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Dhaka Tribune

Online banking transactions drop in July

Bankers and economists blame load-shedding for this decline

Update : 11 Oct 2022, 07:34 PM

Online banking transactions began to rise in the last two months of FY22 (May and June), but they substantially decreased in July, the first month of the current fiscal year.

According to bankers and economists, load-shedding may be the cause of this drop.

The electricity crisis that engulfed the country since July increased further in the following months for which the figures might get worse when those data will come out.

In July, the online transaction was Tk23,548 crore, almost double compared to a year ago. 

It stood at Tk12,768 crore in the same month in 2021.

Data analysis shows that it dropped by Tk212 crore compared to a month earlier as in June 2022, the total transaction through online banking stood at Tk23,770 crore which was Tk20,663 crore in May.

Answering a query regarding the reason for the sudden decrease in online or online banking transactions in July, an official of Bangladesh Bank, requesting anonymity told Dhaka Tribune that: “People's use of online banking has been increasing since the time of Covid-19. If you notice, you will see that this graph goes up and down every three months, but I think the electricity shortage or load shedding in July may have had a big impact on online transactions.” 

According to the Power Division, the maximum load shedding in a day was 2,000-2,200 megawatts from last July to September. 

In August, this deficit increased to 2500-3000 megawatts which is the highest since last July.

The number of customers using online banking to carry out transactions digitally rose more than 43% year-on-year to 5.47 million in July, as more consumers embrace technologies to buy financial services thanks to convenience and efficiency.

It was 3.8 million in July last year and 5.4 million in June this year. 

The pace accelerated during the Covid-19 pandemic since consumers were compelled to turn to the online to access finances from the conveniences of their homes.

Mohammed Monirul Moula, managing director of Islami Bank Bangladesh Ltd, said thanks to the fast-growing online users and availability of smartphones and digital services, online banking has gained huge popularity over the years and brought visible changes to customers' banking habits.

However, internet banking, popularly known as online banking, allows users to conduct financial transactions via the online and offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments.

Introduced in Bangladesh by Standard Chartered two decades ago, online banking has grown at a faster pace in the country since then.


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