The rise of app banking: A new era for Bangladesh’s financial system

TBS Illustration

Over the past five years, Bangladesh's banking sector has undergone a significant transformation. Mobile apps have brought almost every banking service directly into people's hands, allowing customers to conduct their daily financial activities from home instead of visiting branches.

Today, nearly all private commercial banks have launched their own mobile apps for everyday banking. This widespread adoption has fuelled a sharp rise in digital transactions, creating a win-win situation for both customers and banks. According to Bangladesh Bank data, internet banking — mostly conducted through mobile apps — accounted for over 40% of all monthly banking transactions in July.

In that same month, transactions through internet banking amounted to Tk1.13 lakh crore, compared to Tk1.57 lakh crore through cheque clearing. Banks say the surge in mobile app usage has been driven by the digital payment ecosystem they have built, which has made online transactions particularly popular among younger users.

From paying bills and rent to sending money, opening accounts, checking statements, downloading tax certificates, or simply recharging a phone balance, mobile banking has placed everything just a few taps away. No queues, no banking hours, and no need to be physically present at a branch.

Rising smartphone use and smart banking apps are accelerating Bangladesh's move toward a cash-light economy. Digital payments now support every layer of commerce, from micro-merchants to major corporations

A striking example is City Bank's Citytouch, one of the earliest digital banking platforms launched in 2013. For the first seven years, progress was slow, with only 72,000 users. But the next four and a half years witnessed an extraordinary surge. The user base jumped to 8.82 lakh, growing at a compound annual growth rate (CAGR) of 65.4%. The Covid-19 pandemic acted as a major catalyst, as lockdowns and social distancing pushed people towards digital services for daily needs.

The jump in transactions is even more revealing. In 2020, Citytouch recorded daily transactions worth Tk27 crore. By July this year, that figure had skyrocketed to Tk400 crore — a CAGR of 73.6%. This massive shift has allowed City Bank to save around Tk20 crore every month on staff costs. More importantly, it shows how rapidly Bangladeshis are embracing digital money management.

BRAC Bank's Astha app has seen similar success, surpassing 10 lakh users and now crossing 12 lakh. Managing Director and CEO Tareq Refat Ullah Khan called it a "significant milestone," noting that customers conduct Tk20,000 crore in transactions each month — nearly Tk700 crore daily. He said digital banking has grown from being a convenience to becoming a central part of everyday financial life.

Today, 71% of BRAC Bank's total transactions take place through the Astha app. Tasks that once required hours — paying bills, applying for deposits, collecting bank statements for income tax, redeeming reward points, updating nominee details, or adjusting card settings — can now be done within minutes. Customers can also pay insurance premiums, manage education fees, activate auto-pay instructions, and operate DPS, FDR, or consumer loans directly through the app. This ease has made financial management far more intuitive, allowing people to spend less time on routine banking.

The shift is also helping Bangladesh move toward a cash-light society. Astha now facilitates digital payments at every level of the economy — from micro-merchants using BanglaQR to large corporate transactions. Annual transactions through the app soared from Tk12,000 crore in 2021 to more than Tk134,000 crore in 2024, reflecting a major behavioural change and growing trust in secure, traceable digital channels.

BRAC Bank has invested heavily in building a strong digital infrastructure to support this momentum. "With the Astha app, we've empowered customers to open an account or apply for a loan in the time it takes to enjoy a cup of tea. We're offering more than a service — we're creating instant access to opportunity. That's the very essence of genuine financial inclusion," said the bank's MD.

Dutch-Bangla Bank's NexusPay is another major driver of this shift. With nearly 70 lakh users as of August, monthly transactions through NexusPay exceed Tk21,000 crore, placing DBBL at the centre of the country's digital payment network.

According to Managing Director Abul Kashem Md Shirin, mobile banking did more than modernise the banking system — it created a parallel, mobile-first financial ecosystem that reached people traditional banks could not. In rural areas without physical branches, agent banking supported by apps or even simple USSD codes became the local "branch." Farmers, day labourers, and small shop owners suddenly had access to services once limited to urban customers.

As one of the pioneers of MFS, DBBL's Rocket changed customer behaviour early on. Before Rocket, banking meant cash. But with simple services like Cash-In/Cash-Out, P2P transfers, and merchant payments, people began to treat their mobile phone as a safe wallet. For garment workers, small business owners, and remittance recipients, this instant access to funds was transformative — no more losing a day's wage travelling to a bank branch.

bKash, the largest mobile financial services provider in Bangladesh, now has 8.2 crore customers using its app for transactions. Users can also add money directly from their bank accounts, making digital payments even smoother.

Azmal Huda, Chief Product & Technology Officer of bKash, said, "We designed the app to be a lifestyle enabler, not just a financial tool. We moved away from text-heavy interfaces to an engaging visual, icon-driven design that bridges literacy gaps. The reason bKash has become the preferred choice for millions is that it works intuitively; users don't have to 'learn' the app — the app guides them. Whether it is the clean layout or the one-tap access to essential services, every pixel is designed to reduce cognitive load and make financial freedom accessible to everyone."

Eastern Bank's Skybanking, though smaller in scale with 4.5 lakh users and Tk120 crore in daily transactions, has shown one of the fastest growth trajectories. In the last five years, users increased by 437%, transaction volume by 775%, and total transaction value by 2,695% — showing how quickly the bank is catching up.

Ali Reza Iftekhar, Managing Director and CEO of EBL, said, "Today, nearly half a million people use Skybanking, with a Bank-to-App conversion rate close to 50% — among the highest in Bangladesh. This shift reflects more than adoption; it represents a mindset change. Customers are no longer 'trying out' digital banking — they are relying on it as their primary mode of financial interaction."

He added, "Mobile banking is one of the strongest catalysts in Bangladesh's journey toward a cashless society. Every digital payment, every QR transaction, every online transfer chips away at our dependence on cash."

Mutual Trust Bank's MTB Neo app offers 24/7 access to services such as balance checks, fund transfers, bill payments, account opening, and more. Its user base has been growing by 35% annually, now reaching nearly 2.5 lakh users. Monthly transactions have seen a 90% year-on-year increase, totalling around Tk2,000 crore.

MTB Managing Director and CEO Syed Mahbubur Rahman said, "MTB Neo didn't just digitise banking; it changed how our customers think about banking altogether. Our philosophy has been simple: if a customer can do something at a branch, they should be able to do it from MTB Neo as well. Whether it's paying utility bills, sending money to a friend, paying school fees, purchasing essentials, making business-related transfers, or even applying for loans — our goal is to place everything within the customer's reach."