Embracing banking digitalisation

In an era of rapidly advancing technology, the banking sector is undergoing a massive transformation worldwide. The days of traditional banking, with long queues and paper-based transactions, are gradually fading away. Instead, digitalization has taken the centre stage, revolutionizing the way financial institutions operate. Bangladesh, a country with a thriving economy, is not immune to this global trend. To ensure sustained growth and competitiveness, banks in Bangladesh must embrace digitalisation wholeheartedly.

Although private banks in Bangladesh have been almost digitalised, but most of the government banks are still running on the old system. A recent report by The Business Post– quoting the Association of Bankers, Bangladesh (ABB)– unveiled that the country’s banks will not be able to operate properly in the upcoming days without digitalisation because they will not be able to take their services to everyone through manual banking. The banks that are not investing in digitalisation will not survive in the long run.

Digitalisation in the banking sector offers numerous benefits that cannot be ignored. Firstly, it enhances operational efficiency. Traditional banking processes often involve extensive paperwork, manual record-keeping and time-consuming procedures. Digitalisation streamlines these processes, reducing the need for paperwork and automating repetitive tasks. This not only saves time but also minimises the risk of errors and improves overall efficiency. By embracing digitalisation, banks in Bangladesh can significantly improve their operational capabilities, leading to enhanced customer satisfaction.

Secondly, digitalisation allows banks to provide convenient and accessible services to their customers. In a country like Bangladesh, where physical branch networks are limited, digital banking can bridge the gap between banks and customers residing in remote areas. With the widespread adoption of mobile phones and internet connectivity, digital banking platforms can reach a vast customer base, offering services such as online account management, fund transfers, and bill payments. This level of accessibility not only improves customer convenience but also promotes financial inclusion, empowering individuals who previously had limited access to formal banking services.

Furthermore, digitalisation strengthens security systems within the banking sector. Traditional methods of securing financial transactions, such as signature verification and physical document storage, are susceptible to fraud and theft. Digital banking, on the other hand, employs advanced security protocols, including encryption, multi-factor authentication, and biometric verification, to ensure the safety of customer data and transactions. By implementing robust cybersecurity measures, banks in Bangladesh can protect their customers from potential threats and build trust in the digital ecosystem.

It is however crucial to acknowledge that digitalisation comes with its own set of challenges. Cybersecurity threats, technological infrastructure limitations, and the need for customer education are some of the hurdles that banks in Bangladesh must overcome. It requires substantial investments in technology infrastructure, talent acquisition, and continuous training to successfully implement digitalization initiatives. Moreover, collaborative efforts among regulatory bodies, financial institutions, and technology partners are necessary to establish industry-wide standards and regulations that safeguard customer interests.

Digitalisation is no longer an option but a necessity for banks in Bangladesh. The benefits of embracing digital technologies, such as improved operational efficiency, enhanced customer accessibility, strengthened security, and opportunities for innovation, are too significant to ignore. While challenges exist, concerted efforts by banks, regulators, and stakeholders can address these obstacles effectively.

Banks must recognize that digitalisation is not a choice, but rather an imperative for their sustainability and competitiveness in the ever-evolving financial landscape. By wholeheartedly embracing digitalisation, banks in Bangladesh can position themselves as leaders in the industry, driving economic growth and financial inclusion for the nation as a whole.