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Internet banking continues to rise as an increasing number of people are opting to carry out financial transactions through digital platforms.
Such banking grew in Bangladesh with the beginning of the lockdown during the Covid pandemic in 2020.
Internet banking, popularly known as online banking, was introduced in the country two decades ago. But the pace has been accelerated by the Coronavirus pandemic as consumers were then compelled to turn to the internet to access finances from the conveniences of their homes in a bid to avoid catching the deadly virus.
During the July 2022-February 2023 period, the eight-month of the current fiscal year, internet banking transactions increased by Tk 855.34 billion or 63.63 per cent to Tk 2.2 trillion compared to the same period of the last year, according to latest data of Bangladesh Bank (BB).
The number of internet customers stood at 4.8 million (up to February) of this fiscal year.
Some senior bankers said that internet banking is a safe and convenient way to carry out banking activities.
Apart from this, banks have been offering a number of services, including mobile applications, to attract clients to online banking systems.
The expanding number of internet users and the availability of smartphones aided the widespread adoption of internet banking, they said.
To address the growing trend of online transactions, the central bank in September 2020 increased the interbank daily online transaction cap, which included a five-fold increase for institutional customers.
"Corporates prefer payment and collection procedures, and it will take time …," said Syed Mahbubur Rahman, managing director and CEO at the privately-owned commercial bank Mutual Trust Bank (MTB).
The corporate segment is much bigger thanks to higher turnover and bulk payments in the country's financial sector.
Mr Rahman noted that consumers or retail customers have been attracted partly thanks to mobile apps introduced by some banks.
On the other hand, people working in the ICT sector told the FE that all banks don't have up-to-the-mark internet facilities to lure customers to smart solutions.
AKM Fahim Mashroor, a former president of BASIS and CEO at bdjobs.com, said, "The old- generation banks are lacking even in mobile apps. On the other hand, new-generation banks have the facility and they are doing well..."
The government banks have huge customers but they remain much behind in terms of internet banking, he said, adding that there is also a need to create awareness among people about digital banking.
In fiscal year 2019, there were only 1.9 million internet customers who transacted Tk 476.2 billion, and in FY 2020, the number of customers rose to 2.7 million and their transactions were recorded at Tk 715.6 billion.
In FY 2021, the customers rose to 3.6 million and the transaction amount stood at Tk 1.0 trillion, while in FY 2022, the number of customers stood at 5.4 million with total transactions reaching Tk 2.25 trillion.
In FY 2023 (up to February), the number of internet customers stood at 4.8 million who transacted Tk 2.19 trillion.