Written by The Banking Post
Internet banking transactions surged sharply in the early months of the current fiscal year, underscoring a steady shift by customers toward digital payment channels and away from paper-based methods.
Bangladesh Bank data show transaction volumes through internet banking rose by more than 39 per cent year-on-year to Tk 1.29 trillion during July–October. Around 66 million transactions were carried out over the four-month period, reflecting growing consumer confidence in bank-led digital platforms.
Bankers say the expansion of app-based services has been a key driver of the growth, particularly among younger users in urban and semi-urban areas. Real-time fund transfers, bill payments and easy account monitoring are gradually reshaping customer behaviour, although many older clients still prefer cheques and branch-based services.
Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, says the rise is largely driven by bank-developed applications. “Interoperability has accelerated adoption, allowing customers to transfer funds seamlessly from one bank to another using a single app,” he says. He adds that security concerns have eased as users become more familiar with digital safeguards, noting that risks remain low as long as customers protect their passwords.
Industry data indicate that app-based transactions now account for about 51 per cent of total internet banking activity, with the rest conducted through web portals.
The growing use of internet banking has coincided with a notable decline in cheque usage. Cheque clearing, including both MICR and non-MICR instruments, fell by 9.42 per cent, or Tk 597.27 billion, during July–October compared with the same period a year earlier.
Other electronic payment channels also recorded gains. Electronic fund transfer transactions increased by Tk 81.13 billion, or 2.8 per cent, year on year, while mobile financial services transactions rose by Tk 511.69 billion, or 9.12 per cent.
Internet banking adoption gathered pace during the Covid-19 pandemic, when movement restrictions limited access to physical banking services, and the momentum has continued since then.
