Entering the Digital Banking Era: A Mechanism to Change and Accelerate Financial Access in Bangladesh

The banking sector in Bangladesh has entered a new era with the introduction of guidelines for establishing digital banks. This digital banking seems to be new in Bangladesh, but is already a reality in other countries. Digital banking is transforming traditional banking activities into a digital environment and has identified as a potential solution to help accelerate individual’s access to affordable financial services. The purpose of this study is to identify the various prospects and challenges of digital banking in Bangladesh. The present study used qualitative research method, document analysis, in order to collect data that would address the research aims. The findings highlight the challenges faced in terms of technology, organization, people, processes, environment, customers, security, and risk, all of which are crucial for driving transformation in digital banking. By reducing dependence on cash transactions, the branchless digital banking system will provide a convenient financial access platform that will bring the country forward on the way to the 'Smart Bangladesh'.