12% banks did not introduce online meeting amid pandemic: Study

Researchers at the Bangladesh Institute of Bank Management (BIBM) have found that 12% of the banks in the country could not conduct meetings on virtual platforms amid the pandemic till December last year.

The researchers unveiled the findings of the study in a workshop on "Transformation and Restructuring of the Banking Sector in the New Normal: Bangladesh Perspective" on Thursday.

According to the study, almost all the banks attempted to conduct their meetings on virtual platforms, but 12% of the banks did not hold meetings virtually for the "lack of adequate infrastructure."

The BIBM researchers found that 56% of the banks have been conducting their meetings virtually since the pandemic hit the country. Besides, 32% of the banks held meetings virtually during the peak of the pandemic, but they did not continue it after the infection rate decreased.

The study has been conducted among 41 banks of the country.

Despite the risks, several banks have been using in-person communication systems due to their large customer base and limited capacity.

Furthermore, banks located in rural areas were unable to implement alternative digital channels to connect with the clients, the study found. 

The majority of banks have decided to operate physical banking on a restricted scale instead of a complete digitalised banking system; however, most banks took initiatives for improving internal technology infrastructure and alternative delivery methods.

The study report said a number of banks have implemented a digital documentation management system to gradually replace manual file processing as a move toward sustainable digital transformation.

Meanwhile, 36% of the banks are using manual procedures in handling documentation, while 18% are using a fully digital system and 46% are using a partially digital one.

Dr Shah Md Ahsan Habib, leader of the BIBM research team, told The Business Standard that banks are transforming in two ways – temporary and systematic.

"We encourage the systematic change of the institutions and suggest them to ensure sustainable technological intervention with good governance. We also urged them to adopt environment-friendly technology to ensure green banking in future," he said.

The BIBM study said there is no question that some of the most modern technological developments and associated techniques like using data analytics, artificial intelligence, and blockchain have huge potential to offer extensive benefits to the consumer.

Other members of the BIBM research team were Professor Md Nehal Ahmed, Associate Professor Mohammed Sohail Mustafa CFA, Assistant Professor Antara Zareen, Assistant Professor Rexona Yesmin, and Assistant Professor Tofayel Ahmed.

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