Digital adoption is transforming how banks operate and save

bKash, the largest mobile financial service (MFS) provider in Bangladesh, has made a remarkable turnaround. Just four years ago, the company was incurring losses. Today, it has reported its highest-ever profit — Tk504.78 crore in the first nine months of 2025. This marks a staggering 131% year-on-year increase, driven by a sharp rise in revenue across quarters.

This success did not happen overnight. It is the result of massive technology investments that bKash began in 2018 to diversify and modernise its services. These investments paid off: bKash's market share has climbed from 50% in 2018 to over 70% in 2025, supported by steady and consistent growth in its customer base.

bKash initially offered simple services such as Send Money, Cash In, Cash Out, and Mobile Recharge. Today, the range is far broader. Customers can now pay utility bills (electricity, gas, water), shop online or offline, donate to humanitarian organisations, pay educational institution fees, purchase e-tickets, and settle government fees or NGO loan instalments. Additionally, the bKash app enables users to access savings and loan services from banks and non-bank financial institutions (NBFIs), creating an integrated financial ecosystem.

The benefits of digital adoption are also evident in the banking sector. City Bank provides a clear example. Around 1.10 lakh users access its app daily. If these services were handled manually, the bank would need approximately 25,000 man-hours per day — the work of around 3,000 employees. With the average staff salary at Tk60,000 a month, automation saves the bank nearly Tk20 crore monthly, or about Tk240 crore annually.

With rising digital adoption, banks can serve more customers using fewer resources. The result: major cost savings for institutions and greater convenience for users

Savings are likely higher for BRAC Bank, where 1.5–2 lakh customers use the Astha app daily. Assuming each manual transaction takes five minutes, this shift saves 7.5–10 lakh minutes of service time each day. While the bank's Chief Digital Officer did not disclose exact figures, insiders confirm that the annual savings amount to several crores of taka.

Other tech-forward banks, such as Dutch-Bangla Bank Limited (DBBL), are also experiencing significant financial benefits as more customers shift to digital channels, according to industry insiders.

Syed Mahbubur Rahman, managing director and CEO of MTB, explained how mobile apps are transforming the cost structure of banks. "Every over-the-counter transaction carries expenses related to infrastructure, utilities, staffing, and maintenance. When customers move to digital channels, banks can redirect those savings toward improving digital service quality, enhancing security, and building innovative features."

He added that customers benefit equally. "People no longer need to take time off work, travel long distances, or wait in queues. They save time, money, and energy — all while getting faster services and better rates. This positive cycle ultimately fuels more innovation across the entire ecosystem."

Abul Kashem Md Shirin, managing director of DBBL, echoed the same sentiment. He noted that mobile apps significantly reduce operational costs by lowering manpower needs, minimising cash-handling risks, and reducing physical infrastructure requirements. Automated KYC, complaint management, notifications, and statement retrieval have dramatically streamlined operations. "A single app can now serve millions — something no physical network could achieve as efficiently," he said.

For customers, the advantages are equally strong. Many essential services — such as balance inquiries, utility payments, and peer-to-peer transfers — are free or very low cost. There is no need to travel to a branch, and tasks like changing a PIN or retrieving a statement take only seconds. Digital transactions also reduce the risks associated with carrying cash.

Bank Asia's Additional Managing Director, ANM Mahfuz, added that mobile banking has boosted efficiency across the board. With fewer customers visiting branches, the dependency on physical infrastructure and manual paperwork has reduced sharply. At the same time, customers now enjoy 24/7 access without queues, restricted hours, or travel expenses.

"This creates a win-win situation," he said. "Banks can serve more customers with fewer resources, while customers save both time and money. Ultimately, mobile apps make banking more affordable, efficient, and accessible for everyone."