Digital Banking Revolution: Embracing the Future of Financial Services

We all have a minimum amount of experience in banking. A traditional bank plays different kinds of roles in our economy. We have to go to the bank for lots of reasons like just to open an account, or submit a variety of documents etc. If we think of going to visit a bank branch then for most of us, the picture that flashes in our minds is long queues, paperwork behind deposits or withdrawals of cash and so on.

Digital banking is part of the broader context for the move to online banking, where banking services are delivered via the Internet. The major difference is digital banks will have only headquarters, no other physical presence while conventional banks have physical presence across the country.

The registered head office will host the offices of management and support staff. It also serves as the central hub for receiving and resolving customer complaints both physically and digitally but no physical branch/sub-branch or window shall be allowed. In Bangladesh, the act allowed digital banks to use the agents of conventional banks or MFS providers complying with the regulations of Bangladesh Bank from time to time. But a digital bank shall not have agents of its own. It will not provide any over-the-counter (OTC) service, and will not have any ATM/CDM/CRM of its own. It may issue a virtual card, QR code and any other advanced technology-based product for facilitating customer transactions. But it is not allowed to issue any physical instruments for transactions.

It will not allow you to transact in foreign currency or involve yourself in trade finance except collecting wage earners’ remittances.