Online banking explodes with 81% revenue growth

0

Pandemic lockdowns unlock tech reach



| Updated:
July 24, 2022 7:29:01 PM


The online bank, which found a blessing in disguise during the pandemic-imposed restriction on the movement of people, is now making a leap forward with 81.5% year-on-year revenue growth ‘other.

According to the latest official figures until last May, e-banking has increased in terms of the number of customers, transactions and turnover.

The number of customers increased by more than 44%, year-on-year, to reach 5.138 million in May. The number of transactions in Internet banking increased by 66% while the amount jumped by 81.51% to reach Tk. 206.63 billion.

And Mobile Financial System or MFS accounts jumped to 112.69 million in May, up 15% from May 2021.

The number of MFS agents increased by more than 9.0% to reach 1.19 million during the period under review.

But it’s [MFS] transaction values ​​have been volatile over the past year. The total transaction amount in May was 649.46 billion taka, down about 9.0% from May 2021.

The number of e-commerce transactions has soared nearly 35%, but its transaction value has also remained volatile over the past year. Last May, its value was 8.67 billion taka.

All the above data can be found in one of the latest publications of Bangladesh Bank.

However, the number of accounts in the internet ecosystem is now largely concentrated in consumer banking or retail banking.

On the business and corporate side, processes are still very traditional and cash (or check) based.

While online banking has grown by leaps and bounds to billions, businesses continue to use traditional payment methods in the absence of suitable options, according to top bakery executives.

“Businesses prefer payment and collection procedures, and that will take time…” says Syed Mahbubur Rahman, managing director and CEO of private commercial bank Mutual Trust Bank (MTB).

The corporate segment is much larger thanks to higher turnover and bundled payments in the country’s financial sector.

Mr. Rahman notes that consumers or retail customers have been attracted in part due to mobile apps introduced by some banks.

On the other hand, people working in the ICT sector told FE that not all banks have state-of-the-art internet facilities to attract customers to smart solutions.

AKM Fahim Mashroor, former chairman of BASIS and CEO of bdjobs.com, told FE: “Older generation banks even lack mobile apps. On the other hand, new generation banks have the ability and they do.” good…”.

He said government banks have huge customers, but they still lag far behind in terms of internet banking. There is also a need to raise awareness about digital banking.

On the other hand, people in the MFS industry have said that the growth of the MFS ecosystem is quite satisfactory. There are months when the value of transactions increases.

“In my opinion, the growth of the MFS ecosystem is quite acceptable,” said Shamsuddin Haider Dalim, PR manager at the largest MFS service provider—bKash.

He said that during festivals, for example Eid-ul-Fitr and Eid-ul-Azha, the turnover in the MFS sector increases significantly, otherwise, there remains overall growth in the sector.

He said the number of agents, merchants and accounts are all increasing in the MFS.

[email protected]

Share.

About Author

Comments are closed.