Abstract:
Digital banking has brought about a significant shift in the way that financial services are delivered and consumed in the modern day. The emergence of these organizations in Bangladesh can be attributed to the government's support of digital banking and the country's rising internet penetration. This is an attempt to examine the possibilities of digital banking in Bangladesh by providing a more comprehensive overview of the industry's current situation and weighing its advantages and disadvantages. There is a growing population of internet users and a proliferation of mobile financial services (MFS) providers such as bKash, Rocket, and NAGAD. These fintech businesses are now an integral part of the nation's financial ecosystems. The benefits of digital banking in Bangladesh are manifold, including enhanced customer satisfaction, economies of scale for both banks and clients relative to physical facilities, and better convenience and accessibility. Reaching the full potential of these advantages will require overcoming certain obstacles. Infrastructure barriers, such as those relating to biometrics, privacy concerns, and consumer trust difficulties; hazards linked with the internet, such as hacking and server vulnerabilities that might be exploited; and the desire for commerce to be legalized. The use of further cutting-edge technologies like big data analytics, block chain, and artificial intelligence is anticipated to advance the state of digital banking services as we move forward. Mobile financial services, expanding alliances between traditional banks and fintech companies, and more regulatory support will all support future expansion. The prospect of digital bank in Bangladesh is promising, with the potential to significantly contribute to the country's economic development and the broader goal of achieving a SMART Bangladesh.
