The digital landscape of banking in Bangladesh is witnessing an unprecedented growth. In November 2023, internet banking transactions soared to an all-time high with a total transaction value of Tk 82,866 crore. This marks a significant surge from Tk 78,863 crore in October, and a nearly twofold increase from Tk 48,716 crore in September, signifying a robust trend towards digital financial services in the country.
Internet Banking: A Rising Star
Interestingly, while the transaction value has been reaching new heights, the number of internet banking transactions saw a slight dip from 1 crore in October to 97.47 lakh in November. The expanding scope of internet banking in Bangladesh is credited to a growing population of tech-savvy individuals, especially among the younger demographic, who prefer the ease and convenience offered by digital platforms for their banking needs.
Standard Chartered, which introduced internet banking in Bangladesh two decades ago, set the stage for a service that has seen rapid growth. This development has been fueled by the increasing availability of smartphones and a growing internet user base. Internet banking enables customers to carry out a wide range of financial transactions online, offering convenience and flexibility that eliminates the need for physical bank branch visits.
The Rise in Users
As of November 2023, the number of internet banking customers in Bangladesh had almost tripled since March 2020, skyrocketing from 26.49 lakh to 81 lakh users. This highlights the remarkable acceptance of digital platforms among the Bangladeshi population.
High-value Transactions via RTGS
The Real-time gross settlement system (RTGS), designed for real-time settlement of high-value payments, recorded transactions amounting to Tk 5.18 lakh crore in October, marking a 7% increase from September. Launched in 2015, the RTGS system has gained widespread acceptance for instant payment settlements.
Individual customers can conduct internet banking transactions up to Tk 3 lakh per transaction with a daily limit of Tk 10 lakh, while corporate customers have a higher transaction limit of Tk 5 lakh per transaction and a daily cap of Tk 25 lakh. The surge in digital transactions underscores a digital revolution in the banking sector, with Bangladesh leading the charge in South Asia.