The future of banking lies in touch-based and voice-enabled transactions, and the demand for that change is rising with each day. To integrate the future of cashless technology, banks in Bangladesh have to ensure banking services that are accessible anytime and anywhere with the latest services for its customers.
The post-Covid-19 world has seen a dramatic change from online banking to digital banking.
Now banking services need to rise to the challenge of developing a smart banking infrastructure in the country, which roughly translates to banks upgrading themselves with technology like artificial intelligence (AI), analytics, personal financial management software, internet of things (IoT), voice banking, Banking as a Service (BaaS), and fintech innovations.
Several banks are already offering customers the latest technological services to sustain their business in the ever-changing financial terrain.
Smart banking technologies are converging towards a single goal: invisible banking -- where digital banking will be embedded in other daily activities with the help of AI, voice interfaces, and other emerging technologies.
Sohail RK Hussain, managing director and CEO of Meghna Bank Limited, tells Dhaka Tribune: “Over the past few years, we have observed substantial growth in internet banking transactions, with an overall increase of nearly 50% in the past year alone.
"Furthermore, we have experienced significant customer growth of nearly 100%. Notably, we recently launched MeghnaPay, a mobile financial service (MFS), to extend our banking services to underserved communities."
"Our customers can now conveniently make payments for utility bills, savings schemes, credit card bills, along with other regular banking services through our internet banking application, thus removing the need to physically visit a branch."
The Meghna Bank MD also said: "Regarding our future plans, our bank is exploring various digital strategies to stay competitive."
"This includes utilizing blockchain technology for secure transactions, implementing AI and ML for risk assessment and improved customer experiences, embracing open banking to allow third-party developers to create innovative financial apps, developing IoT banking services for smart devices, and investing in digital identity solutions for streamlined on-boarding and enhanced security."
SMEs also under smart banking
Md Shahidul Islam, EVP and division head CRM (MSME) of National Bank Limited, told Dhaka tribune: “To bring the total process of SME loans, from loan application to loan disbursement, monitoring, and recovery, to the digital platform. On one hand it will save time, and on the other, it will reduce the use of paper, which is good for the environment. This is also sustainable banking."
"But we will go through this digital banking up to a certain extent. NBL has already developed a few IT modules to cater to the needs of CMSME customers and discussions are ongoing with various fintech companies to conduct business on digital infrastructure. By 2024, we are targeting a minimum 25% share in SME banking across both digital and conventional banking.”
Investment
Many banks, if not all, have already thought about smart banking. As a result, the banks have invested a large amount. And those banks are ahead of other competitors. One such bank is Prime Bank PLC.
Regarding huge investment for smart banking and digital banking, Premier Bank M Reazul Karim, managing director and chief executive officer of the Premier Bank PLC said: “Riding on the reputation it has earned over the decades, The Premier Bank PLC is investing to build up a robust digital infrastructure with a view to providing all financial services at the fingertips of customers and their doorsteps.
Alongside an increased focus on boosting the digital infrastructure, The Premier Bank has expanded its footprints through the setting up of sub-branches, particularly in suburban areas.
This is not the end he informed they are continuously investing on digital banking,
“In doing so The Premier Bank wants to be a lifelong partner of every customer. In Premier Bank we are embracing modern technologies so that we can satisfy all the digital needs of the customers. We also want to create a perception among the people that the capacity and integrity of our employees is unparalleled,” Karim added.
Bankers also believe that the transition of loan portfolios from the corporate banking segment to CMSME banking and other microfinance aspects will need the stockpile possessed by smart banking.
This will not only automate the entire banking operational process, but will also enhance cost efficiency and encourage eco-friendly banking endeavours in Bangladesh.