Al-Arafah Islami Bank unlocks a new era of Shariah-guided mobile banking

Highlight:

• Customers can open accounts digitally through eKYC, make instant intra- and inter-bank fund transfers, access Islamic deposit schemes including Mudaraba RD and TD, pay merchants using Bangla QR, enjoy a wide range of lifestyle and utility services, and manage their finances in real time through intuitive digital tools

Bangladesh is moving confidently toward a smart, cash-lite future, and digital banking—especially mobile app–based services—has become one of the strongest forces accelerating this transition. Today's customers expect speed, simplicity, and complete control over their financial lives, and the mobile app has emerged as the most powerful gateway to meet these expectations. At Al-Arafah Islami Bank PLC, our mission is to build a Shariah-compliant digital ecosystem that empowers every customer, strengthens trust, drives financial inclusion, and supports our national vision of a cashless Bangladesh.

In this piece, I share how mobile banking is reshaping our sector and how we, as an Islamic bank, are embracing the next frontier of digital banking.

Mobile banking has completely transformed the financial landscape of Bangladesh. What once required travelling to a branch, filling up forms, or waiting in queues is now available instantly from a mobile screen. With more than 70% of retail transactions across the country now taking place through digital channels, the shift toward mobile-first behaviour is accelerating every day.

In the early days, mobile apps were limited to basic features such as balance inquiries, fund transfers, mobile recharge, and utility bill payments. But we have moved far beyond that stage. At Al-Arafah Islami Bank, our goal is to transform our mobile app into a complete Shariah-compliant financial hub—not just a transactional convenience. 

Today, customers can open accounts digitally through eKYC, make instant intra- and inter-bank fund transfers, access Islamic deposit schemes including Mudaraba RD and TD, pay merchants using Bangla QR, enjoy a wide range of lifestyle and utility services, and manage their finances in real time through intuitive digital tools.

This transformation is especially impactful for rural and semi-urban customers, who previously faced more friction in accessing formal banking. Now, they can send remittances, make deposits, or pay bills instantly—safely, ethically, and in full alignment with Islamic values. What we are witnessing is not merely the evolution of a technology platform, but the rise of a more inclusive, transparent, and customer-centric banking ecosystem.

One of the most remarkable changes we introduced is Rapid Account Opening. Customers can now open a fully functional bank account from anywhere—whether at home, at work, or at a roadside tea stall. With just a smartphone and digital verification through eKYC, onboarding takes minutes, not hours.

Many banks still require customers to download additional apps or visit separate web modules for digital onboarding. We chose a different path. From the very beginning, we integrated digital account opening directly inside our banking app—removing inconvenience and making financial access as effortless as possible.

Infographic: TBS

Another powerful shift is the ability for customers to open Islamic deposit schemes and Mudaraba Term Deposits directly from the app. They can select tenure, deposit amount, and savings preferences with complete ease, without needing to visit a branch. The adoption of these Shariah-based savings tools has grown rapidly, particularly among young earners and rural households who value flexibility and time efficiency.

Increasing Bangla QR transactions, higher digital deposit participation, and rising fund transfers clearly show that customers have embraced this new way of banking. For them, digital Islamic banking is no longer an upgrade—it has become a reliable companion for ethical, real-time financial management.

Mobile banking is the backbone of a cashless society. When customers can pay merchants, settle bills, transfer money, or make deposits instantly from their phone, the need for cash naturally decreases.

Our mobile app is already integrated with Bangla QR and domestic interoperability initiatives. As the digital ecosystem matures, we expect deeper integrations with fintech, AgriTech, InsureTech, e-commerce platforms, and B2B payment systems. This will create a seamless digital flow not only in major cities, but across rural Bangladesh as well.

The Bangladesh Bank's efforts in interoperability—enabling secure, instant transactions between banks, MFS, and PSPs—will further accelerate this transition. A cashless society becomes a realistic national goal when banking becomes effortless, accessible, and universally trusted.

Digital banking significantly reduces costs for both customers and banks while enhancing overall efficiency. For banks, it minimizes manual processes, enables faster onboarding through eKYC, reduces paperwork and storage needs, lowers pressure on branches, and increases automation with straight-through processing. This shift allows teams to focus more on advisory and high-value services rather than routine transactions. For customers, the benefits are equally substantial—they save time by avoiding travel and queues, enjoy lower service fees, experience instant payments and transfers, gain greater transparency, and have 24/7 access to branchless banking. As operational costs decrease, we can reinvest these savings into better pricing, more competitive Shariah-compliant returns, and an overall improved customer experience.

Security concern

With digital growth comes increased responsibility. Mobile app usage is rising, but so are threats such as phishing, spoofing, social engineering, SIM swapping, malware, and fake apps. Many users still lack basic digital security awareness, making them more vulnerable to these risks. The challenges are wide-ranging—low user awareness, rapidly evolving phishing and social engineering attempts, weak device security, unsafe use of public Wi-Fi, SIM swap incidents and recycled numbers, over-reliance on OTP-based authentication, vulnerabilities in APIs and backend systems, and gaps in regulatory alignment. Together, these issues create a complex security landscape that banks must continuously work to strengthen.

At Al-Arafah Islami Bank, we are implementing a multi-layered security framework that includes device binding, AI-driven fraud monitoring, secure app architecture, enhanced authentication, continuous testing, and stronger collaborations with telcos and regulators. Our goal is to protect every user, every transaction, every time.

Regulatory support for scalable digital growth

To increase mobile banking volumes nationwide, the sector needs consistent and forward-thinking regulatory support. This includes more flexible digital onboarding guidelines, strict timelines for achieving full interoperability, faster approvals for new digital products, and the development of interoperable Account-to-Account (A2A) systems. Clear open-banking frameworks, strong monitoring to ensure fair competition, and incentives that encourage small businesses to embrace digital payments are equally essential. With the right regulatory ecosystem in place, digital banking can significantly boost formalization, transparency, and cashless transaction volumes across Bangladesh.