Internet banking transactions in Bangladesh experienced a significant upswing in November 2023, recording a 5% increase compared to the previous month, according to data from Bangladesh Bank. The total transactions through Internet banking reached Tk82,866 crore, reflecting a 5.07% rise from October. Notably, Internet banking showed an exceptional 200% year-on-year growth, as transactions in November 2022 amounted to Tk27,426 crore.
In contrast, mobile banking and card transactions, including credit and debit cards, witnessed a marginal decline. Mobile financial services (MFS) transactions dipped by 1% to Tk119,600 crore, while card transactions (covering ATM, POS, CRM, and e-commerce) also saw a similar 1% decrease to Tk42,638 crore compared to the previous month.
Bankers attributed the surge in Internet banking to its widespread availability across most banks, making it a popular choice among users. They emphasized that fluctuations of 1-2% on a monthly basis are typical and may not necessarily signal a trend change. However, larger variations, ranging from Tk10,000-20,000 crore, could indicate potential errors.
The head of the card division at a private bank noted that the internet banking revolution, spurred by the onset of the COVID-19 pandemic, continues to gain popularity. Customers are increasingly opting for online transactions, reducing the need for in-person visits to banks.
Data from Bangladesh Bank highlighted a substantial increase in average monthly internet banking and app transactions, growing from Tk45,000 crore between April and September 2023 to Tk82,000 crore in November 2023. This represents an 80% growth in just four months.
Among the banks in Bangladesh, the majority of app transactions are conducted through Islami Bank’s CellFin and the Internet. Islami Bank customers account for almost half of these transactions, followed by Dutch-Bangla Bank’s Nexus Pay, City Bank’s City Touch, BRAC Bank’s Astha, and Eastern Bank’s Sky Banking.
In a related trend, foreign currency transactions through banks’ cards witnessed a decrease in November 2023, reaching Tk798 crore, a Tk14 crore drop from the previous month. The reduction in new card issuances, attributed to a shortage of dollars, contributed to the decrease in dollar endorsements through cards. To endorse dollars on cards, banks have to do so at Tk110, while open market customers must buy dollars at Tk124.
