Desk Report
Internet banking has failed to gain popularity in the country though most of the bank branches are connected to online banking systems.
Internet or online banking is a system that allows customers to make transactions or avail themselves of bank services using internet on mobile or computer.According to the latest data of Bangladesh Bank, the market penetration of internet banking remains very poor with only 2.19 per cent of total 97.7 million account holders using internet banking.
The situation, however, improved slightly in last two years as 2.12 per cent of 87.2 million bank account holders used online banking in FY 2016-17.Currently, 87.34 per cent of total 10,058 bank branches are connected to internet banking. The percentage was 75.44 in FY 2016-17.All the 68 branches of foreign commercial banks are connected to online banking while 96.54 per cent of total 4,882 branches of private banks are offering online services.
For the state-run banks, all but 26 branches are connected to online banking solutions but only 335 of total 1,412 branches of specialised banks are offering internet banking services.
The central bank launched the Internet Banking Fund Transfer (IBFT) in November last year to facilitate transactions through internet banking.
Former Bangladesh Bank Governor Salehuddin Ahmed said the banks will have to raise awareness about the digital banking services among the customers.
“Consumers continue to choose informal banking services like mobile banking though the banks have the technological infrastructures to offer the same facilities. Bankers should focus more on raising awareness about the benefits of internet banking,” Prof Salehuddin told the Daily Sun on Thursday.
Prof Saleh also emphasised on agent banking rather than establishing branches to combat the rising trend in the use of informal mobile banking services that charge extra fees from the customers.
Though BB launched the NPSB in 2012 to introduce a centralised online payment system, there has been a little response from the financial institutions to the move.
The 58 commercial banks operating in the country utilise only 20 per cent of the NPSB by using only 2-3 features out of the 21 services the central payment switch offers, according to officials concerned.