App based banking: current status,

prospects & challenges

Md. Jamil Sidique

Student Id: 180628

Dhaka School of Bank Management (DSBM)

July, 2020

Bangladesh Institute of Bank Management (BIBM)

 Dissertation Report

On

APP BASED BANKING: CURRENT STATUS, PROSPECTS & CHALLENGES

Prepared for

MBM Program Office

Dhaka School Of Bank Management (DSBM)
Bangladesh Institute of Bank Management (BIBM)

Supervised By

Md. Foysal Hasan

Lecturer
Dhaka School of Bank Management
Bangladesh Institute of Bank Management (BIBM)

Submitted By

Md. Jamil Siddique

Student Id: 180628
DSBM 6th Batch

Bangladesh Institute of Bank Management (BIBM)

Mirpur-2, Dhaka 1216

July, 2020
 DECLARATION

I, Md. Jamil Siddique, student of Masters in Bank Management, Bangladesh Institute of Bank
Management, represent my dissertation report on “App based banking: current status, prospects
& challenges” as requirement of partial completion of masters degree. This report was performed
under supervision of Md. Foysal Hasan, Lecturer, Bangladesh Institute of Bank Management.

This is to declare that the report was done by me and it has not been submitted before. Help that
was taken from internet and books was mentioned at references.

________________

Md. Jamil Siddique

ID No: 180628
DSBM 6th Batch
Dhaka School of Bank Management
Bangladesh Institute of Bank Management

I
 CERTIFICATE OF SUPERVISOR

This is to certify that Md. Jamil Siddique, ID no: 180628, DSBM 6th Batch, Bangladesh Institute
of Bank management (BIBM), has done this report entitled “App Based Banking: Current Status,
prospects & challenges” Which is solely intended for the purpose of completing MBM program.
To the best of my knowledge, this report is original in nature and has been prepared by him
under my guidance. I accept this report as a Dissertation Report. I wish affluence and prosperity
in every aspect of his academic as well as professional life.

He is permitted to submit this report to the Dhaka School of Bank Management, Bangladesh
Institute of Bank Management.

________________
Md. Foysal Hasan
Lecturer
Dhaka School of Bank Management (DSBM)
Bangladesh Institute of Bank Management (BIBM)

II
 LETTER OF TRANSMITTAL

26th July, 2020

The Director
Dhaka School of Bank Management (DSBM)
Bangladesh Institute of Bank Management (BIBM)
Mirpur-2, Dhaka 1216

Subject: Application for the submission of the dissertation report titled “App Based
Banking: Current Status, prospects & challenges”

Dear Sir,

With due respect, I would like to draw your kind attention to the fact that preparing a dissertation
paper & submitting it to the DSBM office is an academic requirement for the partial fulfillment
of MBM Program.

I have tried hard in preparing this dissertation paper and tried to make the report vivid and
comprehensive within the constraints. I sincerely believe that it will serve the required purposes.

I would like to thank my respected Supervisor, Md. Foysal Hasan, Lecturer, BIBM, for
providing his expert guidance throughout the process of writing my dissertation. His suggestions
and comments were really a great source of spirit to make the report a good one.
I would like to extend my heart-felt thanks to all those who have assisted me in preparing the
report, both senior and fellow MBM students and staff of the MBM Program Office and Library,
by giving me good advices, suggestions, inspiration and support

I shall always be obliged to furnish any clarification regarding this dissertation, if required.

Thanks & Regards,

_______________

Md. Jamil Siddique

ID: 180628

III
 ACKNOWLEGEMENT

At first I want to express my gratitude to Almighty God for giving me the strength and the
composure to finish the task within the scheduled time.

This report has been made on the basis of theoretical knowledge that has been gathered in the
past few years. The topic of the dissertation report is “App Based Banking: Current Status,
prospects & challenges.”This report has been made with best effort that reflects my views,
learning and knowledge within the academic shape.

This report writing would have been absolutely impossible to prepare such a report and present it
in a lucid manner without the direct and earnest cooperation of my supervisor Md. Foysal Hasan,
Lecturer, BIBM.

IV
 TABLE OF CONTENT

Contents Page
Declaration I
Certificate of Supervisor II
Letter of Transmittal III
Acknowledgement IV
Contents V
List of Figures VI
Executive Summary VII
Chapter Content
Chapter 1: Introduction 01-02
1.1 Introduction 01
1.2 Objective of the Study 02
1.3 Methodology of the study 02
1.4 Limitations of the Reports 02
Chapter 2: Literature View 03-04
2.1 Literature View 06
Chapter 3: Overview of app based banking 05-06
3.1 Overview of app based banking 05
Chapter 4: Current status and adaption level of app based
06-11
banking in Bangladesh
Current status and adaption level of app based
4.1 06
banking in Bangladesh
4.2 Security measures of app banking 07
4.3 Product & Service available in Bangladesh 07
Chapter 5: Prospects of app based banking 12-15
5.1 Prospects of app based banking 12
Chapter 6: Data Analysis 15-22
Questionnaire Survey Findings on app based
6.1 15
banking
Chapter 7: Challenges of app based banking 23-24
7.1.1 Challenges of app based banking 23
Chapter 8: Findings and recommendation 25-27
8.1 Findings 25
8.2 Recommendation 26
8.3 Conclusion 27
References 28-29
References 28
Annexure : Survey Question 29-31

V
 List of Figure

SL Title Page
Figure 1 App based banking used by gender level 15
Figure 2 App banking used by age level 16
Figure 3 Banking app used by job level 16
Figure 4 Convenience of app based banking 17
Figure 5 App based banking is easy to operate 18
Figure 6 App based banking is secured 18
Figure 7 Less time required in app banking 19
Figure 8 Less cost involved in app banking 20
Figure 9 User friendly of app banking 20
Figure 10 Satisfaction in app banking 21
Figure 11 App banking as future banking 22
Figure 12 Different apps people use for banking 22

VI
 EXECUTIVE SUMMARY

App based banking is a new method of banking transaction and banking activities via the internet
using an app. App based banking offers customers almost every service traditionally available
through a local branch including deposits, transfers, and online bill payments through mobile
apps. As a new version of banking, it has bright future prospect. At the same time it has some
challenges.
This report will try to find out the problem, prospect & current status of app based banking in
Bangladesh.
The first chapter of the report has discussed on the background of the study. In the background of
the study there is statement of the problem, rationale of the study, scope of the study and the
objective of the study. In research methodology part, the procedure of collecting data has been
discussed & how we have gone through the whole paper is elucidated here.
Second chapter of the report consists literature review part. This part encompasses the previous
writing on this issue which has been quite useful for preparing thesis paper. Besides, overview of
app based banking has been explained in third chapter.
The fourth chapter of the report states current status and adaption level in Bangladesh. In the
fifth chapter, prospects of app banking are discussed. Different advantages and future
possibilities of app based banking are discussed here.
In the sixth chapter, the analysis which is based on survey questionnaire is discussed. This part
reflects the demand of app based banking along with different graphs.
In the last part of this report, some findings & recommendations have been provided which
might be helpful for the interested users. To conclude the report, I write a few lines for the
Conclusion part for this report along with References and attached the survey questionnaire in
the Appendix section.

VII
 Chapter: 1
INTRODUCTION

1.1 Introduction

As global tech industry is witnessing a boom, it has opened a new frontier for the “ever
traditional” banking system to cater more sophisticated and personalized service to its clients.
Amalgamation of technology and banking service is a global buzzword now. New technologies
and banks being open to adapt innovation are reshaping global business and operating models of
banking sector, and financial service has got a broader aspect to serve. Early movers in this
sector are getting way more competitive advantage than the others, although some of the banks
were deliberately delaying adoption of technologies and innovation in banking sector for
strategic and regulatory purposes. The wind of change first started in the western part of world,
which gradually flowed to the Asian subcontinents. Asian countries have graciously adapted the
tech-disruptions in the banking realm, from the drive of staying in the market. Through the
intensive use of technology, Bangladesh is gaining momentum in online banking system.Online
Banking/E-Banking was the obvious solution to reduce transaction costs, easy and efficient
integrated services, interactive marketing capabilities, and many other benefits that help
increasing customer size and leveraging profitability significantly. Additionally, online banking
services allow institutions to bundle more services into single packages, resulting into luring
customers and minimizing overhead. The online mode of banking service gradually shifted
towards mobile-based from desktop-based. Heavy penetration of smartphones made financial
services accessible in the palm of the hand. Indeed worldwide, even in Bangladesh, mobile
banking got all the rage for having widespread mobile internet and bringing feature phones and
smartphones within lower-middle class people’s purchasing power. Smartphones and, less
visibly, cloud computing have transformed people’s daily lives and hence their use of money.
Consumers expect to be able to use the powerful computers in their palms to pay for goods or
move cash around as easily as they stream videos or share photos with friends. Around 2010,
global banks came up with app-based mobile banking and at this moment, in Bangladesh, the
top-tier banks have their own app for mobile banking. For the last few years, both local and
foreign banks have come up with their own apps which are available to use both in phone and
desktop. These apps provide banking services. The researchers believe that growth of app based
banking in Bangladesh is inevitable, especially when banks do not have sufficient number of
branches in the rural areas of Bangladesh. The purpose of this research is to assess the current
status, prospects & challenges of app based banking in this country. The research shows
tremendous potential of app based banking in Bangladesh and reveal some key barriers of
progress as well. As app based banking is a new idea in Bangladesh, Very few research are
available in this field. Main gap in this study is data collection. Most of the data are collected
from urban literate people. Based on this data collection this research shows the potentiality of
app based banking in Bangladesh.

1
1.2 Objective of the study

1. To present the current scenario & status of app based banking in Bangladesh.
2. To identify future prospect of app based banking in Bangladesh.
3. To detect the challenges of app based banking.

1.3 Methodology of the study

The study was conducted to identify the problems and prospects of mobile banking in
Bangladesh. Necessary data were collected from different ages of people and analyzed in terms
of the objectives set for the study. This study was based on field level data. There are several
methods of collecting this basic information. The data for this study were collected by the survey
method. Survey is a research technique in which information is gathered from a sample of people
by use of a questionnaire or interview.

1.4 Limitations of the study

There are some limitations regarding this thesis paper-

1. The first limitation is the source of information. There is no well furnished publication
about app based banking in Bangladesh.
2. Official of Banks are reluctant to give necessary information for thesis purpose.
3. It is quite hard to conduct questionnaire survey in rural areas as rural people have little
knowledge about it. Due to Covid 19 pandemic the survey response was limited.

2
 Chapter 2
LITERATURE REVIEW

2.1 Literature review

Bill Gates (2008) announced that banking is essential, banks are not. This quotation means that
the traditional bank branch is going to vanish in order to be surrogated by electronic banking
which continues to attract new users. The banking industry believes that by adopting new
technology, the banks will be able to improve customer service level and tie their
customers closer to the bank.

One of the most important implications of technological advancement in banking is that it makes
distant customers come closer. Majority of banks are planning to introduce ICT for
integration of banking service and new financial service, which will play a vital role in
bringing efficiency in financial sector. Chandrasekhar and Sonar (2008) depicted that banks will
reap the benefits of IT truly and totally, if and only if they pay adequate attention to
technological progress as well as efficiencies on the input and output sides.

Technology enables the bankers to create and recreate innovative services at lowest cost possible
to ensure convenience to their customers.Banks are now attracting new customer and sustaining
regular customers through their own apps.With the apps banks reduce their cost of delivery of
service to the customers and maintain lower cost by covering huge population of certain areas at
a time which is virtually impossible through manual branch networking. Customers also get
benefit through app based banking like immediate transaction,24 hour banking etc.

With the development of technology banks renders banking service through internet and mobile
network. At the same time different new frauds are emerging to attack customers through
internet. This is the biggest challenge for bankers to protect the customers from these cyber
frauds.

In developed countries banks are using their apps for regular banking activities. Bank of
America, Allay bank, Capital one bank, Huntington Bank, Wells Fargo use their apps for
banking activities. These are the leading banks in app based banking.

In Asia region, Chinese banks are leading in app based banking. They have ALIPAY, WECHAT
PAY. TNG WALLET is very famous for banking activities in HONG KONG.

In SAARC region, India is ahead over us. They have Paytm, State bank freedom, Baroda M-
Connect from Bank of Baroda etc.

So from the above discussion it is clear that the app based banking is a new era for the banking
system in Bangladesh and it has good prospects if it can overcome few challenges.

3
Several studies were conducted on online banking, electronic banking, mobile banking where the
authors concentrated on the services that are included in those particular banking. But this paper
tries to find out what are the app based services available at present in Bangladesh, what are their
future prospects and challenges and what can be done to overcome those future challenges.
There are some limitations regarding this thesis paper. The first limitation is the source of
information. There is no well furnished publication about app based banking in library and
internet. Official of Banks are reluctant to give necessary information for thesis purpose. Some
respondents were neither motivated nor interested in expressing their honest opinions. People
living in rural areas are not interested in app banking. They are not aware of it. So data are
collected only from urban areas.

Chapter 3
OVERVIEW OF APP BASED BANKING

3.1 Overview of app based banking

App based Banking or app banking may be defined as the banking environment in which
banking information as well as transactions moves and conducted through application medium
based on internet.

Banks are no longer a place where depositors just go to stash their money and borrowers go to
borrow funds during the usual banking hour and pick products from a set of offers. Rather,
technology is transforming the retail banking landscape very fast, changing the way people and
companies connect with their banks and demand services and products from anywhere, anytime.
Customers, used to convenience and personalization from retail and e-commerce, now seek the
same multi-channel ease of use from their banks. Banks are also responding by embracing
technology to meet customers' demand in an increasingly competitive market. Almost all the
major banks in Bangladesh now offer online or mobile app-based banking solutions.

Online Banking is transforming the financial services industry through various impossible
innovations. The quantity of cross-border trading and other financial activities is increasing
geometrically make possible by technology. It has been made possible by technology,
particularly information technology to generate, collect and process information about bank
operation and bank customers efficiently and effectively. It provides the ability to create more
effective systems of controls in individual institutions and in the market themselves. Compared
to the paper based operation, online Banking Systems, in its most proficient form, offer instant
verification and transfer and reduces the flow of costly paper in the record keeping process.

4
Application of technology in banking offers opportunity for reduction of both paper and people.
Banks have developed EBS for three main reasons (Horseman, Michael J. 1979)

1. To protect and increase market share

2. To reduce operating cost by substituting physical capital and technology for labor
3. To generate new revenue

Online banking allows banks to expand their markets for traditional deposit taking and credit
extension activities and to offer new products and services or strengthen their competitive
position in offering existing payment services. In addition, online banking could reduce
operating costs for banks. More broadly, the continued development of online banking and
electronic money may contribute to improving the efficiency of the banking and payment system
and reducing the cost of retail transactions nationally and internationally. Although many
financial instruments and systems are now considered as “online and electronic Banking” came
into the terminology of the financial world in the late 1980s, with the possibility of emergence of
true electronic money. All sorts of back-office information management technology and financial
services using electronic devices and internet can be included into the term “Online Banking”.
The development in information technology has contributed positively to economic growth
through several channels. ICT has led to a productivity growth through the impact on activity
processes. Banks have been increasing its own size and financial strength and expanding the
scope of their products lines to meet the growing demand of on-line real-time financial services.

App-based banks exist purely in app form – meaning they don't have any physical branches that
one can pop into like traditional banks, but anyone'll still have access to support and advice,
usually in the form of a live chat feature in-app or a phone line. After a number of years of
limited functionality, mobile banking apps now offer a suite of services for users and most
banking institutions now have some form of mobile app offering. Users are able to view
statements, pay bills, deposit cheques and make transfers to any bank account while on-the-go,
without the need to visit a local branch. Whether it’s developed in-house or with the help of
third-party providers, the growth of mobile device ownership has sparked continued
developments within the banking industry to ensure that their apps provide the best service to
their customers and more importantly, remain highly secure.

5
 Chapter 4
CURRENT STATUS AND ADAPTION LEVEL OF APP BASED BANKING IN
BANGLADESH

4.1 Current status and adaption level of app based banking in Bangladesh

Presently, about 40 out of the 57 banks in Bangladesh offer the internet banking facility.
But of the 40, five -- City, EBL, Mutual Trust, Brac and Standard Chartered -- have taken the
online banking service to the next level: they have rolled out an app such that the customers can
access their bank accounts securely from their smart phones. As of October 2017, there are
nearly 17 lakh users of internet banking, according to data from Bangladesh Bank. Of them,
more than 90 percent are clients of private banks and the remaining foreign banks.
For the last three years, both foreign and local banks have come up with their very own mobile
apps for providing their banking services. To extend the retail banking services across the
country many banks have taken this initiative to launch their own app with the internet banking
features. For example-
City Bank Bangladesh has launched their mobile phone app for serving their retail banking
customers across the country. The local bank, which has pioneered modern banking in the
country, introduced the app — ‘City Touch ‘through a launching event on their head office on
October 2013. Then one of the top foreign banks in Bangladesh, Standard Chartered Bangladesh
has also introduced the banking apps ‘SC Mobile Bangladesh’ and ‘Good Life’ -at an event at
Westin Dhaka on May 2017.Dmoney, latest digital payment app, was launched in a press
conference at the Westin Hotel in Dhaka. Dmoney promises to cater not only to the digital
payment requirements of the users but also seamlessly integrates users with latest lifestyle and
financial services.
Users can easily open an account from their smartphones and connect Dmoney app with their
bank accounts. Consumer can also bring money to Dmoney account from any debit card or credit
card. Apart from sending and receiving money- Dmoney has a range of lifestyle services
available within app, such as mobile top-up, bill payment, ticketing, foods, insurance, health and
many more on-demand and basic day to day services of any person’s daily necessity.Users will
also get different touch points to pay bills through QR code and online gateway. Currently, they
are accepting about 2,500 offline and online stores. Moreover, customers of multiple leading
banks of Bangladesh- including One Bank, Trust Bank and Al ArafahI slami Bank will be a part
of Dmoney’s QR alliance. In the program Dmoney has share their plan to grow its QR payment
touch points to 100,000 by year 2020. The company has obtained Payment Service Provider
(PSP) license from Bangladesh Bank earlier in January this year. Technology is a problem-
solver. The real problem to solve is the challenge of building an “ecosystem” around homes,
small and medium businesses and offers all the products and services they need to operate
effectively with productivity and succeed in our endeavors. Dmoney is a full service Digital
Payments Platform and Lifestyle app. The platform serves as an ecosystem builder as Dmoney
believes it is through Technology and partnerships with stakeholders that we can break the cash
to digital barriers.

6
The app offers a rich set of services both lifestyle and payments and is scalable and extensible so
it can grow richer week to week. We live in a mostly cash economy and Dmoney seeks to
contribute to the digital transformative changes - with ease of use security and rich services that
meet user needs. This includes onboarding and digitizing merchants with QR to ease payment
frictions. Dmoney was built in Bangladesh by a talented team of engineers. It is very exciting
and proud moment to start operations and very optimistic about the market and the adoption.

Recently Dmoney Bangladesh Ltd has been named in the “10 Most Convenient Wallets to Watch
in 2019” by APAC Business Headlines, a Hong Kong-based publishing house and become the
only wallet from South Asia to make it to the top 10 position.

Apps like these contain all the modern day banking facilities like-

Real-time transaction of customers’ current, savings and fixed deposit accounts, maintenance of
those in real time, fund transfer from respective Bank accounts to the accounts of any other bank
in the country, payment of mobile phone and credit card bills online, purchase of airline ticket in
domestic routes, payment of school fees, online shopping etc. The highly secured platform used
by the internet banking apps developer companies to give the customers the comfort zone to use
the apps without any fear of security penetration or any other security threats. Apps like City
Touch also allow customers to find out real-time street directions for the branches and ATMs of
the bank too. Also, provides full-scale information of all products and services of the Banks.

4.2 Security measures of app banking

The security of a system is the extent of protection against some unwanted occurrence such as
the invasion of privacy, theft and the corruption of information or physical damage. At this
system is developed through the internet there is a big chance of hacking through our system.
Current browsers counter security threats with a network communication protocol called secured
sockets layer (SSL). SSL is a set of rules that tells computers the step to take to improve the
security level of the communication.

4.3 Product & Service available in Bangladesh

The world of banking is changing fast in this constantly changing digitized environment where
demand of internet banking in the banking sector has become mandatory as the customer
demands to get the facilities of banking at their fingertips. Paying bills, cell phone top ups, or
even transferring funds we nowadays seek through our internet banking apps because life has
become hectic and busy. With times many banks in our country have came up with their own
internet banking app to provide all these accompaniments that one customer can obtain by using
internet banking apps.
Online banking is therefore viewed by the large banks of Bangladesh as a way to focus on best
service in terms of security and advance tech adoption. Over the last five years, top Bangladeshi
Banks have recognized the importance of service standard and customer experience.
Hence many have come up with their own banking apps to set the expressions of their brand. A
well-designed consumer banking app can create great relationship among banks and their loyal
consumers.

7
But the question comes, do all internet banking apps which are available in the stores are user-
friendly? Do they meet user expectations on a decent scale?
The answer is not a straight one as most of the renowned banks of Bangladesh are still working
on their internet banking apps for better functionality as well as better customer experience.

Top 5 Internet Banking Apps in Bangladesh

Let run through our findings about the features and functionalities of Bangladesh’s top 5 Bank’s
internet banking mobile apps and the improvement scopes for the individual banking apps.

City Bank (City Touch)

City Bank is one of the oldest private Commercial Banks functioning in Bangladesh and also is
one of the top banks among the five oldest Commercial Banks in the country. Thus, to make
banking easier, faster, more secure and convenient to the clients City Bank introduced City
Touch Digital banking app to the customers

This banking app thus has not just made the old consumers more attached to City Bank’s
banking system, it has also pushed many new customers migrate their accounts to City Bank
only because of the app’s convenience and wonderful performance.
Features that City Touch app contains:

1. Fund transfer and account details with summarized version

2. Deposits, loans and card management
3. Customer service request through app
4. Personalization, customization and transaction security check by customers.
5. Printed Account Statement in the form of short & for a particular period.
6. Two-factor authentication (2fa) & user security for highly secure service.
7. User request for user Interface service
8. Detail Product lists & Product information via i banking app.
9. Instant bill payment such as tuition fees, mobile phone bills, insurance premium,
club payments, internet bill payments etc. through the app.
10. Internet shopping for over hundreds of leading retailers across Bangladesh.
11. Services checkbook requests, stop cheques, activation or blocking cards and Card
PIN changing through the app.
12. Air tickets purchase from top domestic airlines such as Novo Air, Regent Airways
and US Bangla Airlines through the app.
13. Bill payment for any Visa, Master or Amex credit cards issued in Bangladesh through
the app.
14. Finding nearest City Bank ATMs and branch locations on-the-go.
15. Transferring money to VISA debit cards for 18 enlisted banks.
16. Scheduling payments for specific dates.

8
With all these amazing features still there are few Improvement Scopes for this application,
which are:
1. To make the app even faster.
2. To make the inter page change time a little less.

Eastern Bank Ltd (EBL SKYBANKING)

Easter Bank limited is another prominent trading bank in Bangladesh which pursued efficient
cost management, promote consistent productivity gains through seamless coordination between
business functions, and focus on widening banking horizon to deliver sustained growth.

EBL SKYBANKING is a Mobile phone App based banking service by Eastern Bank limited
which can access through any smartphone or tab from anywhere anytime. Just by clicking on any
of the menus on the list, customers can perform all the basic banking services as and when
required.
Features that EBL SkyBanking app contains:

1. Transaction history (both in BDT & USD) and account information checking
2. Fund transfer both from EBL and other banks Pay bills
3. Instant top-up to mobile phone
4. Positive pay instruction and place service request
5. Direct contact with the bank or make an appointment via EBL SKYBANKING mobile
app. Branch locator.
6. EBL zip and discount partners search.
With all these above features still there are some Improvement Scopes for this application, which
are
1. To make the app even faster.
2. Internet shopping via this app could be added.
3. Visa card bill payment functionalities could be added.
4. Services like checkbook requests, stop cheques, activating or blocking cards and Card
PIN changes could be added.
5. Air tickets booking system via this app can add on.

Mutual Trust Bank (MTB Smart Banking)

Mutual Trust Bank is another affiliate bank was incorporated as a Public Limited Company on
September 29, 1999. To serve their consumers better, MTB is continuously working to offer new
and improved services.
As part of this endeavor, they have introduced Mobile App for Smartphone devices, which allow
users constant access to their accounts. This value-added service will enable MTB users to make
selected financial transactions, through their mobile phone, from anywhere in the world.
Features that MTB Smart Banking contains:

1. Detailed Account Statements

2. Cheque Book Requests services
3. Fund Transfers to other MTB bank accounts
4. Easy mobile top-ups facility
5. Utility Bill Payments

9
With all these above features still there are some Improvement Scopes for this application, which
are:
1. To make the app even faster.
2. User experience could be better
3. Should make the app device compatible.
4. Other internet payment facilities could be added like online shopping or air ticket
booking etc.
5. Could perform services like checkbook requests, stop cheques, activating or blocking
cards and Card PIN changes etc.
6. Visa card bill payment functionalities could be added

Standard Chartered Bank (SC Mobile Banking)

Standard Chartered Bank is one of the largest international banks in Bangladesh with 26
Branches & Booths and 83 ATM. They are the only foreign bank in the country with presence in
6 cities including the country’s only offshore banking units inside Dhaka Export Processing
Zone (DEPZ) at Savar and Chittagong Export Processing Zone (CEPZ).

SCB introduced their internet banking app SC Mobile Bangladesh which has the simplest and
basic features of an internet banking app and has some big improvement scopes.
Features that SC Mobile Bangladesh contains:

1. Quick access to user accounts.

2. All kind of bill payments
3. Fund transfer
4. Supervise online transaction histories
5. Online shopping.

With all these above mentioned features still SC mobile app needs some improvement for the
application, which are:

1. Can make the app faster

2. User experience could be better
3. App Interface could be more user-friendly
4. Could have added location tracker for finding nearby booths and branches.
5. Mobile top-up facility could be added.
6. Visa card bill payment functionalities could be added as it is an international bank
7. Other facilities like online shopping payment or air ticket booking services.

10
BRAC Bank (BRAC BANK Mobile)
BRAC Bank started its journey in 2001 proving themselves as one of the fastest growing banks
in Bangladesh in just 17 years. Today, the bank has 176 Branches, over 500 ATMs and 448
SME Unit offices across the country.
With BRAC Bank Mobile Apps, customers can do banking services on the go from their
Smartphone. This application is supposed to allow users to perform all kind of banking activities
in real time while this app needs a lot of improvements on the basic level.
Features that BRAC BANK Mobile contain:

1. Fund Transfer to any BRAC Bank Account

2. Quick Mobile Top-up
3. BRAC Bank Credit Card Bill Payment (BDT)
4. Qubee Bill Payment
5. Monitor account related Information with Balances in details
6. Loan Account Information
7. Mini and Detailed Statement review
8. Beneficiary Management
9. SMS Banking Facility via app
10. two-factor authentication security system

With all the above features still there are some basic improvement scopes for this application,
which are:

1. The app could be faster while running on the device

2. Fund Transfer to different banks could be there
3. Could be more user-friendly and could have smoother user-interface
4. Two-step authentication system doesn’t seem a user-friendly process to ensure the
security issue.
5. Can add Utility bill payment service.
6. Location map for finding nearby booths and branches could be added.
7. Internet booking or reservation payment service could be added.
8. Visa card payment facilities could be added.
If we compare the app features of the above mentioned banking apps, according to service
varieties and user acceptance, City Touch internet banking app clearly provides the most
prominent internet banking facilities to their users.
With its advanced banking facilities and highly secure platform, City touch mobile app has
already grasped a huge satisfied customer base. City touch app integrates the scheme of paying
by Visa, Master or Amex credit cards issued in Bangladesh, which is still missing in the prospect
of other internet banking apps.

Online shopping is another feature that makes its users life easier. One of the world’s top
financial and business magazines ‘Global Finance’ has awarded ‘City Bank’ as the Best Digital
Internet Bank 2017′ for the third time. This full-fledged and highly secured banking app’s
contribution to such achievement has undoubtedly earned the recognition as an Internet Banking
platform for facilitating advance banking services.

11
 Chapter 5
PROSPECTS OF APP BASED BANKING

5.1 Prospects of app based banking

In our busy lives, visiting bank is just another name of hassle that people often try to avoid these
days. Therefore, the banks which are providing such facilities for which customers have to visit
banks the less possible are actually the ones staying ahead in the game. On top of that, mobile-
friendly online banking has been the most demanding service that banks had to adapt in the last
few years. According to a statistics in recent times the online banking is taking place through
mobile mostly. Approximately 80 percent of different Bank’s online banking is taking place
through the mobile phones. The reason is very simple as the new age customers are more tech-
savvy. So, probably 10 years down the line, many people will not come to the banks at all if the
technology gets upgraded like this.
Internet based app banking finds a fast rise, with over 41 percent growth recorded in the country
in 2016. This is a quite healthy growth in real-time fund transfers, e-commerce, and online
penetration and this growth has been possible for internet banking and banking apps that made
customers life easier. A total of Tk 307.52 billion was transacted through internet banking in the
past year, according to the March 2017 statistics obtained from the central bank. The figure is up
from Tk 217.57 billion that was transacted in the previous year (2015). And this significant
growth shows that there is a huge demand for good internet banking and mobile application
among banking customers.
Last January 2018 statics shows- currently, 40 out of 57 scheduled commercial banks in
Bangladesh offer internet banking facilities. As of January 2018, there are nearly 17.61 lakh
users of internet banking, according to data from the Bangladesh Bank. About 7.18 lakh
transactions involving Tk 2,175 crore were made through the internet banking platform in
January 2018. Internet Banking Fund Transfer (IBFT) transactions functionality is so far the
most popular functionality in Internet Banking app.

Thus it can be easily said that banking on a mobile platform will be the future competitive
advantage for a bank to be triumphing in the market. App Banking saves the time and energy of
the customers to deposit money or to transfer any balance as virtual banking ease the process of
the physical presence of an account holder. Additionally, mobile banking gives people more
security by generating a One-time password which avoids the possibilities of hacking ones
account.

Plus, given anything and everything is now happening through mobile phones, banks have got no
other option left but to collaborate with telecom platforms. This can open a new area of business
for the telco companies as well.
We are experiencing massive changes happening in the developed world and there’s no doubt on
that, the air would flow through Bangladesh as well. In countries such as Japan and South Korea,
people are not using plastic cards anymore rather using their mobile phones to transfer money
and to buy products. So, it’s just some matter of time when we will see such drastic changes in
our country.

12
Let share some statistics to show the future possibilities of internet banking and banking apps-

 According to Bangladesh Bank, the number of transactions through internet banking has got
posted a healthy 21.34 percent growth from 2015 to 2016. Which shows around 6.39 million
banking transactions took place online in 2015 while the number rose to around 7.75 million in
2016.
 The average value of internet transaction also rose from Tk 34036.51 in 2015 to Tk 39661.44 in
2016.
 Then, according to BTRC, country's telecom regulator, there were around 67 million internet
subscribers in the country at the end of October 2016 among these 94 percent people were
connected online through the mobile internet like 3G or GPRS.

All these information indicates that it’s very important for the banks to offer the convenient and
banking services for this generation tech-savvy customers.
For the world of convenience banking which lets you take control of your time. People are now
choosing such banks which are providing the most convenient Internet Banking along with all
the security measures. Then banking is securely happening while a customer is being able to
observe his/her account’s information from their respective homes or offices. And a good
banking app is carrying the below features-

 Account summary or viewing account balance

 Funds transfer
 Customer service requests
 Inquiries (checkbook, interests etc.)
 Online bill payments
 Personalization, customization & ease of navigation
 Transaction security features
 Transaction reminders / notifications
 View transaction details
 Print Account Statement (In the form of short & for a particular period)
 Payee/alias management
 Two-factor authentication (2fa) & user security
 User Interface service requests
 Detail Product lists & Product information
 Change Password
 Mobile Recharge
 Payment for Online shopping
 Online Donation

13
Now I would like to shade some lights on the fact why we general mass prefer the internet
banking and banking apps-

Extremely Accessible
A banking customer’s account is extremely assessable with an online account. Through app
customer can operate his account remotely from his office or residence.

Payment
App banking lends an added advantage towards payment of utility bills. It eliminates the need to
stand in long queues for the purpose of bill payment. All services that are usually available from
the local bank can be found on a single app.

Sharp Growth
Sharp growth in debit and credit card usage can be majorly attributed to app banking. A
customer can shop globally without any need for carrying paer currency with him.

Better Rates
The lack of significant infrastructure and overhead costs allow direct banks to pay higher interest
rates on savings and charge lower loan rates. Some accounts can be opened with no minimum
deposits and carry no minimum balance or service fees.

Services
Direct banks typically have more robust app that offers a comprehensive set of features that may
not be found on the websites of traditional banks. These include functional budgeting and
forecasting tools, financial planning capabilities, investment analysis tools, loan calculators and
equity trading platforms. They also offer free online bill paying, online tax forms and tax
preparation.

Transfers
Accounts can be automatically funded from a traditional bank account via electronic transfer.
Many direct banks offer unlimited transfers at no cost, including those destined for outside
financial institutions. They will also accept direct deposits and withdrawals that you authorize,
such as payroll deposits and automatic bill payment.

Removing Documentations
The app banking has ensured transparency of transactions and facilities towards removing the
documentation requirements to a major extent, since majority of records under an app banking
set up are maintained electronically.

Job Creation
Create new opportunities of job for jobless; Participate in the country’s economic health; proper
planning and monitoring; Proper use resources. It creates job like administrator, system analyst,
programmer, operator etc. and help to reduce unemployment problem.

14
Maximizing Profit
The first benefits for the banks offering app banking services is better branding and better
responsiveness to the market. The other benefits are possible to measure in monetary terms. The
main goal of every company is to maximize profits for its owners and banks are not any
exception. App banking services offers a perfect opportunity for maximize profits.

Easy Maintenance Tools

The main benefit from the bank customers’ point of view is significant saving of time by the
automation of banking services processing and introduction of an easy maintenance tools for
managing customer’s money. The basic benefits of e-banking are as follows: increased comfort
and timesaving transactions can be made 24 hours a day, without requiring the physical
interaction with the bank. Economic Benefits: E-banking serves so many benefits not only to the
bank itself, but also to the society as a whole. E-banking makes finance economically possible:
(i) lower operational costs of banks (ii) automated process (iii) accelerated credit decisions
(iv) Lower minimum loan size to be profitable.

Chapter 6
Analysis

6.1 Analysis
For better analysis a survey is done upon many people both male and female. The service of
people in this survey is banker. Most of the people in this survey live in urban areas. The people
who took part in this survey all are literate and aware of app based banking.

App based banking used by gender level

We observed that out of 100 respondents 64 percent people are male and 36 percent people are
female. The result is shown in the graph

Figure 1: App based banking used by gender level

15
App based banking used by age level
We observed that most of the respondents were between 25 to 35 age levels. For the benefit of
this study, we addressed the people as young who are up to 35 year age and the people as old
who are over 35 year age. 82.2 percent people who participated in this survey are young and rest
of people is old. The result is shown in the graph

Figure 2: App banking used by age level

Banking app used by job level

Most of the people who participated in this survey are service holder and most of the service
holders are banker. They are 51.6 percent. Students who are attending in masters program or
close to end the masters program are 30.2 percent. Business people are 7.1 percent and none
means who are not engaged in any job and finished their study are 11.1 percent. The result is
shown in the graph

Figure3: Banking app used by job level

16
Convenience
Direct banks are open for business anywhere where there exists internet connectivity. Other than
official time, they are open for 24/7, 365 days a year. If internet service is not available,
customer service is normally provided around the clock via telephone. Real-time account
balances and information are available within few touches. This makes banking faster, easier,
more efficient and even more effective because consumers are able to always stay on top of their
account balances.
We observed that out of 100 respondents 91.8 percent people think that app banking is
convenient and 8.2 percent people think app banking is not convenient an Bangladesh. The result
is shown in the graph

Figure 4: Convenience of app based banking

Ease of Use
Online accounts are easy to set up and require no more information than a traditional bank
account. Many offer the option of inputting your data online or downloading the forms and
mailing them in. If you run into a problem, you have the option of calling or emailing the bank
directly. One advantage of using online checks is that the payee’s information is retained, which
eliminates having to re-enter information on subsequent checks to the same payee. Internet
banking is also environmentally friendly we can say. As electronic transmissions require no
paper, reduce vehicle traffic and are virtually pollution-free. They also eliminate the need for
buildings and office equipment for Banks. Then with a banking app, the convenience is even
more to the banking customers.

17
We observed that out of 100 respondents 89.1 percent people think that app banking easy to
operate and 10.9 percent people think app banking is not easy to operate. The result is shown in
the graph:

`
Figure 5: app based banking is easy to operate

Trust Worthy
It is much safer and safeguard against fraudulent transactions. One can trust app banking as
traditional banking system. But in Bangladesh traditional branch-based banking remains the most
widely adopted method of conducting banking transaction. The youth often have greater
familiarity and trust with app banking than formal banking institutions.

We observed that out of 100 respondents 82.2 percent people think that app banking secured and
1709 percent people think app banking is not secured. The result is shown in the graph:

Figure 6: app based banking is secured

18
Security
E-banking is a confidential secured and confidential banking than manual banking. Internet
Banking, Mobile Banking, ATM card, Credit card, Debit card and POS terminal were all the
products of e-banking. All these products have a PIN. This PIN ensures security of money and
protects fraudulent transactions. So online banking is fully secured. It also believed by 46%
respondents, but about 29% respondents say it is not secured as they cannot fully trust on online
banking than traditional banking system.

Less time
App based banking requires less time than any other channel or system in banking. It saves time.

We observed that out of 100 respondents 93 percent people think that app banking saves tame
than any other means in banking and 7 percent people think appbanking is time consuming.The
result is shown in the graph:

Figure 7: less time required in app banking

Operating Cost
The concept of app banking has immensely helped the banks in putting a tab over their specific
overheads and operating cost. The rise of app based banking has made the banks more
competitive. It resulted in opening of better prospects and avenues for banking operations.
Reduce extra time; Increase productivity and efficiency; eliminate duplication and wastage; cut
down maintenance, and shortage cost; curtail security cost.

19
We observed that out of 100 respondents 82.5 percent people think that app banking saves cost
than any other means in banking and 17.5 percent people think appbanking increases cost. The
result is shown in the graph

Figure 8: less cost involved in app banking

User friendly
As banking activities are performed through an app, people can easily use this app by smart
phone or any other electronic devices at any place. User friendly means that for customer app is
intuitive, easy to use, and simple and that the customer can rely on the product. ... Also important
is user experience (UX) and user interface (UI). UX means that the app was made for the
customer to fulfill his needs and expectations.
We observed that out of 100 respondents 86 percent people think that app banking is user
friendly than any other means in banking and 14 percent people think appbanking is not user
friendly. The result is shown in the graph.

Figure 9: user friendly of app banking

20
Satisfaction
People using app for banking activities can easily get banking services at any place. As app
banking system is new in Bangladesh, many banks are giving some defines services through this
app. Some particular banks like BRAC bank, City bank, EBL, Standard charter bank give much
useful services like account opening, credit transfer, balance check, bill pay etc. People are
satisfied using this app.
We observed that out of 100 respondents 75.8 percent people think that they are satisfied using
banking app and 23.2 percent people think that they are not satisfied using banking app. The
result is shown in the graph.

Figure 10: satisfaction in app banking

Future banking
Technology is constantly evolving, and as smartphones release more features and new apps are
developed outside the banking industry, we can expect to see more and faster innovation in the
area of online banking apps. Features like card controls—which allow you to turn on or off a
debit or credit card or a saving app—which work like Fifth Third’s Momentum but for savings,
and the ability to apply for accounts and personal loan over your phone will become more and
more common. In addition, we are likely to see new features that are geared toward making
banking more secure, more personal, and easier being developed. It’s not certain exactly what
those apps are going to look like at this point, but it’s sure to be exciting. Well-designed banking
apps with new and cutting-edge features have the potential to make our banking seamless with
the rest of our lives. And that’s a good thing.

21
We observed that out of 100 respondents 60 percent people think that app banking is future
banking and 38.3 percent people think that app banking may be our future banking system and
1.7 percent doesn’t think it will be our future banking. The result is shown in the graph.

Figure 11: app banking as future banking

Most of the people in Bangladesh use Bkash app. As Bkash is used by app and mobile network,
people in rural areas can easily use this app. Besides Bkash most people also use DBBL rocket
app for banking activities. Recently Sonali bank has emerged its own app ‘Sonalisheba’. As
Sonali bank is the biggest commercial bank in Bangladesh, most of the people in urban and rural
areas will use it for their banking activities. Though ‘Sonalisheba’ is not yet so resourceful, in
recent years Sonali bank will give all the services which can be served through app. Presently
‘ShonalieSheba’has the service of opening bank account, travel tax, BUET fee, XI class
admission payment. IT officials are working to bring more services in this app.

Figure 12: Different apps people use for banking

22
 Chapter 7
CHALLENGES OF APP BASED BANKING

7.1 Challenges of app based banking

Infrastructural Barriers
Infrastructural barriers were one of the most important challenges for app banking in
Bangladesh. Here, there is not enough infrastructural support for providing efficient app banking
services. In our country, telecommunication services were not strong, communication bandwidth
is weak, software is not available in the country and hardware for establishing ATM booth is
costly.

Knowledge Barriers
App business is still not very much progressed in Bangladesh. Mass awareness is not feasible.
The country faces problem of developing trained human resources. There were lack of
technological knowledge among the managers, employees, and customers of bank.

Legal and Security Barriers

In Bangladeshi circumstance lack and limitation of regulation of law is one of the acute obstacles
to app banking. On the other hand, in an underdeveloped country like ours, frauds were gaining
significant potential which indicates a negative output in our local e-banking sector. Besides
these barriers, our courts doesn’t consider electronic documents as evidence, so people with a
high risk of transaction were not much interested to get e-banking facilities. Technical issues
were also highly connected to app banking, but in our country technical securities were very
weak an in a high risk of hacking in each moment. So, customer’s trust in app banking is still
beyond imagination in Bangladesh.

Internet quality
As app banking is performed using internet connection, internet quality is a base line of app
banking activities. Good internet quality is very much needed for effective banking activities.
Good customer satisfaction is dependent on internet quality. Sometimes bad weather, network
problem affect internet quality.

Socio-cultural and Economic Barriers

As mentioned earlier, most of the people were not educated in Bangladesh. So, people were not
willing to break the traditional way of conventional banking and always hold a negative
perception regarding e-banking. Another important issue is banks employees also hold a negative
outlook to app banking thinking of uncertainty of their jobs. On the other hand many traditional
customers prefer paper money and receipts over e-documents for their ignorance and weakness
in English language. In Bangladesh, economic barriers were one of the most challenges for e-
banking. For providing e-banking services to the customer, it needs for heavy investment
regarding new infrastructures. So it is not easy for a bank to invest huge amount of money for
infrastructure of e-banking. In our country, internet cost is also high that is an acute obstacle of
e-banking. And our average per capita income is also very low so that most of the people does
not have the ability to buy the communication equipment like computer, laptops, smart phone.

23
Lack of Awareness and Human Capital
E-business is still not very much progressed in Bangladesh. Mass awareness is not feasible. The
country faces problem of developing human-capital. Without preparing human capital at the
level of international standard, we cannot be able to compete in global market and successful e-
business cannot be possible.

Unsatisfying Services and Customer Relationship

Nationalized commercial banks and specialized banks were lagging behind of online banking
services. Moreover, customers were not satisfied with the quality of the services. They were not
also very happy with the behavior of the bank personnel. However, it reveals that e-business
especially with the help of online banking can manage economy of Bangladesh in a far better
way as customer relationship management increases.

Unavailability of Locally Produced Software Local Banking software should be developed

properly and must have greater accessibility within the country and outside the country.
Moreover, to produce hardware especially computer and its accessories, local entrepreneurs were
not taking any sort of strategic planning.

Erstwhile Technology
Bangladesh Bank should adopt latest technology but due to lack of vision they were adopting old
technology i.e. introduction of MICR for Bangladesh Bank automation procedure. MICR system
should be substituted by cheque truncation system.

Limited Number of Online Customer Due to High Cost

The number of customers taking banking services does not capable to bear the cost of additional
equipment like smart phone, computer, computer accessories, Internet etc. from their own
organization or at home. Biometrics should be more strengthened. Using Internet facility still
very costly and people has little knowledge in operating computers. A few numbers of cyber café
is available but for banking purpose customers do not feel safe to use these facilities. As a result
total numbers of customers who were habituated in online banking systems were limited. In
these circumstances investment for establishing app banking facilities observed profitless.

Financial Risks
Although online and app based banking has bright prospects, it involves some financial risks as
well. The major risk of on line banking includes operational risks (e.g. security risks, system
design, implementation and maintenance risks); customer misuse of products and services risks;
legal risks (e.g. without proper legal support, money laundering may be influenced); strategic
risks; reputation risks (e.g. in case the bank fails to provide secure and trouble free e-banking
services, this will cause reputation risk); credit risks; market risks; and liquidity risks. Therefore,
identification of relevant risks, and formulation and implementation of proper risk management
policies and strategy formulations and implementations were important for the scheduled banks
while performing online banking system.

24
Numerous problems have been identified from the field survey of online and app banking system
in Bangladesh. Some of them were in the followings:

 Inefficiency and inadequate knowledge of the bank management about the online and
app banking.
 Lack of proper strategic plan to gain and retain market share of the indigenous banks.
 Lack of international standard communication channel.
 High cost of establishing online banking system.
 Inadequate back and front office management.
 Lack of integrated plan among the banks and the Central Bank authority.
 Inappropriate software and less trust by the Bank authorities on local software.
 Legal barriers and appropriate policy framework.

Chapter 8
FINDINGS & RECOMMENDATION

8.2 FINDINGS

From the analysis main findings of the study are as follows:

The study revealed that most of the banks are having limited number of branches are mainly in
urban areas. But vast majority of the population residing in rural area are unable to avail the
opportunities of app banking. They are not yet aware of app based banking.
The study reveals that the price of the internet connection in Bangladesh is higher compared to
the neighboring countries.
All banks are not providing 24 hours services to customers due to power failure or sufficient
fund crisis in ATM machines though huge potential app banking customers are available in
Bangladesh.
App security is a big issue in banking activities. People are always concern about cyber security
and financial risk at the time of using banking app.
The service providers’ perception on app banking was studied with reference to six main
variables viz., infrastructure, knowledge gap, legal and security position, socio-cultural aspects,
economic issues, and management aspects. Opinion of the respondents reveals that service
providers are not satisfied sufficiently about infrastructure which indicates there is need for
development of infrastructure. Knowledge gap was also recognized warranting attention of top
management for more training and expansion of skilled personnel availability. As to legal and
security aspects less than satisfactory state of affairs has been perceived by respondents.
Economic issues, however, seems to be not satisfactory i.e. respondents stress on more economic
and cost-effective measures. Moreover, as to managerial issues banker respondents opine some
risk and inadequacy. All these reveal that bankers perceived a number of weaknesses in existing
state of affairs in online banking operations which warrant attention.

25
8.2 Recommendation
A well-functioning online and app banking network is dependent on availability of a backbone
network connecting the whole country. Developing and implementing online and app banking
system in a country like Bangladesh is much challenging. To improve or overcome the problems
of e-banking services in the country, there are some recommendations such as:

 Online banking services should be standardized so that wherever the solution is used the
customer is familiar with the procedure followed Government should compel the banking
sectors to automate their operation and going online by a specific period.
 Provide adequate training and technological support to develop the manpower.
 Proper infrastructure development.
 Appropriate legal framework.
 The whole country should be connected under fiber optic backbone for online banking
infrastructure as soon as possible
 Online banking sector depends on telecommunication and Internet services. So
government should implement the National ICT policy 2002 as quickly as possible.
 Government should implement the cyber laws to ensure proper security about customer’s
information (i.e. Credit card number).
 Government should establish proper educational institution to create efficient IT
professionals to support online banking in Bangladesh.
 Developing of integrated app banking software.
 Government, in collaboration with the banks, should educate and inform its citizens and
customers on the workability and effectiveness of app banking. This will increase the
confidence level of customers.
 Banks should have adequate research and technological background in this regard.
 Bank can charge normal profit to enlarge the market size on the online banking products.
 Political commitment to improve governance and institutional strength is essential for
successful application of online banking.
 A specialized, self-owned organization can be established by the bank so that they can
develop the infrastructure of online and app banking in Bangladesh that will also be the
social responsibility for them.
 A standard carrier design needs to be formed for the computer experts within the bank so
that they do not feel interest to go abroad for lucrative financial offer.
 The bank requires systemic and planned budget for expanding app banking.
 To take initiative for implementing automated financial sector by coordinate effort of the
central bank along with the commercial bank.

26
8.3 Conclusion

The advancement of the technology and communication has led to the introduction of a new
delivery channel which is app banking. App banking allows customers to conduct financial
transactions and access to almost any type of banking transaction at the click. The study in
implication and policy recommendation has provided some suggestions with reference to safety
in payment and minimization of risks through ensuring adequate legal and operational measures
for safety, security and confidence of app banking service provider. Technological advancement
in the field of banking has given rise to app banking ensuring quick, accurate, and convenient
banking services favorably helping both bankers and customers. Bangladesh entered into internet
and app banking quite late and showing a steady progress in this regard as to acceptance and
operation of online banking. This study evaluated app based banking structure, operations,
problems and prospects in the context of Bangladesh with reference to other countries. The study
found some flaws in the spheres of organization, infrastructure, legal and operational sides. The
perception of bankers brings the weak areas to light. Findings of the study would give attention
to flaws and take appropriate action to minimize the flaws for efficient operation of app banking
in Bangladesh. In fact in his global competitive and advanced technological development online
and app banking in Bangladesh need to be well organized with safety, security, customer and
service providers’ satisfaction which in turn would benefit the economy, commerce, bankers,
customers and the people in general. The success of the app banking depends on the acceptance
of the services by the clients of banks. So the users of the services should be made aware of it,
services should be cost effective and financially attractive to the clients. The technology and the
services must be cheap, user-friendly, easy to navigate, and simple to use for the success of app
based banking in Bangladesh.

27
 Chapter 9
REFERENCES

9.1 References
[1] Islam M. (2015). Challenges and Prospects of Internet Banking in Bangladesh: Banker's
(Service Providers) Point of View. Chittagong. International Journal of Computer Science and
technology, p.258.

[2] Naeem A.R. (2017). Challenges and opportunity of online banking services and products: An
empirical study in Bangladesh. Dhaka. Researchgate. P.1397-1399.

[3] Rahman M. (2017). Problems and Prospects of Electronic Banking in Bangladesh. Dhaka
Researchgate. P.50-52.

[4] Ahmed S. and Raihan S.J. (2012). Problems and Prospects of Electronic Banking in
Bangladesh. Dhaka . Researchgate. P.53-54.

[5] Ali M M., 2010. E-Business and on line banking in Bangladesh: an Analysis. Dhaka .AIUB
Bus Econ Working Paper Series. P.2010-13.

[6] Hasan, A. H. M. S., Baten, M. A., Kamil, A. A., Parveen, S. 2010. Adoption of e-banking in
Bangladesh: An exploratory study. African Journal of Business Management, 4 (13), 2718-2727.

[7] Islam Md Monirul. 2015. E-banking: Practices and Challenges in Bangladesh, Ph.D thesis,
University of Chittagong, Bangladesh. P.34.

[8] Rahman, M. Uddin, N. M. and Siddique, S. A. 2012. Problems and Prospects of E-Banking
in Bangladesh. International Journal of Scientific and Research Publications, 2 (7). P.1-2.

[9] Hasan A. H. M. Saidul, Md. Azizul Baten, Anton Abdulbasah Kamil, Sanjida Parveen.
(2010). Adoption of E-banking in Bangladesh: An Exploratory Study. African Journal of
Business Management, Vol. 4(13). P. 2718-2727.

[10] Nupur J.M. E-Banking and Customers’ Satisfaction in Bangladesh: An Analysis.

International Review of Business Research Papers, Vol. 6, No. 4. P. 145 – 156.

[11] Hossain T.(2019). Digital Financial Service in Bangladesh.dhaka. P.50-51.

[12] Shamsuddoha M.(2018). Electronic Banking in Bangladesh.Chittagong. researchgate.P. 4-5.

[13] www.enterpriseinnovation.net.

[14] www.fintechbd.com

[15] www.thedailystar.net

28
[16] brainstation-23.com

[17] Thefinancialexpress.com.bd

[18] www.researchgate.net

[19] Banking Review Series 2019 Published by BIBM

Annexure

App based banking: current status, prospects & challenges

Survey questionnaire

1. Gender
Male
Female
Other

2. Age :

3. Educational background
8th grade
SSC
HSC
Undergrad (honors)
Masters
PHD
Other

4. Occupation:

5. Knowledge of English
Yes
No
6. Have you heard about app based banking?
Yes
No
7. Do you use app based banking service?
Yes
No

29
8. Which bank's service are you using?
9. Is it easy to use?
Yes
No

10. Do you think this service is secured?

Yes
No
11. Do you use Smartphone?
Yes
No
12. Less time compared to other channels?
Yes
No
13. Do you have technical knowledge for using Apps Banking?
Yes
No
14. Less cost compared to other channels?
Yes
No
15. Does this service depend on internet quality?
Yes
No
16. Is this service user friendly?
Yes
No
17. Is this service convenient?
Yes
No
18. Are you satisfied with the service?
Yes
No
19.Is app based banking our future banking?
Yes
No
May be

30
31