Internet banking sees 5% growth in Nov as card, MFS transactions drop
In just four months, transactions using the Internet rose by 80%, according to central bank data
Internet banking:
- Transactions up 5% compared to Oct 2023, reaching Tk82,866 crore.
- 200% growth compared to Nov 2022.
- Revolution started with COVID-19, increasing in popularity.
- Average monthly transaction (Apr-Sep 2023) climbed nearly 80% in 4 months.
- Islami Bank dominates app transactions, followed by Dutch-Bangla, City, BRAC, and Eastern.
Mobile banking:
- Slight decrease in Nov 2023 compared to Oct 2023
Card transactions:
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- 1% drop from Oct 2023, reaching Tk42,638 crore.
- Foreign currency transactions through cards were down in Nov 2023.
Transactions through Internet banking increased 5% in November 2023 compared to the previous month.
While internet banking witnessed a boom, mobile banking, credit cards, and debit cards experienced a slight decline.
Bangladesh Bank data showed that in November last year, the transactions through Internet banking were Tk82,866 crore, which is a 5.07% rise compared to the previous month.
However, Internet banking registered a 200% year-on-year growth in November. In November 2022, the transaction was Tk27,426 crore.
Mobile financial services (MFS) transactions dropped by 1% to Tk119,600 crore, and card transactions (including ATM, POS, CRM, and e-commerce) saw a similar 1% dip to Tk42,638 crore from the previous month.
Bankers said the amount of Internet banking transactions now is much higher than a year ago. Most of the banks are now offering internet banking services, increasing the popularity of the service.
They note that monthly fluctuations of 1-2% are normal and shouldn't necessarily indicate a trend change. However, larger variations (Tk10,000-20,000 crore) could point to potential errors.
The head of the card division of a private bank told TBS that the Internet banking revolution started with the onset of COVID-19, increasing in popularity. Now people no longer stand in queues at the bank with cheques like before.
Bangladesh Bank data shows a significant increase in average monthly internet banking and app transactions between April-September 2023 (Tk45,000 crore) and November (Tk82,000 crore), representing an 80% growth in just four months.
Among the country's banks, most transactions on apps are done through Islami Bank's CellFin and the Internet. Almost half of the transactions are done by Islami Bank customers, followed by Dutch-Bangla Bank's Nexus Pay, City Bank's City Touch, BRAC Bank's Astha, and Eastern Bank's Sky Banking.
Foreign currency transactions on cards drop in November
In November 2023, foreign currency transactions through banks' cards were Tk798 crore, a decrease of about Tk14 crore compared to the previous month.
However, in November 2022, foreign currency transactions through the card were Tk572 crore.
Bankers said if the banks want to endorse the dollar on the cards, they have to do it at Tk110. However, open market customers have to buy dollars at Tk124.
Many banks have reduced their new card issuance due to the dollar shortage, resulting in a reduction in the amount of Dollar endorsements through it.
