Editorial: E-banking requires better technology support for operation

Tuesday, September 17, 2013

Mobile banking is a term used for balance checking, account transactions, payments, credit applications, paying bills, authorised fund transfers, share trade and checking order, inquiry services like minimum balance alert, credit/debit alert, account balance inquiry, account statement inquiry, checking status inquiry and transaction history and other banking transactions through a mobile device such as a mobile phone.

Mobile banking is gaining ground among the people of the country since the Bangladesh Bank (BB) formulated a guideline nearly two years ago. Mobile banking grew at a faster pace, proving that it is more useful than the formal banking. Transaction through mobile banking service has been increasing at a rate of 20 per cent every month. Some 7.2 million people now make the use of different services under mobile banking services through more than one lakh outlets across the country.

Provision of banking and other related financial services such as cash-in, cash-out, merchant payment, payment of utility bills, disbursement of salaries, handling of foreign remittance, disbursement of money to the beneficiaries of government allowances and other financial supports, withdrawal of money from automated teller machine (ATM) booths through mobile technology devices with the use of mobile phones, do largely come under the operational domain of mobile banking.

The central bank has already approved 27 banks to operate mobile banking services of which 18 banks have already started it. It also helped expand the financial inclusion programmes taken by the government. Mobile banking financial services were launched in 2010 to reach modern banking facilities at people’s doorsteps. It involves a banking process without necessarily requiring any formal branch of a bank.

Source: Financial Express (link opens in a new window)

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financial innovation, mobile banking