Lack of supportive policies holding back digital banking: Experts
Participants agreed that digital banking can significantly enhance financial inclusion, but success depends on stronger cybersecurity, restored customer confidence, effective policy support, and coordinated regulatory efforts
Bangladesh's digital banking sector has yet to realise its full potential due to the absence of supportive policies, lack of user confidence, inadequate infrastructure, weak coordination among regulators, and the high cost of necessary equipment.
This was highlighted today (25 September) at a focus group discussion titled "Digital Banking for All: Bridging the Gap in Financial Inclusion" organised by the Dhaka Chamber of Commerce & Industry (DCCI) in Motijheel, Dhaka.
ICT Division Secretary Shish Hayder Chowdhury attended as the chief guest, while Bangladesh Bank's Executive Director Dr Md Ejazul Islam was present as the special guest. The event was presided over by DCCI President Taskeen Ahmed.
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In his welcome speech, Taskeen Ahmed said that since the launch of Mobile Financial Services (MFS) in 2011, nearly 54% of the population now uses the facility, expanding access to financial services. However, weak cybersecurity, lack of consumer rights protection, and low public confidence have prevented the sector from reaching its full potential. He emphasised reducing service costs, increasing financial and digital literacy, and improving coordination between banks and fintech regulators.
ICT Secretary Shish Hayder Chowdhury said the government, private sector, and academia are working together to modernise digital services, focusing on inclusion, accessibility, integration, and expansion. However, poor data registration has already resulted in the personal information of nearly five crore citizens leaking onto the dark web. He added that data encryption and monitoring are being strengthened, and a Personal Data Protection Ordinance will be enacted soon.
He also noted that 10 citizen service one-stop centers have been launched in Dhaka, and the government will provide infrastructure and manpower support to strengthen digital banking.
Dr Md Ejazul Islam, Executive Director of Bangladesh Bank, said the country has made progress in debit, credit, deposit, insurance, and payment services, but wider public participation is necessary. As of August this year, total money circulation was Tk3,15,000 crore, of which Tk2,27,000 crore remains outside the banking system, while banks hold only Tk29,000 crore. Around 70% of transactions are still carried out through traditional methods, with digital transactions accounting for only 27–28%.
Sanjid Hasan of Robi Axiata projected that the Asia-Pacific digital banking market would reach $4,678.47 million by 2025 and $11,238.6 million by 2033. He added that as public confidence in conventional banking is low, Bangladesh's digital banking market could expand to $30 billion. However, coordinated cybersecurity and stronger central bank oversight are essential.
Dhaka Metropolitan Police (DB) Additional Deputy Commissioner Md Elias Jiku said misuse of digital financial systems leads to Tk10–20 crore in daily embezzlement. He proposed periodic renewal of MFS customer accounts and urged financial institutions to ensure customer safety and promptly report suspicious transactions.
He cited cases where accounts were opened with false information, sometimes involving branch managers, and dormant accounts suddenly processed large transactions. "Strict vigilance is needed to prevent such frauds," he stressed.
Shanta Asset Management Ltd Vice Chairman Arif Khan noted that despite 64 banks in the country, reforms are needed to curb irregularities and default loans. City Bank PLC's Additional Managing Director Kazi Azizur Rahman said 30–40% of the population remains outside banking services, and the absence of digital roadmaps and regulatory support are major obstacles.
Rezwan Ali, Director of Omega Exim Ltd, said entrepreneurs hesitate to allocate funds for digital import-export solutions, requiring government support. Shahi Mirza, Chief Cyber Operations Officer of Bettles Cyber Security Ltd, emphasised strengthening agent banking security and establishing a nationwide unified cybersecurity framework.
Participants agreed that digital banking can significantly enhance financial inclusion, but success depends on stronger cybersecurity, restored customer confidence, effective policy support, and coordinated regulatory efforts.
The event was also attended by DCCI Senior Vice President Rajib H Chowdhury, Vice President Md Salim Solaiman, board members, and industry stakeholders.
