BASIS criticises excluding tech entrepreneurs while founding digital bank

The Bangladesh Association of Software and Information Services (BASIS) has criticised the Bangladesh Bank for not taking the opinion of the technology entrepreneurs in founding Digital Bank, an important initiative towards creating a cashless Smart Bangladesh.

“It is very disappointing that Bangladesh Bank did not even consult the IT professionals who can provide the technical support to make it a success,” said BASIS President Russel T Ahmed while addressing a roundtable on Wednesday.

“All the banks of the country have launched online services using technologies provided by BASIS members. They are running all the services except the core banking management using the technologies,” he added.

The roundtable, titled “Digital Bank: Prospects and Way Forward”, was organised by BASIS at its Karwanbazar office in the capital.

The BASIS president demanded at least one-third ownership of each digital bank by technology sector organisations or entrepreneurs and to make the banking experience non-mandatory to become the CEO of a digital bank.

“We will submit a report within 10 days from today (Wednesday) on how BASIS can provide their support to Bangladesh Bank so that the digital banks can be run effectively,” he added.

Controlling fraudulent activities, data availability major challenges

At the event, CEO of Priyo INC Zakaria Swapon said that it was fraudulent activities that tainted the success of e-commerce in the country. The government needs to ensure that similar incidents would not be repeated.

Arfan Ali, head of fintech firm Zaytoon Business Solutions and also former MD of Bank Asia, said that effective partnership would be the key to the success of the digital bank.

“At present, 47% of the adult population are out of banking services. Digital banks can include this huge population in the banking system. Availability and security of data will be another concern,” he added.

The bank will need 10 years to bring profit, but once they become stable it will provide huge long-term profits, he observed.

Shahadat Khan, the founder and CEO of TallyKhata and SureCash, said, “For the success of the digital bank, we need some preparations like personal identity authentication, real-time interoperable payments, and a comprehensive credit bureau with data of all lending institutions.

In this regard, the National e-KYC and Bangla QR-based ‘Cashless Bangladesh’ initiative will play an important role. For this, everyone including banks, fintech institutions, and regulators have to work together.”

Chief Executive Officer of ERA Infotech Ltd Md Serajul Islam said that the authorities need to clarify

whether the bank will be completely or partially digitised and also about the regulatory body and association under which digital banks would operate.

Siraj Siddiquey (Shakil), head of Products & Solutions South Asia, said that to make a digital bank successful, a new breed of professionals with banking and IT skills would be needed. The government has to determine how it can ensure the manpower.

Speakers at the roundtable advised the inclusion of e-signature for self-authentication.