transactions since 2014 (Table-7).
Table-7: Growth of Mobile Banking
Parameters 2014 2015 2016 2017 2018 2019 CAGR
No. of Approved Banks 28 28 19 18 18 16 -
No. of Banks Offering MFS 19 18 17 18 18 16 -
No. of Agents (Thousands) 541.0 561.2 710.0 786.5 886.5 971.6 12.42
No. of Customers (Millions) 25.2 31.8 41.1 58.8 67.5 79.6 25.86
No. of Active Customers (Millions) 12.2 13.2 15.9 21.1 37.3 34.6 23.18
No. of Total Transaction (Millions) 589.5 1166.1 1473.2 1875.6 2272.8 2589.8 34.45
Total Transaction Amount (Billions BDT) 1031.6 1772.8 2346.9 3146.6 3788.9 4343.2 33.31
Source: Financial Stability Report and Payment Systems Department, Bangladesh Bank
Table-7 shows the enormous success of MFS in individual financial inclusion. The transactions grew with
CAGR of 34.45 from 2015 to 2019 which is simply phenomenal. In case of volume, CAGR at the same
period with 33.31 per cent is almost same that of number of transactions. The clients’ growth rate also
supports this exceptionally upward trend.
It has been found from survey that only 24% banks give profit/interest against MFS account. In our
country, 58% banks have already introduced mobile banking App.
2.3.6 Agent Banking
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Agent banking has been introduced in Bangladesh in 2013 through a Guideline issued by Bangladesh
Bank. Agent banking is one of the most useful ADCs for financial inclusion to give financial services to
poor or extreme poor. The purpose of introducing agent banking is to provide a safe and secure
alternative delivery channel for banking services to the under-privileged, under-served population who
generally live in a geographically remote area and beyond the reach of the traditional banking networks.
Agent banking provides services like cash deposits and withdrawals, fund transfers, bill payments, loan
payments, payment of benefits and salaries, and collection of account and loan applications. It was hosted
targeting to provide formal banking services to unbanked people in Bangladesh. Considering the cost of
setting a full-fledged branch, banks prefer agent banking as a cost-effective delivery channel. Though
lack of trust and reliability on agent banking outlets was a barrier in spreading agent banking, this ADC is
expanding quickly among individuals. Since inception, it has gained much popularity in the rural areas.
The tremendous growth rates of number of agents and clients indicate how fast poor unbanked people are
availing agent banking services (Table-8). These high growth rates of number and volume of banking
transaction indicates the expansion of financial inclusion under this delivery channel in Bangladesh. As
of June 2020, 23 banks in Bangladesh have undertaken agent banking operations through 8,764 agents
with 12,449 outlets and opened a cumulative of 7,358,190 accounts (Bangladesh Bank, 2020).
Table-8: Status of Agent Banking
Volume of Transactions Number of
Year Number of Agents Number of Customers
(Crore BDT) Transactions
2014 49 14478 79.51 67777
2015 208 97037 1508.73 844670
2016 2334 525144 7306.43 4202310
2017 2577 1214561 21034.29 9870045
2018 4506 2456765 53713.65 22640323
2019 7914 5257769 133292.58 49458584
CAGR 176.46 225.10 341.45 273.79
2.4 Clearing through Central Bank

2.4.1 Bangladesh Automated Clearing House (BACH)
Bangladesh Automated Clearing House (BACH) started automated cheque clearing from 2010 for settling
bank cheaques instantly by replacing the manual clearing system. BACH is the first major milestone of
Bangladesh Bank towards digitalizing the payments landscape of the country. It is an automated inter-
bank clearing facility for retail payments that clears both paper and instruction based payments via
Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh Electronic Funds Transfer
Network (BEFTN). Both the systems operate in batch processing mode, transactions received from the
banks during the day are processed at a pre-fixed time and settled through a single multilateral netting
figure on respective bank’s book maintained with Bangladesh Bank (Financial Stability Report, 2019,
Bangladesh Bank).
2.4.1.1 Bangladesh Automated Cheque Processing System (BACPS)
Automated Cheque Processing System (ACPS) is used to reduce the cheque clearing time. Through
faster reconciliation and fraud prevention, it facilitates banks to provide better and faster customer
service with increasing operational efficiency. Two sessions, namely High Value (HV) and Regular
Value (RV) are available daily under BACPS. HV session accommodates cheques with a minimum
value of BDT 5 lac while RV session accommodates cheques of any amount (Financial Stability Report,
2019, Bangladesh Bank). During the period 2010-2019, CAGR of the number of transactions and the
11
volume of transaction were 44.34% and 36.15% respectively, through BEFTN.
Table-9: Automated Cheque Processing 2010-2019

Transactions (Thousands) Volume (Billion Tk.)
Year
High Value Regular Value Total High Value Regular Value Total
2010 82.00 742.00 824.00 679.60 751.10 1,430.70
2011 3,123.00 17,954.00 21077.00 4,177.80 5,093.90 9,271.70
2012 1,263.00 18,824.00 20087.00 5,977.42 4,827.44 10,804.86
2013 1,365.00 20,695.00 22060.00 6,877.90 5,165.50 12,043.40
2014 1,610.00 23,505.00 25115.00 8,812.30 5,497.40 14,309.70
2015 1,808.40 21,019.40 22827.80 9,794.50 5,707.30 15,501.80
2016 1,987.00 20,215.50 22202.50 11,479.50 6,518.30 17,997.80
2017 2,222.50 20,950.70 23173.20 12,969.20 7,462.50 20,431.70
2018 2,414.63 20,849.23 23263.86 14,732.77 8,214.20 22,946.97
2019 2,039.77 20,362.00 22401.77 14,480.46 8,519.94 23,000.40
CAGR 42.92 44.49 44.34 40.48 30.98 36.15
Source: Financial Stability Report, 2010-2019, Bangladesh Bank
2.4.1.2 Bangladesh Electronic Funds Transfer Network (BEFTN)

Bangladesh Electronic Funds Transfer Network (BEFTN) is the central clearing system that facilitates
settlement among the participating banks. This system is introduced to reduce paper-based transaction
and increase electronic payment. The system receives entries from Originating Banks (OR) and
distributes the entries to Receiving Banks (RB). BEFTN settles various credit transactions such as
foreign and domestic remittances, social security payments, payroll, company dividends, bill payments,
corporate payments, government tax payments, person to person payments etc. and also similarly
settles debit transactions such as utility bill payments, insurance premium payments, club/association
payments, EMI payments etc. Most of the government payments are processed through BEFTN
(Financial Stability Report, 2019, Bangladesh Bank).
During the period 2012-2019, CAGR of the number of transactions and the volume of transaction were
25.37 and 32.15 percent, respectively, through BEFTN.
Table-10: Electronic Funds Transfer 2012-2019

Year No. of Transactions (Millions) Volume of Transactions (Billion BDT)
2012 7.6 284.3
2013 7.7 396.1
2014 10.2 598.0
2015 13.8 873.8
2016 15.3 986.0
2017 18.6 1333.6
2018 24.8 1722.9
2019 37.0 2000.5
CAGR 25.37 32.15
2.4.2 Real Time Gross Settlement (RTGS)
12
RTGS is an instant electronic settlement system where the transfer of funds takes place from one bank to
another bank on real-time basis. The system is designed to settle high value (more than or equal to BDT
100,000) local currency and foreign currency transactions. The system is currently allowed to settle local
currency only. However, domestic foreign currency transactions are expected to be launched soon. Along
with individual interbank transactions, there are provisions for Deferred Net Settlement (DNS) (i.e.
BACPS, BEFTN or NPSB) transactions to be settled through RTGS system. Out of total 11000 bank
branches of 58 banks in the country, more than 8000 online branches of 56 scheduled banks are
connected to this system till 2019 and the coverage of branches has been increasing gradually (Financial
Stability Report, 2019, Bangladesh Bank).
102.50 and 5.53 percent, respectively, through RTGS.
Table-11: Real Time Gross Settlement 2016-2019
Volume of Transactions (Billion
Year No. of Transactions
Tk.)
2016 222,550 11283.88
2017 785,290 20,063.90
2018 863,352 6,674.75
2019 1,848,079 13,260.96
CAGR 102.50 5.53
2.4.3 National Payment Switch Bangladesh (NPSB)

National payment Switch Bangladesh (NPSB) was first introduced in Bangladesh in 2012 to facilitate
interbank card-based or online retail transactions through different delivery channels like Automated
Teller Machine, Point of Sales and Internet Banking Fund Transfer (IBFT). It geared up the card-based
payment networks substantially and promoted e-commerce throughout the country. The NPSB is
currently connected to 52 banks for ATM, 51 banks for POS and 23 banks for internet banking
transactions. The number and volume of the interbank transactions through NPSB are growing with great
speed (Financial Stability Report, 2019, Bangladesh Bank).
.
Table-12: National Payment Switch Transactions 2015-2019
Number of Transactions Volume of Transactions
Year
(Millions) (Billion BDT)
2015 7.78 45.24
2016 10.48 67.99
2017 17.00 104.00
2018 24.00 155.00
2019 30.70 211.25
CAGR 40.94 47.00
40.94 and 47.0 percent, respectively, through NPSB.
2.5 Trends in Technology Adoption
13
In order to provide banking service at lower cost and at shorter time to remote area, Banks have adopted
various modern technology viz. installation of ATM, POS, introducing credit card and debit card, uses of
mobile phone, internet banking, online banking. It is observed that mobile banking is the potent
instrument for increasing outreach and mobile phone is an ideal platform to increase the outreach of
financial services to the rural population as their penetration is already large and growing. Table-13
shows adoption of technology by total number of banks during the period 1998 to 2019. It is evident from
the table that, out of different innovative technology driven products and services, significant response
among the banks is observed since 1998.
Table-13: Technology Adoption by Banks, 1998-2019
BankingInternet
Online BankingCentralized
Mobile Banking
Agent Banking
Call Center
Cr. card
Dr. card
BEFTN
BACPS
SWIFT
RTGS
POST
NPSB
ATM
Year
1998 2 0 1 1 0 2 4
1999 3 1 2 3 0 2 11
2000 3 1 2 3 0 4 17
2001 4 4 7 4 1 6 23
2002 4 10 12 5 3 7 30
2003 4 11 14 5 3 16 36
2004 8 15 18 7 7 19 40
2005 12 18 22 10 7 22 41
2006 15 22 26 10 7 29 43
2007 17 23 28 10 7 31 43
2008 19 23 29 11 7 33 43
2009 21 24 30 11 8 35 43 1
2010 26 36 36 13 18 38 44 2 2 31
2011 26 38 38 15 24 40 45 5 3 45 12
2012 28 40 40 15 27 40 45 11 18 48 3 25
2013 28 41 41 17 27 50 45 13 18 50 28 31
2014 28 41 41 18 27 50 50 24 18 1 51 31 47
2015 34 50 50 18 30 50 50 26 18 3 52 15 47 50
2016 37 50 50 20 41 55 52 30 17 10 55 51 50 51
2017 37 53 53 24 46 57 52 35 18 14 57 54 51 51
2018 39 53 53 25 46 56 54 36 16 21 58 55 51 52
2019 40 54 54 25 56 58 56 36 16 23 58 56 52 58
Source: Financial Stability Report, Bangladesh Bank and Survey Information
2.6. Impact of ICT on Transaction Cost, Time and Distance Reduction

2.6.1 Transaction Cost
Banks play a vital role in developing the economic and social conditions of a country. The major share of
the profit of banks generally comes from spread. But the profitability of banks is under tremendous
pressure because of continuous shrinking of spread. It becomes important for banks to reduce the cost per
transaction for increasing spread that in turns will increase the profitability of banks. Use of technology in
banks reduces the cost. Banks have realized that cost of transaction drastically reduces from brick and
mortar structure of the branch to online delivery channels like ATM, POS Terminal, Mobile Phone,
Internet, etc. Each of these channels has its own specific advantages in terms of improved customer
service and reduced transaction cost. The basic difference between online banking and traditional
banking is that, in traditional banking the customer has to visit the branch for the basic banking needs
14
viz. withdrawal or deposit of cash, transfer of funds, statement of accounts etc. online-business
saves customers’ time. Bank also enjoys lower overheads, establishment, premises and maintenance
costs, which results in reduction of transaction cost. Low transaction cost is one of the main reasons
why online business is getting popularity. According to Diniz (1998) Internet banking provides the
lowest transaction cost in USA of $0.01 where as other delivery channels like ATM and Phone
banking cost $0.27 and $ 0.52 respectively. In India transaction cost in an old generation bank is Rs.
256 and which is of Rs. 150 of a new generation computerized bank. ATM transaction costs Rs. 27,
Phone banking have a cost of Rs. 15 whereas transaction costs through Internet is least only of Rs.
11 (Bhasin, 2003). Bangladesh also shows a reduction of transaction cost as a result of using
computer technology. Here, transaction cost is $3.33 (Tk. 200.00) for a manual branch, $2.5 (Tk.
150.00) in a computerized branch and $ 0.6 (Tk. 40.00) for ATM (Rahman 2003). On the other hand
in USA transaction cost is only $1.14 in a computerized branch of a bank (Diniz, 2003). It is seen
that during the period 2003-2019 all electronic transaction costs except ATM reduced slightly in
Bangladesh (Table-14).
Table-14: Average Transaction Cost (in USD)
USA India Bangladesh
Delivery Channels
1998 2013 2003 2013 2003 2013 2015 20 17 2019
Manual Branch Banking 1.27 - 5.61 - 3.33 - - -
Computerized Branch Banking 1.14 4.25 3.29 - 2.50 1.84 1.54 1.12
Phone Banking 0.52 1.30 0.33 - - - - - -
ATM Banking 0.27 1.25 0.59 0.32 0.52 0.64 0.49 - 0.65
Mobile Banking 0.16 0.10 - - - 0.24 0.24* 0.19* 0.12*
Internet Banking 0.1 0.24 - 0.19 - - - 0.022
Agent Banking - - - - - - - - 0.40
Remittance Channeling - - - - $6.5 6.8 4.5 3.8 3.75
*Per 1000 Tk. ** Per 200 USD Source: BIBM Survey
2.6.2 Distance of Financial Access Points
In Bangladesh it is found that about 74% of the MFS (Mobile Financial Service) users have access to an
agent within one kilometer whereas 62% Agent Banking Point lies between 2 to5 kilometers. On the
contrary, only 19% of bank account holders have a bank branch within the same distance. Most of the
ATMs are available within 2 to 10 km. Maximum MFIs are reachable within 1 to 5 km. To access a post
office user has to travel more compared to others access points of financial services.
Figure-2: Distance of Financial Access Points
15
Less than 1 km
1 to 2 km
2 to 5 km
5 to 10 km
More than 10 km
0 10 20 30 40 50 60 70 80
MFS Agent Point Agent Banking Point ATM

MFI Post Office
Source: BIBM Survey
2.6.3 Cost to Access a Financial Service Point
About 53% of MFS users do not incur any costs to travel to an MFS agent point; whereas only 23% of the
bank account holders’ can visit their bank branches without any cost. On the other hand, 61% of bank
account holders’ have to spend more than BDT 10 to travel round trip to go to a bank branch, but only
23% MFS users’ need to spend that amount to visit to an MFS agent point.
Figure-3: Travelling Cost per Transaction Including Man-Hour
Post Office
MFI
ATM
Agent Banking Point
MFS Agent Point
Bank Branch
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: BIBM Survey
2.6.4 Travel Time to get a Financial Access Point
16
Among MFS users, 74% noted that it takes them less than 30 minutes round trip to their nearest MFS
agent point, a figure that drops to only 55% for bank account holders. On the other hand, 81% of bank
account users have to spend more than 30 minutes round trip to travel to a bank branch, while only 26%
of MFS users need that amount of time to visit an MFS agent point. Incase of Agent Banking 62% needs
45-60 minutes to get an agent point.
Figure-4: Travel Time for Doing a Transaction (% of Customers)
Post Office 2 11 31 56
MFI 9 21 49 21
ATM 15 18 43 24
Agent Banking Point 7 12 62 19
MFS Agent Point 74 21 4 1
Bank Branch 19 27 33 21
Less than 30 minutes 30-45 minutes 45-60 minutes Above 1 hour

Source: BIBM Survey
2.7. Impact of ICT on Financial Inclusion
2.7.1 Financial Inclusion Measurement
Technology based business model plays a key role in Bangladesh bank’s policies to enhance financial
inclusion. Availing the opportunity of modern technology, financial inclusion process may be expedited.
ATM, POST, Internet banking, online banking, MFSs, agent banking etc. are playing a very vibrant role
for covering more people in the banking services. Moreover, Bangladesh Bank’s policies inspire banks to
reach out to distant communities with FinTech and accordingly huge progress has been observed to use
FinTech for individual financial inclusion. It has lower overhead costs and allows banks to serve the
customers who are not being fully benefitted from the traditional bank based financial services or are
completely unbanked. As a result, both banks and customers are incentivized for offering and availing of
FinTech services.
Currently we have 24.918 crore accounts in the banks. Distribution of total number of different
types of accounts, total number of e-banking transactions and its volume are given in Table-15,
Table-16 and Table-17, respectively.
17
Table-15: Total Number of Bank Accounts in Millions (2015-2019)
% of Total
CAGR
Type of Accounts 2015 2016 2017 2018 2019 Accounts
(%)
(2019)
Deposit 76.22 81.43 87.52 95.23 106.6 8.75 42.78
Advance 9.89 10.14 10.57 10.63 10.83 2.30 4.35
MFS Agent Accounts 0.56 0.71 0.79 0.89 0.97 14.72 0.39
MFS Clients Accounts 31.8 41.1 58.8 67.5 79.6 25.78 31.94
Social Safety Net (SSN) Program 3.9201 4.2497 4.5806 5.0622 5.6007 9.33 2.25
Employment Generation Program for
2.0416 2.2026 2.2729 2.5792 2.6622 6.86 1.07
the Poorest
Freedom Fighters 0.1914 0.2168 0.201 0.2061 0.2475 6.64 0.10
Farmer's Account 8.9339 9.0436 9.238 9.6868 10.1866 3.33 4.09
Others* 10, 50, 100 Taka Accounts 0.5862 0.7582 0.7771 0.944 1.8232 32.80 0.73
Agent Banking Agents Account 0.000208 0.002334 0.002577 0.004506 0.007914 148.36 0.00
Agent Banking Clients Account 0.097037 0.525144 1.214561 2.456765 5.257769 171.31 2.11
Credit Card Accounts 0.62 0.95 0.91 1.18 1.54 25.54 0.62
Debit Cards 8.62 9.95 11.65 14.3 18.23 20.59 7.32
Prepaid Cards 0.14 0.18 0.14 0.21 0.41 30.82 0.16
SME Accounts 0.7049 0.6067 0.712 0.6608 0.7513 1.61 0.30
School Banking 1.035 1.2574 1.4539 1.8184 1.9929 17.80 0.80
Internet Banking Customers 1.53 1.53 1.74 2.04 2.47 12.72 0.99
Total 146.89 164.85 192.57 215.40 249.18 14.12 100.00
Source: Monthly Economic Trends, Scheduled Bank Statistics and Financial Inclusion Department, Bangladesh
Bank, *Others include accounts for garments workers, cleaners of city corporations, handicapped people, etc.
Table-16: Total Number of E-Banking Transactions (In Millions)

Types of Transactions 2015 2016 2017 2018 2019 CAGR
BACPS (Started on 07 Oct, 2010) 22.83 22.2 23.17 23.26 22.4 -0.47
BEFTN (Started on 28 Feb, 2011) 13.76 15.28 18.64 24.8 37.01 28.06
RTGS (Started on 29 Oct, 2015) - 0.22 0.79 0.86 1.85 103.35
NPSB (Started on 27 Dec, 2012) 7.78 10.48 17 24 30.7 40.94
Total Card (Credit Card, Debit Card, etc.) 137.23 170.91 182.16 217.49 253.42 16.57
Internet Banking 6.39 7.76 7.28 9.54 15.23 24.25
Mobile Banking (Started on October, 2011) 1166.1 1473.2 1875.6 2272.8 2589.8 22.08
Agent Banking 0.84 4.2 9.87 22.64 49.46 177.01
ATM 141.95 172.78 184.62 178.27 205.59 9.70
POST 14.08 17.36 21.16 26.02 31.67 22.46
Total 1510.96 1894.39 2340.29 2799.68 3237.13 20.98
Source: Monthly Economic Trends and Scheduled Bank Statistics, Bangladesh Bank
Table-17: Volume of E-Banking Transactions (Billion Crore Taka)
18
Types of Transactions 2015 2016 2017 2018 2019 CAGR
BACPS (Started on 07 Oct, 2010) 15501.80 17997.80 20431.70 22946.97 23000.40 10.37
BEFTN (Started on 28 Feb, 2011) 873.80 986.00 1333.60 1722.85 2000.50 23.01
RTGS (Started on 29 Oct, 2015) - 11283.88 20063.90 6674.75 13260.96 5.53
NPSB (Started on 27 Dec, 2012) 45.24 67.99 104.00 155.00 211.25 47.00
Card (Credit Card, Debit Card, etc.) 1030.24 1234.31 1335.53 1549.46 1817.34 15.25
Internet Banking 217.57 307.52 364.82 324.67 649.79 31.46
Mobile Banking (Started on October, 2011) 1772.80 2346.90 3146.60 3788.90 4343.20 25.11
Agent Banking 15.09 73.06 210.34 537.14 1332.93 206.57
ATM 1073.23 1253.62 1357.26 1385.30 1627.41 10.97
POST 120.94 123.92 133.03 150.82 176.77 9.95
Total 20650.71 35675.00 48480.78 39235.86 48420.55 23.74
Source: Financial Stability Report, Appendix XXXV; Monthly Economic Trends, 2016-2020, Bangladesh Bank
2.7.1.1 Geographic Concentration of Financial Services (Per 1000 Square Kilometer)
Considering geographical penetration, it is seen that the quantity of bank branches per 1000 square
kilometer in 2019 expanded to 71.25 compared to 63.30 in 2015. The quantity of ATMs per 1000 square
kilometer has expanded immensely from 52.8 in 2015 to 73.58 in 2019 ( Table-18) and crossed the number
of bank branches per 1000 square kilometer. Access to finance backed by NGO-MFIs is vital in
Bangladesh. The most recent information (December, 2019) demonstrate that 724 NGO-MFIs established
19.0 thousand branches all through the nation (for the most part in provincial regions). The aggregate
number of customers of NGO-MFIs was 32.4 million toward the end of December, 2019. As number of
branches of MFIs is bigger than bank branches their entrance is higher than banks with higher CAGR
over the timeframe. In case of Agent-banking, agent per square kilometer, the development is gigantic
with highest CAGR (148.36%). Beginning from 2014, it crossed the geological penetration of all banking
channels and MFIs.
Table-18: Geographic Penetration of Financial Services (Per 1000 Square Kilometer)

Types of Services 2015 2016 2017 2018 2019 CAGR
Bank Branches 63.30 65.03 67.06 69.28 71.25 3.00
MFI Branches 105.80 110.30 116.00 123.30 131.20 5.53
MFS Agents 3780.14 4782.43 5297.72 5971.31 6544.52 14.71
Agent Banking Agents 1.40 15.72 17.36 30.35 53.31 148.36
ATM 52.80 60.75 64.14 69.75 73.58 8.65
POST 204.34 221.97 251.78 309.15 394.23 17.86
Source: Authors’ Calculation
Figure-5: Geographic Penetration of Financial Services (Per 1000 Square Kilometer)
19
450 7000
400
6000
350
5000
300
250 4000
200 3000
150
2000
100
1000
50
0 0
2015 2016 2017 2018 2019
Bank Branches MFI Branches Agent Banking Agents

ATM POST MFS Agents (RHS Scale)
2.7.1.2 Demographic Concentration of Financial Services (Per 100000 Adult Population)
In view of demographic penetration, the quantity of branches per 100,000, populace expanded from 9.62
in 2015 to 10.09 in 2019. The quantity of ATMs per 100,000 populaces expanded from 8.03 in 2015 to
10.42 in 2019 (Table-19). Developments in geographical and demographic penetration demonstrate that
entrance to finance is relentlessly expanding over time in Bangladesh. Population penetration by NGO-
MFIs shows that 16.08 branches existed per 100,000, populace toward the end of December 2015,
increasing imperceptibly to 18.57 branches toward the end of December 2019. In case of Agent Banking
services per 100000 grown-up populace, the development is the highest (CAGR for Agents and
Customers is 143.98 and 166.52, respectively). Beginning from 2014, within five years, it crossed the
demographic penetration of all other financial services.
Table-19: Demographic Penetration of Financial Services (Per 100000 Adult Population)
2015 2016 2017 2018 2019 CAGR
Bank Branches 9.62 9.78 9.88 10.01 10.09 1.19
Deposit Accounts 78046.28 82519.25 86885.73 92645.20 101649.66 6.83
Advance Accounts 10126.97 10275.64 10493.40 10341.47 10327.07 0.49
MFI Branches 16.08 16.59 17.10 17.81 18.57 3.66
ATM 8.03 9.14 9.45 10.07 10.42 6.73
POST 31.06 33.39 37.11 44.65 55.81 15.78
Internet Banking Users 1562.20 1547.01 1729.80 1985.04 2357.35 10.83
Debit Card 8829.11 10081.77 11569.42 13914.74 17384.47 18.46
Credit Card 635.19 959.62 901.92 1148.37 1465.82 23.25
Prepaid Card 138.36 178.54 137.50 204.65 394.38 29.94
20
MFS Agents 574.65 719.50 780.80 862.44 926.48 12.68
MFS Customers 32561.95 41649.78 58373.87 65667.87 75903.50 23.56
Agent Banking Agents 0.21 2.37 2.56 4.38 7.55 143.98
Agent Banking Customers 99.36 532.17 1205.76 2390.08 5013.61 166.52
Internet Banking Customers 1566.66 1550.47 1727.39 1984.63 2355.30 10.73

The continuous growth of the number of delivery channels like Bank Branches, ATMs, MFI, Agent
Banking and Mobile Financial Services (MFS) per 1000 square kilometer and per 100,000 populations
identifies growing financial inclusion. Among all delivery channels, an outstanding growth has been seen
in case of Agent Banking, followed by MFS and ATM/POST (Plastic Card based banking services) in
terms of both geographic and demographic penetration showing massive use of FinTech in getting
banking services. Even number of bank branches has also been increasing with a very tiny change rate
(CAGR). But number of Micro Finance Institutions (MFI) is with a higher growth rate than bank
branches since 2015.
At the end of 2019, it is noteworthy that share of rural MFS account is almost double (62.6%) as
compared to urban MFS account (37.4%) implying that FinTech is very effective in rural financial
inclusion. The huge success of Agent Banking in individual financial inclusion is recognized with the
plenty share of rural people. With respect to internet banking, growth between 2015 and 2019 indicates
quick penetration of the virtual banking activities with traditional branch-based banking. Electronic
payment instruments such as credit and debit cards in banking transactions substituting money-based
transaction have also gained wide attention in financial inclusion of individuals in Bangladesh particularly
in the urban area.
3.0 Impact of ICT on Banking Operations, Productivity, Efficiency and Profitability

of Banks
Research studies reveal that measurement of the impact of ICT on bank’s performance is an important
and deeply felt necessity. It is also acknowledged widely that while traditional measures and ratio
analysis might be a way of assessing a bank's performance, it has several limitations of applicability when
it comes to evaluating outputs as related to ICT inputs. As a result, conventional evaluation techniques
like Cost-Benefit Analysis (CBA) and Return on Investment (ROI) when used in ICT context are viewed
with scepticism. Accordingly, parametric and non-parametric approaches to measuring ICT productivity
and profitability have come into greater prominence.
3.1 Impact of ICT on Banking Operations
At the end of 2019, sum of all types of bank account stood at 24.918 crore and 1,91,360 employees
were working in this sector. It is seen that majority of the employees (64%) are working for private
commercial banks followed by state-owned commercial banks (27%). Rest of the 9% of the human
resources is employed for specialized and foreign banks (figure-6).
Figure-6: Employee Distribution of Banks (2019)
21
SBs
6%
PCBs
64%
SCBs
27%
FCBs
2%
Source: Bangladesh Bank
Distribution of employees from 1975 to 2019 is shown in table-20. It is seen that though the
number of branches and accounts are increasing day by day in case of government banks, number
of employees are gradually decreasing after 1990. The scenario is just opposite for private and
foreign banks. 39.78% CAGR for PCBs indicate a huge growth since 1985. Growth of human
resources for FCBs is also notable with 20.54% CAGR.
Table-20: Distribution of Employees from 1975 to 2019

Year 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 CAGR
SOCBs 24921 51333 56334 63831 63803 62091 56417 50069 54501 52002 -1.14
FCBs 707 912 1051 1135 966 1280 1713 3143 4074 3886 20.54
PCBs - - 11813 16916 20083 25975 36715 68720 100178 123186 39.78
SBs 3594 6990 16069 16798 16459 16164 15406 14367 13953 12286 -3.76
All Banks 29222 59235 85267 98680 101311 105510 110251 136299 172819 191360 12.24
Total number of transactions from 2015 to 2019 is given in the table-21. In 2019, considering
branch transactions only, it is seen that average number of transactions per employee was about
12,302 (Table-22). Whereas it was about 29,218 if we combine online (ADC) and branch
transactions. In banks, SMS is also considered as a transaction since it requires to run a business
process. In 2019, total number of transactions was recorded at 1417.254 crore considering branch,
ADCs and SMSs.
Table-21: Total Number of Transactions (In Millions) 2015-2019

Source of Transactions 2015 2016 2017 2018 2019 CAGR
Transactions from Branch Only 1685.68 1797.97 1941.04 2118.34 2354.06 8.71
Online Transactions (ADCs and Clearing
1510.96 1894.39 2340.29 2799.68 3237.13 20.98
through Bangladesh Bank)
Transactional SMS (Branches and ADCs) 3196.64 3692.36 4281.33 4918.02 5591.19 15.00
SMS (Monthly and Yearly Balance) 1762.68 1978.23 2310.87 2584.79 2990.16 14.12
Total Transactions 0 0 0 0 0 0
Source: Authors’ Survey and Bangladesh Bank
Table-22: Average Number of Transactions per Employee (2015-2019)
22
Source of Transactions 2015 2016 2017 2018 2019 CAGR
Transactions from Branch Only 9966 11021 10977 11719 12302 5.40
Branch and Online Transactions

(ADCs and Clearing through Bangladesh Bank)
18899 22633 24211 27206 29218 11.51
Branch and Online Transactions (ADCs and
Clearing through Bangladesh Bank) Including All 48220 57392 61490 68712 74062 11.32
Types of SMS
Source: Authors’ Survey and Bangladesh Bank
There were 1,73,852 employees in the banking sector at the end of 2019 and about 2354.06
millions transactions were done from branches only. It is estimated that to do the same amount of
transactions we need about 6,14,476 and 5,07,997 employees, if we consider the productivity of
employees in 1980 and 1990, respectively. Moreover, number of transactions from Alternate
Delivery Channels (other than branches) was recorded at 3237.13 millions in 2019. And total
number of transactions from branch and ADCs reached at 5591.19 millions. It is also calculated
that to do the same amount of transactions about 14,59,460 and 12,06,558 employees are needed if
we consider the productivity of employees in 1980 and 1990, respectively. These findings clearly
show that productivity of employees has been increased from minimum 353% to maximum 839%
due to the impact of ICT.
3.1.1 Total Number of Accounts (Deposit and Advance) Per Employee
Automation increases the efficiency of employees in banking. Total number of accounts (Deposit
and Advance) per employee has increased radically from 1995 to 2000, when automation has
rolled out. And in 2010 (when many banks have finished automation), total number of accounts
(Deposit and Advance) per employee has escalated to a new height.
Figure-7: Total Number of Accounts (Deposit and Advance) Per Employee

1400.0
1200.0
1000.0
800.0
600.0
400.0
200.0
0.0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
SCBs FCBs PCBs SBs All Banks

Source
: Bangladesh Bank
3.1.2 Total Accounts (Deposit and Advance) Per Branch
From figure-8, we clearly understand that automation helps banks to maintain more accounts per
branch efficiently. As a whole, a notable growth has been seen in terms of total accounts (Deposit
and Advance) per branch from 1995. And the growth has increased further from 2000 and
23
onwards.
Figure-8: Total Accounts (Deposit and Advance) Per Branch

14000.00
12000.00
10000.00
8000.00
6000.00
4000.00
2000.00
0.00
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

3.1.3 Total Income Per Employee ( In Lac Taka)
Table-23 depicts the total income per employee in Lac Taka. The growth is very insignificant from
1975 to 1985 in case of SOCBs, PCBs and SBs. FCBs has shown an earlier progress than other
categories of banks from 1985. In case of SOCBs, PCBs and SBs, the headway was happening
from 1995 and more particularly from 2000. In the year 2005, total income per employee (in Lac
Taka) is 8.57, 24.89 and 6.66 for SOCBs, PCBs and SBs, respectively. Here also, the position of
PCBs is higher than other groups of banks. The significant growth of overall banking system is
seen from 2000 when most of the banks started centralized banking operation.
Table-23: Total Income per Employee (In Lac Taka)

Year 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 CAGR
SOCBs 0.60 0.66 1.62 2.48 3.11 6.00 8.57 20.49 38.13 42.75 59.55
FCBS 1.26 3.59 11.84 18.08 34.75 75.59 79.84 83.77 132.73 185.91 48.20
PCBs - - 2.37 4.23 4.70 12.58 24.89 47.84 63.92 79.52 65.16
SBs 0.53 1.00 1.81 2.45 1.43 5.08 6.66 18.17 14.77 16.15 36.71
All Banks 0.61 0.74 1.89 2.95 3.45 8.32 14.85 35.49 53.40 67.62 66.72
3.1.4 Export, Import and Remittance Handling Per Employee (In Lac Tk.)
Computerization brought a silent revolution in banking sector, which is clear from figure-9.
Export, import and remittance handling per employee was not so significant during the period
1975 to 1990 when banks had no automation system at all. But the ration has risen significantly
from the year 2000, when banks have started implementing centralized system.
Figure-9: Export, Import and Remittance Handling Per Employee (In Lac Tk.)
24
250.00
200.00
150.00
100.00
50.00
0.00
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Exports Receipts Import Payments Remittances

3.1.5 Expenditure-Income Ratio
By analyzing Expenditure-Income Ratio, impact of ICT is clearly understood. The available data
from 2004 reveals that the ratio has decreased significantly in the last few years though there was a
moderate increase in salary and other administrative expenses. The main reasons might be the
reduction of stationary and transaction cost and improvement of productivity of employees by
using ICT. Expenditure-Income ratio of different categories of banks from 2004 to 2019 is shown
in figure-10.
Figure-10: Expenditure-Income Ratio

180
160
140
120
100
80
60
40
20
0
2003 2005 2007 2009 2011 2013 2015 2017 2019
SCBs SBs PCBs FCBs All Banks

Source: Annual Report, Bangladesh Bank
3.1.6 Total Transactions Per Employee (Branch Only)
25
It is clear from figure-11 that computerization has changed the banking industry significantly. ICT
has increased the productivity and efficiency of bank employees at a constant pace. In 1985, on an
average an employee of the banking sector could handle 4946 transactions in branch, whereas in
2019, it was 12302. It clearly indicates that ICT has changed the working environment of the
banks in a positive way.
Figure-11: Total Transactions per Employee (Branch Only)

25000
20000
15000
10000
5000
0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
PCB DFI FCB NCB All Banks

3.1.7 Total Number of Employees Per Branch
From figure-12, it is evident that FCBs are always ahead in terms of employees per branch. Total
number of employees per branch of FCBs is always greater compared to SOCBs, PCBs and SBs. It
is also seen from the figure that since 1975 average number of employees per branch remains
almost constant for the industry as a whole.
Figure-12: Total Number of Employees Per Branch

70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Though the average number of employees per branch for the banking industry was almost same
26
since 1975 to 2019, it is observed that total number of accounts (deposit and advance) per
employee, total accounts (deposit and advance) per branch, total income per employee, total
export, import and remittance handling per employee and total transactions in branch per
employee has been increased tremendously due the technological advancement in the banking
sector. Since 1990, banks have started scattered automation process by using decentralize banking
system and there after the above mentioned parameters started to increase slightly but major
growth is observed after 2000 when most of the banks started centralized banking operations
through data center.
3.2 Impact of ICT on Productivity of Banks

Productive efficiency gives a measure of performance of the bank in producing outputs relative to
inputs. Productivity is thus an important component of analyzing and monitoring a bank's
performance. Parametric approaches to measuring productivity involve parameterizing the
relationship between the level of inputs and the technically efficient level of outputs. In the non-
parametric approach no such assumptions are made on the form of the production function.
Among the popular parametric methods employed is the production function framework derived
from the economic theory of production relating the outputs of a firm to its inputs. Barua, et al.
(1995), Parsons, Gotlieb and Denny (1993). Brynjolfsson and Hitt (1996). Prasad and Harker
(1997). Rao. Singh and Maheshwari (2003), Takemura (2003) among others used this
methodology to study returns on ICT investment and/or the impact of lT on the productivity and
profitability of the firm.
Prasad and Harker (1997) bring out through empirical studies that use of production function
techniques in banks is valid and successful. The typical form of the Cobb-Douglas Production
Function to study the impact of ICT takes the form (Brynjolfsson and Hitt, 1996):
Q=e β C β K β S β Lβ
0 1 2 3 4
Where
Q=Output of the Firm, C=IT Capital , K=Non−IT Capital , S=IT Staff expense ,
L=Non−IT Staff Expense and β 1 , β 2, β 3 , β 4 are the associated output elasticities.
For estimation purposes, the above equation is linearized by taking its logarithms
and adding two dummies (to see the impact of different automation levels of ICT in banks) and
an error term as follows:
log Q=β 0 + β 1 log C + β 2 log K + β 3 log S + β 4 log L+ β 5 D 1+ β6 D 2 +ε … … … … .(1)
Dummy Variables
D1=1 , if the bank is∈Category−1 aut omation ; Otherwise 0
D 2=1 , if the bank is∈Category−2automation ; Otherwise 0
All Dummies ‘0’ means there was a very little scattered branch automation only or no automation at all.
We will test the following hypotheses for the model (1):
H 1 a:
β 1> 0; β 3 >0 versus the null hypothesis that β 1=β 3=0
27
i.e. the marginal products of ICT capital and ICT labor are positive, which means that investment in ICT
improves productivity.
H1b:
β 1* (Output/ICT Capital) - Cost of ICT Capital > 0; and
β 3* (Output/ICT Labour) - Cost of ICT Labour > 0.
H 1 b helps us to confirm that ICT investment is not only positive, but also it pays more than what we
spend on it. This is a robust test than H 1 a, which only exams for the gross benefits, since we are assessing
whether there are any positive net benefits (i.e. benefits after we have subtracted the costs from the gross
benefits) associated with ICT.
Finally, we shall also test the following hypothesis:
H1c :
β 1- (ICT Capital/Non-ICT Capital)* β 2> 0 and
β 3- (ICT Labour/Non-ICT Labour)* β 4 > 0
This hypothesis states that the ratio of the marginal product to the investment in ICT capital and labor is
higher than it is for the corresponding non-ICT investments; this is a much stronger hypothesis than H 1a.
Not only does it imply that there are positive returns to investment in ICT capital and labor but also that
the returns are higher than those from non-ICT capital and labor.
The data is taken from the published annual reports of the banks concerned. For the ICT
investments variable "Other Fixed Assets" in the balance sheets is used as a proxy. Banks
account for investments in ICT infrastructure and related supporting assets under this head. In the
absence of a separate line item in the balance sheets this head most closely represents the ICT
investments made. For the non-ICT investments variable additions during the year to fixed assets
and work in progress are considered. Personnel expenses are taken from the head of 'salary and
allowance'. This is split up into ICT and non-ICT components in the same ratio as number of
ICT personnel and non-ICT personnel in the total employee strength. For the rest figures arrived
at are based on the information shared by the respective heads of ICT departments in
personal/telephonic interviews. Data from 4 Govt. (3 SOCBs and 1 SB), 3 FCBs and 14 PCBs from
2000-2019 are pooled and analyzed. Summary of the input output data are given in the following
table:
Table-24 Summary Statistics of Input-Output data

Output (Dependent Variable)
Average Advance and Deposit Average Revenue

Tk. 11275.12 Crore Tk. 1271.15 Crore
Inputs: Independent Variables
Average ICT Average Non-ICT Average ICT Personnel Average Non-ICT Personnel
Investments Investments Expenses Expenses
Tk. 15.4 Crore Tk. 56.42 Crore Tk. 3.94 Crore Tk. 166.48 Crore
Result and Discussion:
The following are the key results obtained from the summary statistics (Table-25) and the
28
regression equation (1):
Table-25: Estimates from Random Effect Model
t- Ratio to Marginal
Parameter Coefficient p-value
statistics Output Product
ICT Investments 0.1866 3.75 0.000 0.00137 136.620
Non-ICT Investments 0.2931 2.73 0.023 0.00500 58.571
ICT Personnel Expenses 0.1183 5.59 0.000 0.00035 338.542
Non-ICT Personnel Expenses 0.6739 3.31 0.002 0.01477 45.641
Constant 0.089 1.37 0.175
D1 0.391 2.18 0.031
D2 0.092 1.79 0.076
Statistic Value p-value

F-Statistic 23.0 0.000
R2 0.89
Adjusted R2 0.82
Modified Wald * 12.94 0.226
Wooldridge* 1.98 0.192
*Values are given after correction for autocorrelation and heteroskedasticity.
Test of Hypothesis, when Output = Total Loans and Deposits
H 1 a: β 1> 0; β 3 >0 versus the null hypothesis that β 1=β 3=0
It is observed that the elasticity (coefficient) associated with ICT investments is positive and high.
Therefore, there is strong evidence to conclude that ICT investments contribute to productivity.
The marginal product of ICT investments is positive and high at 136.620. By the same way, there is
evidence that expenses on ICT personnel too contribute to productivity, with the marginal product
positive and high at 338.542. Though there is evidence of positive returns accruing through the
non-ICT components too, their marginal products are lower.
H 1 b : β 1* (Output/ICT Capital) - Cost of ICT Capital> 0; and

β 3*(Output/ICT Labour) - Cost of ICT Labour> 0.
From Table -25 it is evident that the marginal product of ICT investments is very high at 136.620 far
exceeding the cost of fund (7.5 percent). Thus we can accept H 1b for ICT capital. We also see that the
marginal product for ICT labor is very high at Tk. 338.542. Since ICT labor is a flow variable, it means
that every taka of ICT labor costs a taka. In view of this, the excess returns from ICT labor can be
computed to be (338.542 - 1), or 337.542. Thus, H 1b can be accepted for ICT personal too. Thus, verifies
that ICT yields are not just positive alone, but pay more than what is spent on ICT.
Also third hypothesis can be tested as:
29
H 1 c : β 1- (ICT Capital/Non-ICT Capital)* β 2> 0 and
β 3- (ICT Labour/Non-ICT Labour)* β 4 > 0
Using the figures from summary statistics (Table-24) as well as the coefficients (Table-25) and applying
them to the equation, it is observed that:
β 1- (ICT Investment/Non-ICT Investment)* β 2=0.1065> 0
Thus. Hypothesis Hlc is proven that the ratio of marginal product to investments in ICT is higher than it
is for corresponding non-ICT investments. Hence it implies that there are positive returns to ICT
investments and that the yields are higher than those from non-ICT investments.
Applying in the same way to ICT labour:
β 3- (ICT Labour/Non-ICT Labour)* β 4 = 0.10235 > 0
Thus it implies that there are positive returns to expenditure on ICT personnel and that the returns are
higher than those on Non-ICT personnel.
The above results also reveal that, ICT personnel are a resource that yields better returns than ICT
investments. This is reflective of the banking industry, where emphasis on service delivery means that
labour is considered to be a more worthwhile investment than capital.
Significant value of the dummy variable D 2 implies that there is a significant technology shift from
manual banking system to Category-2 online banking process. But low value of D 2 (0.092) indicates that
impact of Category-2 technology over manual banking system is very little.
However, high significant value of the dummy variable D 1 implies that there is a big technology shift
from Category-2 system to Category-1 online banking process. And higher value of D 1 (0.391) indicates
that impact of Category-1 technology over Category-2 technology is very high.
Test of Hypothesis when Output = Revenue
The following are the key results, computed from the summary statistics (Table-24) as well as the
regression equation (1).
Ratio to Marginal
Parameter Coefficient t-statistics p-value
Output Product
ICT Investments 0.1998 3.18 0.001 0.01212 16.49
Non-ICT Investments 0.6319 2.34 0.022 0.04439 14.24
ICT Personnel Expenses 0.0774 3.13 0.002 0.00310 24.97
Non-ICT Personnel Expenses 0.8166 7.05 0.000 0.13097 6.240
Constant 0.1101 1.50 0.132
D1 0.6236 3.22 0.002
D2 0.1813 1.79 0.075

30
R2 0.84
2
Adjusted R 0.78
*Values are given after correction for autocorrelation and heteroskedasticity
Hypothesis: H1a
From the foregoing discussion, this hypothesis reads:
H 1 a: β 1> 0; β 3 >0 versus the null hypothesis that β 1=β 3=0
As in the previous instance, coefficients of both ICT and Non-ICT inputs are positive, reflecting positive
returns. However, marginal products are much lower.
Hypothesis: H1b
H 1 b : β 1* (Output/ICT Capital) - Cost of ICT Capital > 0; and

β 3*(Output/ICT Labour) - Cost of ICT Labour > 0.
Following the discussion in the previous case (output = loan and advances), it can be inferred that H 1b can
be accepted in the case of revenue as output criterion too. However, considering the low marginal product
values, it may be concluded that the evidence of ICT resources paying more than what is spent on them is
rather weak.
Hypothesis: H1c
Using the figures from summary statistics as well as the coefficients and applying them to the equation, it
can be observed that:
β 1- (ICT Investment/Non-ICT Investment)* β 2=0.0273> 0
Thus, hypothesis H1c is proven that the ratio of marginal product to ICT investment is higher than it is for
the corresponding non-ICT investments. It implies that there are positive returns to ICT capital and that
the returns are higher than those from non-ICT capital.
Applying in the same way to ICT labour:
β 3- (ICT Labour/Non-ICT Labour)* β 4 =0.0580> 0
Thus, H1c can be accepted for revenue as output too.
From the foregoing analysis of the contribution of ICT to banks’ productivity, it could be inferred that
ICT capital and ICT labour contribute significantly to the productivity of the banking sector for both
business mix (advance and deposit) and revenue as outputs. In fact not only are the ICT contributions
positive, they pay more than what is being spent on them. Also, the returns on ICT resources are higher
than those accruing from non-ICT resources.
Significant value of the dummy variable D 2 implies that there is a significant technology shift from
manual banking system to Category-2 online banking process. But low value of D 2 (0.1813) indicates that
31
impact of Category-2 technology over manual banking system is very low.
However, high significant value of the dummy variable D 1 implies that there is a big technology shift
from Category-2 system to Category-1 online banking process. And higher value of D 1 (0.6236) indicates
that impact of Category-1 technology over Category-2 technology is very high.
Before we run the regression analysis we used the Variance Inflation Factor (VIF) and test variability
allowed Tolerance between independent variables to clarify if there is a multicollinearity problem
between the independent variables. We found some variables that are excluded from the model were
highly correlated with some independent variables. Depending on the Variance Inflation Factor (VIF) and
variability allowed Tolerance test for each variable which should not exceed the inflation coefficient
value of 10 and Tolerance should be greater than 0.05 we removed them from the model. Therefore, the
model under study is reliable as there is no significant effect of Variance Inflation Factor problem.
We estimated equation (1) using both random and fixed effects model separately. A series of tests were
carried out to select the use of the best model for the regression analysis. According to Yaffee (2005)
either of the fixed-effects or random-effects estimators would be the best linear unbiased estimator
(BLUE). The Hausman specification test was used to find the BLUE and the random effects estimator
was selected as the most appropriate one. While running fixed effect model we observed autocorrelation
and heteroskedasticity in the data. Finally, we removed it by running a rectified model. Modified Wald
and Wooldridge test ensured the removal of the problems.
3.3 Impact of ICT on Bank’s Efficiency
3.3.1 Data Envelopment Analysis
Charnes, Cooper and Rhodes (1978) developed Data Envelopment Analysis (DEA) that uses linear
programming technique to study how a specific Decision Making Unit (DMU) – like a bank in this study
– operates relative to other DMUs in the sample. The ratio of output to input is considered as a measure of
Efficiency. This is very simple if there is only one input and one output. But the process converts
complex when multiple inputs and outputs are used. Data Envelopment Analysis gets around this problem
by constructing an efficiency frontier from weighted inputs (virtual input) and weighted outputs (virtual
output). An efficiency score of 1 is given to DMUs on the frontier while scores between zero and one are
given to others inside. The more away a bank is from the frontier, the lower its efficiency score.
This study considered deposits as an output in addition to advances and non-interest income. The number
of branches, total operating expenses and equity are considered as input variables. In a country like
Bangladesh, total number of branches is a very important parameter in providing banking products and
services, especially where a majority of a bank’s customers are likely to have only limited ability to
travel. A widespread branch network allows a bank to generate more deposits and more loans with the
same level of operating expenses.
In recent years, banks have been investing more in Financial Technologies like ATMs, MFSs, Agent
Banking, Internet Banking, Banking Apps, Virtual Banking, etc. Banks are also inspiring their customers
to use these technologies. As a result operating costs are expected to drop while fixed costs surge but we
would still expect an overall enhancement in bank efficiency and profitability.
3.3.2 Efficiency Scores
32
The output of DEA (efficiency scores) is shown in Table-27 from 2000 to 2019. But due to limitation of
table space we intentionally skipped data of some years between 2000 and 2015. Our study includes 21
banks – 4 Govt. Banks (3 SOCBs and 1 DFI), 14 PCBs and 3 FCBs. We calculated ES for each bank
separately for the period 2000-2019. But the following table shows scores by categories of banks only.
Table-27: Banks Efficiency Scores (ES) under Data Envelop Analysis

Types of Bank 2000 2005 2010 2015 2016 2017 2018 2019
SOCBs 0.458 0.403 0.584 0.578 0.456 0.632 0.540 0.571

SBs 0.37 0.384 0.497 0.454 0.499 0.444 0.344 0.457
PCBs 0.604 0.691 0.744 0.703 0.732 0.771 0.794 0.811
FCBs 0.730 0.737 0.758 0.831 0.788 0.755 0.827 0.822
From Table-27 we see that in last few years, Foreign Commercial Banks (FCBs) are seen to be the most
efficient. Thus, with the limited number of branches foreign banks seem to make good use of their inputs.
Efficiency of Private Commercial Banks (PCBs) is slightly behind foreign banks. State-owned
Commercial Banks (SOCBs) rate third in efficiency, behind private and foreign banks. The reasons might
be the high amount of NPL and large number of branches that are being operated in the rural areas.
However, due to the huge investment in ICT, government banks gained most in efficiency during the
period 2010 to 2019. In general, it is also seen that efficiency scores have enhanced for all types of banks
during the period under study.
3.3.3 Explaining Efficiency Differences
In this section, we try to clarify differences in bank efficiency. We used the following multiple regression
method for our pooled data.
ES=β 0+ β 1 SER+ β 2 ITNITER+ β 3 CER+ β 4 ITIER+ β5 D1 + β 6 D2 + ε … … ….(2)
Each individual bank’s efficiency score (ES) is the dependent variable in the equation and the explanatory
variables are: SER (Salary to Expenditure Ratio), ITNITER (ICT-Employee to Non-ICT Employee
Ratio), CER (Computer to Employee Ratio), ITIER (ICT Investment to Employee Ratio) and two
Dummy variables to check the impact of the levels of automation of banks.
D 1=1 , if the bank is∈Category−1 automation ; Otherwise 0
D2=1 , if the bank is∈Category−2automation ; Otherwise 0
Here all Dummies ‘0’ means there was very little automation or no automation at all. Finally, we added
ε , the error term of the model. Statistical estimations are given in the following table.
Table-28: Summary from Random Effect Model

Independent Variables Coefficient t-Statistic p-value
Constant 0.2299 9.17 0.000
SER (Salary Expenditure Ratio) 0.1717 2.18 0.041

ITNITER (ICT-Employee Non-ICT Employee 1.1509 1.56 0.133
Ratio)
CER (Computer Employee Ratio) 0.3650 10.04 0.000
ITIER (ICT Investment Employee Ratio) 0.0033 3.94 0.001

D 1 : :Category −1 Automation 0.0862 3.06 0.006
33
D 2 :Category−2 Automation 0.0321 1.54 0.140

R2 0.78
Adjusted R2 0.72
It is detected from the regression results in table-28 that the SER (Salary Expenditure Ratio), has a
positive impact on ES. This implies that banks giving a higher portion of their expenditure as salary have
higher efficiency in the market. This is due to the fact that the employees who are highly paid in the
market have high quality and efficiency compared to ill paid employees. CER (Computer to Employee
Ratio) is found very significant because, in reality, the employees who are directly providing services to
the customers actually need the computer, the basic tool to interact with an online bank, to enhance
efficiency and productivity. Though the per capita investment on ICT indicates the overall automation
status of a bank, it is also found significant though the contribution towards efficiency is a little bit low.
Significant value of the dummy variable for Category −1automation implies that online centralized
bank have much higher efficiency than Category −2 banks. The insignificant value of the dummy
variable for Category −2 automation implied that Category −2automation did not help banks to
increase their efficiency at all. Finally, insignificant ITNITER (ICT-Employee to Non-ICT Employee
Ratio) value indicates that though increased ICT employee may help to increase the business volume,
productivity and ICT operational efficiency, they have little impact on business efficiency because most
of them are working behind the machines not directly handling the business customers.
.
We estimated equation (2) using both random and fixed effects model separately. The Hausman
specification test was used to select the best model for the regression analysis and the random effects
estimator was selected as the most appropriate one. While running fixed effect model we observed
autocorrelation and heteroskedasticity in the data. Finally, we removed it by running a rectified model.
Modified Wald and Wooldridge test ensured the removal of the problems.
3.4 Impact of Efficiency on Profitability of Banks
In the previous section we estimated the bank-specific efficiency levels. Finally, in this section, impact of
estimated bank-specific efficiency levels on bank’s profitability is examined. To do this, we used the
following regression model:
Profitability= β0 + β 1 ES + β 2 ITI + β 3 MSI + β 4 D1+ β5 D2 +ε … … … (3)

Where,
34
ES: Efficiency Score (obtained from equation-2), MSI: Market Size Index, ITI: ICT Index
(Appendix B)
Dummy Variables
D1=1 , if the bank is a Private bank ; Otherwise 0.
D 2=1 , if the bank is a Foreign bank ; Otherwise 0.
All Dummies ‘0’ means the bank is a Government bank .
ε : error term
While calculating MSI, we considered total assets, employees and branches of a particular bank as a
percentage of total assets, employees and branches of the banking sector, respectively. Moreover, we
have given 50% weight to Assets, 25% to Branches and 25% to Employees while calculating MSI.
To measure the profitability of a bank we used three proxy measures, namely, Expenditure to Income
Ratio, Non-Interest Income to Total Operating Income Ratio and Return on Assets (ROA).

Dependent Variable
Non-Interest Income to Total Return on Assets
Independent Variables Expenditure Income Ratio
Operating Income Ratio
Coeffici t- Coeffici t- Coeffici t-
p-value p-value p-value
ent Statistic ent Statistic ent Statistic
Constant 0.830 5.17 0.000 0.300 3.86 0.000 0.384 4.120 0.000
ES (Efficiency Score) -3.172 -8.999 0.000 0.276 1.37 0.178 1.790 6.600 0.000
ITI (ICT Index) -0.651 3.04 0.003 6.051 2.41 0.018 0.651 1.951 0.054
MSI (Market Size 0.45 0.067 1.459 0.156

1.137 1.95 0.054 0.325 0.225
Index)
D 1 : : Private Bank -0.021 -2.18 0.041 0.031 13.07 0.000 0.940 8.241 0.000
D 2 :Foreign Bank 0.001 -1.43 0.156 0.046 10.26 0.000 2.640 11.254 0.000
Dependent Variable F-Statistic R2 Adjusted R2 Modified Wooldridge*

Wald *
13.6 0.79 0.74 11.69 0.27
Expenditure Income Ratio (0.000) (0.299) (0.795)
Non Interest Income to Total Operating 12.5 0.82 0.78 9.65 1.91
Income Ratio (0.000) (0.324) (0.193)
10.65 0.72 0.69 8.71 1.02
Return on Assets (0.000) (0.229) (0.196)
35
We estimated equation (3) using both random and fixed effects model separately. The Hausman
specification test was used to select the best model for the regression analysis and the random effects
estimator was selected as the most appropriate one. While running fixed effect model we observed
autocorrelation and heteroskedasticity in the data. Finally, we removed it by running a rectified model.
Modified Wald and Wooldridge test ensured the removal of the problems.
From the estimates we see that ES (Efficiency Score) has a negative relationship with Expenditure
Income Ratio which is highly significant. This suggests that ES is an essential variable in expenditure
income ratio measure of bank profitability. Bank with higher efficiency management has a lower
Expenditure Income Ratio, and will results in higher profitability.
From Non-Interest Income to Total Operating Income Ratio model, we see that MSI is not a factor of
bank profitability. It is affected by ITI, because high tech banks gain higher Non Interest Income like ICT
enabled service charges. Moreover, high-tech banks have ability to higher online payment system than a
bank which is lagging behind. The Efficiency Ratio is not significant in this regard because majority of
the ICT enabled charges generated automatically without human interaction.
From table-29, we notice that effects of ES, ITI and MSI variables are statistically significant. As
expected, EIR (Expenditure Income Ratio) decreases as ESs increase and the decline in EIR is also
statistically significant. It is also seen that increased ITI directly reduce EIR. We found that when MSI
increases EIR also increases. But if we look at the impact of dummies, we see that it is significantly less
for private banks compared to SOCBs as D1 is -0.021. In reality, it is seen that private banks are
increasing their market size day by day which indicates better management control over banks. The
dummy variable, D2 for FCBs indicates that their expenditure income ratio also slightly increases as they
increase the market size holding other things constant.
Model summary of three models are shown in table-29. Among these models, highest R square (0.82) is
seen in the ‘Non-Interest Income’ to ‘Total Operating Income’ Ratio model which means that 82% of the
variance in ‘Non-Interest Income’ to ‘Total Operating Income’ Ratio are explained by explanatory
variables used in this study and still 18% remain undiscovered. That means, other additional variables are
required to explain ‘Non-Interest Income’ to ‘Total Operating Income’ Ratio that yet to be considered in
this study.
The R square for expenditure income ratio model is 0.79 which means the independent variables explain
79% of expenditure income ratio. In case of ROA model it is only 0.72. ROA model generates the bottom
R squares, and the sample only explains 72% of ROA and the rest 28% unexplained.
In case of ROA model, Efficiency Score (ES) is found to be the most critical factor and it has a positive
impact on profitability of banks. Additional factor of ROA model is ITI. ITI has also a positive
relationship with ROA. That means higher the ITI, higher profitability can be gained by the bank. By
increasing market size ROA can’t be increased, that is indicated by the coefficient which is not
significant. We can’t conclude that big size banks are more profitable than smaller banks.
Both significant dummy variables indicate that private and foreign banks gaining higher ROA compared
to NCBs. But ROA gain of FCBs is also higher than PCBs. Only one variable, ITI, is found the
determinants in all three models of profitability measure. This implied that ITI significantly improves the
profitability performance of banks.
36
3.5. Impact of ICT on Customers’ Satisfaction
3.5.1 Measurement of Customers’ Satisfaction
A customer satisfaction is an abstruse and abstract concept. Actual state of satisfaction varies from person
to person, product to product and service to service and depends on a number of psychological, economic
and physical factors. In banking industry, one of the major elements of the customer satisfaction is the
quality of services. Moreover, if customers are not satisfied, it is very tough to expand the banking
business. However, we feel that, there are may be some likelihood of gaps between customers’ hopes and
actual perception of service quality, brand perception and perceived value in online banking. Therefore,
this section is introduced to detect the major factors that affect customers’ satisfaction in electronic
banking in Bangladesh. The following table describes the constructs with description that are used to
estimate the satisfaction of customers’. Moreover, overall customers’ satisfaction and loyalty towards the
bank was also measured here.
Table-30: Construct and Description
S.
Construct Description
No.
Availability of Latest equipment and physical facilities-Full Branch Automation, Core Banking Solution,
1 Online Banking ATM, POST, Internet Banking, Agent Banking, Mobile Financial Services, SMS
Services Notifications, Credit Card, Electronic Fund Transfer, Online Bill Payment, Call Center, etc.
Scope of services offered, Availability of International Network, Digitalization of Business
2 E- Requirement
Information, Variety of Services.
3 Accuracy Accurate E-services through Online and Alternative Delivery Channels.
Immediate and quick transaction and check out with minimal time: speed of clearing,
4 Efficiency
depositing, enquiry, getting information, money transfer, response etc.
Building customer confidence through trust, privacy, believability, truthfulness, and security.
5 Security
Guarantee from fear about money losses, fraud; PIN and password theft; hacking etc.
Problem management, prompt and timeliness service, helping nature, employee curtsey,
6 Responsiveness
recovery of PIN, password and money losses.
Easy use of online delivery channels like ATM, internet banking, Mobile banking, credit card,
7 Easy Operations
debit card etc.
8 Convenience Customized services, anywhere and anytime banking, appropriate language support, etc.
Price, Fee and Charges: commission for fund transfer, interest rate, clearing charges, bill
9 Cost Effectiveness collection and payments’ fee, transaction charges, processing fees etc., Price, charges and
commissions should be less for Telecommunication Company and internet service providers.
10 Problem Handling It refers to problem solving process regarding computerized banking services
Settlement of It refers to recover the losses regarding to problems and inconvenience occurred in using
11
Grievances online banking delivery channels.
Contact and Help Communication: Bank to customer or customers to bank via e-mail, SMS, Phone, interactive
12
Desk Support website, call center, etc.
13 Brand Perception Overall perception of customers according to commitment given by bank for banking services.
Consolidated perception from banking service in term of perceived quality and money spent
14 Perceived Value
for getting banking services.
Table-31 summarizes the customers’ satisfaction regarding online banking with respect to different
construct (ex. availability, accuracy, security, etc.). Satisfaction is calculated by the following formula for
each construct.
37
n
∑ Si
i=1
Satisfaction(% )= ×100
n × HS
n
Here, ∑ Si is the sum of scores of n respondents for each question/construct to understand the
i=1
satisfaction level. HS is the highest score assigned for each question. Actually, we have calculated the
satisfaction level of customers for each question as a percentage of maximum satisfaction a customer
expects from a bank. In this study we have used five-point ‘Likert’ Scale ‘Very Poor: 1 Poor: 2 Good:3
Very Good: 4 Excellent: 5’ or ‘Strongly Disagree: 1 Disagree: 2 Neutral: 3 Agree: 4 Strongly Agree:
5’, where necessary.
Table-31: Mean and Satisfaction Score for All Banks
Satisfaction
S. No. Mean
Construct (%)
1. Availability of Online Banking Services 3.77 75
2. E- Requirement 3.41 68
3. Efficiency 3.69 74
4. Accuracy 3.98 80
5. Security 3.05 61
6. Responsiveness 3.46 69
7. Easy Operations 3.42 68
8. Convenience 3.34 67
9. Cost Effectiveness 3.67 73
10. Problem Handling 2.81 56
11. Settlement of Grievances 2.62 52
12. Contact and Help Desk Support 2.77 55
13. Brand Perception 3.14 63
14. Perceived Value 3.43 69
15. Overall Customer Satisfaction 3.05 61
16. Continue with this Bank 3.45 69
17. Recommend this Bank to Others 2.78 56
From the above table highest satisfaction is seen in case of accuracy of operations which implies that ICT
helps bankers to reduce operational errors. Lowest satisfaction is found in case of handling grievances.
That is customers are not getting right and quick solution when they complain for any dispute. Moreover,
overall customers’ satisfaction 61% implies that though online banking adopted in our country very
widely and rapidly, there are enough scopes to develop good customer relationship by satisfying them
more.
However, with this level of overall satisfaction the customers would like to continue their relationship
with the bank for the time being but they don’t like to recommend other customers to make a relationship
38
with the respective bank. This might lead the customer to search a better bank in the long run putting
questions regarding customer relation with the bank.
A comparative satisfaction level of customers w.r.t. different categories of banks are given in the
following table.
Table-32: Mean and Satisfaction Score for Different Categories of Banks

SOCBs and SBs PCBs FCBs
Constructs
Satisfaction Satisfaction Satisfaction
Mean Mean Mean
(%) (%) (%)
Availability of Online Banking Services 2.5 50.0 4.4 88.0 3.1 62.0
E- Requirement 2.4 48.0 3.8 76.0 4.1 82.0
Efficiency 3.1 62.0 3.9 78.0 4.3 86.0
Accuracy 3.6 72.0 4.1 82.0 4.5 90.0
Security 3.3 66.0 2.9 58.0 3.5 70.0
Responsiveness 3.0 60.0 3.6 72.0 4.2 84.0
Easy Operations 2.9 58.0 3.6 72.0 4.0 80.0
Convenience 2.3 46.0 3.8 76.0 3.3 66.0
Cost Effectiveness 4.2 84.0 3.4 68.0 4.1 82.0
Problem Handling 2.0 40.0 3.1 62.0 3.5 70.0
Settlement of Grievances 1.7 34.0 2.9 58.0 4.1 82.0
Contact and Help Desk Support 1.5 30.0 3.2 64.0 4.2 84.0
Brand Perception 2.3 46.0 3.4 68.0 4.3 86.0
Perceived Value 3.1 62.0 3.5 70.0 4.2 84.0
Continue with this Bank 2.8 56.0 3.7 74.0 3.9 78.0
Recommend this Bank to Others 1.8 36.0 3.1 62.0 4.1 82.0
Overall Customer Satisfaction 2.1 42.0 3.4 68.0 3.8 76.0

3.5.2 Gap between Highest Expectation and Current Service Quality
Gaps were assessed purely on the basis of the percentage of satisfaction values for each
question/parameter comparing with a reference score ‘100’ which was considered to be the maximum and
that any organization should like to achieve for excelling. A service gap of close to 30 and more than 30
was considered to be highly critical area for the improvement of the performance dimensions. A service
gap of between less than 30 and more than 20 was considered as critical and further needs for
improvements and service gap below 20 is treated as less significant. Figure-13 shows the gap between
the percentage of satisfaction and highest expectation (100) of customers’ regarding e-banking services.
This will help the management to reduce the gap between the demand of customers and existing available
facilities.
39
Figure- 13: Gap between Expectation and Current Service Quality
Availability of Online Banking Services

Recommend this Bank to Others E- Requirement
100
Continue with this Bank Efficiency
Overall Customer Satisfaction Accuracy

50
Perceived Value Security

0
Brand Perception Responsiveness
Contact and Help Desk Support Easy Operations
Settlement of Grievances Convenience

Satisfaction Expected Gap
Problem Handling
Cost Effectiveness
Source: BIBM Survey
40
Table-33: Analysis of Variance (ANOVA)
Categories of
Banks Different Region
Occupation Age group Education Level
(SOCB/PCB/FC (Div./Dist./Upazila)
Constructs B)
F-value p- F- p- F-
p-value F-value p- F-value p-value
value value value value value
Availability of Online
2.725 0.044 1.210 0.300 0.545 0.652 7.350 0.000* 9.594 0.000*
Banking Services
E-Requirement 3.148 0.025* 2.678 0.047* 2.659 0.015* 3.406 0.018* 2.602 0.052*
Efficiency 1.481 0.219 1.803 0.097 1.092 0.352 9.602 0.000* 8.701 0.003*
Accuracy 0.722 0.632 1.429 0.202 0.527 0.664 3.737 0.011* 3.806 0.052*
Security 5.106 0.002* 2.667 0.015* 3.736 0.011* 5.003 0.002* 6.567 0.011*
Responsiveness 1.711 0.164 1.589 0.149 0.278 0.841 2.603 0.052* 2.543 0.051*
Easy Operations 4.223 0.006* 2.063 0.057* 3.644 0.013* 4.991 0.002* 5.765 0.017*
Convenience 4.043 0.008* 1.623 0.139 0.420 0.739 2.110 0.098* 2.192 0.088*
Cost Effectiveness 0.533 0.660 1.485 0.182 1.202 0.309 4.046 0.007* 8.506 0.004*
Problem Handling 0.512 0.674 0.225 0.879 0.786 0.502 1.531 0.206 2.459 0.118
Settlement of
1.324 0.266 1.453 0.193 0.037 0.991 9.530 0.000* 13.870 0.000*
Grievances
Contact and Help
3.023 0.030* 1.352 0.233 0.837 0.474 3.720 0.012* 8.512 0.004*
Desk Support
Brand Perception 1.623 0.139 1.481 0.219 0.527 0.664 4.991 0.002* 1.202 0.309
Perceived Value 1.429 0.202 1.623 0.139 1.481 0.219 5.003 0.002* 1.092 0.352
Source: BIBM Survey
F values with very high significance level (*) of Table-33 implies that satisfaction level of customers of
different bank groups (SOCBss/PCBs and FCBs) vary very highly with respect to all constructs.
Moreover satisfaction level of customers residing division, district and Upazila level also significantly
varies with most of the constructs. For some constructs satisfaction level of customers also significantly
varies for different occupations, age group and education level.
3.5.3 Factor Analysis
In this section a factor analysis is done to see what factors actually affecting satisfaction of customers
regarding online banking. Here, 14 response items (Table-31) among 17 items were used.
41
Presence of nonzero correlation is ensured by Bartlett's Test of Sphericity which is significant at the
0.00001 level (Table-34(a)). The Kaiser-Meyer-Olkin Measure of Sampling Adequacy was 0.714 which
exceeds there recommended cut-off level of 0.5 and individual measures were all well above this cut-off
level. It is clear that the fundamental requirements of factor analysis are ensured by this data set.
Table-34 (a) Table-34 (b)
KMO and Bartlett's Test Total Variance Explained

Rotation Sums of Squared
Kaiser-Meyer-Olkin Loadings
Measure of Sampling 0.714 Component
Adequacy. % of Cumulative
Total
Variance %
Approx. Chi-Square 934.661 1 2.992 23.013 23.013
Bartlett's
2 1.894 14.573 37.586
Test of df 136
Sphericity 3 1.706 13.12 50.706
Sig. 0.00001 4 1.17 9.003 59.708
Extraction Method: Principal Component Analysis.
Using the principles of an eigenvalue greater than 1 and Scree Plot four factors are clearly identified.
These four factors accounted for 59.708% of the total variance (Table-34(b)). Also a Varimax Rotation
with Kaiser Normalization was performed as a common practice to attain simpler and ideally more
meaningful factors.
Table-35: Component Matrix
Rotated Component Matrix

Component
1 2 3 4
Availability of Online Banking Services 0.829 0.184 0.056 0.471
E-Requirement 0.743 0.002 0.105 0.030
Efficiency 0.268 0.680 0.148 0.012
Accuracy 0.684 0.049 0.014 0.242
Security 0.690 0.775 0.057 0.100
Responsiveness 0.094 0.770 0.034 0.269
Easy Operations 0.176 0.637 0.385 0.163
Convenience 0.622 0.325 0.128 0.491
Cost Effectiveness 0.096 0.095 0.746 0.098
Problem Handling 0.071 0.168 0.166 0.778
Settlement of Grievances 0.429 0.334 0.044 0.746
Contact and Help Desk Support 0.153 0.018 0.159 0.689
Brand Perception 0.027 0.153 0.799 0.086
Perceived Value 0.019 0.026 0.855 .013

Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
42
Clearly four factors are identified from the original 14 response items by examining the factor loadings as
pointed in Table-35. These four factors represent different elements of online banking services. Factor-1
represents Convenience, E- Requirement and Availability; it is therefore labeled ‘Digitization of
Banking’. Factor-2 represents Responsiveness, Efficiency, Easiness and Security; it is therefore labeled as
‘Operational Efficiency’. Factor-3 represents Cost, Brand Perception and Perceived Value; it is therefore
labeled as ‘Post Purchase Behavior of Banks’. Factor-4 represents Problem Handling, Settlement of
Grievances and Contact and Support. It is therefore labeled as ‘After Sales Support.’
4.0 Findings and Recommendations
With the rising demands for ICT budgets the bank managements are frustrated that they have no proper
means of measuring the investments or impacts of ICT on their organization. They are increasingly
introspecting whether they are making the technology investment decisions rightly and whether such
resource commitments will indeed fetch them the envisaged benefits- be they in the form of financial
returns, business advantages or enhanced capabilities. Knowledge of the nature and extent of contribution
of ICT to bank's performance in terms of productivity and profitability has, therefore, can be considered
valuable for a reality check on ICT. This study attempts to address this need to an extent by examining
the impact of ICT on banking business enhancement. Moreover, effect of ICT on banking business output
with respect to productivity, efficiency and profitability is also studied.
Business Enhancement: ICT introduced a drastic change in the latest style of banking business in a way
that is threatening the traditional form of banks. A strong ICT infrastructure have been developed by the
banks of Bangladesh by investing Tk. 40,943 crore, mainly in last two decades, under the guidance and
monitoring of the central bank. As a result, besides 90% online branches different ADCs like ATM,
Credit and Debit Card, POST, MFS, Agent Banking, Internet Banking, Call Center Banking, Banking
through Apps, etc. has been introduced very rapidly in Bangladesh. The higher CAGR of these ADCs
with respect to numbers, customer base and transactions indicates rapid expansion and acceptance of
online banking and financial inclusion in this country. Consequently, cost of transactions, distance of
financial access points, cost to access a financial service point, travel time to get a financial access point
also reduced dramatically. To get the maximum benefits of this investment and technological
achievement a tactical roadmap may be developed by the government with the help of Bangladesh Bank
in collaboration with other regulators of financial sector to develop a cashless society and digital financial
sector to achieve the broader national goals in the shorter, medium, and longer-term target to develop a
Digital Bangladesh.
Reduction of Transaction Cost: Banks play a vital role in developing the economic and social
conditions of a country. The major share of the profit of banks generally comes from spread. But the
profitability of banks is under tremendous pressure because of continuous shrinking of spread. It becomes
important for banks to reduce the cost per transaction for increasing spread that in turns will increase the
profitability of banks. Use of technology in banks reduces the cost. Bangladesh also shows a reduction
of transaction cost as a result of using computer technology. Here, highest transaction cost is $1.12
(Tk. 90.3) for an online branch, followed by $ 0.65 (Tk. 52.10) for ATM, $0.12 (Tk. 9.60) per 1000
Tk. for MFS, $0.4 (Tk. 32.21) for Agent Banking and $0.022 (Tk. 1.5) for Internet Banking. It is
seen that during the period 2003-2019 all electronic transaction costs except ATM reduced slightly
in Bangladesh.
43
Distance of Financial Access Points: In Bangladesh it is found that about 74% of the MFS (Mobile
Financial Service) users have access to an agent within one kilometer whereas 62% Agent Banking Point
lies between 2 to5 kilometers. On the contrary, only 19% of bank account holders have a bank branch
within the same distance. Most of the ATMs are available within 2 to 10 km. Maximum MFIs are
reachable within 1 to 5 km. To access a post office user has to travel more compared to others access
points of financial services. Clearly technology has reduced the distance of access points significantly.
Moreover, in case of Internet Banking customers can do the transactions from anywhere of the globe
without visiting an access point.
Cost to Access a Financial Service Point: About 53% of MFS users do not incur any costs to travel to
an MFS agent point; whereas only 23% of the bank account holders’ can visit their bank branches without
any cost. On the other hand, 61% of bank account holders’ have to spend more than BDT 10 to travel
round trip to go to a bank branch, but only 23% MFS users’ need to spend that amount to visit to an MFS
agent point.
Travel Time to get a Financial Access Point: Among MFS users, 74% noted that it takes them less than
30 minutes round trip to their nearest MFS agent point, a figure that drops to only 55% for bank account
holders. On the other hand, 81% of bank account users have to spend more than 30 minutes round trip to
travel to a bank branch, while only 26% of MFS users need that amount of time to visit an MFS agent
point. Incase of Agent Banking 62% needs 45-60 minutes round trip to their nearest an agent point.
Financial Inclusion: In future FinTech based innovative financial services will lead the financial
inclusion initiatives. Bangladeshi banks have been trying to get maximum benefits from it. New
technologies are developing day by day. Innovation of artificial intelligence and big data analytics has
given the opportunity to the financial sector to evaluate complex problems and provide solution in no
time to anybody and anywhere of a country. Ensuring various uses of online delivery channel we may
make banking profitable. A national strategic roadmap may be developed by Bangladesh Bank in
collaboration with other financial sector regulators to align the financial sector with current and future
emerging FinTech suitable for our country. Such a roadmap may help to achieve broader national goals in
the shorter, medium, and longer-term.
Efficiency: The paper investigates the efficiency of Bangladeshi banks since ICT Investment started in
the late 1990s. By using Data Envelopment Analysis technique and bank-specific data from 2000 to 2019
it is found that foreign banks are the most efficient followed by private banks. Though the efficiency
scores of all types of banks have increased over the study period, the private banks have recorded the
strongest gains. In case of government banks, though the gain in efficiency is notable in last few years
due to huge investment in ICT, huge bank branch expansion and Non-Performing Loans (NPL) hurt to
achieve the expected efficiency. It seems that good managerial control of PCBs and FCBs due to adoption
of centralized online banking technology has added to their efficiency. Thus, investment on ICT in banks
has elevated efficiency scores over time of all banks in Bangladesh regardless of their ownership. Still,
efficiency of SOCBs and SBs are less compared to other groups.
Profitability: The Computer Employee Ratio and exercise of employment more ICT officers compared
to non-ICT officers among FCBs and PCBs also seems to have backed to their boosted profitability. The
statistically significant dummies indicate that the SOCBs has not been successful in leveraging its
relatively large market share to raise either its efficiency or its profitability compared to PCBs and FCBs.
Profitability of banks has also improved due to the gains in efficiency. Still, profitability of SOCBs and
SBs are less compared to other groups.
Customers’ Satisfaction: Satisfaction of customers directly helps to increase any business. ICT and
emergence of e-Banking has changed the banking business style dynamically satisfying their customers
44
more and more. As a result financial inclusion increased rapidly and banks were able to enhance the
business covering the whole country (or globe) by providing round the clock services all the year round.
In this study, highest satisfaction of customers’ is seen in case of accuracy of operations which implies
that ICT helps bankers to reduce operational errors. Lowest satisfaction is found for handling grievances.
That is customers are not getting right and quick solution when they complain for any dispute.
Management may consider this issue seriously. Moreover, overall customers’ satisfaction score is 61%,
which implies that though online banking adopted in our country very widely and rapidly, there is enough
scopes to develop good customer relationship by satisfying them more. Moreover, satisfaction level of
customers of different bank groups (SOCBs, SBs, PCBs and FCBs) vary very highly with respect to all
constructs. It is also found that satisfaction level of customers residing division, district and upazila level
also significantly varies with most of the constructs. For some constructs satisfaction level of customers
also significantly varies for different occupations, age group and education level. Targeting these groups
banks may take necessary actions to provide them more satisfactory services. This study also identified
major factors that affect customers’ satisfaction on online banking services. ‘Digitization of Banking’,
‘Operational Efficiency’, ‘Post Purchase Behavior of Banks’ and ‘After Sales Support’ are the most
important identified factors.
Productivity: Information Technology, a revolutionary force has not left the banking sector untouched. It
has been a matter of much debate whether or not investment in ICT provides improvements in
productivity. The study finds that ICT has substantial role and positive impacts on productivity of banks.
The findings, however, indicates that there are significant returns to more investment in ICT labor and
capital. The descriptive analysis indicates that productivity of employees has been increased from
minimum 353% to maximum 839% due to the impact of ICT in last two decades. Moreover, using a
Cobb-Douglas production function, it is found that there are “substantial excess returns to investment in
ICT capital and ICT labour. While considering advances and deposit as an output of the industry, the
study indicates that banks using older technology (Category-2: decentralized scattered branch automation)
is 9% more productive than manual banking system (without technology) and online centralized banking
technology (Category-1) provides 47% more productivity than older technology banking system
(Category-2). Additionally, the study also indicates that Category-2 technology banking is 19% more
productive than manual banking system and Category-1 technology banking is 86% more productive than
Category-2 banking system while output of the industry is considered as revenue. In Bangladesh, private
sector banks, which took more ICT initiative, were found to be more efficient in productivity and
profitability parameters than public sector banks.
Role of Bangladesh Bank: Bangladesh Bank has been working proactively for a long period to develop
the overall ICT infrastructure of banking sector. Proper guidelines and monitoring of Bangladesh Bank
has also been helping the ICT departments of different banks to expand in right way. As a result,
expectation from Bangladesh Bank has been increasing day by day and banks have been demanding some
important initiatives to be taken by Bangladesh Bank for the last few years. These are: detailed and
updated version of ICT security policy; guidelines for standardization of ICT department and inspecting
banks frequently (quarterly or half yearly instead of yearly visiting) by Bangladesh Bank inspection team
to check the implementation status of the recommendations given in the yearly ICT core risk inspection
report.
Bangladesh Bank with the joint effort BIBM may take initiatives to develop an Information Sharing and
Analysis Center for Banks (Bank-ISAC), where the members can discuss and share their opinion
regarding the various ICT operational and security issues to mitigate the risks and be aware about the
latest security threats. Moreover, Bangladesh Bank can play a vital role in setting up a cell/wing,
including a data bank for all of the commercial banks to help collect and share up-to-date information
regarding current status, growth and problems of the e-banking/digital banking system. ICT Heads of
86% banks agreed that banking sector should have a center for sharing electronic banking experiences,
45
problems and solutions. Bangladesh Bank, with the help of BIBM, can take initiatives in this regard. A
specialized Information Technology Institute/Academy (like IDRBT, India) may be set up for the purpose
of research, development and consultancy in the area of banking/financial technology of our country.
5.0 Conclusion
Bangladeshi banking sector has come a long way in terms of using ICT. Bangladeshi banks have been
investing heavily in ICT for last two decades to achieve increased productivity, efficiency, profitability
and competitive advantage through improved internal and external transaction flow, better access to
clients and markets and enhanced reach and quality of products and services and a reasonable number of
banks has already attained international standard maturity in technology adoption.
It can be concluded that banks with higher usability of ICT perform significantly better than those with
low ICT usability and there are substantial returns due to an increase in investment in ICT capital and
labor which will incentivize the bank’s management to shift its emphasis on ICT investment. In fact not
only are the ICT contributions positive, they pay more than what is being spent on them. Also, the returns
on ICT resources are higher than those accruing from non-ICT resources.
It has now become impossible to separate Information and Communication Technology (ICT) from the
business of the banks and the financial institutions. As many financial products and services directly or
indirectly depend on ICT, banks have to think how to involve ICT to minimize the cost, increase the
efficiency and how to provide better services to the customers ensuring reliability, safety and security.
Otherwise, banks may face ICT risks as well as business risks. There are several basic requirements for
ICT which must be met; these include a sound technical infrastructure, efficiency of the employees, and
interaction with technical developments. Moreover, ICT security and governance must be ensured for
next generation online banking in Bangladesh.
46
Case -1
United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude
Ryan—two teenagers from Seattle with two bicycles and one phone—promised the “best service and
lowest rates.” UPS has used this formula successfully for more than 100 years to become the world’s
largest ground and air package delivery company. It’s a global enterprise with over 408,000 employees,
96,000 vehicles, and the world’s ninth largest airline. Today, UPS delivers more than 15 million packages
and documents each day in the United States and more than 200 other countries and territories.
The firm has been able to maintain leadership in small-package delivery services despite stiff competition
from FedEx and Airborne Express by investing heavily in advanced information technology. UPS spends
more than $1 billion each year to maintain a high level of customer service while keeping costs low and
streamlining its overall operations. It all starts with the scannable bar-coded label attached to a package,
which contains detailed information about the sender, the destination, and when the package should
arrive. Customers can download and print their own labels using special software provided by UPS or by
accessing the UPS Web site. Before the package is even picked up, information from the “smart” label is
transmitted to one of UPS’s computer centers in Mahwah, New Jersey, or Alpharetta, Georgia, and sent to
the distribution center nearest its final destination. Dispatchers at this center download the label data and
use special software to create the most efficient delivery route for each driver that considers traffic,
weather conditions, and the location of each stop. UPS estimates its delivery trucks save 28 million miles
and burn 3 million fewer gallons of fuel each year as a result of using this technology. To further increase
cost savings and safety, drivers are trained to use “340 Methods” developed by industrial engineers to
optimize the performance of every task from lifting and loading boxes to selecting a package from a shelf
in the truck. The first thing a UPS driver picks up each day is a handheld computer called a Delivery
Information Acquisition Device (DIAD), which can access one of the wireless networks cell phones rely
on. As soon as the driver logs on, his or her day’s route is downloaded onto the handheld. The DIAD also
automati-cally captures customers’ signatures along with pickup and delivery information. Package
tracking information is then transmitted to UPS’s computer network for storage and processing. From
there, the information can be accessed worldwide to provide proof of delivery to customers or to respond
to customer queries. It usually takes less than 60 seconds from the time a driver presses “complete” on a
DIAD for the new information to be available on the Web. Through its automated package tracking
system, UPS can monitor and even re-route packages throughout the delivery process. At various points
along the route from sender to receiver, bar code devices scan shipping information on the package label
and feed data about the progress of the package into the central computer. Customer service
representatives are able to check the status of any package from desktop computers linked to the central
computers and respond immediately to inquiries from customers. UPS customers can also access this
information from the company’s Web site using their own computers or mobile phones. Anyone with a
package to ship can access the UPS Web site to check delivery routes, calculate shipping rates, determine
time in transit, print labels, schedule a pickup, and track packages. The data collected at the UPS Web site
are transmitted to the UPS central computer and then back to the customer after processing. UPS also
provides tools that enable customers, such Cisco Systems, to embed UPS functions, such as tracking and
cost calculations, into their own Web sites so that they can track shipments without visiting the UPS site.
In June 2009, UPS launched a new Web-based Post-Sales Order Management System (OMS) that
manages global service orders and inventory for critical parts fulfillment. The system enables high-tech
electronics, aerospace, medical equipment, and other companies anywhere in the world that ship critical
parts to quickly assess their critical parts inventory, determine the most optimal routing strategy to meet
customer needs, place orders online, and track parts from the warehouse to the end user. An automated e-
47
mail or fax feature keeps customers informed of each shipping milestone and can provide notification of
any changes to flight schedules for commercial airlines carrying their parts. Once orders are complete,
companies can print documents such as labels and bills of lading in multiple languages. UPS is now
leveraging its decades of expertise managing its own global delivery network to manage logistics and
supply chain activities for other companies. It created a UPS Supply Chain Solutions division that
provides a complete bundle of standardized services to subscribing companies at a fraction of what it
would cost to build their own systems and infrastructure. These services include supply chain design and
management, freight forwarding, customs brokerage, mail services, multimodal transportation, and
financial services, in addition to logistics services. Servalite, an East Moline, Illinois, manufacturer of
fasteners, sells 40,000 different products to hardware stores and larger home improvement stores.
The company had used multiple warehouses to provide two-day delivery nationwide. UPS created a new
logistics plan for the company that helped it reduce freight time in transit and consolidate
inventory.Thanks to these improvements, Servalite has been able to keep its two-day delivery guarantee
while lowering warehousing and inventory costs.
Questions:
1. What are the inputs, processing, and outputs of UPS’s package tracking system?
2. What technologies are used by UPS? How are these technologies related to UPS’s business strategy?
3. What strategic business objectives do UPS’s information systems address?
4. What would happen if UPS’s information systems were not available?
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Jack Ma’s Online Bank Is Leading a
Quiet Revolution in Chinese Lending
Jack Ma’s online bank is leading a quiet revolution in the way China lends to small businesses,
taking aim at a credit bottleneck that has held back Asia’s largest economy for decades.
Using real-time payments data and a risk-management system that analyzes more than 3,000
variables, Ma’s four-year-old MYbank has lent 2 trillion yuan ($290 billion) to nearly 16 million
small companies. Borrowers apply with a few taps on a smartphone and receive cash almost
instantly if they’re approved. The whole process takes three minutes and involves zero human
bankers. The default rate so far: about 1%.
The financial-technology boom that turned China into the world’s biggest market for electronic
payments is now changing how banks interact with companies that drive most of the nation’s
economic growth. As MYbank and its peers crunch reams of new data from payment systems,
social media and other sources, they’re growing more comfortable with smaller borrowers that
they previously shunned in favor of state-owned giants.
For China’s $13 trillion economy, which expanded at its weakest pace since at least 1992 last
quarter, the implications could be profound. Non-state firms -- mostly small businesses --
account for about 60% of growth, employ 80% of workers, and have been disproportionately
squeezed by a more than two-year government crackdown on shadow lenders.
“Small and medium enterprises are really the boiler room of the economy,” said Keith Pogson,
global assurance leader for banking and capital markets at Ernst & Young based in Hong Kong.
“It used to be a segment that banks thought was too difficult and too risky. But now they run
their model and work out what the risks are so they feel more comfortable.”
China is quickly becoming a world leader in the use of big data and artificial-intelligence
technology to make loans, according to Cliff Sheng, co-head of Greater China financial services
at Oliver Wyman, a consulting firm. Among the country’s biggest advantages: it takes a more
relaxed approach toward privacy than many other jurisdictions.
“Our legal framework and regulatory environment -- which raise fewer privacy concerns -- make
it easier to generate a huge amount of data and thus provide an unparalleled testing bed,” Sheng
said.
One uniquely Chinese source of information for banks is the controversial social credit system,

which is being tested in cities across the country as a way to reward good deeds and punish
misbehavior. In one potential scenario cited by MYbank President Jin Xiaolong in a recent
interview, a small-business owner whose social credit score dropped because he failed to return a
borrowed umbrella would find it harder to get a loan.
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But the biggest data trove may come from payments providers like the one operated by Ma’s Ant
Financial, the biggest shareholder of MYbank. After obtaining authorization from borrowers,
MYbank analyzes real-time transactions to gain insights into creditworthiness. For example, a
drop in customer payments at a retailer’s flagship store might be an early indicator that the
company’s prospects -- and its ability to repay debt -- are deteriorating.
The upshot of more information is a loan approval rate at MYbank that’s four times higher than
at traditional lenders, which typically reject 80% of small-business loan requests and take at least
30 days to process applications, according to Jin, who plans to double MYbank’s roster of
borrowers in three years. He said the Hangzhou-based firm’s operating cost per loan is about 3
yuan, versus 2,000 yuan at traditional rivals.
MYbank, which earned 670 million yuan last year, is far from the only lender using technology
to boost small-business lending. Units of Tencent Holdings Ltd. and Ping An Insurance Group
Co. both have similar offerings, while state-owned China Construction Bank Corp. is
dramatically ramping up its presence in the space.
The nation’s second-largest lender unveiled a mobile app in September that can process loan
applications for as much as 5 million yuan in two minutes. Construction Bank boosted its small-
business lending by 51% last year, more than twice as fast as the industry. The bank charges an
average interest rate of 5.3% for one-year loans, slightly above the 4.35% benchmark lending
rate, and says defaults have held at a minuscule 0.3%.
“It’s a profitable business as long as you can keep the risks in check,” said Zhang Gengsheng, a
vice president at Construction Bank in Beijing. “We had suffered huge losses in the past with a
bad-loan ratio running at 8%. But now we’re back in the game.”
While keeping defaults in check may prove more difficult as China’s economy slows, all signs
point toward continued growth in small-business lending. In February, the banking regulator
called on state-owned lenders to boost credit to small companies by at least 30% this year.
MYbank is looking to raise about 6 billion yuan, which will more than double its capital to 10
billion yuan and allow it to boost lending, people familiar with the matter said on Monday.
About two-thirds of the country’s 80 million small businesses lacked access to loans as of 2018,

according to China’s National Institution for Finance & Development.
For Zeng Ping’en, who runs a scooter store in Hangzhou with about 1.2 million yuan in annual
sales, MYbank’s lending app has been a game changer. After allowing the bank to access his
store’s transaction data, Zeng has been able to take out small loans to cover short-term cash
needs. He pays an annualized interest rate of about 15%.
“It was unimaginable a few years ago, when no bank would approve my request,” Zeng said.
“Now I can borrow whenever I need to.”
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Protocol
A protocol is a set of rules that governs the communications between computers on a network. In
order for two computers to talk to each other, they must be speaking the same language. Many
different types of network protocols and standards are required to ensure that your computer (no
matter which operating system, network card, or application you are using) can communicate
with another computer located on the next desk or half-way around the world. The OSI (Open
Systems Interconnection) Reference Model defines seven layers of networking protocols.;
however, they can be simplified into four layers to help identify some of the protocols with
which you should be familiar (see fig 1).
OSI Layer Name Common Protocols
7 Application HTTP | FTP | SMTP | DNS | Telnet
6 Presentation
5 Session
4 Transport TCP | SPX
3 Network IP | IPX
2 Data Link
Ethernet
1 Physical
Fig 1. OSI model related to common network protocols
Figure 1 illustrates how some of the major protocols would correlate to the OSI model in order to
communicate via the Internet. In this model, there are four layers, including:
 Ethernet (Physical/Data Link Layers)

 IP/IPX (Network Layer)
 TCP/SPX (Transport Layer)
 HTTP, FTP, Telnet, SMTP, and DNS(combined Session/Presentation/Application
Layers)
Assuming you want to send an e-mail message to someone in Italy, we will examine the layers
"from the bottom up" -- beginning with Ethernet (physical/data link layers).
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Ethernet (Physical/Data Link Layers)
The physical layer of the network focuses on hardware elements, such as cables, repeaters, and
network interface cards. By far the most common protocol used at the physical layer is Ethernet.
For example, an Ethernet network (such as 10BaseT or 100BaseTX) specifies the type of cables
that can be used, the optimal topology (star vs. bus, etc.), the maximum length of cables, etc.
The data link layer of the network addresses the way that data packets are sent from one node to
another. Ethernet uses an access method called CSMA/CD (Carrier Sense Multiple
Access/Collision Detection). This is a system where each computer listens to the cable before
sending anything through the network. If the network is clear, the computer will transmit. If
some other node is already transmitting on the cable, the computer will wait and try again when
the line is clear. Sometimes, two computers attempt to transmit at the same instant. When this
happens a collision occurs. Each computer then backs off and waits a random amount of time
before attempting to retransmit. With this access method, it is normal to have collisions.
However, the delay caused by collisions and retransmitting is very small and does not normally
effect the speed of transmission on the network.
Ethernet
The original Ethernet standard was developed in 1983 and had a maximum speed of 10 Mbps
(phenomenal at the time) over coaxial cable. The Ethernet protocol allows for bus, star, or tree
topologies, depending on the type of cables used and other factors. This heavy coaxial cabling
was expensive to purchase, install, and maintain, and very difficult to retrofit into existing
facilities.
The current standards are now built around the use of twisted pair wire. Common twisted pair
standards are 10BaseT, 100BaseT, and 1000BaseT. The number (10, 100, 1000) stands for the
speed of transmission (10/100/1000 megabits per second); the "Base" stands for "baseband"
meaning it has full control of the wire on a single frequency; and the "T" stands for "twisted
pair" cable. Fiber cable can also be used at this level in 10BaseFL.
Fast Ethernet
The Fast Ethernet protocol supports transmission up to 100 Mbps. Fast Ethernet requires the
use of different, more expensive network concentrators/hubs and network interface cards. In
addition, category 5 twisted pair or fiber optic cable is necessary.
Gigabit Ethernet
Gigabit Ethernet standard is a protocol that has a transmission speed of 1 Gbps (1000
Mbps). It can be used with both fiber optic cabling and copper.
The Ethernet standards continue to evolve. with 10 Gigabit Ethernet (10,000 Mbps) and 100
Gigabit Ethernet (100,000 Mbps),
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Ethernet Protocol Summary
Protocol Cable Speed

Ethernet Twisted Pair, Coaxial, Fiber 10 Mbps
Fast Ethernet Twisted Pair, Fiber 100 Mbps
Gigabit Ethernet Twisted Pair, Fiber 1000 Mbps
IP and IPX (Network Layer)

The network layer is in charge of routing network messages (data) from one computer to
another. The common protocols at this layer are IP (which is paired with TCP at the transport
layer for Internet network) and IPX (Internetwork Packet Exchange ) (which is paired with SPX
(Sequenced Packet Exchange) at the transport layer for some older Macintosh, Linus, UNIX,
Novell and Windows networks). Because of the growth in Internet-based networks, IP/TCP are
becoming the leading protocols for most networks.
Every network device (such as network interface cards and printers) have a physical address
called a MAC (Media Access Control) address. When you purchase a network card, the MAC
address is fixed and cannot be changed. Networks using the IP and IPX protocols assign logical
addresses (which are made up of the MAC address and the network address) to the devices on
the network, This can all become quite complex -- suffice it to say that the network layer takes
care of assigning the correct addresses (via IP or IPX) and then uses routers to send the data
packets to other networks.
TCP and SPX (Transport Layer)

The transport layer is concerned with efficient and reliable transportation of the data
packets from one network to another. In most cases, a document, e-mail message or other
piece of information is not sent as one unit. Instead, it is broken into small data packets, each
with header information that identifies its correct sequence and document.
When the data packets are sent over a network, they may or may not take the same route -- it
doesn't matter. At the receiving end, the data packets are re-assembled into the proper order.
After all packets are received, a message goes back to the originating network. If a packet does
not arrive, a message to "re-send" is sent back to the originating network.
TCP, paired with IP, is by far the most popular protocol at the transport level. If the IPX protocol
is used at the network layer (on networks such as Novell or Microsoft), then it is paired with
SPX at the transport layer.
HTTP, FTP, SMTP and DNS
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(Session/Presentation/Application Layers)
Several protocols overlap the session, presentation, and application layers of networks. There
protocols listed below are a few of the more well-known:
 DNS - Domain Name System - translates network address (such as IP addresses) into
terms understood by humans (such as Domain Names) and vice-versa
 DHCP - Dynamic Host Configuration Protocol - can automatically assign Internet
addresses to computers and users
 FTP - File Transfer Protocol - a protocol that is used to transfer and manipulate files on
the Internet
 HTTP – Hyper Text Transfer Protocol - An Internet-based protocol for sending and
receiving webpages
 IMAP - Internet Message Access Protocol - A protocol for e-mail messages on the
Internet
 IRC - Internet Relay Chat - a protocol used for Internet chat and other communications
 POP3 - Post Office protocol Version 3 - a protocol used by e-mail clients to retrieve
messages from remote servers
 SMTP - Simple Mail Transfer Protocol - A protocol for e-mail messages on the Internet
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Role of MIS in an Organization
The huge roles MIS have on the survival and growth of a business organization are summarized
below:
 Gives managers feedback about the performance of the organization.

 Need based, personal oriented managerial information are communicated in the form of
time- based or on demand reports.
 Information primarily geared to achieve strategic and efficient managerial decision
making; this helps to take fact based decisions.
 MIS provides timely, accurate information which helps in informed decision making. A
delayed information is useless and obsolete.
 Flow of information is based on systems approach. Thus information integrating the
diverse activities of different departments within the organization is supplied.
 Flexibility in information system is an important attribute of a rapid evolving modern
MIS. It helps the organization to incorporate future information requirements.
 It helps in better control and administration of the organization at different levels.
 Enables better Communication within the organization.
 Efficiency in Operations and Management of the Organization is ensured with the use of
MIS.
 MIS produces different types and forms of reports from the same set of information or
data. This enables MIS to cater the diverse information requirement within the
organization.
 MIS enables easy, secure and quick sharing of data within the organization.
 Balancing Conflicting data requirements through the use of MIS because the same data
can be accessed in more than one location even remotely from outside the organization
parameters.
 MIS helps in maintaining standards for data, process and managerial activities.
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 MIS helps to forecast the future circumstances of business by analyzing the periodical
reports of various kinds of data.
Business Process Reengineering
Business process reengineering is the act of recreating a core business process with the goal of
improving product output, quality, or reducing costs. Typically, it involves the analysis of
company workflows, finding processes that are sub-par or inefficient, and figuring out ways to
get rid of them or change them.
Business process reengineering became popular in the business world in the 1990s, inspired by
an article called Reengineering Work: Don’t Automate, Obliterate which was published in the
Harvard Business review by Michael Hammer. His position was that too many businesses were
using new technologies to automate fundamentally ineffective processes, as opposed to creating
something different, something that is built on new technologies. Think, using technology to
“upgrade” a horse with lighter horseshoes which make them faster, as opposed to just building a
car.
In the decades since, BPR has continued to be used by businesses as an alternative to business
process management (automating or reusing existing processes), which has largely superseded it
in popularity. And with the pace of technological change faster than ever before, BPR is a lot
more relevant than ever before.
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When to Use Business Process Reengineering (BPR)
The benefits of BPR are countless – increased revenue, improved customer service, reduced cost,
higher employee retention, faster processing time. Nearly any business benefit can be gained
from business process reengineering. However, the key is when to use BPR. Here are some key
times when you might want to think about obliterating your processes and starting fresh:
 When technology has significantly disrupted your industry
 When a competitor does drastically more with less (think Mazda)
 When you need to be the disruption in your industry
 When a little improvement won’t make much difference
The Pitfalls of Business Process Reengineering

Business process reengineering (BPR) is not a silver bullet to revive tangled up, sloppy
processes. It fails when companies mistake BPR for a way to automate, downsize, or outsource.
A business process reengineering (BPR) initiative flops when organizations:

 Apply it to more than one process
 Don’t have long-term, clear goals
 End up with only minor changes to the process
 Don’t dare to put their processes on the anvil
 Apply it continually, reengineering processes yearly or more often
 Focus more on automation than redesign
Core BPR Principles

If you want your BPR initiative to succeed, remember this advice from Michael Hammer’s
original article:
Think Cross-Functionally. Your process likely touches many departments. If you only try to
change things within one department, your efforts may not make a difference.
Keep asking “Why” and “What if”. BPR works because it stretches the boundaries and doesn’t
assume the current solution is the only one.
Organize around outcomes, not tasks. Don’t think up a better way to do the individual tasks in
a process. Focus on the outcome and the simplest way to get there.
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Let those closest to the work make the final decisions. There is tremendous insight in those
people who have performed a function a thousand times over. Ask them how improvements can
be made and give them decision-making power.
Capture information once, at the source. Much of the redundancies in processes involve the
manual transfer and resubmission of data. Collect the data once, and use IT systems to parse it
out to every task after that.
Business Process Reengineering Steps

Business process reengineering is no easy task. Unlike business process management or
improvement, both of which focus on working with existing processes, BPR means changing the
said processes fundamentally. This can be extremely time-consuming, expensive and risky.
Unless you manage to carry out each of the steps successfully, your attempts at change might
fail.
Step #1: Identity and Communicating the Need for Change
If you’re a small startup, this can be a piece of cake. You realize that your product has a high
user drop-off rate, send off a text to your co-founder, and suggest a direction to pivot. For a
corporation, however, it can be a lot harder. There will always be individuals who are happy
with things as they are, both from the side of management and employees. The first might be
afraid that it might be a sunk investment, the later for their job security.
So, you’ll need to convince them why making the change is essential for the company. If the
company is not doing well, this shouldn’t be too hard. In some cases, however, the issue is with
the company not doing as well as it could be. Meaning, you should do your research. Which
processes might not be working? Is your competition doing better than you in some regards?
Worse?
Once you have all the information, you’ll need to come up with a very comprehensive plan,
involving leaders from different departments. The management will have to play the role of
salespeople: conveying the grand vision of change, showing how it’ll affect even the lowest-
ranked employee positively.
Risk of Failure: Not Getting Buy-In From The Company

If you fail to do this, however, your business process reengineering efforts might be destined to
fail long before they even start.
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Business Process Re-Engineering can seriously impact everyone in the company, and sometimes
this can appear to be a negative change for some. Some employees might, for example, think
you’ll let them all go if you find a better way to function (which is a real possibility).
In such cases, even if the management is on board, the initiative might fail because the
employees aren’t engaged.
Usually, it’s possible to get the employees buy-in by motivating them or showing them different
views they weren’t aware of. Sometimes, however, the lack of employee engagement might be
because of a bad workplace culture – something that might need to be dealt with before starting
any BPR initiatives.
Getting your employee to commit to change isn’t easy. There are a bunch of change management
models that help you accomplish this, though. Some of our favorites include the ADKAR Model
and Bridge’s Transition Model.
Step #2: Put Together a Team of Experts

As with any other project, business process reengineering needs a team of highly skilled,
motivated people who will carry out the needed steps. In most cases, the team consists of:
 Senior Manager. When it comes to making a major change, you need the supervision of
someone who can call the shots. If a BPR team doesn’t have someone from the senior
management, they’ll have to get in touch with them for every minor change.
 Operational Manager. As a given, you’ll need someone who knows the ins-and-outs of
the process – and that’s where the operational manager comes in. They’ve worked with
the process(es) and can contribute with their vast knowledge.
 Reengineering Experts. Finally, you’ll need the right engineers. Reengineering
processes might need expertise from a number of different fields, anything from IT to
manufacturing. While it usually varies case by case, the right change might be anything –
hardware, software, workflows, etc.
Risk of Failure: Not Putting The Right Team Together

There are a lot of different ways to mess this one up. If the team consists of individuals with a
similar viewpoint and agenda, for example, they might not be able to properly diagnose the
problems/solutions. Or, the team might involve too many or too few people. In the first case, the
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decision making might be slowed down due to conflicting viewpoints. In the later, there might
not be enough experts in certain fields to create adequate solutions.
It’s hard to put all that down as a framework, as it depends on the project itself. There is one
thing, however, that benefits every BPR team: having a team full of people who are enthusiastic
(and yet unbiased), positive and passionate about making a difference.
Step #3: Find the Inefficient Processes and Define Key Performance Indicators (KPI)
Once you have the team ready and about to kick-off the initiative, you’ll need to define the right
KPIs. You don’t want to adapt to a new process and THEN realize that you didn’t keep some
expenses in mind – the idea of BPR is to optimize, not the other way around.
While KPIs usually vary depending on what process you’re optimizing, the following can be
very typical:
 Manufacturing
o Cycle Time – The time spent from the beginning to the end of a process
o Changeover Time – Time needed to switch the line from making one product to
the next
o Defect Rate – Percentage of products manufactured defective
o Inventory Turnover – How long it takes for the manufacturing line to turn
inventory into products
o Planned VS Emergency Maintenance – The ratio of the times planned
maintenance and emergency maintenance happen
 IT
o Mean Time to Repair – Average time needed to repair the system / software /
app after an emergency
o Support Ticket Closure rate – Number of support tickets closed by the support
team divided by the number opened
o Application Dev. – The time needed to fully develop a new application from
scratch
o Cycle Time – The time needed to get the network back up after a security breach
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Once you have the exact KPIs defined, you’ll need to go after the individual processes. The
easiest way to do this is to do business process mapping. While it can be hard to analyze
processes as a concept, it’s a lot easier if you have everything written down step by step.
This is where the operational manager comes in handy – they make it marginally easier to define
and analyze the processes.
Usually, there are 2 ways to map out processes:
 Process Flowcharts – the most basic way to work with processes is through flowcharts.
Grab a pen and paper and write down the processes step by step.
 Business Process Management Software – if you’re more tech-savvy, using software
for process analysis can make everything a lot easier. You can use Tallyfy, for example,
to digitize your processes, set deadlines, etc. Simply using such software might end up
optimizing the said processes as it allows for easier collaboration between the employees.
Risk of Failure: Inability to Properly Analyze Processes

Or, to put it more succinctly – impatience. It’s uncommon for someone to try business process
reengineering if they profits are soaring and the projections are looking great.
BPR is usually called for when things aren’t going all that well and businesses need drastic
changes. So, it can be very tempting to hurry things up and skip through the analysis process and
start carrying out the changes. The thing is, though, the business analysis needs to be done
properly, not rushed through to get to the more exciting parts.
There are always time and money pressures in the business world, and it’s the responsibility of
the senior management to resist the temptation and make sure the proper procedure is carried out.
Problem areas need to be identified, key goals need to be set and business objectives need to be
defined and this takes time.
Ideally, each stage requires input from groups from around the business to ensure that a full
picture is being formed, with feedback and ideas being taken into consideration from a diverse
range of sources. The next step is to identify and prioritize the improvements that are needed
and those areas and processes that need to be scrapped.
Any business that doesn’t take this analysis seriously will be going into those next steps blind
and will find that their BPR efforts will fail.
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Step #4: Reengineer the Processes and Compare KPIs
Finally, once you’re done with all the analysis and planning, you can start implementing the
solutions and changes on a small scale.
Once you get to this point, there’s not much to add – what you have to do now is keep putting
your theories into practice and seeing how the KPIs hold up.
If the KPIs show that the new solution works better, you can start slowly scaling the solution,
putting it into action within more and more company processes. If not, you go back to the
drawing board and start chalking up new potential solutions.
Business Process Reengineering Examples

The past decade has been very big on change. With new technology being developed at such a
breakneck pace, a lot of companies started carrying out business process reengineering
initiatives. There are a lot of both successful and catastrophic business process reengineering
examples in history, one of the most famous being that of Ford.
BPR Examples: Ford Motors

One of the most referenced business process reengineering examples is the case of Ford, an
automobile manufacturing company. In the 1980s, the American automobile industry was in a
depression, and in an attempt to cut costs, Ford decided to scrutinize some of their departments
in an attempt to find inefficient processes.
One of their findings was that the accounts payable department was not as efficient as it could
be: their accounts payable division consisted of 500 people, as opposed to Mazda’s (their
partner) 5. While Mazda was a smaller company, Ford estimated that their department was still 5
times bigger than it should have been.
Accordingly, Ford management set themselves a quantifiable goal: to reduce the number of
clerks working in accounts payable by a couple of hundred employees. Then, they launched a
business process reengineering initiative to figure out why was the department so overstaffed.
They analyzed the current system, and found out that it worked as follows:
1. When the purchasing department would write a purchase order, they sent a copy to
accounts payable.
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2. Then, the material control would receive the goods, and send a copy of the related
document to accounts payable.
3. At the same time, the vendor would send a receipt for the goods to accounts payable.
Then, the clerk at the accounts payable department would have to match the three orders, and if
they matched, he or she would issue the payment. This, of course, took a lot of manpower in the
department.
Old Payable Process
So, as is the case with BPR, Ford completely recreated the process digitally.
1. Purchasing issues an order and inputs it into an online database.
2. Material control receives the goods and cross-references with the database to make sure it
matches an order.
3. If there’s a match, material control accepts the order on the computer.
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New Payable Process
This way, the need for accounts payable clerks to match the orders was completely eliminated.
A Case Study of BPR Failure

In the mid-1990s, US telecommunications company TELECO adopted BPR to fight the
toughening market competition. But due to factors like poor communication from leadership,
prematurely letting go of employees, uncoordinated execution, and lack of awareness about BPR
tools, the initiative failed to deliver results. The teams at TELECO did not follow the business
process reengineering steps which ended up in a waste of money and time.
BPR Statistics
o An Accenture study found that two-thirds of companies that adopted reengineering saw
improvements in one or more of their processes by more than 500 percent.
o The American health insurance giant CIGNA applied business process reengineering
(BPR) to many of its projects like customer service and expense operations and was able
to save as much as $100 million.
o A survey by a consulting firm, Arthur D. Little, on North American businesses
discovered that 85% of executives surveyed were dissatisfied with the results of BPR
projects.
o Three biggest obstacles to BPR implementation: Lack of commitment in leadership,
expecting too much too soon, and resistance to change.
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4.2 Current Market Status of CBSs
Table 4.2: List of Banking Software in the market (Source: BIBM Research)
Total % of
Total % of
CBS Branche Branche
Banks Banks
s s
Ababil 354 3.7 3 7.0
Bank Ultimus 866 9.1 7 16.3
Electronic and Integrated Banking System (eIBS) 331 3.5 1 2.3
Electronic Basisc Banking System (eBBS) 26 0.3 1 2.3
Finacle 310 3.3 2 4.7
Flexcube 651 6.8 4 9.3
Flora Bank 1559 16.4 4 9.3
HSBC Universal Banking 10 0.1 1 2.3
Intellect Core Banking System 1774 18.6 1 2.3
International Comprehensive Banking System 11 0.1 1 2.3
iSmart 7 0.1 1 2.3
iSteler 335 3.5 4 9.3
Kastle Core Banking Solution 68 0.7 1 2.3
Misys Equation 250 2.6 4 9.3
PIBS 458 4.8 1 2.3
Silverlake 33 0.3 1 2.3
Temenos T24 2526 26.5 6 13.9
Winfos 5 0.1 1 2.3
Table 4.3: List of Banking Software Used by Banks (Source: BIBM Research)
Bank Name of CBS CBS Type

AB Bank Limited Misys Equation Foreign
Agrani Bank Limited Temenos T24 Foreign
Al – Arafah Islami Bank Limited Ababil Local
Bangladesh Commerce Bank Limited i-Steler Joint Venture
Bangladesh Development Bank Limited i-Steler Joint Venture
Bangladesh Krishi Bank Flora Bank Local
Bank Al – Falah Limited iSmart Foreign
Bank Asia Limited i-Steler Joint Venture
Kastle Core Banking
BASIC Bank Limited Foreign
Solution
65
Brac Bank Limited Finacle Foreign
Citibank N.A. Flexcube Foreign
International Comprehensive
Commercial Bank of Ceylon Limited In - House
Banking System
Dhaka Bank Limited Flexcube Foreign
Dutch – Bangla Bank Limited Flexcube Foreign
Eastern Bank Limited Flexcube Foreign
EXIM Bank Limited Temenos T24 Foreign
First Security Islami Bank Limited Bank Ultimus Local
Habib Bank Limited Misys Equation Foreign
ICB Islami Bank Limited Silverlake Foreign
IFIC Bank Limited Misys Equation Foreign
Electronic and Integrated
Islami Bank Bangladesh Limited In – House
Banking System (eIBS)
Jamuna Bank Limited Flora Bank Local
Janata Bank Limited Temenos T24 Foreign
Meghna Bank Limited Bank Ultimus Local
Mercantile Bank Limited Temenos T24 Foreign
Midland Bank Limited Flora Bank Local
Modhumoti Bank Limited Bank Ultimus Local
Mutual Trust Bank Limited Flora Bank Local
National Bank Limited Temenos T24 Foreign
National Bank of Pakistan Bank Ultimus Local
National Credit & Commerce Bank
Flora Bank Local
Limited
NRB Bank Limited Flexcube Foreign
NRB Commercial Bank Limited Bank Ultimus Local
NRB Global Bank Limited Temenos T24 Foreign
One Bank Limited Flexcube Foreign
Padma Bank Limited Temenos T24 Foreign
Premier Bank Limited Bank Ultimus Local
Prime Bank Limited Temenos T24 Foreign
Pubali Bank Limited PIBS In – House
Infinity Banking System (PC
Rajshahi Krishi Unnayan Bank Local
Based)
Intellect Core Banking
Rupali Bank Limited Joint Venture
Syetem
Shahjalal Islami Bank Limited Bank Ultimus Local
Social Islami Bank Limited Ababil Local
Intellect Core Banking
Sonali Bank Limited Joint Venture
System
South Bangla Agriculture & Commerce
Flora Bank Local
Bank Limited
Southeast Bank Limited Bank Ultimus Local
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Standard Bank Limited iSteler Joint Venture
Electronic Basisc Banking
Standard Chartered Bank In – House
System (eBBS)
State Bank of India Finacle Foreign
The City Bank Limited Finacle Foreign
The Hong Kong and Shanghai Banking
HSBC Universal Banking In – House
Corporation Ltd. (HSBC)
Trust Bank Limited Flora Bank Local
Union Bank Limited Ababil Local
United Commercial Bank Limited Flexcube Foreign
Uttara Bank Limited Bank Ultimus Local
Woori Bank (Korea) Winfos In - House
Figure 4.1: Market Share of CBSs with respect to number of banks (Source: BIBM
Research)
45
40
35
30
25
20
15
10
0
Foreign Local Inhouse Joint Venture
Before 2005 2006-2010 2011-2017
From the graph, it is clearly understood that our banking industry is currently dominated by
foreign CBS by a large margin. Presently 27 banks in our country are using foreign CBS.
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Popularity of Software developed by our local expert is fading gradually. Before 2005, 45 banks
used local software, whereas in 2016 only 19 banks use it. The same is true for in-house software
also. Number of banks using in-house software is declining day by day. But the scenario is
somewhat different for joint venture software. During the period 2005 to 2017, the number of
banks using joint venture software is increased from 2 to 6.
3,659 cybercrime cases filled over 6

years, only 25 punished
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Published at 12:08 pm March 28th, 2019
https://www.dhakatribune.com/bangladesh/court/2019/03/28/3-659-cybercrime-cases-filled-over-6-
years-only-25-punished
The Cyber Tribunal was established in 2013
Over the last six years, some 3,659 cases related to cybercrime have been lodged in Bangladesh.
Of them, 1,575 cases went to the Cyber Tribunal that was established on 28 July, 2013.
According to the Police’s Crime Data Management Systems, only 522 cases were settled, and criminals
were punished in only 25 cases.
Md Nazrul Islam Shamim, special public prosecutor of Cyber Tribunal, said: “Till date, we have received
1,575 cases. Of them, 522 were resolved. In 25 cases, criminals were punished.”
The spreading of malicious lies through false social media accounts, uploading of private photos
without consent, publication and dissemination of defamatory allegations, and uploading of obscene
images fall under cybercrimes.
ID hacking, stealing of credit card information, intimidation via social media, and luring of
unsuspecting people into online financial scams—plus other net-based fraud—also fall under the
definition.
A survey reveals that 34% of cybercrime victims are between the age of 19 and 25. Among the victims,
53% are women while 47% are men.
Police Headquarters Assistant Inspector General (AIG) Sohel Rana: “Keeping different kinds of
cybercrime in mind, we are trying to increase the capacity of the police.”
“A cyber monitoring unit has also been formed with the latest technology,” he said adding that
international training is also being arranged for the officials.
Nazrul Islam Shamim: “Since the government does not have a agreement with Facebook, Twitter,
Instagram, Google, or Skype we do not get cooperation from them regarding cases.”
Lawyer Tuhin Howlader said: “Apart from evidence, witnesses also play an important role in cybercrime
cases. These cases are filed in different police stations across Bangladesh. Even though trials begin in
Dhaka after the submission of the chargesheets in the cases, the witnesses are absent most of the time.
“The witnesses do not have any idea about cyber laws and they tend to lend importance to the cost of
travel. In the absence of witnesses, the accused take advantage.”
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70
Dhaka Prepares For Digital Warfare
DMP set to purchase 15 types of ‘cyber
arms’
Published : Wednesday, 24 May, 2017 at 12:00 AM Co
https://www.observerbd.com/details.php?id=75128
Against the backdrop of a rising trend of cyber crimes, Dhaka Metropolitan Police (DMP) is going to
purchase 15 types of digital equipments, what it called 'cyber arms', aimed at strengthening capability to
fight the menace effectively.
"Nowadays, the trend of crimes has changed in the local and international arenas as the militants and
terrorists are using modern equipments in committing crimes. Some of the criminals are now using
computer networks to this end. So, the police should be equipped with the highest technology to fight
such crimes effectively," said DMP Commissioner Asaduzzaman Mia.
"We will ensure the use of the highest and modern technology as the more police use modern
technologies the more they will be equipped to fight cyber crimes effectively," he said, adding that their
aim is to strengthen the DMP with modern equipment to make the capital free from crimes.
The DMP is planning to purchase cyber guardian, real time location based social net monitoring system,
IP analyzer, hacking and intrusion software, different types of ultra-modern scanners, sketch based
image retrieval system, face construction tools and such other 'cyber arms'.
Under the digitalization project, the DMP has already taken initiatives to equip it with vehicle
management system software, CCTV monitoring, mobile tracking system, e-traffic prosecution process,
pay role management, city surveillance system, CIMS, archiving software and modern media
management.
Besides, the DMP is planning to purchase crime scene van, communications and interception and
monitoring solution, modern luggage scanner, personal scanner, and equipment for real time
monitoring centre, modern reagent for identifying finger and foot prints, and IP trapper.
Police have already purchased property trucking software, hidden camera for intelligence work,
frequency jammer, mobile tracker, portable exclusive dictator, mobile video surveillance equipment,
CDR analyzer, and endoscopy door camera.
The cases and allegations of cyber crimes have increased day by day. Most of the cases to this end were
lodged under section 57 of the ICT Act. The lone Cyber Tribunal has started its activities in the capital
with three cases in 2013.
The tribunal got 32 cases in 2014, 152 cases in 2015 and over 150 cases in 2016 for the trail. Over 300
cyber cases are currently under investigation.
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"A total of 500 cases are now waiting for trail at the Cyber Tribunal. Verdicts in 60-65 cases have already
been delivered. The rate of punishment in the cases at the tribunal is 30-35 percents. The rest of the
cases are under trial," said counsel of the Cyber Tribunal Nazrul Islam.
"The allegations of cyber crimes have increased geometrically. Most of the allegations are of account
hacking. But only 30 percent of the complainants file cases while the rest of 70 percent do not file cases
mainly for avoiding harassment and settlement between the complainants and the accused," said ADC
Nazmul Islam of Cyber Crime Unit of the DMP. —BSS
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Cyber Tribunal and Cyber Appellate Tribunal in Bangladesh
Presented By Abir Hossain Talukder LL.B (Hon’s) 5th Semester Department of law Bangladesh University
of Professionals
1. 2.  Tribunal are the Courts or other adjudicatory bodies with judicial or quasi-judicial functions
set up either by the constitution or by the statute and exist outside the usual judicial hierarchy
of the Supreme Court of Bangladesh but under its control.
2. 3. Government of Bangladesh by gazette notification, for the purpose of quick and effective trial
of the crimes committed under the ICT ACT – 2006, may established one or more Cyber Tribunal
under Section 68(1) of the Act. This Cyber Tribunal is stated in the Act as how it will be
composed of .  A Session Judge or  Additional Session Judge Appointed by the Government
with the consultation of the High Court Division.
3. 4. Such a judge appointed will be introduced as “judge” of Cyber Tribunal for the Whole
Bangladesh. As we have only one Cyber Tribunal which is situated in Dhaka Judge Court and runs
with the matter relating to ICT Act of the whole Bangladesh. From time to time it will be
increased more. This court runs with the offences which are committed by the Act. This Special
Tribunal may sit and continue its procedure on a place at a certain time and government will
dictate all this by its order.
4. 5. According to Section 69(1) of ICT Act, the special tribunal will not take any case for trial unless
there is a written report by any Police Officer not under the rank of Sub – Inspector and
Approval of the Controller or such person having the authority from the controller for the
purpose. This Tribunal shall for the purpose of trial will follow Chapter 23 >Trial by Court of
Session< under the Code of Criminal Procedure, trial in session court.
5. 6.  If the Accused person is missing or hiding himself for which it is not possible to arrest him or
there is less possibility to arrest him earlier, in that case the tribunal; by its order may ask that
person to present in the court by publishing in two prominent Bangla Newspaper at a prescribed
time and if that person fails to do so, the trial will held with his absent.  When the Accused
person having bail, after being present before the tribunal, if he is missing or if he fails to
present in front of the tribunal;, in that case sub – section 4 of 69 will not be applicable.
6. 7.  In that case that tribunal with absence of that person, try him registering it’s decision. This
tribunal may in writing give judgment of the absent of that person. This tribunal also may of its
own effort, give the order to re-investigate any case made under this Act and give order to
submit report in a prescribed time by the authority to any Police Officer or in case of any
authority from the Controller.
7. 8.  Section 70 of ICT Act – 2006 says the laws of Criminal Procedure as far as possible, being not
contrary to this Act be applicable to the procedure of the tribunal and the tribunal will have all
the Original Jurisdiction of the Session Judge.  The advocate on behalf of the Government shall
be known as the Public Prosecutor who will open the case.
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8. 9.  According to Section 71 of ICT act says –  It will not bail to ay person accused of under the
Act, unless –  The Government side is given scope for hearing on the grounds of bail. The
judge is satisfied that :- (i) there is enough ground to believe that the accused might not be
proved guilty (ii) The Crime in prima facie view is not too heavy for punishment even the crime is
proved, will not be hard.
9. 10.  Nasirn filed the ICT case on January 5 with Mohammadpur police station. She alleged that
Sunny had posted their intimate pictures on social media without her consent.  Lastly he got
relief on bail from the case by the Tribunal.
10. 11.  Section – 72(1) of the Act, said the tribunal should finish examination of witness or
evidence or hearing. Which ever occurs later, will give judgment within ten days if he does not
extend the time not more than ten days with written reasons for that.  When any judgment is
given under sub-sec (1) of the section or if any appeal to the cyber appeal tribunal is made
against the Judgment then the copy of the appeal judgment will be sent to the Controller by the
Cyber Tribunal or Appellate Tribunal to reserve it according to Section 18(7) of the Act. After
sending the copy, the Controller will take proper Action with proper process.
11. 12.  Section 73 of the Act says, any case under this tribunal shall from the filing of the case shall
be pronounced its judgment within SIX MONTHS.  If Fails then - a Written Statement by
stating with the proper reason time shall be increased for three months.  If fails to conclude
within that time then the judge has to submit a paper to High Court and the Controller stating
the reasons behind the delay.
12. 13.  Section – 74 Says, Unless if the Special Tribunal formed for the proceeding, then Crimes
made under this act shall be judged under Session Judge.  In this regard Chapter – 23 of the
Code of Criminal Procedure shall be followed.
13. 14.  Section 76(2) of the ICT Act says, the crimes under this Act shall be considered as both – 
Cognizable offence (Non – Bail-able ) Sections :- 54 , 56 , 57 & 61 of the Act  Non – Cognizable
Offence (Bail-able) Sections :- 55, 58, 59, 60, 62, 63, 64 & 65
14. 15.  Section 77 of ICT Act, provides the provision regarding Confiscation. It says any Computer,
Computer System, floppies, Computer disks, tape drives or any other accessories related thereto
by which any offence has been committed, shall be liable to confiscation by an order of the
court trying an offence or contravention.  But above mentioned those will not be taken if those
are used as or any related things of any Government or registered government official is used
then those will not be confiscated.
15. 16.  Under Section – 80 of the Act says that a Police Officer not below the rank of an Inspector
of Police shall investigate any offence under this act. o Enter Public Place o Search and arrest
without warrant o At the field level do not have an IP who have knowledge of computer or
Internet where many computer graduates have been requited in the police department or to
qualified IP’s of Police who can deals with the technology matters.
16. 17.  Our ICT act recognized the polices to arrest without warrant. In any Public Place may do
so In any Private Place should be allowed with a letter of authorization from the concerned unit
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head.  Arrest, Investigation, Notice, Search or Confiscation under this Act shall follow the Code
of Criminal Procedure.
17. 18.  Section 82 – (1) of the act provides that Government shall by notification in the Official
Gazette, established one or more Appellate Tribunal to be known as Cyber Appellate Tribunal. It
shall be composed of :-  A Chairman (appointed by the Government)  Two Members
(appointed by the Government)
18. 19.  Chairman will be a person who was a justice of the Supreme Court or is continuing his post
or capable of so.  One Member shall be as an appointed judicial executive or as a District Judge
or he may be retired.  Another Member will be an expert of Information and Technology that is
prescribed.  They will runs this post 3 to 5 years as the govt. may wants.
19. 20.  The Cyber Appellate Tribunal have the power to here and settle the appeal made against
the judgment of cyber tribunal and session court. They have the authority of supporting,
concealing, changing or editing the judgment of the cyber tribunal. The decision of this
Appellate Tribunal shall be final.  If the CAT will not established, then Code of Criminal
Procedure appeal to High Court Division of the Supreme Court against judgment of Session
Judge or Cyber Tribunal shall be gone.
20. 21.  Though this Cyber Appellate Tribunal does not vested any Original Jurisdiction, it has been
vested with the powers of a Civil Court in respect of interalia. Summoning and examination of
Witnesses Requiring production of Documents Receiving evidence Issuing Commissions
Reviewing its decisions
21. 22.  Cyber Crime Tribunal has been set – up based on the ICT act for dealings with this matters
but we have only one Cyber Tribunal situated in Dhaka Judge Court which is not enough for
conducting the cases.  Officials before the formation said that “the Cyber Tribunal, the first of
its kind in the country, will be empowered to conclude trials within six months  For this reason
a case now increasing its time from six months to two years sometimes.
22. 23.  Only 5% conviction rate in cyber crime cases over 5 years – Dhaka Tribune (30 January
2018)  There have been only 16 successful convictions across 12 of the 236 cases heard before
the tribunal since its inception in February 2013  In 129 of the other cyber crime cases, the
accused were cleared of all charges in the final report submitted before the tribunal by police. 
The tribunal discharged the accused in a further 59 cases without taking charges into
cognizance, while the defendants in 36 cases were acquitted as the prosecution failed to prove
the charges during the trial.
23. 24.  Experts claimed the main reason the prosecution has been failing to prove allegations is
their lack of knowledge on Information Communication Technology (ICT) and negligence. 
sources from among lawyers also alleged that the high acquittal rate was due to the prosecution
being weak in the handling of cyber crime cases.  Qazi Zahed Iqbal, a lawyer who has dealt with
a number of cyber crime-related cases, told the Dhaka Tribune that investigation officers are
submitting faulty probe reports due to their poor knowledge about ICT
75
24. 25.  The prosecution lawyers are also not experienced in dealing with cyber crime cases (and)
have some weakness as this is a new type of offence.  The prosecution lawyers are not
properly producing witnesses before the court to give testimonies in the cases  Now, the
criminal investigation department (CID), Police Bureau of Investigation (PBI) and the cyber crime
unit of Dhaka Metropolitan police (DMP) are giving training to the investigation officers of the
ICT cases recently.
25. 26.  Since the formation of the Cyber Tribunal (Bangladesh) in February 2013, more reports of
cyber crimes have surfaced.  Out of a total of 465 cases, the tribunal received three cases in
2013, 33 in 2014, 152 in 2015 and 233 in 2016. We have to set up minimum one Cyber Tribunal
in each Division for reducing the number of cases and shift those cases to the particular
divisions. We have to established one Cyber Appellate Tribunal in Bangladesh. Judges and
Lawyers for this tribunal should be trained for disputing this problem in exact way.
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Major Problems of CBSs used in BD banking sector:
(Source: BIBM research based seminar report/paper, 2017)
Table-01: Major Problems of Foreign CBS
Major Problems of Foreign CBS

Congestion Problem occurred when reached user limit
Desktop based. Browser based version required
Business requirements are not covered
Country specific business practices can’t be accommodated
Many reports of central bank can’t be generated directly from CBS
Customization is costly, time consuming and involves foreign currency
For any enhancement/ customization vendor demands unexpected time and big amount of
money
Lack of required API on demand
Existing CBS version is not fully supported by vendor
Lacking in cope up with ongoing Fin – Tech banking industry trend
Table 02: Major Problems of Local CBS
Major Problems of Local CBS

Transaction table/row locked
Database security problem
Non-availability of many features
No change can be done by banks without vendor’s help
MIS report not available as per our desire
No standard interfacing software available
Not innovative
Research activity not found for local products
Reactive on regulatory changes implementation
No test environment maintained at developer side
Unskilled man power in IT
During patch/release/version update we need to stop delivery channel services for the time
being
Generic API should be there for plug in with any third-party vendor
Time out of ATM transactions during the EOD process of particular branch
Table 03: Major Problems of In - House CBS
Major Problems of In - House CBS
77
Frequent change request
Instant requirement from intend & regulator
Human resource migration
In sufficient training
Employee motivation lacking
Process management & policy
Table 04: Major Problems of Joint Venture CBS
Major Problems of Joint Venture CBS

Legacy Data
Browse Dependency
Problem arise when new release installed
Table 05: Major problems identified by bank employees working in branches (Foreign
CBS)
Major problems identified by bank employees working in branches (Foreign CBS)

Inadequate reports, report generation is very slow
Same person can create more accounts in same branch
No quality training on software
Slow network
Lack of user friendliness
Customer is not happy
All modules are not introduced
More time-consuming operations. Sometimes it hangs up
Not easily operable, not user friendly
Old and rigid system
Lots of unnecessary steps for a single task
Not flexible
Statement can’t be printed easily
Statement is difficult to understand
Not graphical user interface
Table 06: Major problems identified by bank employees working in branches (In - House CBS)
Major problems identified by bank employees working in branches (In - House CBS)
Automated log out/time out problem
Sometimes network get slow
78
Not adequate IT support, i.e. they should be more co-operative
Time delay due to system failure
Table 07: Major problems identified by bank employees working in branches (Joint
Venture CBS)
Major problems identified by bank employees working in branches (Joint Venture CBS)
Operational problem
Network gets slow
Lack of skilled IT personnel
Lacking in monitoring of suspicious or unusual transaction
Operation training required before using
UPS support is not satisfactory
Manpower support
All kind of activities cannot be implemented
Table 08: Major problems identified by bank employees working in branches (Local CBS)
Major problems identified by bank employees working in branches (Local CBS)

Slow network
Report generation problem. All the necessary functions are not available. All sorts of
reports cannot be generated
Limited user access
More time consuming than before
Unskilled manpower
Lacking in training
Less capability
No alert system provided by the software
Abnormal transactions cannot be identified
IT department’s non willingness to respond in case of problems
System-Development Life Cycle
The system-development life cycle enables users to transform a newly-developed project into an
operational one. The System Development Life Cycle, "SDLC" for short, is a multistep, iterative
process, structured in a methodical way. This process is used to model or provide a framework
79
for technical and non-technical activities to deliver a quality system which meets or exceeds a
business’s expectations or manage decision-making progression.
Traditionally, the systems-development life cycle consisted of five stages. That has now
increased to seven phases. Increasing the number of steps helped systems analysts to define
clearer actions to achieve specific goals.
Similar to a project life cycle (PLC), the SDLC uses a systems approach to describe a process. It
is often used and followed when there is an IT or IS project under development.
Importance of the SDLC

If a business determines a change is needed during any phase of the SDLC, the company might
have to proceed through all the above life cycle phases again. The life cycle approach of any
project is a time-consuming process. Even though some steps are more difficult than others, none
are to be overlooked. An oversight could prevent the entire system from functioning as planned.
Phases of SDLC
Following are the seven phases of the SDLC.
1. Feasibility Study or Planning
This is the first phase in the systems development process. It identifies whether or not there is the
need for a new system to achieve a business’s strategic objectives. This is a preliminary plan (or
a feasibility study) for a company’s business initiative to acquire the resources to build on an
infrastructure to modify or improve a service. The company might be trying to meet or exceed
expectations for their employees, customers and stakeholders too. The purpose of this step is to
find out the scope of the problem and determine solutions. Resources, costs, time, benefits and
other items should be considered at this stage. Research is performed to determine resources,
budget, personnel, technical aspects, and more.
The Planning phase is the most crucial step in creating a successful system. Analyzing this data
you will have three choices: develop a new system, improve the current system or leave the
system as it is.
2. Systems Analysis and Requirements

The second phase is where businesses will work on the source of their problem or the need for a
change. In the event of a problem, possible solutions are submitted and analyzed to identify the
80
best fit for the ultimate goal(s) of the project. This is where teams consider the functional
requirements of the project or solution. It is also where system analysis takes place—or
analyzing the needs of the end users to ensure the new system can meet their expectations.
Systems analysis is vital in determining what a business"s needs are, as well as how they can be
met, who will be responsible for individual pieces of the project, and what sort of timeline should
be expected.
3. Systems Design
After a comprehensive analysis phase, the design phase surfaces. The third phase describes, in
detail, the necessary specifications, features and operations that will satisfy the functional
requirements of the proposed system which will be in place. This is the step for end users to
discuss and determine their specific business information needs for the proposed system. It’s
during this phase that they will consider the essential components (hardware and/or software)
structure (networking capabilities), processing and procedures for the system to accomplish its
objectives. The system design is produced in detail to ensure the system will include the
necessary features to meet all functional and operational aspects of the project.
4. Development
The fourth phase is when the real work begins—in particular, when a programmer, network
engineer and/or database developer are brought on to do the major work on the project. This
work includes using a flow chart to ensure that the process of the system is properly organized.
The development phase marks the end of the initial section of the process. Additionally, this
phase signifies the start of production. The development stage is also characterized by instillation
and change. Focusing on training can be a huge benefit during this phase.
In this phase, the development team is hard at work writing code and constructing and fine-
tuning the technical and physical configurations necessary to build the overall information
system. This is considered by many as the most robust phase in the life cycle as all the labor-
intensive efforts are made here.
5. Integration and Testing

The fifth phase involves systems integration and system testing (of programs and procedures)—
normally carried out by a Quality Assurance (QA) professional—to determine if the proposed
81
design meets the initial set of business goals. Testing may be repeated, specifically to check for
errors, bugs and interoperability. This testing will be performed until the end user finds it
acceptable. Another part of this phase is verification and validation, both of which will help
ensure the program’s successful completion. Additionally, in this phase, all the different
components and subsystems of the solution are brought together to bring the whole integrated
system alive. testing is becoming increasingly important as it helps ensure customer satisfaction
by establishing that the system is fault-free.
6. Implementation
The sixth phase is when the majority of the code for the program is written. Additionally, this
phase involves the actual installation of the newly-developed system. This step puts the project
into production by moving the data and components from the old system and placing them in the
new system via a direct cutover. While this can be a risky (and complicated) move, the cutover
typically happens during off-peak hours, thus minimizing the risk. Both system analysts and end-
users should now see the realization of the project that has implemented changes. After the
system is given a green light from the QA team, it is brought into a production environment. In
essence, during this phase, the project is released to be used and/or installed by end users.
7. Operations and Maintenance

The seventh and final phase involves maintenance and regular required updates. This step is
when end users can fine-tune the system, if they wish, to boost performance, add new
capabilities or meet additional user requirements. The essence of the system development life
cycle is to deliver high-quality information systems that meet and/or exceed client expectations
as they flow through pre-defined phases, within given timeframes and budget. Maintenance and
support may be needed for a longer time for large systems and for a short time for smaller
systems.
SDLC Models
Following are the most important and popular SDLC models followed in the industry −
 Waterfall Model
 Iterative Model
 Spiral Model
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 V-Model
Other related methodologies are Agile Model, RAD Model, Rapid Application Development and
Prototyping Models.
SDLC - Waterfall Model

The Waterfall Model was the first Process Model to be introduced. It is also referred to as a
linear-sequential life cycle model. It is very simple to understand and use. In a waterfall model,
each phase must be completed before the next phase can begin and there is no overlapping in the
phases.
The Waterfall model is the earliest SDLC approach that was used for software development.
The waterfall Model illustrates the software development process in a linear sequential flow.
This means that any phase in the development process begins only if the previous phase is
complete. In this waterfall model, the phases do not overlap. Typically, the outcome of one phase
acts as the input for the next phase sequentially.
The sequential phases in Waterfall model are −

 Requirement Gathering and analysis − All possible requirements of the system to be
developed are captured in this phase and documented in a requirement specification
document.
 System Design − The requirement specifications from first phase are studied in this
phase and the system design is prepared. This system design helps in specifying hardware
and system requirements and helps in defining the overall system architecture.
83
 Implementation − With inputs from the system design, the system is first developed in
small programs called units, which are integrated in the next phase. Each unit is
developed and tested for its functionality, which is referred to as Unit Testing.
 Integration and Testing − All the units developed in the implementation phase are
integrated into a system after testing of each unit. Post integration the entire system is
tested for any faults and failures.
 Deployment of system − Once the functional and non-functional testing is done; the
product is deployed in the customer environment or released into the market.
 Maintenance − There are some issues which come up in the client environment. To fix
those issues, patches are released. Also to enhance the product some better versions are
released. Maintenance is done to deliver these changes in the customer environment.
All these phases are cascaded to each other in which progress is seen as flowing steadily
downwards (like a waterfall) through the phases. The next phase is started only after the defined
set of goals are achieved for previous phase and it is signed off, so the name "Waterfall Model".
In this model, phases do not overlap.
Waterfall Model - Advantages

 Simple and easy to understand and use
 Easy to manage due to the rigidity of the model. Each phase has specific deliverables and
a review process.
 Phases are processed and completed one at a time.
 Works well for smaller projects where requirements are very well understood.
 Clearly defined stages.
 Well understood milestones.
 Easy to arrange tasks.
Waterfall Model - Disadvantages

 No working software is produced until late during the life cycle.
 High amounts of risk and uncertainty.
 Not a good model for complex and object-oriented projects.
 Poor model for long and ongoing projects.
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 Not suitable for the projects where requirements are at a moderate to high risk of
changing. So, risk and uncertainty is high with this process model.
 It is difficult to measure progress within stages.
 Cannot accommodate changing requirements.
SDLC - Iterative Model

In the Iterative model, iterative process starts with a simple implementation of a small set of the
software requirements and iteratively enhances the evolving versions until the complete system
is implemented and ready to be deployed.
An iterative life cycle model does not attempt to start with a full specification of requirements.
Instead, development begins by specifying and implementing just part of the software, which is
then reviewed to identify further requirements. This process is then repeated, producing a new
version of the software at the end of each iteration of the model.
Iterative Model - Design
Iterative process starts with a simple implementation of a subset of the software requirements
and iteratively enhances the evolving versions until the full system is implemented. At each
iteration, design modifications are made and new functional capabilities are added. The basic
idea behind this method is to develop a system through repeated cycles (iterative) and in smaller
portions at a time (incremental).
The following illustration is a representation of the Iterative and Incremental model −
Iterative and Incremental development is a combination of both iterative design or iterative

method and incremental build model for development. "During software development, more than
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one iteration of the software development cycle may be in progress at the same time." This
process may be described as an "evolutionary acquisition" or "incremental build" approach."
In this incremental model, the whole requirement is divided into various builds. During each
iteration, the development module goes through the requirements, design, implementation and
testing phases. Each subsequent release of the module adds function to the previous release. The
process continues till the complete system is ready as per the requirement.
Iterative Model - Pros and Cons

The advantages of the Iterative and Incremental SDLC Model are as follows −
 Some working functionality can be developed quickly and early in the life cycle.
 Results are obtained early and periodically.
 Progress can be measured.
 Less costly to change the scope/requirements.
 Testing and debugging during smaller iteration is easy.
 Risks are identified and resolved during iteration; and each iteration is an easily managed
milestone.
 Risk analysis is better.
 It supports changing requirements.
 Better suited for large and mission-critical projects.
The disadvantages of the Iterative and Incremental SDLC Model are as follows −
 More resources may be required.
 More management attention is required.
 Defining increments may require definition of the complete system.
 Not suitable for smaller projects.
 Management complexity is more.
 Highly skilled resources are required for risk analysis.
 Projects progress is highly dependent upon the risk analysis phase.
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SDLC - Spiral Model
The spiral model combines the idea of iterative development with the systematic, controlled
aspects of the waterfall model. This Spiral model is a combination of iterative development
process model and sequential linear development model i.e. the waterfall model with a very high
emphasis on risk analysis. It allows incremental releases of the product or incremental
refinement through each iteration around the spiral.
Spiral Model - Design

The spiral model has four phases.
Identification: This phase starts with gathering the business requirements in the baseline spiral. In
the subsequent spirals as the product matures, identification of system requirements, subsystem
requirements and unit requirements are all done in this phase.
Design: The Design phase starts with the conceptual design in the baseline spiral and involves
architectural design, logical design of modules, physical product design and the final design in the
subsequent spirals.
Construct or Build: The Construct phase refers to production of the actual software product at
every spiral. In the baseline spiral, when the product is just thought of and the design is being
developed a POC (Proof of Concept) is developed in this phase to get customer feedback.
Evaluation and Risk Analysis: Risk Analysis includes identifying, estimating and monitoring the
technical feasibility and management risks, such as schedule slippage and cost overrun. After
testing the build, at the end of first iteration, the customer evaluates the software and provides
feedback.
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Spiral Model - Pros and Cons
The advantages of the Spiral SDLC Model are as follows −
 Changing requirements can be accommodated.
 Allows extensive use of prototypes.
 Requirements can be captured more accurately.
 Users see the system early.
 Development can be divided into smaller parts and the risky parts can be developed
earlier which helps in better risk management.
The disadvantages of the Spiral SDLC Model are as follows −
 Management is more complex.
 End of the project may not be known early.
 Not suitable for small or low risk projects and could be expensive for small projects.
 Process is complex
 Spiral may go on indefinitely.
SDLC - V-Model
The V-model is an SDLC model where execution of processes happens in a sequential manner in
a V-shape. It is also known as Verification and Validation model.
The V-Model is an extension of the waterfall model and is based on the association of a testing
phase for each corresponding development stage. This means that for every single phase in the
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development cycle, there is a directly associated testing phase. This is a highly-disciplined model
and the next phase starts only after completion of the previous phase.
V-Model - Design
Under the V-Model, the corresponding testing phase of the development phase is planned in
parallel. So, there are Verification phases on one side of the ‘V’ and Validation phases on the
other side. The Coding Phase joins the two sides of the V-Model.
V-Model - Verification Phases

There are several Verification phases in the V-Model, each of these are explained in detail
below.
Business Requirement Analysis
This is the first phase in the development cycle where the product requirements are understood
from the customer’s perspective. This phase involves detailed communication with the customer
to understand his expectations and exact requirement. This is a very important activity and needs
to be managed well, as most of the customers are not sure about what exactly they need. The
acceptance test design planning is done at this stage as business requirements can be used as an
input for acceptance testing.
System Design
Once you have the clear and detailed product requirements, it is time to design the complete
system. The system design will have the understanding and detailing the complete hardware and
communication setup for the product under development. The system test plan is developed
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based on the system design. Doing this at an earlier stage leaves more time for the actual test
execution later.
Architectural Design
Architectural specifications are understood and designed in this phase. Usually more than one
technical approach is proposed and based on the technical and financial feasibility the final
decision is taken. The system design is broken down further into modules taking up different
functionality. This is also referred to as High Level Design (HLD).
Module Design
In this phase, the detailed internal design for all the system modules is specified, referred to as
Low Level Design (LLD). It is important that the design is compatible with the other modules in
the system architecture and the other external systems. The unit tests are an essential part of any
development process and helps eliminate the maximum faults and errors at a very early stage.
These unit tests can be designed at this stage based on the internal module designs.
Coding Phase
The actual coding of the system modules designed in the design phase is taken up in the Coding
phase. The best suitable programming language is decided based on the system and architectural
requirements.
Validation Phases
The different Validation Phases in a V-Model are explained in detail below.
Unit Testing
Unit tests designed in the module design phase are executed on the code during this validation
phase. Unit testing is the testing at code level and helps eliminate bugs at an early stage, though
all defects cannot be uncovered by unit testing.
Integration Testing
Integration testing is associated with the architectural design phase. Integration tests are
performed to test the coexistence and communication of the internal modules within the system.
System Testing
It is directly associated with the system design phase. System tests check the entire system
functionality and the communication of the system under development with external systems.
Most of the software and hardware compatibility issues can be uncovered during this phase.
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Acceptance Testing
Acceptance testing is associated with the business requirement analysis phase and involves
testing the product in user environment. Acceptance tests uncover the compatibility issues with
the other systems available in the user environment.
V-Model - Pros and Cons
The advantages of the V-Model method are as follows −
 This is a highly-disciplined model and Phases are completed one at a time.
 Works well for smaller projects where requirements are very well understood.
 Simple and easy to understand and use.
The disadvantages of the V-Model method are as follows −
 High risk and uncertainty.
 Poor model for long and ongoing projects.
 Once an application is in the testing stage, it is difficult to go back and change a
functionality.
SDLC - Agile Model

Agile SDLC model is a combination of iterative and incremental process models with focus on
process adaptability and customer satisfaction by rapid delivery of working software product.
Agile Methods break the product into small incremental builds. These builds are provided in
iterations. Each iteration typically lasts from about one to three weeks. Every iteration involves
cross functional teams working simultaneously on various areas like −
 Planning
 Requirements Analysis
 Design
 Coding
 Unit Testing and
 Acceptance Testing.
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What is Agile?
Agile model believes that every project needs to be handled differently and the existing methods
need to be tailored to best suit the project requirements. In Agile, the tasks are divided to time
boxes (small time frames) to deliver specific features for a release.
Iterative approach is taken and working software build is delivered after each iteration. Each
build is incremental in terms of features; the final build holds all the features required by the
customer.
The Agile thought process had started early in the software development and started becoming
popular with time due to its flexibility and adaptability.
Agile Model - Pros and Cons
The advantages of the Agile Model are as follows −
 Is a very realistic approach to software development.
 Promotes teamwork and cross training.
 Resource requirements are minimum.
 Good model for environments that change steadily.
 Minimal rules, documentation easily employed.
 Enables concurrent development and delivery within an overall planned context.
 Little or no planning required.
 Easy to manage.
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 Gives flexibility to developers.
The disadvantages of the Agile Model are as follows −
 Not suitable for handling complex dependencies.
 An overall plan, an agile leader and agile PM practice is a must without which it will not
work.
 Depends heavily on customer interaction, so if customer is not clear, team can be driven
in the wrong direction.
 There is a very high individual dependency, since there is minimum documentation
generated.
 Transfer of technology to new team members may be quite challenging due to lack of
documentation.
 Suitable for project requiring shorter development times.
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সাইবার পুলিশ ব্যুরোর কাজ শুরু
http://agaminews24.com/2018/06/01
কাজী মুস্তাফিজ, সিনিয়র রিপোর্টার

১ জুন, ২০১৮ | ১২:০৫
দেশে প্রযুক্তির সুবিধা বাড়ার সঙ্গে পাল্লা দিয়ে বাড়ছে সাইবার অপরাধ। সরকার নতু ন আইনও করেছে। এ নিয়ে পুলিশ প্রশাসনও বসে
নেই। প্রধানমন্ত্রী শেখ হাসিনার নির্দে শনায় শিগগির শুরু হতে যাচ্ছে পুলিশের নতু ন ইউনিট ‘সাইবার পুলিশ ব্যুরো’র কাজ।
যাবতীয় সব প্রক্রিয়ার পর সবশেষ জনপ্রশাসন মন্ত্রণালয়ের সচিব পর্যায়ের এক সভা গত সোমবার (২৮ মে ২০১৮) সম্পন্ন হয়েছে। এতে
পুলিশের নতু ন এ ইউনিটের কার্যক্রমের বিষয়টিকে ইতিবাচক হিসেবে নেয়া হয়েছে এবং জনবলসহ অন্যান্য বিষয় চূ ড়ান্ত প্রায়।
সোমবারের সভায় উপস্থিত থাকা পুলিশের অপরাধ তদন্ত বিভাগের (সিআইডি) বিশেষ পুলিশ সুপার শেখ রেজাউল হায়দার
আগামীনিউজ২৪.কমকে এ তথ্য নিশ্চিত করেছেন। পুলিশের এই কর্মকর্তা সাইবার ক্রাইম ইনভেস্টিগেশন সেন্টারেরও প্রকল্প পরিচালক
ছিলেন।
শেখ রেজাউল হায়দার জানান, সিআইডির অধীনে নতু ন এই ইউনিটের নেতৃ ত্বে থাকবেন একজন ডিআইজি পদমর্যাদার কর্মকর্তা। তার
অধীনস্থ থাকবেন অতিরিক্ত ডিআইজি, বিশেষ পুলিশ সুপার, অতিরিক্ত বিশেষ পুলিশ সুপার, সহকারি পুলিশ সুপার, পরিদর্শক,
উপপরিদর্শক পদমর্যাদার কর্মকর্তা। এছাড়াও পুলিশের বাইরে থেকে বিভিন্ন সাপোর্টিং স্টাফ হিসেবে থাকবেন আরো পাঁচ-ছয় জন।
জনপ্রশাসন মন্ত্রণালয়ের বৈঠক সূত্র জানায়, এই ইউনিট গঠনে সরাসরি প্রধানমন্ত্রীর আগ্রহ থাকায় কাজ দ্রুত এগিয়েছে। দাপ্তরিক যাবতীয়
প্রক্রিয়া প্রায় শেষ পর্যায়ে। প্রধানমন্ত্রী চান এই ইউনিট দ্রুত কাজ শুরু করুক। দেশের প্রত্যন্ত অঞ্চলে ক্রমেই ইন্টারনেটসহ নানা সুবিধা
পৌছানো হচ্ছে। পাশাপাশি প্রযুক্তির নিরাপদ ব্যবহারে কার্যকর পদক্ষেপ নিতে প্রধানমন্ত্রীর দৃষ্টিভঙ্গি বরাবরই ইতিবাচক।
কী থাকছে এই ইউনিটে
প্রাথমিক পরিকল্পনা অনুযায়ী ‘সাইবার পুলিশ ব্যুরো’র জনবল সংখ্যা হবে প্রায় ৫০০ জন। শুরুর দিকে বিভাগী পর্যায়ে এবং পরে
জেলাভিত্তিক অফিস থাকবে এই ইউনিটের।
পুলিশ সদর দফতর সূত্র জানিয়েছে, অন্যান্য দাফতরিক প্রক্রিয়াসহ জনপ্রশাসন মন্ত্রণালয়ের চূ ড়ান্ত সিদ্ধান্ত হয়ে গেছে। শিগগির এই নতু ন
ইউনিটের কাজ শুরু হয়ে যাবে।
এই ইউনিটের কর্মকর্তারা অপরাধের ধরন অনুযায়ী একাধিক দলে বিভক্ত হয়ে কাজ করবেন। এর মধ্যে রয়েছে, হ্যাকিং, সাইবার
ফিনান্সিয়াল ক্রাইম, আইটি এনাবলড ক্রাইম, সোশ্যাল মিডিয়া ও সাইবার টেরোরিজম ইনভেস্টিগেশন এবং ইমার্জে ন্সি রেসপন্স টিম ও
স্পেশাল ইনভেস্টিগেশন টিম মিলে একটি শাখা। এছাড়া ডিজিটাল ফরেনসিক ও রিসার্চ অ্যান্ড ডেভেলপমেন্ট বিষয়ক দুটি শাখা
থাকছে।
কেন সাইবার পুলিশ
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সমাজে প্রচলিত একই ধরনের অপরাধ বার বার সংঘটিত হয়। কিন্তু সাইবার জগতে নতু ন নতু ন অপরাধের ধরন সামনে আসে। সাইবার
অপরাধের সঙ্গে প্রযুক্তিগত বিষয়গুলো জড়িত। আর এসব অপরাধের ক্ষেত্রে অপরাধীরা সব সময় নতু ন কৌশলের আশ্রয় নেয়। তাই
পুলিশ কর্মকর্তাদেরও এসব মামলা তদন্তে প্রযুক্তিগত বিষয়ে দক্ষতা অর্জ নের উদ্যোগ নেয়া হয়েছে। এর অংশ হিসেবে পুরান ঢাকার
মিলব্যারাকে সিআইডির সাইবার ট্রেনিং সেন্টারে নিয়মিত প্রশিক্ষণ চলছে। এতে সারা দেশ থেকে পরিদর্শক (ইন্সপেক্টর) ও উপপরিদর্শক
(এসআই) পর্যায়ের কর্মকর্তারা অংশ নিচ্ছেন।
পুলিশের নতু ন এই ইউনিটের কাজ শুরু হলে সারা দেশের সাইবার অপরাধ সংক্রান্ত সব মামলা ও ঘটনার তথ্য মনিটরিং হবে একটি
অনলাইন সিস্টেমের মাধ্যমে। অর্থাৎ ঢাকার প্রধান কার্যালয়ের কর্মকর্তারা সারা দেশের অপরাধচিত্র সার্বক্ষণিক পর্যবেক্ষণের সুবিধা পাবেন
অনলাইনেই। এর ফলে অপরাধের ধরণ অনুযায়ী দ্রুত ও প্রয়োজনীয় কার্যকর ব্যবস্থা নেয়া সহজ হবে।
যেভাবে শুরু হয় প্রক্রিয়া
পুলিশ সদর দফতর সূত্র জানায়, সাইবার পুলিশ ব্যুরো গঠনের বিষয়ে ২০১৭ সালের ৩০ মার্চ পুলিশ সদর দফতর থেকে সিআইডির মাধ্যমে
৫৭৫ জন জনবল ও ১০০ গাড়ির প্রস্তাব স্বরাষ্ট্র মন্ত্রণালয়ে পাঠানো হয়। যাচাই-বাছাইয়ের পর গত ২১ নভেম্বর স্বরাষ্ট্র মন্ত্রণালয় ৫০৫ জনবল
ও ৮৫টি গাড়ি অনুমোদন দেয়। এরপর প্রস্তাবটি জনপ্রশাসন মন্ত্রণালয়ে যায়। গত সোমবার জনপ্রশাসন মন্ত্রণালয়ের সভায় বিষয়টির
ইতিবাচক সিদ্ধান্ত হয়। এরপর অর্থমন্ত্রণালয়ে সব শেষ প্রক্রিয়া শেষে শিগগির শুরু হবে ইউনিটের কাজ।
২০১৫ সালে দেশে ২৬৭টি সাইবার অপরাধ সংঘটিত হয়। পরের বছর তা বেড়ে দাঁড়ায় ৬৭১টিতে। সর্বশেষ ২০১৭ সালে তা প্রায় দ্বিগুণ হয়ে
অন্তত ১৩শ’ সাইবার অপরাধ সংঘটিত হয়। এ ছাড়া জঙ্গিদের মধ্যে অন্তত ৮২ ভাগ তরুণ অনলাইন ও সোশ্যাল মিডিয়ার মাধ্যমে
অন্ধকার পথে গেছে, যা সাইবার অপরাধের ভয়ঙ্কর দৃষ্টান্ত। সার্বিক পরিস্থিতিতে দেশে সাইবার অপরাধ নিয়ন্ত্রণে সাইবার পুলিশ ব্যুরো গঠনের
প্রয়োজনীয়তা দেখা দেয়।
ফেসবুকে গুজব প্রতিরোধে সাইবার ক্রাইম ব্যুরো
জাতীয় সংসদ নির্বাচনে সাইবার ক্রাইম হুমকি মনে করছে পুলিশ
জামিউল আহসান সিপু২৭ সেপ্টেম্বর, ২০১৮ ইং ০৩:৫৩ মিঃ
আগামী জাতীয় সংসদ নির্বাচনে সাইবার ক্রাইমকে অন্যতম হুমকি বিবেচনা করে পুলিশে ‘সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো’ গঠন করা
হচ্ছে। ইতোমধ্যে এই ইউনিট গঠনের জন্য জনপ্রশাসন মন্ত্রণালয় থেকে ৩৬৯টি পদ সৃষ্টির অনুমোদন দেয়া হয়েছে। আলাদা এ ইউনিটটি
95
বাস্তবায়িত হলে সামাজিক যোগাযোগ মাধ্যম ব্যবহার করে গুজব ছড়ানোসহ সাইবার অপরাধ নিয়ন্ত্রণে কাজ করবে। সাইবার ক্রাইম
বিশ্লেষকরা বলছেন, পৃথিবীর অনেক দেশেই সাইবার ক্রাইমকে সামনে রেখে তদন্ত সংস্থা গঠিত হয়েছে। দেশে সাইবার ক্রাইম ইনভেস্টিগেশন
ব্যুরো বাস্তবায়ন হলে সাইবার অপরাধ কিছু হলেও হ্রাস পাবে।

পুলিশের কাউন্টার টেরোরিজম অ্যান্ড ট্রান্স ন্যাশনাল ক্রাইম (সিটিটিসি) ইউনিটের প্রধান ডিআইজি মনিরুল ইসলাম ইত্তেফাককে বলেন,
‘আগামী জাতীয় সংসদ নির্বাচনে সাইবার ক্রাইমকে আমরা হুমকি হিসাবে দেখছি। এর আগে কোটা সংস্কার আন্দোলন ও নিরাপদ সড়ক
আন্দোলনেও ভু য়া তথ্য ও গুজব প্রচার করে কোমলমতি শিক্ষার্থীদের বিপাকে ফেলার চেষ্টা করা হয়েছে। এসব অপরাধ পুলিশের সাইবার
ক্রাইম ইউনিট তদন্ত করে ব্যবস্থা নেয়া হচ্ছে।

তিনি আরো বলেন, জাতীয় সংসদ নির্বাচনে এ ধরনের অপরাধ সংগঠিত হলে প্রচলিত আইসিটি অ্যাক্ট ও সম্প্রতি জাতীয় সংসদে পাস
হওয়া ডিজিটাল সিকিউরিটি অ্যাক্টের আলোকে সাইবার ক্রাইম ইউনিট তদন্ত করবে। এর পাশাপাশি সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো
চালু হলে আমাদের ওইসব অপরাধ তদন্তের কাজে গতিশীলতা বাড়বে।

পুলিশ সদর দফতরের একটি সূত্র জানায়, সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো গঠনের জন্য ৫৮৫টি পদ সৃষ্টির প্রস্তাব পাঠায় জনপ্রশাসন
মন্ত্রণালয়ে। এর প্রেক্ষিতে ইতোমধ্যে জনপ্রশাসন মন্ত্রণালয় ৩৬৯টি পদ সৃজনের অনুমোদন দেয়। এরমধ্যে রয়েছে ডিআইজি ১টি,
অতিরিক্ত ডিআইজি ২টি, পুলিশ সুপার ৩টি, এডিশনাল এসপি ৬টি, এএসপি ১৯টি, ইন্সপেক্টর ৬৫টি, এসআই (নিরস্ত্র) ১৩০টি,
এএসআই ৩৯টি ও কনস্টেবলের ৭০টিসহ বিভিন্ন পদ। এই ৩৬৯টি পদ চূ ড়ান্ত অনুমোদনের জন্য অর্থ মন্ত্রণালয়ের অর্থ বিভাগের ব্যয় অনু
শাখায় রয়েছে।

এ ব্যাপারে পুলিশ সদর দফতরের একজন পদস্থ কর্মকর্তা বলেন, ‘এরই মধ্যে সিআইডি কার্যালয়ে কোরিয়া ইন্টারন্যাশনাল কো-
অপারেটিভের অর্থায়নে ২৮ কোটি ৩২ লাখ টাকা ব্যয়ে অত্যাধুনিক প্রযুক্তিনির্ভ র সাইবার ইনভেস্টিগেশন সেন্টার নির্মাণ করা হয়েছে।
এটিকে সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো’র প্রধান কার্যালয় করা হবে। এ বছরের মধ্যেই সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো’র কার্যক্রম
আনুষ্ঠানিকভাবে শুরু হতে পারে।’

প্রযুক্তি বিশেষজ্ঞরা জানান, বর্ত মানে দেশে পৌনে ৭ কোটি ইন্টারনেট গ্রাহকের মধ্যে ফেসবুক ব্যবহারকারীর সংখ্যা আড়াই কোটি। পৃথিবীর
যেসব শহরে ফেসবুক ব্যবহারকারীর সংখ্যা বেশি, তার মধ্যে প্রথম স্থানে রয়েছে ব্যাংকক। এরপরেই দ্বিতীয় স্থানে রয়েছে বাংলাদেশ। দেশে
সাইবার অপরাধ ভয়াবহ আকার ধারণ করেছে। এই ধরনের অপরাধের শিকার মাত্র ৩০ শতাংশ মানুষ মামলার আশ্রয় নেয়। বেশিরভাগ
ক্ষেত্রেই ভু ক্তভোগীরা মামলা করতে অনীহা প্রকাশ করেন।

তথ্য ও প্রযুক্তি বিশেষজ্ঞ তানভীর হাসান জোহা বলেন, সাইবার একটা উন্মুক্ত জায়গা। এখানে যে কেউ বিভ্রান্তির মধ্যে পড়ে যেতে পারে।
আমাদের ডিজিটালাইজেশন কিছুটা অপরিপক্বতার সাথে ঘটেছে। শুধু শিক্ষিত মানুষের মধ্যে যে ডিজিটাল প্রযুক্তি গিয়েছে তা কিন্তু নয়।
তাই এভাবে ডিজিটাল প্রযুক্তির বিস্তার বাংলাদেশের জন্য ক্ষতিকর। সাইবার ক্রাইমকে শনাক্ত করার জন্য প্রযুক্তিগত কাঠামো খুবই দুর্বল।
আমাদের সাইবার ট্রাইব্যুনাল রয়েছে মাত্র ১টি। ৬৪টি জেলায় ডিজিটাল ফরেনসিক ল্যাব নেই। কিন্তু সারাদেশে সবার হাতে ডিজিটাল
প্রযুক্তি। সাইবার ক্রাইম প্রতিরোধমূলক কার্যক্রম রয়েছে খুবই সীমিত। প্রযুক্তিগত যেসব অপরাধ সেটাকে মোকাবেলা করতে গেলে
প্রযুক্তির সহায়তা নিতে হবে। সাইবার প্রকৌশলীদের অন্তর্ভু ক্ত করে হয়তো দুই চারটা এডমিনকে গ্রেফতার করে সাময়িক লাভবান হওয়া
যেতে পারে। তবে দীর্ঘমেয়াদী কোনো সুবিধা পাওয়া যাবে না। বিটিআরসি’র বিভিন্ন গেটওয়ের ভেতরে আমাদের হার্ড ওয়্যার ও সফটওয়্যার
বসিয়ে আইন-শৃঙ্খলা বাহিনীর সঙ্গে সংযুক্ত করে নজরদারি করলে বিষয়টি বেশি কার্যকর হবে।

জঙ্গি দমনে নিয়োজিত পুলিশ কর্মকর্তারা মনে করেন, জঙ্গি ও সন্ত্রাসীদের কার্যক্রম বন্ধে ফিজিক্যাল পেট্রোলিংয়ের চেয়ে সাইবার জগতে
পেট্রোলিংয়ে জোর দিতে হবে। এর মাধ্যমে জঙ্গি ও সন্ত্রাসীদের অপতত্পরতা কমিয়ে আনা সম্ভব হবে। এজন্য সাইবার অপরাধ দমনে
লোকবল বাড়ানোর পাশাপাশি টেকনিক্যাল সাপোর্ট বাড়ানো জরুরি বলেও মনে করেন সংশ্লিষ্টরা।

এ ব্যাপারে কাউন্টার টেরোরিজম ইউনিট প্রধান মনিরুল ইসলাম বলেন, জঙ্গিদের চেয়ে দৌড়ে এখন পুলিশ অনেক এগিয়ে আছে। কিছু
করার পরিকল্পনার পর্যায়েই তারা ধরা পড়ে যাচ্ছে। তারা অনলাইনে বা বিভিন্ন মাধ্যমে স্থানীয়ভাবে কাউকে মোটিভেট করতে চাচ্ছে। যে
যেখানে আছে সেখানেই তাকে কাজ সেরে ফেলতে হবে। সেজন্য তারা ছদ্মবেশে বিভিন্ন নামে ফেসবুক, টু ইটার গ্রুপ খুলছে। সেখানে তারা
বিভিন্ন বিষয়ে কথা বলে। এসব পুলিশের সাইবার পেট্রোলিংয়ের নিয়ন্ত্রণে আছে উল্লেখ করে তিনি বলেন, সাইবার ক্রাইম ইনভেস্টিগেশন
ব্যুরো গঠন হলে শুধু জঙ্গিরা নয়, কেউই সাইবার অপরাধ করে পার পাওয়ার কথা নয়।

ইত্তেফাক/আরকেজি
96
সাইবার অপরাধ রোধে হচ্ছে ‘ সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো’
অবশ্য শুধু কেন্দ্রীয়ভাবে নয়, পর্যায়ক্রমে এর কার্যক্রম বা সাব অফিস জেলা পর্যায়েও করার প্রস্তাব করা হবে বলে জানান সিআইডির এই
কর্মকর্তা।
মোস্তফা ইমরুল কায়েস
নিজস্ব প্রতিবেদক
প্রকাশিত: ০৯ অক্টোবর ২০১৮,
https://www.priyo.com/articles
(প্রিয়.কম) সাইবার অপরাধ বাড়ছে, কিন্তু সে হারে এই অপরাধ দমনে নেই জনবল। নেই আলাদা ইউনিট। দেশে বিভিন্ন ইস্যুকে কেন্দ্র করে
সামাজিক যোগাযোগমাধ্যমে ছড়িয়ে পড়ছে গুজব। আর সেই গুজবে কখনো কখনো সহিংসতার মতো ঘটনাও ঘটছে। অবশ্য এই গুজব
প্রতিরোধে মনোযোগী হয়েছে সরকার।
তাইতো আগামী জাতীয় সংসদ নির্বাচনে সামাজিক যোগাযোগমাধ্যমে গুজব প্রতিরোধে করতে ‘সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো’
নামে একটি আলাদা ইউনিট হচ্ছে। এই ইউনিটের ফাইল এখন চূ ড়ান্ত অনুমোদনের অপেক্ষায়। প্রধানমন্ত্রী স্বাক্ষর করলেই সেটি চূ ড়ান্ত হবে
বলে জানা গেছে।
পুলিশে এখন প্রতিনিয়ত নানা ধরনের অপরাধের মামলার পাশাপাশি সাইবার মামলার সংখ্যা বাড়ছে। আর এসব মামলায় তদন্ত করতে
গিয়ে হিমশিম খেতে হচ্ছে পুলিশ সদস্যদের। তারা অন্যান্য মামলার জন্য এসব মামলার তদন্তে তেমন গতি আনতে পারছেন না।
এতে বছরের পর বছর এসব সাইবার অপারাধ মামলার তদন্ত ঝু লে আছে। এবার সেই মামলার তদন্তে গতি আনবে সাইবার ক্রাইম
ইনভেস্টিগেশন ব্যুরো। এমনটাই মনে করছেন আইনশৃ্ঙ্খলা রক্ষাকারী বাহিনীর সদস্যরা।
আইনশৃ্ঙ্খলা রক্ষাকারী বাহিনীর কর্মকর্তারা বলছেন, এর মাধ্যমে খুব সহজেই সাইবার অপরাধীকে খুঁজে বের করাসহ তদন্তের কাজ করা
যাবে। চার্জ শিট খুব অল্প সময়ে দেওয়া যাবে। আলাদা এ ইউনিটটি সামাজিক যোগাযোগমাধ্যম ব্যবহার করে গুজব ছড়ানোসহ যেকোনো
ধরনের সাইবার অপরাধ নিয়ন্ত্রণে কাজ করবে। দেশে সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরো বাস্তবায়ন হলে সাইবার অপরাধ কিছু হলেও হ্রাস
পাবে।
পুলিশ সদর দপ্তর ও সিআইডি সূত্রে জানা গেছে, সরকার সাইবার ক্রাইমকে অন্যতম হুমকি বিবেচনা করে পুলিশে ‘সাইবার ক্রাইম
ইনভেস্টিগেশন ব্যুরো’ গঠন করা করছে। এ সংক্রান্ত আলোচনাও হয়েছে জাতীয় সংসদে। এবার সেই ইউনিটের জন্য জনবল চেয়ে পুলিশ
সদর দপ্তরের পক্ষ থেকে জনপ্রশাসন মন্ত্রণালয়ে একটি প্রস্তাব পাঠানো হয়েছে।
পুলিশ সদর দফতর থেকে প্রথম দিকে এই ইউনিট গঠনের জন্য ৫৮৫টি পদ সৃষ্টির প্রস্তাব পাঠানো হয়েছিল জনপ্রশাসন মন্ত্রণালয়ে, পরে তা
কমিয়ে করা হয় ৩৬৯টি পদ সৃষ্টির প্রস্তাব। সর্বশেষ এটি করা হয়েছে ৩৪২ জন। এর মধ্যে রয়েছে উপমহাপরিদর্শক (ডিআইজি) ১টি,
অতিরিক্ত ডিআইজি ২টি, পুলিশ সুপার (এসপি) ৩টি, অতিরিক্ত এসপি ৬টি, সহকারী এসপি ১৯টি, পরিদর্শক ৬৫টি, উপপরিদর্শক
(এসআই) (নিরস্ত্র) ১৩০টি, সহকারী উপপরিদর্শক (এএসআই) ৩৯টি ও কনস্টেবলের ৭০টিসহ বিভিন্ন পদ।
এই ৩৪২টি পদ চূ ড়ান্ত অনুমোদনের জন্য অর্থ মন্ত্রণালয়ের অর্থ বিভাগের ব্যয় অনু শাখায় রয়েছে। সেই প্রস্তাবটি এখন অনুমোদনের
অপেক্ষায় আছে। প্রধানমন্ত্রী সেই ফাইলে সই করলেই তা চূ ড়ান্ত হবে এবং এর কার্যক্রম শুরু হবে।
পুলিশের অপরাধ তদন্ত বিভাগের (সিআইডি) সূত্র জানায়, এই ইউনিটের অফিস হবে বর্ত মানে রাজধানীর মালিবাগস্থ সিআইডির
কার্যালয়ের ভেতরে। সেখান থেকেই এর কার্যক্রম পরিচালনা করা হবে। সিআইডি কার্যালয়ে কোরিয়া ইন্টারন্যাশনাল কো-অপারেটিভের
অর্থায়নে এটি নির্মাণ করতে ২৮ কোটি ৩২ লাখ টাকা ব্যয় করা হবে। অত্যাধুনিক প্রযুক্তিনির্ভ র সাইবার ইনভেস্টিগেশন সেন্টার হবে এটি।
97
সিআইডির ভেতরে যে অফিস হবে, সেটিই মূলত সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরোর প্রধান কার্যালয় হিসেবে কাজ করবে। এ বছরের
মধ্যেই সাইবার ক্রাইম ইনভেস্টিগেশন ব্যুরোর কার্যক্রম আনুষ্ঠানিকভাবে শুরু হতে পারে।
পুলিশ সদর দফতরের একজন কর্মকর্তা জানান, পৃথিবীর যেসব শহরে ফেসবুক ব্যবহারকারীর সংখ্যা বেশি, তার মধ্যে প্রথম স্থানে রয়েছে
ব্যাংকক। এরপরেই দ্বিতীয় স্থানে রয়েছে বাংলাদেশ। বর্ত মানে দেশে পৌনে ৭ কোটি ইন্টারনেট গ্রাহকের মধ্যে ফেসবুক ব্যবহারকারীর সংখ্যা
আড়াই কোটি। দেশে সাইবার অপরাধ ভয়াবহ আকার ধারণ করেছে। এই ধরনের অপরাধের শিকার মাত্র ৩০ শতাংশ মানুষ মামলার আশ্রয়
নেয়। বেশির ভাগ ক্ষেত্রেই ভু ক্তভোগীরা মামলা করতে অনীহা প্রকাশ করেন।
সিআইডির বিশেষ পুলিশ সুপার মোল্যা নজরুল ইসলাম প্রিয়.কমকে বলেন, এই ইউনিটে ৩৪২ জন থাকবে। বিষয়টির অনুমোদন চূ ড়ান্ত
করার জন্য ফাইলটি প্রধানমন্ত্রীর কাছে পাঠানো হয়েছে। তিনি সই করলেই সব চূ ড়ান্ত হবে এবং কার্যক্রম শুরু করা যাবে। বর্ত মানের
সিআইডিতে প্রায় শতাধিক আইসিটি মামলা রয়েছে। সেসব মামলার তদন্ত করছে সিআইডির বিভিন্ন কর্মকর্তারা। তারা নতু ন এই বিশেষ
ইউনিটে যুক্ত হবেন এবং নতু ন করে আরও কিছু জনবল নিযুক্ত করা হবে।
তিনি জানান, ইউনিটটি আলাদাভাবে তাদের তদন্ত কার্যক্রম চালাবেন। দেশজুড়ে গুজব প্রতিরোধে বিভিন্ন মামলার জট খুলে অল্প সময়ে
তদন্তের জন্যই এই আদালা ইউনিট।
অবশ্য শুধু কেন্দ্রীয়ভাবে নয়, পর্যায়ক্রমে এর কার্যক্রম বা সাব অফিস জেলা পর্যায়েও করার প্রস্তাব করা হবে বলে জানান সিআইডির এই
কর্মকর্তা।
সিআইডির মিডিয়া বিভাগের সিনিয়র এএসপি শারমিন জাহান প্রিয়.কমকে বলেন, এ সংক্রান্ত একটি ফাইল এসেছে। সেটি কোনো ল্যাব
নয়, পুরোপুরি একটি সাইবার ইউনিট হচ্ছে। যেখানে জনবল থাকবে।
অবশ্য এর কার্যক্রম এখনো শুরু হয়নি বলে জানান তিনি।
পুলিশের সদর দপ্তরের জনসংযোগ কর্মকর্তা কামরুল আহসান প্রিয়.কমকে বলেন, প্রস্তাবটি সচিব কমিটিতে আছে। সেটি এখনো চূ ড়ান্ত
হয়নি। তারা অনুমোদন দিলেই এর কার্যক্রম শুরু হবে।
পুলিশের কাউন্টার টেরোরিজম অ্যান্ড ট্রান্স ন্যাশনাল ক্রাইম (সিটিটিসি) ইউনিটের প্রধান ডিআইজি মনিরুল ইসলাম বলেন, জাতীয়
সংসদ নির্বাচনে এ ধরনের অপরাধ সংগঠিত হলে প্রচলিত আইসিটি অ্যাক্ট ও সম্প্রতি জাতীয় সংসদে পাস হওয়া ডিজিটাল সিকিউরিটি
অ্যাক্টের আলোকে সাইবার ক্রাইম ইউনিট তদন্ত করবে।
আগামী জাতীয় সংসদ নির্বাচনে সাইবার ক্রাইমকে হুমকি হিসেবে দেখা হচ্ছে জানিয়ে মনিরুল ইসলাম আরও বলেন, ‘সাইবার ক্রাইম
ইনভেস্টিগেশন ব্যুরো চালু হলে আমাদের ওইসব অপরাধ তদন্তের কাজে গতিশীলতা বাড়বে।’
প্রিয় সংবাদ/হিরা/শান্ত
98

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Impact of Information and Communication Technology (ICT) on Enhancement of Business

and Profitability of Banks

Information and Communications Technology is introduced to change the operating environment of

1.2 Objectives of the Study

1.3 Methodology and Data

Table-1: Sample Distribution of Banks

State-Owned Commercial Banks (SOCBs) 3

1.4 Organization of the Research Report

1.5 Literature Review

Source: Survey Information

2.3 Alternative Delivery Channels (ADCs)

2.3.1 Internet Banking

Table-3: Internet Banking

2.3.2 Plastic Card (Debit, Credit and Prepaid)

Types Year 2015 2016 2017 2018 2019 CAGR

2.3.5 Mobile Banking

2.3.6 Agent Banking

2.4 Clearing through Central Bank

Table-9: Automated Cheque Processing 2010-2019

2.4.1.2 Bangladesh Electronic Funds Transfer Network (BEFTN)

Table-10: Electronic Funds Transfer 2012-2019

2.4.3 National Payment Switch Bangladesh (NPSB)

2.5 Trends in Technology Adoption

Table-13: Technology Adoption by Banks, 1998-2019

2.6. Impact of ICT on Transaction Cost, Time and Distance Reduction

2.6.2 Distance of Financial Access Points

Figure-2: Distance of Financial Access Points

MFS Agent Point Agent Banking Point ATM

2.6.3 Cost to Access a Financial Service Point

Figure-3: Travelling Cost per Transaction Including Man-Hour

Agent Banking Point

MFS Agent Point

2.6.4 Travel Time to get a Financial Access Point

Figure-4: Travel Time for Doing a Transaction (% of Customers)

Agent Banking Point 7 12 62 19

MFS Agent Point 74 21 4 1

Less than 30 minutes 30-45 minutes 45-60 minutes Above 1 hour

2.7. Impact of ICT on Financial Inclusion

2.7.1 Financial Inclusion Measurement

Table-16: Total Number of E-Banking Transactions (In Millions)

Table-17: Volume of E-Banking Transactions (Billion Crore Taka)

2.7.1.1 Geographic Concentration of Financial Services (Per 1000 Square Kilometer)

Table-18: Geographic Penetration of Financial Services (Per 1000 Square Kilometer)

Figure-5: Geographic Penetration of Financial Services (Per 1000 Square Kilometer)

Bank Branches MFI Branches Agent Banking Agents

2.7.1.2 Demographic Concentration of Financial Services (Per 100000 Adult Population)

Table-19: Demographic Penetration of Financial Services (Per 100000 Adult Population)

2015 2016 2017 2018 2019 CAGR

Bank Branches 9.62 9.78 9.88 10.01 10.09 1.19

Deposit Accounts 78046.28 82519.25 86885.73 92645.20 101649.66 6.83

Advance Accounts 10126.97 10275.64 10493.40 10341.47 10327.07 0.49

MFI Branches 16.08 16.59 17.10 17.81 18.57 3.66

ATM 8.03 9.14 9.45 10.07 10.42 6.73

POST 31.06 33.39 37.11 44.65 55.81 15.78

Internet Banking Users 1562.20 1547.01 1729.80 1985.04 2357.35 10.83

Debit Card 8829.11 10081.77 11569.42 13914.74 17384.47 18.46

Credit Card 635.19 959.62 901.92 1148.37 1465.82 23.25

Prepaid Card 138.36 178.54 137.50 204.65 394.38 29.94

MFS Customers 32561.95 41649.78 58373.87 65667.87 75903.50 23.56

Agent Banking Agents 0.21 2.37 2.56 4.38 7.55 143.98

Agent Banking Customers 99.36 532.17 1205.76 2390.08 5013.61 166.52

Internet Banking Customers 1566.66 1550.47 1727.39 1984.63 2355.30 10.73