Covid-19 Pandemic brought foods for thought for the banking industry in Bangladesh. Banking industry is called the driver of economy of a country. When the scenario was going towards a tragic and formidable presence, banking industry got a real hit.
Both revenues and profits started to shrink since the last week of March 2020. Compared to the First Quarter of 2019, most of the Banks in Bangladesh faced an abrupt fall of in the bottom line. With the beginning of Deposit Crisis and Limited Banking Services, regular funded and non-funded income had been squeezed. Loan disbursement shut off as the entire macro economic outlook seemed to be riskier.
What lessons can we have from this?
Well, this situation lets us see beyond our tunnel vision to overcome many functional challenges.
1. Demand for Digital Banking: Scopes of Digital Banking in Bangladesh are not wide enough. We have seen many banks offering Digital Banking services for example: City Touch, EBL Skybanking, MTB Smartbanking, etc App based internet banking services. These internet banking services have limitations. Transactions with Plastic Cards (Credit, Debit, Prepaid) have limitations too. Banks in Bangladesh make should make Internet Banking Infrastructure more user friendly and convenient.
It’s time to go “Digital” fully. Recently, Bangladesh Bank approved e-KYC system which will change the scope of Digital Banking.
2. Virtual, Branchless or Less-Branch Banking: Banks in Bangladesh must widen their horizon of digital banking services so that consumers will have less branch exposure. For example, many Banks in Bangladesh have increased ATM Withdrawal Limit, E-Commerce Transactions Limit, Free Cash withdrawal from other bank’s ATM etc.
Banks in Bangladesh must design virtual banking services like Online Account Opening, Online Deposit Scheme Opening, Credit Card Application, Banking ChatBot, etc.
Virtual Banking will help to minimize human contact in this New Normal Life.
3. Need based Work from Home System: Work from Home with a VPN Connection may help to serve remotely. This technology will be very effective for any emergency situation in future. Have a look 5 Essential Tools/Apps for Work from Home
4. Cost Management: Covid-19 Pandemic put a pressure on many Bangladeshi Banks for cutting costs. Banks are now searching for newest possible solutions with optimal costs. Banks are now focusing on cutting extra operating costs too.
5. Non-Traditional Banking Policy and Products: Banks in Bangladesh should think beyond its regular parameters. Need-based products and Services must be introduced time to time. Banks in Bangladesh should invest more on Research and Development.
let’s explore some digital banking services in Bangladesh
Internet Banking Services:
MTB Internet Banking – Click Here
City Bank Internet Banking – Click Here
EBL Internet Banking- Click Here
Islami Bank Internet Banking- Click Here
BRAC Bank Internet Banking- Click Here
Digital Banking Apps: City Touch, EBL SKYBANKING, MTB Smartbanking App, Prime Bank ATTITUDE App, UCB Unet App, Islami Bank iSmart App