Mobile Banking in Bangladesh
Introduction : Mobile banking is one of the latest tools for easy and
convenient banking in the current world. Day by day mobile banking is becoming
popular in Bangladesh. With proper guidelines, mobile banking can take
Bangladesh to a different level of prosperity. Mobile banking has created a
new dimension in our economy. Some banks and govt.-owned department
(Bangladesh Post Office) are now offering this service. It is cheap both for
the banks and the customers. The bank will be able to lower down the overhead
cost and make more profit out of it. The customers will be able to save time
as well as money for their transaction needs.
Mobile Banking : Mobile banking is a digital
financial service in the banking sector that facilitates banking via mobile
devices. With the tremendous growth in mobile phone usage, banks in the
developed world have moved to utilize mobile banking, which makes banking
easier, faster and very cost-effective. Researchers believe that growth of
mobile banking in Bangladesh is inevitable, especially when banks do not have
sufficient number of branches in the rural areas of Bangladesh.
History of Mobile Banking : The earliest
mobile banking services used SMS, a service known as SMS banking. With the
introduction of smartphone with WAP support enabling the use of mobile web in
1999, the first European banks started to offer mobile banking on this
platform to their customers.
Mobile banking idea at first came to Bangladesh in October 2009. The City Bank
Ltd. is the first bank that gave idea by their mobile banking software named
as ‘City Wallet’. But Dutch Bangla Bank Ltd. started mobile banking in full
swing and widely in Bangladesh on 31st March 2011. bKash was launched in July
2011 in Bangladesh which is now the largest provider of mobile financial
services (MFSs) in this country. At present all banks are trying to start
mobile banking for their customer. Mobile banking is an alternative to
traditional banking through which banking service can be reached at the
doorsteps of the deprived section of the society.
Mobile Banking service Providers and their Services : Some mobile
banking service providers and their service names are given below:
1. bKash (BRAC Bank Ltd.)
2. Rocket (Dutch Bangla Bank Ltd.)
3. Easy Cash (Prime Bank Ltd.)
4. mCash (Islami Bank Bangladesh Ltd.)
5. T-cash (Trust Bank Ltd.)
6. NCCB SureCash (NCC Bank Ltd.)
7. Citytouch (City Bank Ltd.)
8. SMS Banking (Dhaka Bank Ltd.)
9. MYCash (Mercantile Bank Ltd.)
10. SMS Banking (AB Bank)
11. TeleCash (Southeast Bank Ltd.)
12. FSIBL SureCash (First Security Islami Bank Ltd.)
13. BCB Sure Cash (Bangladesh Commerce Bank Ltd.)
14. Upay (United Commercial Bank Ltd.)
15. RBL SureCash (Rupali Bank Ltd.)
16. Ok wallet (One Bank Ltd.)
17. Mobile Banking (IFIC Bank Lted.)
18. Mobile Banking (Bank Asia)
19. SPOT CASH (Standard Bank Ltd.)
20. Nagad (Bangladesh Post Office)
Objectives of Mobile Banking : Around 0.87%
of the total population of Bangladesh is out of banking service. To bring such
a huge population into banking channel, mobile banking enables any person
having a mobile number to use his number as a bank account. Through this
mobile account they will be able to do the followings:
- Cash deposit to any agent of mobile banking.
- Cash withdrawal from any agent of mobile banking or ATMs.
- Funds transfer to another mobile account.
- Utility bill payment, tuition fee payment, etc.
- Receive remittance from home and abroad.
- Salary disbursement.
- Balance inquiry.
Differences between Mobile Banking and Internet Banking (iBanking) : The differences between mobile banking and internet banking can be drawn on
the following ground:
- Internet banking is nothing but a banking transaction, carried out over the internet, via respective bank or financial institutions websites, under a personal profile, with a personal computer. Conversely, mobile banking is a service that enables customers to perform banking transactions using a cellular device.
- Mobile banking uses short message services, mobile applications or the webs. In contrast, internet banking uses bank’s website.
- In mobile banking fund transfer is possible with the help of IMPS (Immediate Payment Service), NEFT (National Electronics Funds Transfer) or RTGS (Real Time Gross Settlement). As against, in internet banking, fund can be transferred from bank or branch to another, with the help of NEFT or RTGS.
- While the number of functions performed by mobile banking system is limited, internet banking offers an array of services to their customers.
Both mobile banking and internet banking require internet access to carry out
the banking transaction. The scope of internet banking is relatively higher
than that of mobile banking.
Advantages of mobile banking : People use mobile banking as it
offers many advantages. Some advantages are given below:
- One can make transactions or pay bills anytime. It saves a lot of time.
- Mobile banking through cell phone is user-friendly. The interface is also very simple.
- Mobile banking is cost-effective.
- Banking through mobile reduces the risk of fraud. One will get a notice as soon as any amount is deducted or deposited in one’s account.
- One can transfer money instantly to another account in the same bank using mobile banking.
- Banking through mobile phone benefits the banks too. It cuts down on the cost of telebanking and is more economical.
- Banks can be in touch with their clients with mobile banking.
- Mobile banking will be available when and where customers want to be.
- Mobile banking empowers customers.
Disadvantages of Mobile Banking : Some of the disadvantages of
mobile banking are:
- Mobile banking users are at risk of receiving fake SMS messages and scams.
- The loss of person’s mobile device often means that criminals may gain access to mobile banking related to sensitive information.
- Modern mobile devices like smartphone are better suited for mobile banking than old models of mobile phones and devices.
- Regular users of mobile banking over time can accumulate significant charges from their account.
- Limited protection, lower level of security.
Prospect of Mobile Banking in Bangladesh : Mobile banking is a process of no branch banking which provides financial
services to the communities out of banking service in both urban and rural
areas at affordable cost. The aim of the service is not to destroy branch
banking but to bring those people under the umbrella of banking service who
are away from banking facilities. Through mobile banking one can avail various
services- utility bill payment, fund transfer, shopping, cash withdrawal from
ATMs or cash points and many more exciting facilities.
Conclution : Mobile banking is rapidly
increasing in Bangladesh and there is a great prospect of mobile banking in
Bangladesh. Mobile banking service has a huge scope in Bangladesh. Currently,
only 7% of the population is using this service. This service opens the
separate era for existing banks and banking institutions. More and more people
are coming under mobile banking services every day. With proper guidelines and
policies, mobile banking can take Bangladesh to a different level of
prosperity.
In Bangladesh, banking business is more prominent and worthier business than
others. The service that banks have started offering to their customer is a
matter of great hope that maximum of the customer is satisfied. It is creating
better future for mobile banking as well as overall banking business in
Bangladesh.