Class ID#613

An overview Business Development of E-Banking in Bangladesh

1.0 Introduction: Now a days due to emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for banking business development. The new information technology is becoming an important factor in the future development of financial services industry, and especially banking industry. As a third-world developing country, Bangladesh is far behind to reach the expected level in global banking system [1]. So it is our urgent need to upgrade its banking system. This paper is aimed at to determine business development of e-banking and to explain the present scenario of banking sectors in Bangladesh and at the same time it demonstrates the scope and benefits of e-banking compared with the existing system. 2.0 Objective of the study: The main objectives of the study are as follows:

2.1

Broad Objective:

To shed light on the business development of e-

banking. 2.2 Specific Objective:

To explore the business development of e-banking in Bangladesh context. To assess the existing internet banking scenario in Bangladesh

3.0 Methodology: The study will be done mainly based on secondary sources of data or information. This will be an exploratory research based on secondary data. Secondary various sources including the annual reports data was derived from scheduled banks, there website, the

Financial Statements scheduled banks in Bangladesh etc. Primary information was obtained from the specific person dealing certain products. For the comparison of products, websites of different banks offering Internet Banking and some bankers working on those particular banks were consulted. For some specific information officials of Bangladesh Bank and

Bangladesh Institute of Bank Management provided necessary inputs. For this study internet was a good source. Other required information may be obtained through the related journals including different publications: (i) Bangladesh Institution of Bank Management (ii) Papers International and local Publications (iii) Different seminar papers (iv) Information from Internet.

4.0 Expected result & conclusion: This paper will try to present actual situation of e-banking in business development point of view in Bangladesh. The results of this study will show that e-banking serves several advantages like Non-branch banking and provide banking service with low cost which may be increase the profitability to Bangladeshi banking sector. However, the study will give a idea about Bangladeshi customers have knowledge regarding e-banking which is may be represented by banking sector in Bangladesh. E-Banking, the latest generation of electronic banking transactions, has opened up new window of opportunity to the existing banks and financial institutions to make profit which depends on competitive cost, customer service, and demographic considerations. Most of the banks have their own websites but not all of them offer internet facilities. The main reason of this is that the banks do not have the IT infrastructure and proper security features. In Bangladesh most of the people are technologically illiterate and obviously they are technology ignorant. So these people cant trust on the internet banking services. To gain the confidence on internet banking the overall computer literacy must be developed With that goal government has taken initiative even in the root level to develop it literacy in the country. Bangladesh Bank is now moving ahead towards technological advancement. They are planning to have Automated Clearing House which will automate the cheque clearing process. This will eventually lead to internet banking a requirement for all banks in the near future [2]. 5.0 Reference: 1. Mohammad Azizul Baten, PhD. Journal of Internet Banking and Commerce , August 2010, Vol. 15, No.2 (P.2) 2. Md. Ibrahim Khalil, Iqbal Ahmad and Md. Delwar Hossain Khan (2008). Internet Banking:

Development and Prospects in Bangladesh (P.18)