A study on Impact of Digital Transformations on Banking sector of

Bangladesh

Problem statement
The empirical problem is “Impact of digitalizations on the Earnings Capacity of Commercial
Banks in Bangladesh”.

Variable
Dependent variable is Basic Earning Power ( BEP). Independent variables are number of ATM
booth, number of digitalized branch, Mobile Banking, Online Banking and Agent Banking.
Besides these, some control and macroconomics variable also consider.

Sample
The analysis will be based on 10 years data of 10 selected commercial banks currently running
business in Bangladesh. As accumulated data of the 10 commercial banks covers the period of
2012 to 2021, so by nature it is cross-sectional data. It also covers a range of years (10) which
refers example of time series data. Thus, the study is fall under the heading of panel data.

Data Collections
Data will be collected from banks annual report, audited report, financial statement , internet and
relevant websites. Personal observations and bankers opinion will also consider .

Data Analysis Techniques

To examine the relationship between bank Basic Earnings Power (BEP) and financial
technology, econometrics tool will also also used; for example: Ordinary Least Square
Regression Model (OLS), Fixed Effect Model, Random Effect Model, and Generalized Least
Square Model (GLS). It will measure whether both dependent and independent variable have any
statistical relations or not.

Results and discussions

Financial technologies significantly enhance and expedite the financial services process. It uses
specialized algorithms and software that are run on computers and smartphones to assist
organizations. Traditional banking systems are transferred to digital or e-banking system and
make it possible to access all people in financial service although empirical model shows some
negative effect too.

Conclusion
Digitalization tools have both positive and negative impacts on the banks earning power.