75pc of banking customers still excluded from digital services

Despite the ongoing digital transformation in the banking sector, about 75 per cent of total customers in the country still remain outside any digital banking services, according to a study by the Bangladesh Institute of Bank Management (BIBM).

"The percentage of total customers who currently use at least one digital banking product averages 24.24 per cent," said the study report.

The report titled "The Influence of Digital Transformation on Retail Banking: Innovations in Banking Products" explained that on average, less than one quarter of retail banking customers in the studied population actively use digital services such as mobile apps, internet banking or other digitised products.

According to it, the total number of accounts or users stood at 418.90 million in fiscal 2025, confirming a rapid and pervasive digital transformation in the banking sector. Specifically, 40.34 per cent of the total customer base holds branch deposit accounts, while 34.76 per cent are customers of Mobile Financial Services (MFS), excluding Nagad clients.

The report also notes other categories of users, including MFS agents, debit card holders, credit card holders, and those using mobile apps or internet banking.

BIBM Professor Md Mahbubur Rahman Alam and Associate Professor Dr. Shamsun Nahar Momotaz shared the findings of the study conducted on 32 banks, based on 320 customer interviews from retail banking services, at a roundtable discussion held at the BIBM auditorium in the city on Thursday.

Speaking at the event, Deputy Governor of Bangladesh Bank and chairman of BIBM executive committee Nurun Nahar said despite the potentials, the path ahead is constrained by significant and systemic challenges that require immediate collaborative action.

"The most formidable barriers remain the immense cost of technology and infrastructure investment and the pervasive threat of cybersecurity and fraud," she noted.

Systemically, the vast majority of the banks (68.50 per cent) are currently stalled in 'Stage 2: Evolving and In Progress' with siloed core systems, preventing the sector from achieving true, integrated, and disruptive digital maturity, she said.

This lack of maturity, coupled with operational failings, has created a major customer satisfaction gap, with nearly half (48 per cent) of customers either dissatisfied or neutral due to issues such as unreliable systems, she noted.

Finally, the single greatest impediment to mass adoption is a fundamental knowledge and literacy gap (23.2 per cent), which must be addressed to ensure all citizens can benefit from the digital future, she added.

According to the study, during the last one decade there is a dramatic and accelerating shift in the banking sector's delivery landscape, with total channels to over 1.6 million dominated by MFS agents accounting for a 88.27 per cent of all delivery points by 2025.

Mobile banking app (81.62 per cent) is the most utilized channel, followed by ATM that remains a highly utilized channel for transaction, with 72.90 per cent respondents using it.

It also revealed that smartphone is the dominant device used for digital banking, accounting for a substantial 71.21 per cent of usage.

munni_fe@yahoo.com