E-Banking: Performance, Problems, and Potentials in Bangladesh

With the technological advancement in course of time E-banking has become a need of time around the globe. It has changed the way of doing banking business by making the whole business speedier, more flexible, and more consumers friendly. If connected with the Internet, one can bank round the clock from anywhere on the planet -with one single account only, which makes life easier. But banking online is prone to different risks related to online security i.e. risks and frauds associated with online data transfer and data management. Bangladesh, a labor surplus country, still lacks proper ICT infrastructure, IT education facilities, and the required human resources followed by the country fails to get the cent percent benefits from this technical update. However, E-banking has been started in Bangladesh since 2005 with high rate of market penetration. But risks are still at large as Bangladesh could not make significant progress on the various issues of E-banking business model like access to computer, Internet, and IT knowledge. On the other hand, poor governance along with the negative effects of automation because of E-banking like workforce cut creates employee dissatisfaction leading poor performance at the end. Therefore, the question arise will it be feasible to establish and develop E-banking in a developing country like Bangladesh and even if it is being introduced, to what extent E-banking facilities should be incorporated.