More than 75% of customers served by Bangladesh’s financial system still do not use digital banking platforms, according to a new study by the Bangladesh Institute of Bank Management (BIBM).
The findings, unveiled at a roundtable in Dhaka on Wednesday, show a slow digital transition despite massive investments in banking technology over the past two decades.
The study, based on responses from 32 banks and 320 retail banking customers, found that only 24% of financial service users access even a single digital service.
The total number of customers across all financial service channels – including bank depositors, mobile financial service (MFS) users, agent banking clients, and debit/credit card holders – has reached around 420 million.
According to researchers, 40% of these users are bank depositors and 35% are MFS customers (Nagad users were not included in the study).
Sharp rise in delivery channels, led by MFS
BIBM reported that financial service delivery channels have grown from 600,000 to 1.6 million over the past decade, with MFS providers now accounting for 88% of those channels.
Mobile banking apps topped the digital product and infrastructure success index, followed by ATM services.
Banks now spend over 12% of their annual budgets on digital transformation, while 71% of customers access digital banking via smartphones.
Heavy investment, limited progress
Presenting the report, BIBM Professors Mahbubur Rahman Alam and Shamsun Nahar Momtaz said nearly Tk60,000 crore has been invested in banking digitalisation over the last 20-25 years, about Tk3,000 crore annually.
Despite this, 68.5% of banks remain stuck at the “evolving” stage of digital transformation due to high technological costs, siloed IT systems, and cyber fraud risks.
Bangladesh Bank Deputy Governor Nurun Nahar, speaking as chief guest, cited the high cost of technology, infrastructure limitations, and cybersecurity threats as major obstacles.
The study also found that 48% of customers are dissatisfied or neutral about digital banking services, mainly due to frequent system glitches and unreliable platforms.
A 23.2% knowledge and literacy gap remains a significant barrier to wider adoption.
Experts call for stronger governance, fintech partnerships
Supernumerary Professor Ali Hossain Pradhaniya noted that fintech companies in many countries now handle key banking functions, suggesting that Bangladeshi banks may need to rethink their approach.
Professor Faruk M Ahmed said digitalisation should be considered an investment, not an expense, and proposed requiring banks to appoint at least one independent director with IT expertise.
Deputy Governor Nurun Nahar said digital transformation offers “a clear and powerful opportunity” to cut costs, shift high-volume transactions to digital channels, and enhance financial inclusion.
However, she stressed that collaborative efforts, improved system reliability, customer-friendly digital services, and stronger cybersecurity are essential for the sector to reach full digital maturity.
The roundtable, moderated by Professor Dr Shah Md Ahsan Habib, was attended by Bangladesh Bank officials, BIBM faculty, researchers, and representatives from scheduled banks.
Source: Daily Sun
Bd-pratidin English/ ANI
