Digitalization_of_Banking_in_Bangladesh.pdf

Digitalization of Banking in Bangladesh
1 | P a g e
Internship Report
Digitalization of Banking in Bangladesh:
A study on Mutual Trust Bank

2 | P a g e
An Internship Report on
A Study on
Mutual Trust Bank Limited
Submitted to
Tasneema Khan
Assistant Professor
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka
Submitted by
Mohammad Al Amin
ID: 20-026
Date of Submission: March 08, 2018

3 | P a g e
Declaration
I do hereby solemnly declare that the work presented in this Internship Report has been carried out
by me and has not been previously submitted in any other University/College/Organization for an
academic qualification/certificate/diploma/degree.
The work I have presented does not breach any existing copyright and no portion of this report is
copied from any work earlier for a degree or otherwise.
I further undertake to indemnify the Department against any loss or damage arising from breach
of foregoing obligations.
…………………………………….
Signature of the student
ID: 20-026
Batch: 20th
Date: 08 March, 2018

4 | P a g e
Supervisors Certificate
This is to certify that the Internship Report on “Digitalization of Banking in Bangladesh: A Study
on Mutual Trust Bank Limited” in the bona fide record at the report is done by Mohammaad Al
Amin as a partial fulfillment of the requirement of Bachelor of Business Administration (BBA)
degree from the Department of Banking and Insurance, University of Dhaka.
The report has been prepared under my guidance and is a record of the bona fide work carried
out successfully.
………………………………..
Signature of the supervisor
Date:

5 | P a g e
Letter of Transmittal
March 08, 2018
Tasneema Khan
Assistant Professor
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka
Subject: Submission of Internship Report
Madam,
It is my privilege to submit my internship report on “Digitalization of Banking: A Study on
Mutual Trust Bank Limited” This report is a part of the requirements of internship for the BBA
program.
Through the process of internship I got the opportunity to witness the actual practice in every
Divisional Level of Banking practice. As an avid learner in the conforming field, I utilized the
every possible opportunities to involve myself to understand each initiatives and go in depth of
each process. Further, I got the chance to apply the knowledge gained through four years of
academic study under the Department of Banking and Insurance and polish my skill in producing
this paper that gives a picture of Digitalization in current Banking Scenario. It was a hands on
experience with the professionals that helped me prepare myself better in producing and delivering
the best possible report of professional level. This internship report reflects such endeavor I seek
to execute in the forthcoming professional career and I hope you will find the report an effective
and appropriate material.
I thank you for supporting my effort and assisting me in bringing out the paper in front of you. I
hope you approve my submission and find it useful and fair.
Yours Sincerely
……………………..
Mohammad Al Amin
ID: 20-026

6 | P a g e
Letter of Authorization

7 | P a g e
Acknowledgement
Firstly, I would like to thank Almighty for giving me courage to undertake this report and giving
me patience throughout the formulation process.
Secondly, I am thankful to my supervisor Tasneema Khan, Assistant Professor, Department of
Banking and Insurance, University of Dhaka. Her Guidance, support and timely feedback
helped me to bring out the best possible outcome in the prepared report. I offer my gratitude to my
respected teacher for giving me such privilege.
Also, the report is the result of full-hearted support provided by some of the bank officials and my
colleagues in the assigned branch. Mr. Ashaduzzaman, Deputy Manager, MTB Tower Branch
has located me every possible resources relevant to my report. Suvash Chandra Biswas, SVP,
Head of ITS Operation, ITS Division has provided me the core pieces of information from the
questionnaire. Md. Saminur Rahman, Asst. Officer, Agent Banking Department has provided
the information complementing to the questionnaire. Lastly, Abdullah Al Mahmud, JAVP, MTB
Tower Branch has continuously aided the preparation by helping me to understand each aspect
and responding to every query relevant to the report. This report would not be possible without the
assistance of these aforementioned persons and I am truly grateful towards them.

8 | P a g e
Executive Summary
Just after the independence, banking industry in Bangladesh kicked-off its journey with 6
nationalized commercialized banks, 2 State owned specialized banks and 3 Foreign Banks.
Presently, there are 57 scheduled banks and 6 non-scheduled banks operating in Bangladesh. Third
Generation Computing started during the same period. Since then, Digitalization has contributed
greatly to the current banking practice. During the 70’s only IFIC used Baxibank developed by
Baxibank was used for desk performing financial transactions. During the 80’s Foreign Banks e.g
Standard Chartered Bank used digital banking solution provided by respective corporate head
office in LAN system for each individual branch operations. UCBL and IFIC used Baxibank
locally built and implemented solution. Most of the banks were dependent on manual process due
to technological infrastructure and strong human resource to operate them.
In the 90’s except for locally developed solutions e.g. PC Bank Software developed by LEADS
Corp. and Flora Bank by Flora Ltd. There were not much noteworthy digitalization took place.
After the Year 2000, Digitalization process accelerated greatly. CORE Banking System was
introduced by Eastern Bank Limited in 2003 with the implementation of foreign Solution
FLEXCUBE allowing complex accounting of the bank and record keeping activities to be
automated. With the successful digitalization in centralized environment, other banks soon started
integrating CORE Banking system. With the emergence of CORE Banking system local banks
established Primary Data Centre with all the Main frame Application servers, Database servers
and Database centrally hosted at Head Office, and all the branches was connected with the Data
Centre by WAN (Wide Area Network) system. Considering security aspects, Data Recovery Site
and Tertiary Recovery sites were also came into existence. CBS integration allowed multiple banks
to introduce new services through alternative delivery channel. Internet banking was launched in
2004 by EBL with limited banking services which eventually progressed significantly till this date.
Successively Bank Cards started being issued from Local banks collaborating with international
card providers. Currently along with Debit Card, Credit Card and Prepaid Card are available by
banks for customer payment in ATM, POS and online platforms. Bangladesh bank introduced
Bangladesh Automated Clearing House (BACH) in 2010 which has 2 components: Automated
Cheque Processing System and Electronic Fund Transfer.

9 | P a g e
In 2011 Mobile Financial Service was introduced by Dutch Bangla Bank Limited which has
become a significant component for financial inclusion later on. It currently accounts for 14% of
the total population in the customer base. In 2012 National Payment Switch Bangladesh was
introduced by Bangladesh bank which allowed to attain interoperability among schedule banks for
card based/online retail transactions. At present, NPSB is processing interbank Automated Teller
Machines (ATM), Point of Sales (POS), Internet Banking Fund Transfer (IBFT) transactions. In
2013 Bank Asia started Agent banking operation in Bangladesh as one of the major tools for
Financial Inclusion. Banks appointed agents for Outlets and each transactions were executed
through Biometric Fingerprint and the agent operations are operated centrally through agent
banking department. In 2015, Bangladesh Bank implemented Real Time Gross Settlement which
allowed large value electronic fund transfer for both local and foreign currency transactions. These
major Digitalization initiatives changed the shape of banking industry as we see today and thriving
for improvement every day. Digitalization thus made the banking experience efficient, secure and
inclusive to all section of the population.
Mutual Trust bank is 3rd
Generation bank established in 1999 is one of the private banks undertook
numerous digitalization within its short tenor of operation and promptly responded to the customer
necessity. MTBL initially started with Florabank for Automating Information System which
eventually provided core banking solution and still operating with same Solution provider. MTB
has a Data Centre in Head Office and Two Disaster Recovery Site for further security of
information. It implemented virtualization in some live servers. Apart from CBS, the bank
developed several in house developed software for various purpose namely Intranet Facility,
Payroll Reconciliation, Provident Fund Management, Utility payment, User Management System
etc. MTBL is one of the 5 current banks that allows to transfer funds from mobile apps which is
named MTB Smart App. It provides plentiful services for customers at fingertips. It started its
Agent banking operation in 2015 and currently has 50 agent outlet with separate solution software
working and single agent banking department to centrally control agent banking operations.MTB
has multipurpose kiosk at 10 diverse locations that collects utility payments and other payments.
MTB is also the first bank to introduce Cellphone recharge facility upon missed call.Mutual Trust
bank is going to shift the CORE Banking solution within this year and has plan to centralize the
loan operation by the end of this year

10 | P a g e
Table of Contents
List of Tables............................................................................................................................................11
Chapter 1: Introduction .........................................................................................................................12
Chapter 1.1 Background of the study .................................................................................................12
Chapter 1.2 Objective of the study......................................................................................................13
Chapter 1.3 Scope of the study:...........................................................................................................13
Chapter 1.4 Rationale of the report:...................................................................................................13
Chapter 1.7 Organization of the study: ..............................................................................................14
Chapter 2: Literature Review and Organization Overview .................................................................14
Chapter 2.1. Literature Review:..........................................................................................................14
Chapter 2.2. Organization Overview:.................................................................................................15
Chapter 2.2.1 Legal Form ................................................................................................................15
Chapter 2.2.2 Product and Services:...............................................................................................16
Chapter 3: Methodology.........................................................................................................................18
Chapter 3.1 Methods and Data Types.................................................................................................18
Chapter 3.2 Data Collection.................................................................................................................19
Chapter 4: Theoretical Discussion: ......................................................................................................19
Chapter 5: Analysis and Discussion .....................................................................................................22
Chapter 5.1 Digitalization of Banking in Bangladesh........................................................................22
Bank in Bangladesh after Liberation..............................................................................................22
Banks in 80s.......................................................................................................................................22
Banks in 90s.......................................................................................................................................23
Banks after Year 2000 and towards digitalization.........................................................................23
Digitalization in Bangladesh Bank ..................................................................................................23
Digitalization in Banking Sector......................................................................................................33
Chapter 5.2: Digitalization in Mutual Trust Bank Limited..............................................................48
Chapter 5.2.1 Core Banking Solution:............................................................................................48
Chapter 5.2.2 Technological Infrastructure:..................................................................................51
Chapter 5.2.3 Intranet Facility:.......................................................................................................52
Chapter 5.2.4 Alternative Delivery Channels (ADC) ....................................................................55
Chapter 5.2.5 Significant Digitalization Initiatives carried out by Mutual Trust bank over the
years:..................................................................................................................................................60
Chapter 5.2.6 Agent Banking in Mutual Trust Bank ....................................................................64

11 | P a g e
Chapter 6: Findings and Recommendation ........................................................................................69
Chapter 6.1.1: Major Findings from banking Industry...................................................................69
Chapter.6.1.2: Major Findings from Mutual Trust Bank.................................................................69
Chapter 6.2.1: Recommendations for Banking Industry ..................................................................69
Chapter 6.2.2: Recommendations for Mutual Trust Bank Limited.................................................70
Chapter 7: Conclusion............................................................................................................................70
Appendices.................................................................................................................................................73
List of Tables
Table 1: Current status of NPSB............................................................................................................28
Table 2 1: Software in use by the banks (up to 2017) ............................................................................33
Table 3 1: Mobile Financial Services (MFS) comparative summary statement of November, 2017
and December, 2017..........................................................................................................................45
Table 4 1: Transition of Card Products MTBL .....................................................................................55

12 | P a g e
Chapter 1: Introduction
Chapter 1.1 Background of the study
Digitalization has become a buzzword since the starting of the Millennium. The term digitalization
is used by media, companies and science for describing a “process of moving to a digital business”
(Gartner 2016, p. 201). Digitalization has allowed businesses to upgrade its business model and
operation in terms of efficiency and enhance its range of business. At the same time a number of
business has also emerged on the virtue on digitalized mechanism providing a newer form of
services to the customers. Banking today is a flourishing industry, focused on technological
innovation. Manual Banking has been the mode for operations and services for a greater period of
time. Technology has erupted greatly over the last decade and has provided us with numerous
Digital Innovation. Digital Innovation has now touched every section of individual lives and
business world. Business units rely on technology for the purpose of data processing, fast
communications, acquiring market intelligence, information security and to enable business goals.
It is for all these reasons and more that information technology will continue to attract the attention
of majority of business people.
In a highly regulated and competitive market, banks need every advantage to exceed customer
expectations. Digitalization in Banking has allowed Banks to transform a number of its manual
operations to develop into automated form and also sturdier approach to confront new age banking
challenges. Subsequently, the banks have also introduced newer set of services allowing customers
to have 24/7 banking service and newer path to cross the threshold of banking arena.
Digitalization in Bangladesh largely started in the mid ‘90s and boomed after 2009 which formed
a radical change in banking landscape of Bangladesh.
The report attempts to explore the passage of Digital Transformation of Bangladeshi Banks in
terms of Operations which concerns the internal processes e.g. Information System, Clearing
Operation, Risk Management and changes and the newly formed services through digital medium
developed to cater the customers since the time of independence which concludes the first phase
of the analysis. The Second phase of the analysis goes through the existing scenario of Mutual
Trust Bank Limited in terms of methods how the bank internally operated and services rendered
to the customers by dint of Digital Technology.

13 | P a g e
Chapter 1.2 Objective of the study
Broad Objective
The main objective of the report is to unravel the scenario of Digitalization in the Banking Industry
of Bangladesh throughout the period. For this purpose, the analysis is conducted on generalized
basis on banking industry and specific basis on Mutual Trust Bank Limited.
Specific Objective
The objectives could be specified into the following
a. To understand the length transformation of services from Manual to Automation
b. To discover the newly developed services to internal and external customers by
Digital Medium
c. To explore the risk aspects and vulnerability of Digitally performed banking
operations
d. To understand the security aspects and new challenges in Digitalized banking
Chapter 1.3 Scope of the study:
The report considers all the parties involved in the banking business in Bangladesh including
regulatory body of banks Bangladesh Bank and all the banks scheduled under Bangladesh bank.
First phase of the analysis encompasses the whole banking industry in generalized view. The
second phase which is a case specific study on Mutual Trust Bank covers the whole banking Unit
for the analysis.
Chapter 1.4 Rationale of the report:
Banking today is a flourishing industry, focused on technological innovation. Technology plays
an important role in today’s business world. Presence of Digitalization is now widespread in every
aspect of business and a number of business is growing solely based on Digitalized mechanism.
Financial Sector is also thriving by this leading to newer dimension of service e.g. Fintech.
Artificial Intelligence is also used being used in many sectors at present. Its manifestation in
banking is also inevitable. At this moment it is relevant to look up the evolution of Digitalization
in banking industry and evaluate current status. To advance towards “Digital Bangladesh” is also
one of the resolutions of the current Government. Specific analysis of a commercial bank can bring
about more in depth knowledge in the realm of theoretical discussion of Digitalized Banking.
Chapter 1.6 Limitation of the study:

14 | P a g e
The required data is often subject to discretion of the bank which did not allow to go have deeper
study. The time provided to formulate the report is also insufficient to gather all the data and
provide it in a presentable form
Chapter 1.7 Organization of the study:
The report includes literature review along with Organization Overview. The report describes the
methods and methodology used for the study which encompasses sample size, method, types of
data, and sources of data. In the next chapter the report includes 2 phase analysis one with industry
based and the bank specific. The Major findings are provided in the proceeding chapter. The report
concludes with the possible recommendations for the Banking industry and Mutual Trust Bank
Specifically.
Chapter 2: Literature Review and Organization Overview
Chapter 2.1. Literature Review:
Digitalization process has been studied, documented and analyzed on and its implication from
various perspective. Specific Scientific innovation on Digitalization and their insinuations
received higher emphasis on studies related to Digitalization. Thus specific digital initiatives
facing customer needs gained more response among the literatures rather than internal processes
of banking.(Schmidt et al., 2017) analyzed Digitalization in Banking from Multiple Stakeholders
perspective, which found lack of integration with internal process and IT.
Digitalized innovations to this date have not been documented in a sequential manner. Except for
few significant digital services, other internal processes which went through digitalization have
not been received ample consideration for research. Among them (Islam and Mamun, 2011)
mentioned some of the noteworthy digital initiatives by Bangladesh under Financial Inclusion
Program which briefly involves some of the internal process that has been digitalized through
Bangladesh Bank. (Abedin and Alom, 2012) examined the extent to which Digitalization affected
Organizational Structure of banks in Bangladesh. Apart from these articles E-Banking services
e.g. online banking, Internet Banking , Mobile Banking have been studied from the view of
economic prospect (Baten et al, 2010) , marketing aspect (Hasan et al, 2010), Customer
Satisfaction (Nupur, 2010 ), Policy Implication (Rahman, 2009) etc. Among the alternative

15 | P a g e
delivery channels (Shamsus Sadekin, 2017) highlighted ATM as new dimension for banking of
Bangladesh. Significant Digitalized products e.g. Mobile Financial Services, Agent banking has
been studied for overall aspects since their commencement of operation to this date. A Number of
authors studied Mobile Financial Services notably (Md., et al., 2011) studied dimensions affecting
adoption of Mobile banking in the early part of the Mobile Banking in Bangladesh which found
handset operability , convenience, security as strong factors for adoption.. (Palas, 2016) studied
Mobile Banking Factors influencing Socio-Economic Development which found qualitative
variables of mobile banking have direct effects on a customer’s socio-economic development and
mediating variables have some effects on such direct relationships. Both of the articles provides
brief picture of MFS Industry. Agent Banking is very recent banking service which is yet to find
remarkable impact in Bangladesh and still in the course of improvement. Thus literatures are based
on evidences from global performance of Agent Banking in various parts of the world. Particularly,
(Rosen et al 2013) studied Agent baking as potential for lifting welfare of the poor in Kenya.
(Chiteli et al 2013) studied Agent banking as competitive strategy for commercial banks in Kisumu
City. (Atandi et al 2013) studied challenges of Agent Banking in Kenya.
Notable digitalization such as Automation of payment and settlement system is yet to be studied
in the literature. The report intends to document the notable digitalization took place since
liberation period to this date ranging from customer oriented services to internal processes.
Specific study on Mutual Trust Bank will further dive into the digitalization process of a 3rd
generation bank operating in Bangladesh. This will allow to discern the extent to which a bank
operation is currently dependent of digital process and prospective changes that are likely to
transpire in the coming future.
Chapter 2.2. Organization Overview:
Chapter 2.2.1 Legal Form
Mutual Trust Bank Ltd. (MTBL, the 3rd generation bank) has started its journey as a private
commercial bank on 29 September, 1999, under the Companies Act 1994, with an Authorized
Share Capital of BDT 1,000,000,000 divided into 10,000,000 ordinary shares of BDT 100 each.
At present, the Authorized Share Capital of the company is BDT 10,000,000,000 divided into
1,000,000,000 ordinary shares of BDT 10 each. The Company also issued Certificate for
Commencement of Business on the very same day and was granted license on October 05, 1999

16 | P a g e
by Bangladesh Bank under the Banking Companies Act 1991 and started its banking operation on
October 24, 1999. MTB is incorporated in Dhaka and is a sister concern of MTB group. The Bank’s
head office is located at Gulshan 1, Dhaka and it has 103 branches.
The mission of Mutual Trust Bank is to establish as a client oriented company armed with cutting-
edge technology and dynamic work force (Bank Info BD, n.d.). Its vision is to be expressed by the
initiators was to build a perfect world-class bank in performance and by choice of the individuals.
Chapter 2.2.2 Product and Services:
Retail Banking
Deposit Products
Current Account ı MTB Regular Savings ı MTB Privilege Savings ı MTB Senior ı MTB Inspire ı
MTB Junior ı MTB Graduate ı MTB Ruby ı MTB Care ı MTB Shanchay ı MTB Ankur ı Fixed
Deposit ı Special Notice Deposit ı Brick by Brick ı MTB Double Saver ı MTB Millionaire Plan ı
MTB Education Plan ı Monthly Benefit Plan ı Children Education Deposit Scheme ı MTB Kotipati
ı MTB Gift Cheque
Loan Products
MTB Personal Loan ı MTB Auto Loan ı MTB Home Loan ı MTB Home Equity Loan ı MTB
Professional’s Loan
MTB Card Products
MTB Debit Card ı MTB Local & Dual Currency Credit Card ı MTB Prepaid Card
Wholesale Banking
Term Finance
Project Finance ı Finance for Importing Capital Machinery ı Lease Finance ı House Building
Finance ı Term Loan to NBFI ı Term Lending
Working Capital
Finance Secured over Draft (SOD) ı Cash Credit (Hypo) ı Cash against Document ı Short Term
Loan ı Loan Generalı Time Loan
Trade Finance
Export Finance

17 | P a g e
Back to Back L/C ı Export Bill Discounting (FDBP and IDBP) ı Secured over Draft (SOD-
general/export bill) I Packing Credit
Import finance
Loan against Trust Receipt (LTR) ı EDF Loan Non-funded trade finance L/C Opening
Sight/Deferred/UPAS) ı L/C Advising ı L/C Transfer ı
Bank Guarantee
Bank Guarantee [Bid Bond, Performance Guarantee, Advance Payment Guarantee, etc.]
Syndications & Structured Finance
Financing to Power, Telecom, Hotels, Aircraft, Steel, Cement, Glass, Petrochemical, Agro-based
Project, Micro Financing, etc.
Off-Shore Banking
Term Financing) ı Working Capital Finance i Trade Finance
(Local bill discounting, Foreign Bill Discounting, UPAS)
Cash Management unit:
1. MTB Nationwide Collection Services
2. MTB Web Based Banking Service
3. MTB Payments Solutions (Clearing service,
BACH, BFTN)
4. MTB Capital Market Services (IPO LBTI, BTI, Right
Issue)
5. MTB High Value Account Services
6. Motor Vehicle Fee Collection Solution
7. MTB Tuition Fees Collection Service
NRB BANKING

18 | P a g e
NRB Products:
l NRB Savings Account l NRB Deposit Pension Scheme (NRB DPS) l NRB Fixed Deposit
Account (NRB FD)
NRB Services:
 Inward Foreign Remittance through globally reputed money transfer companies and
MTB’s fully owned subsidiary MTB Exchange UK Ltd.
 Banking Service to NRB through MTB Representatives in UAE.
 Foreign currency exchange facility to passengers travelling to or from abroad through MTB
Foreign Currency Exchange Booths at Hazrat Shahjalal International Airport, Dhaka
SME BANKING
MTB Bhaggobati I MTB Krishi I MTB Mousumi I MTB Revolving Loan I MTB Small Business
Loan I MTB
Digoon I MTB Green Energy Loan I MTB Probaho I MTB Buniad I MTB Gunabati I MTB
Krishijat I MTB
Light Engineering I MTB IT Genius I MTB Microfinance I MTB Youth Line
Chapter 3: Methodology
Chapter 3.1 Methods and Data Types
The report is based on Qualitative Data in both phases. The existing banks operating in Bangladesh
along with regulatory body are considered sample for the first phase of the analysis. The Mutual
Trust Bank Limited has been considered as sample for the second phase of the analysis. The
research information is deductive and presented as assimilation of scattered information from
different archival sources. The data for the first phase has been collected keeping in mind present
procedure and services provided and their evolution to this date. Subsequently, the collected data
then has been sorted and organized to provide cross sectional view towards the services and
operations prevalent from banking industry to this date. Considering the first phase as the base for

19 | P a g e
the second phase analysis, the data has secured in the manner to have in depth and real-time
scenario of the Mutual Trust banks status in Digitalization.
Chapter 3.2 Data Collection
The first phase is an accumulation of archival information procured from various secondary
sources including Bangladesh Bank, BPRD web publications and few primary data acquired from
IT Division of EBL and Dhaka Bank.
The second phase analysis has been conducted through both primary and secondary sources. The
primary data has been collected through semi-structured questionnaire from IT Division of the
Bank and periodic query of the branch employees. The secondary sources that has been used to
develop the analysis are (a) Mutual Trust Bank Website and (b) Annual Report (last published)
Chapter 4: Theoretical Discussion:
The primary analysis starts with very discussion on Digitalization. Digitalization is the integration
of digital technologies into everyday life by the digitization of everything that can be digitized.
The literal meaning of digitalization gives an apparent idea of development and technology
dependent world. (Anon, 2018). Here, in the context of Banking, Digitalization refers to the
conducting its existing operations and developing new functions connecting to Banking through
Digital Mediums. In banking industry of Bangladesh commercial banks perform numerous
operations both manually and automatically through digital medium. The Taxonomy of
Digitalization in Banking can give 2 types of distinction based on purposes.
A. Provided for the operation and facilitation of other operations
B. Available to External Customer: Account Holders, Bangladesh Bank, Third Party Auditor
etc.
Following services are concentrated to the operational purpose:
1. Core Banking Solution: Core banking refers to a centralized system established by a bank
which allows its customers to conduct their business irrespective of the bank’s branch
(Nelito.com, 2018)

20 | P a g e
2. SWIFT Services: SWIFT is a messaging network that financial institutions use to securely
transmit information and instructions through a standardized system of codes.
3. Real Time Gross Settlement (RTGS): RTGS is a real-time interbank large value electronic
funds transfer mechanism for both local and foreign currency transactions. (Bb.org.bd,
2018)
4. Intranet for internal use of Bank. It had organogram, staff information, all internal and
regulatory circulars, documentations related to Policy, Procedures, operating manuals etc.
5. E-mail services for internal staff.
6. Document Management System (DMS) that helps Bank staff to scan and store / archive
the documents in electronic media.
7. Customer Management System (CMS) that helps analyze Customers portfolio and MIS for
Bank’s Top Management.
8. Anti-Money Laundering System (AMLS) that helps to monitor AML activities.
Following services are provided to the external customers
1. Cards Operations: Referring to Bank issued cards namely Debit Card , Credit Card, Prepaid
Card
2. Internet Banking: Also known as Online banking refers to a system that enables customers
of a bank or other financial institution to conduct a range of financial transactions through
the financial institution's website including procuring Account Statements, Cheque Book
Requests, Fund Transfers, Mobile Top Ups,Utility Bill Payments, Credit Card Services &
Bill Payments
3. Call Centre Services: Service that allows a customer to operate the banking account
remotely through phone call services includes customer query, start/stop operation lead
capture
4. IVR: Interactive voice response (IVR) is a technology that allows a computer to interact
with humans through the use of voice and DTMF tones input via a keypad.
5. ATM and POS: Automated Teller Machine that allows customers to withdraw money and
check balances. Point of Sale allows customers to make payments through bank cards.

21 | P a g e
6. Clearing House: In clearing houses bankers exchange instruments to settle their inter
balances. Electronic clearing house of Bangladesh, comes with two components - the
Automated Cheque Processing System (ACPS) and the Electronic Funds Transfer (EFT)
(Bb.org.bd, 2018)
7. Electronic Fund Transfer: Electronic Funds Transfer Network (BEFTN) operate as a
processing and delivery center providing for the distribution and settlement of electronic
credit and debit instruments among all participating banks. (Bb.org.bd, 2018)
8. Remittance Services: Refers to sending money across national border. In the context,
sending money through traditional banking channel.
9. Payroll Banking Services: Payroll Services are personalized service specific to banks
providing the monthly salary to the employees to the respective account after cutting the
applicable Tax Charge.
10. Agent Banking Service: Agent Banking means providing limited scale banking and
financial services to the underserved population through engaged agents under a valid
agency agreement, rather than a teller/ cashier. It is the owner of an outlet who
conducts banking transactions on behalf of a bank. (Bb.org.bd, 2018)
11. Mobile Banking Service: Allowing customers to conduct a number of banking operations
through cell phone messaging or smartphone apps
12. E-commerce: Facilitating commercial transactions e.g. placing tender for bidding.
13. Kiosk: Kiosks are aesthetically and ergonomically designed cabins containing computers.
They are used for advertising, promotion and information purposes. By equipping them
with necessary security conditions. Kiosks can be used for viewing or doing banking
transactions. The kiosk range included Bill Bill Payment Kiosks (Cash, Card & Cheque),
Information Kiosks, Check in/out Kiosks etc.
Apart from the Commercial Bank contributing towards digitalization, Regulatory Authority of
banking industry, Bangladesh Bank has also contributed to the efficiency banking operations. The
payment and settlement system
The scope of Digitalization is still expanding on daily basis. The new paradigm and new scope of
Banking is evolving every day in the demesne of Banking Industry. New definition will come to
sight and converge into this set of banking definitions

22 | P a g e
Chapter 5: Analysis and Discussion
Chapter 5.1 Digitalization of Banking in Bangladesh
The Analysis explores the transition of Banking Industry towards Digitalization in a Timeline
manner. The starting point could be drawn from the time the passage of Independent Bangladesh
in the state having banks from the Pakistan era and continuing the operations form limited asset
held by the banks. The transition involves Digital Movement carried out by the Regulatory
Authority Bangladesh Bank, Scheduled banks and Non-scheduled banks.
Bank in Bangladesh after Liberation
After liberation of Bangladesh, about 6 (seven) Nationalized Banks were in function. 6 foreign
banks like Standard Chartered Bank (SCB), Grindlays Bank plc, American Express, Habib Bank,
Bank Indosuez, Bank of Credit and Commerce (BCCI) also started the banking business in 70s.
Out of those, 4 foreign banks closed their banking operations later on.
Only One Private commercial Bank IFIC started its operation in the year 1976. It started in
conventional manual process, and later on started with Stand-alone PCs for the desk performing
the financial transactions, with locally purchased application the “Baxibank” developed by
BEXIMCO Ltd at that period, with Floppy disk to copy and save.
Banks in 80s
In the decay of 80s, 7 private banks got permission to start banking operations.
At that period of time, most of the Bank use to maintain Manual process and in very few cases
Stand-alone PCs for every desk with locally purchased applications that caters individual desk
functions.
Nationalized Bank were maintaining the manual process to render services to its customers, as that
time banking software was not available and also lack of academically educated Human resources
to run and maintain the system.
Few private banks purchased and implemented locally built software. One example was the
Baxibank developed by BEXIMCO Ltd was introduced in UCBL and IFIC. It was installed in
Stand-alone PCs to open account and to do transactions in a very limited scale and to keep backs
in floppy disc.

23 | P a g e
Foreign Banks were using their own Digital banking solution provided by their Groups or
Corporate Head office like Standard Chartered Bank (SCB). These software use to run in Servers
in LAN (Local Area Network) system for each individual Branches of Bank. No centralized system
was available due to lack of such banking software, technology infrastructure and support for that,
and also lack of academically knowledgeable human resources to run and maintain the system.
Banks in 90s
Maximum number of banks got permission in 90s. About 17 new private commercial Banks and
2 foreign banks (HSBC and Bank Al Falah) came into existence and started their banking functions
with either in manual process or locally purchased Software like PC Bank developed by local
software houses like LEADS Corporation, Flora Bank developed by FLORA Ltd. Except that,
there were no significant improvements in digitalization in this era.
Banks after Year 2000 and towards digitalization
It was the era of revolution after the Year 2000 (Y2K) when 15 private commercial Banks and 1
foreign banks (Commercial Bank of Cylon) started its operation.
A Number of Operation took the form of Digitalization from the Commercial Banks in
Bangladesh. Major breakthroughs were expedited by Bangladesh Bank which undergone by the
commercial banks later on. Other Banks took initiative by taking risks and making big investment
towards automaton. Banks took the reference of the initiating banks and integrated same into their
system. A number of such enterprise can be listed below with brief functional definition.
From the dawn of the era to current date, the vast section of development can be typified under 2
headline:
a. Digitalization in Bangladesh Bank
b. Digitalization in Banking Sector
Digitalization in Bangladesh Bank
The pacing of Digitalization thorough Bangladesh Bank picked up rapidly after Millennium. BB,
as the regulator of financial sector, has emerged as a lead organization in the country in
implementing the government’s vision of establishing ‘Digital Bangladesh’. BB is firmly
committed to transform the banking sector the country into a full digitalized sector. As for now 85

24 | P a g e
software related to Networking, Enterprise Resource Planning (ERP), Banking Applications,
Enterprise Data Warehouse, Open Data Initiative, E-tendering and E-recruitment have been
implemented. Software ‘goAML’ is being launched to accelerate the activities in preventing
international terrorism financing and money laundering. Activities of introducing national
payment switch are also going on very swiftly.
Larger portion of the digital development occurred in Payment and Settlement System. Initiation
of numerous E-Services also took place during this period. Detailed Discussion will follow
through.
Payment and Settlement Systems:
Well-functioning payment systems ensure the efficient and safe execution of monetary policy
operations and facilitate the smooth and homogenous transmission of monetary impulses. Central
banks would extend their concern toward the safe and efficient use of payment instruments with a
view to maintain public confidence in the currency and ensure its smooth circulation. Central banks
have a strong interest in promoting safety and improving efficiency in payment systems as part of
their overall concern with financial stability.
Payment and Settlement System facilities that have been digitalized after Year 2000
Bangladesh Automated Clearing House (BACH)
 Bangladesh Automated Cheque Processing Systems (BACPS)
 Bangladesh Electronic Funds Transfer Network (BEFTN)
Real Time Gross Settlement (RTGS)
National Payment Switch Bangladeh (NPSB)
Online Payment Gateway Service Providers(OPGSPs):
Bangladesh Automated Clearing House (BACH):
BACH was introduced in 2010, having two components the Automated Cheque Processing
System and the Electronic Funds Transfer. Both the systems operate in batch processing mode
transactions received from the banks during the day are processed at a pre-fixed time and settled
through a single multilateral netting figure on each individual bank's respective books maintained

25 | P a g e
with the Bangladesh Bank. A state-of-the-art Data Centre (DC) and a Disaster Recovery Site
(DRS) have been formed containing of most modern software and hardware for dealing with the
operations of BACH. A Virtual Private Network (VPN) has been created between the participating
commercial banks and Data Centre (DC) & Disaster Recovery Site (DRS) for communicating
necessary information related to BACH. Digital Certificate has been formulated for the first time
in Bangladesh for secured data communication.
1) Bangladesh Automated Cheque Processing Systems (BACPS):
BACPS uses the Cheque Imaging and Truncation (CIT) technology for electronic clearing of the
paper-based instruments, i.e. cheque, pay order, dividend & refund warrants, etc. The system
supports both intra-regional and interregional clearing and is based on a centralized processing
centre located in Dhaka and in designated clearing regions. The system conforms to the
international best practices and also represents the most cost-effective solution for cheque
processing throughout the country. Gradually other clearing regions joined the system. Moreover,
all commercial banks branches under jurisdiction of 33 chest-branches of Sonali Bank which carry
out the clearing functions for Bangladesh Bank are now connected to BACH data center at
Motijheel. Besides, some other areas like Savar EPZ, Tongi, Syedpur and Keranigonj have been
connected to the BACH data centre, which is selected based on volume and importance of their
transactions. Previously, there were no clearing houses in these areas.
At present around 1,600,000 regular and around 111,000 high value cheques & other instruments
are cleared per month through BACPS which is 95 percent. Total amount of regular value
instruments cleared is approximately Taka 404 billion and it is approximately Taka 528 billion for
high value instruments per month. The clearing cycle has been brought down to t+0 for high value
cheques and t+1 for regular value cheques throughout the country. Chart 11.1 and Chart 11.2 show
the trends of instruments cleared and associated amount of the regular and high value cheques
respectively in FY13.
2) Bangladesh Electronic Funds Transfer Network (BEFTN)
BEFTN has started its 'Live Operation' on 28th February 2011 with the objective to shrink paper-
based payment methods and inspire electronic payment methods for secured, faster & cost-
effective transactions. The Network commenced with credit transactions and open for debits from

26 | P a g e
15 September,2011. BEFTN facilitates the transmission of payments between the banks
electronically, which makes it faster and efficient means of inter-bank clearing over the existing
paper-based system i.e. BACPS. It is able to handle a wide variety of credit transfers such as
payroll, foreign and domestic remittances, social security, company dividends, retirement, expense
reimbursement, bill payments, corporate payments, government tax payments, social security
payments and person to person payments. The system could handle debit transfers such as
mortgage payments, loan payments, insurance premiums, utility bill payments, government tax
payments, government licenses and fees.
EFT is gaining growing acceptance among the corporate and govt. bodies. Approximately
13761853 EFT transactions having transaction volume of BDT 873.86 billion were handled during
the FY2015 with a swelling trend. Salary of more than 28 ministries and govt. offices are now
distributed through EFT. Listed public companies are disbursing their cash dividends through EFT
network.
Real Time Gross Settlement (RTGS)
To enable safe, secured and efficient interbank payment system, Bangladesh Bank introduced Real
Time Gross Settlement (RTGS) system on 29th October 2015 as part of its inclusive digitalization
initiative. It unlocked a new horizon in the ground of large value time critical payment and
settlement in the country. It was employed with the financial assistance from Asian Development
Bank and technical support from the World Bank. The central RTGS system was developed by the
Swedish company CMA Small Systems AB.
RTGS is an electronic settlement system where transfer of funds commences from one account of
a bank to that of another bank on a real-time and on gross basis. Real-time refers to the transactions
which do not need any waiting time. Transactions are settled as soon as they are effected. System
is designed to settle high value (more than or equal to 1, 00,000 BDT) local currency transactions
as well as domestic foreign currency transactions. It is important to mention that more than 7000
online branches of 55 scheduled banks are currently linked to this system out of total 11000 bank
branches of 57 banks in the country. The system is at present allowed to handle only local currency,
yet domestic foreign currency transactions are expected to be tossed soon.

27 | P a g e
National Payment Switch Bangladesh (NPSB)
National Payment Switch Bangladesh (NPSB) is an electronic platform, started its operation on
27 December 2012 with a view to attain interoperability among schedule banks for card
based/online retail transactions. At present, NPSB is processing interbank Automated Teller
Machines (ATM), Point of Sales (POS), Internet Banking Fund Transfer (IBFT) transactions.
1. Automated Teller Machines (ATM):
There are 53 Banks operating card business in the country. Among 53 banks 51 banks are
interoperable for ATM transactions through NPSB. That is, a cardholder of any bank from these
51 NPSB member banks can use ATM of all other banks throughout the country. Cardholders are
getting banking services like cash withdrawal, mini statement and balance inquiry for 24/7 from
almost all ATMs in the country. As a result, Long queues at cash counter of banks are decreasing.
Moreover, banks yet to install ATM and POS can issue cards to their clients. A cardholder has to
pay 15 taka per transaction (including VAT) for Cash Withdrawal and 5 taka (including VAT) for
each Mini Statement or Balance Inquiry using other Bank's ATM.
2. Point of Sales (POS):
48 banks are presently interoperable for POS transactions through NPSB. Cardholders from those
banks can use POS of all NPSB member banks in different merchant outlets for their retail
purchases. The necessity for holding cash is reducing very fast due to large acceptance of cards at
POS of NPSB member banks. Cardholders need not to pay any extra charges for their retail
purchases using other bank's POS under NPSB.
3. Internet Banking Fund Transfer (IBFT):
NPSB is also processing Internet Banking Fund Transfer (IBFT) transactions of 6 banks. An
account/card holder of an IBFT member banks can transfer funds (account to account/card and
card to card/account) to other Banks through internet banking. The daily transaction for a customer
will be five times and a total of Tk 2, 00,000(two lac). Each transaction will be maximum Tk.
50,000 (fifty thousand). Banks will ensure two factor authentications for internet banking to
maintain security. Banks can provide services like utility bill payment, credit card bill payment,

28 | P a g e
installments payment of loan, insurance premium payment etc. to their customers through internet
banking from home or office.
The Central Bank is ensuring continuous effort to tighten the security of NPSB adapting
International Standards and Best Practices of card based payment. A safe, secure and efficient
retail payment system always involves active participation from all stakeholders (Banks,
customers, government). Therefore, the Central Bank is in the pledge to step forward with
altogether.
Table 1: Current status of NPSB
General Information
Particulars December, 2017
No. of Debit Card 9,948,690
No. of Credit Card 946,954
No. of prepaid Card 176,185
No. of ATM Booths 9019
No of POS terminals 32,953
NPSB certified Banks for ATM trans. 51 Banks
NPSB certified Banks for POS trans. 48 Banks
NPSB certified Banks for IBFT trans. 6 Banks
Source:Bangladesh Bank
Online Payment Gateway Service Providers (OPGSPs)
In view of the growing role of the services provided by the Online Payment Gateway Service
Providers (OPGSPs), it has been decided to allow through circular dated as December 28, 2017
the Authorized Dealers (ADs) to offer the facility of repatriation of remittances against small value
service exports in non-physical form such as data entry/data process, off-shore IT service, business

29 | P a g e
process outsourcing etc. Under this initiative, the exporters of the above services will be able to
receive their overseas payments through the OPGSPs such as Paypal, Money Bookers, Best
Payment Gateway and Virtual Pay online platforms.
E-Services by Bangladesh Bank
Inasmuch, there are a number of services are provided E-Services by Bangladesh Bank. The users
of these services are scheduled banks, FI, Researchers, Analysts, Reporting Agencies and Customs
and general Customers. The Services includes the following:
Time Series (Economic data)
Bangladesh Bank (BB), has rich traditions of publishing data on several aspects of the Bangladesh
Economy through numerous of its publications. Data are chiefly presented through time-series
formatted reports by means of this Data Warehouse application,. Reports can be kept as excel
format for further analysis.
Users: Banks, FIs, Economists, Researchers, Analysts
Online CIB services
CIB online credit bureau project was taken in 2009. The online project was formally propelled in
July 19, 2011. To create a well-organized environment for borrowing, the automated CIB service
delivers credit related information for prospective and existing borrowers. With this enhanced
and efficient system, risk management will be more effective. Banks and financial institutions
may furnish credit information to CIB database 24 by 7 around the year; and they can have
access to credit reports from CIB online. Presently, there are 9.2 million borrowers and the BB
daily receives around 6,000 applications for CIB reports.
Users: Banks and FIs
Online Agent Information Management System

30 | P a g e
This system is to be used to direct the required information and documents by the Authorized
Dealer Bank for granting authorization under Section-18A of Foreign Exchange Regulation Act,
1947 to work as local agent of foreign principal(s).
Users: AD Branch of Banks
Reporting goAML
“goAML” is a UNODC(United Nations Office on Drugs and Crime) developed in response to
combat money-laundering. goAML version 3.4 has now been deployed in a pre-production
environment at the Bangladesh Financial Intelligence Unit. Deployment took place in September
2012 and included the successful delivery of training to the FIU's staff on the features of goAML
version 3.4. The goAML Client application is an intelligence analysis system intended to be used
by Bangladesh Financial Intelligence Unit (BFIU) which is the central agency of Bangladesh
responsible for analyzing Suspicious Transaction Reports (STRs), Cash Transaction Reports
(CTRs) & information related to money laundering (ML)/financing of terrorism (TF) received
from reporting organizations & other sources and disseminating information/intelligence thereon
to relevant law enforcement agencies for further action. The goAML Web application provides a
secure web based interface between the BFIU and its reporting organizations for the electronic
upload of reports such as XML files, filling out the online report forms or sending XML files as
attachments by secure e-mail, information sharing among stakeholders and other information.
Users: All scheduled Banks, Stakeholders & other reporting agencies
Web Upload
In terms of article 36(3) of Bangladesh Bank Order, 1972, all scheduled banks have to submit
Weekly Statement of Position as at the close of business on every Thursday to the Department of
Off-site Supervision. This statement have to be submitted through on-line using this web service
within o3 (three) working days after the reporting date.
Users: All scheduled banks

31 | P a g e
Prize bond Matching
Prize bond draw are help every 3 month with the date 30th April, 30th July, and 31st October each
year. Using this service one can search single or multiple numbers at a time.
Online Foreign Exchange Transaction Monitoring System
Online Foreign Exchange Transaction Monitoring System is used for monitoring total foreign
exchange transactions of Bangladesh. The system includes Export, Import, Inward remittance
(Wage Earners' remittance and other) and Outward remittance (Traveling and Miscellaneous).
Through its services, Banks and AD Branches issue & reports Foreign Exchange Transactions to
Bangladesh Bank.
Users: Banks, AD Branch of Banks and Customs
Mobile Apps: Banking Information
Mobile app for ATM Booths and Branches location details as well as services provided to the
customers in Bangladesh.
Download link: https://play.google.com/store/apps/details?id=com.isdd.bb.org
Bangladesh Bank eTender System
Bangladesh Bank introduces the online tendering system to facilitate the procurement process of
Bangladesh Bank. The system will help you to participate in the local and international
tender/procurement of Bangladesh Bank.
Users: Interested Bidders
eReturns
An Online Portal Service for Scheduled Banks to submit Electronic Returns using predefined
template for the purpose of Macro Economy Analysis through related BB Departments.
Users: All Schedule Bank

32 | P a g e
Special Foreign Currency Account Monitoring System (SFCAMS)
Online Special Foreign Currency Account Monitoring System is used for monitoring FC account
transactions of Bangladesh. Through its services, AD Branches of Banks report day to day
Transactions (Only Special FC A/C) to Bangladesh Bank.
Users: AD Branch of Banks
Information for Deposit Insurance Premium Assessment (IDIPA)
Deposit Insurance System (DIS) is now contributing financial stability, protecting bank's
depositors and assuring insurance benefits in the unlikely event of Scheduled Banks. The key
elements of DIS are to maintain public confidence and promote financial sector's resilience through
increasing savings. DIS in Bangladesh is now being administrated by 'The Bank Amanat Bima
Ain, 2000'.
Users: All scheduled banks
Corporate Memory Management Systems (CMMS)
Corporate Memory Management Systems is a web-based application to monitor the errors,
omission and violation of regulations and policies by the Schedule Commercial Banks/FI's and
their executives.
Users: All Scheduled Banks and FIs
E-statement for CRR & SLR
In terms of article 36 of Bangladesh Bank Order, 1972 and Bank Company Ain, 1991,all scheduled
banks (both Conventional and Islamic Banking) in Bangladesh are subject to submit Thursday
Positions of Demand And Time Liabilities for calculating CRR and SLR at the close of business.
This statement must be submitted through on-line using this web service to Department of Off-site
Supervision (DOS) within the 10th of the following month.
Users: All Scheduled Banks

33 | P a g e
Several services are in the planning process and prospective to see its application in the upcoming
years by Bangladesh Bank
Digitalization in Banking Sector
The Digitalization is mostly centered to Centralization of operation and mounting Alternative
Delivery Channel. Both are meant to increase operational efficiency and simplicity of customer
services. The detailed discussion if provided below:
Core Banking System
CORE is abbreviated from Centralized Online Real-time Environment. It is banking system where
all the transactions of the bank is done online and books of account and static data of the customer
are maintained, processing of interest centrally.
As it was the issue of huge investment to introduce centralized digital banking system for any bank
and having no reference site to implement, none of the Banks started their centralized banking
operation.
In the year 2003, Eastern Bank Ltd started it’s digitally Centralized Banking operation. Purchasing
and implementing a foreign CORE Banking system (FLEXCUBE / UBS) in the Bank. EBL
started its First online banking operations across all of its branches. This banking application
system was able to cater all sorts of Banking functions and activities. By this, all complex
accounting of bank and record-keeping activities are automated.
With the success of digitalization of banking operations in a centralized environment, other Bank
like Dutch Bangla Bank, Dhaka Bank, One Bank, United Commercial Bank, NRB Bank also
implemented the centralized CORE Banking operation under UBS.
The CBS Software solutions can be procured from foreign and local vendors.
Table 2 1: Software in use by the banks (up to 2017)
CBS Application Banks
Universal Banking
System (UBS)
Eastern Bank Ltd, National Bank, UCBL, Dhaka Bank, Dutch Bangla Bank,
One Bank, NRB Bank

34 | P a g e
Temenos
Janata Bank, Agranai Bank, Prime Bank, Merchentail Bank, EXIM Bank,
NRB Global Bank Ltd
TCS Jamuna Bank
Steller Bangladesh Shilpa Bank, Al Arafa Islami Bank, Bank Asia
Silverlake ICB Islami Bank
Polaris Sonali Bank, Rupali Bank
Own Developed CBS
Pubali Bank, Standard Chartered Bank, Islami Bank BD Ltd, The Hong
Kong & Shanghai Banking Corporation Ltd.,Citi Bank, N.A.
Misys IFIC Bank, AB Bank
Kastle (CI InfoTech) BASIC Bank
Flora Bank
Mutual Trust Bank, BD Krishi Bank,NCCBL,Trust Bank,Farmers
bank,South Bangla AC Bank,Shimanto Bank
Finacle The City Bank, BRAC Bank, State Bank of India
BankUltimus
Uttara Bank,Habib Bank,Social Islami Bank,The Premier Bank,First
Security Bank,Shah Jalal Islami Bank,South East Bank,NRB
Commercial,Meghna Bank,Modhumoti Bank Ltd,National Bank of Pakistan
Source: Florabank BD
Some basic features of Core Banking System (UBS)
i. Retail Module
Customer Information Maintenance
 Customer Creation
 Maintaining Customer’s ID
 Image Linking (Photo & Signature)
 Modify Customer Image (Photo & Signature)
 Static Data Change (Customer Type / Customer Short or Full Name)
Current & Savings Account Opening/Closing & Maintenance
 Opening of Current and Savings Accounts
 Operating Instructions
 Account Service Charge Waiver
 Close CASA Account
Fixed Deposit Account Opening & Maintenance
 Opening of Fixed Deposit (FD) Account
 FD Advice print
 Payment of Fixed Deposit
 Premature encashment of FD

35 | P a g e
 Renewal of Fixed Deposits
Restricted Account Maintenance:
 Dormant, Inoperative, Frozen account
 Follow up of Dormant Account
 Transaction in dormant Account
 Reactivating Dormant Account
 Deceased Account
Account Block
 Changing Account Status (No debit, No Credit)
 Cancellation of Account Status change
 Amount Block (Hold Fund)
 Cancellation of Amount Block
 Unclaimed Deposit
Operations in Customers’ Account
 Posting of Credit Vouchers
 Posting of Cheques and Debit Vouchers
 Cash Payments
 Cash withdrawal slip
 Statement of Account
 E-Statement
 Balance Certificate
 Hold Mail Accounts
Cheque Book
 Issuance of Cheque Book to Account Holder
 Cheque Book issuance to customer
 Delivery of Cheque Book
 Destruction of undelivered cheque books and deletion from system
Stop Payment/ Maintenance
 Stop payment of Cheque
 Revocation of Cheque Stop Payment Instruction(s)
Cash Transaction Operations

36 | P a g e
 Receiving Cash
 Cash received Against Account (Both LCY & FCY)
 Cash received against Internal GL
 Payment of Cash
 Cheque withdrawal (Both LCY & FCY)
 Excess of Cash
 Shortage of Cash
 Cash Deposit to Other Branch
 Cash Withdrawal from Other Branch
 Deposit with other Banks
 Withdrawal from other Banks
Opening/ Closing of UBS Batch (BRANCH LEVEL)
 Opening Vault
 Opening a Cash
 Closing a Cash
 Closing Vault
 Closing a Branch Batch
Remittance – Local Currency
 Banker’s Cheque (BC) / Pay Order (PO)
 Banker’s Cheque (BC) serial upload
 Banker’s Cheque (BC) Sale against Account
 Banker’s Cheque (BC) Print
 Banker’s Cheque (BC) Sale against Cash / Walk in Customer
 BC Liquidation Against Account
 Cancellation of Banker’s Cheque (BC) for Paying to the Purchaser
 Stop Banker’s Cheque (BC)
 Issuance of Duplicate Banker’s Cheque
 Issuance of Demand Draft
Clearing
 Outward Clearing
 Lodgment of Instruments by Authorized Branch for Clearing House
 Inward Clearing
 Cheques Returned Unpaid by us (Outward Return Entry)
 Cheques Returned Unpaid to us (Inward Return Entry)
 Same Day Clearing

37 | P a g e
Alternate Channel Operations:
 Internet Banking, Sms Banking & Sms Alert
 User ID creation for IB and SMS
 SMS Alert Service in CBS
 Unlock the User IB ID
 Regeneration of PIN / RESET of PIN
ii. Corporate Module
1) Loan
a) View Loan Account
b) Changing Loan Interest rate
c) Interest Components
d) Installment Tracking
e) Loan Payment
f) Loan Account Statement
g) Amount Block
2) LC / LG
a) Issuance
b) Amendment
c) Cancellation
d) Realization of Bills
3) Bills and Collection
a) Bill Pay Enrollment
b) Bill Presentment
4) Foreign Exchange
a) Reporting to Treasury
5) Money Market
a) Market Quotation Pricing
b) Dealing Operations

38 | P a g e
Data Centre
Most of the Banks, having centralized operation has established its Primary Data Centre with all
the Main frame Application servers, Database servers and Database centrally hosted at Head
Office, and all the branches was connected with the Data Centre by WAN (Wide Area Network)
system.
Disaster recovery (DR) site
Considering the security aspect, Bank also hosted Disaster Recovery system and site (Secondary
Data Centre), another replica of Live system, located in distant premises, with same capacity like
Production system, is running 365 x 24 continuously without any pause.
Second Disaster Recovery Site
Few banks further strengthened its Business Continuity strategy by including a Second Disaster
Recovery Site (Tertiary Data Centre) in different location located on a stable seismological plate
to mitigate the risks of earth quakes in Dhaka region. Like Eastern Bank Limited have setup the
Tertiary Disaster Recovery site in Jessore.
Real Time Data Replication
Due to advancement in technology, Bank are now implementing the real time data replication
among the all two or three Disaster recovery sites. Through the robust technologies of EMC and
other storage system in place, the online real time data replication is initiated from Primary DC to
DR site. By this technology enhancement, Data security is ensured.
By the introduction of Centralization of Banking system, it became easy to do “Anywhere and
Anytime Banking” by the banks and for its customers. And soon after this, Internet Banking and
Debit Card system was introduced to facilitate customers to do banking at point of time.
Alternate Delivery Channels (ADC)
ADC plays vital role to reach to the door steps of the bank’s customers with banking services 24
hours in a day and 365 days in a year. There are two major wings of this channel.

39 | P a g e
One is Self-Service channel under which Internet Banking (IB), ATM, POS, Bill Pay Machine,
Interactive Voice Response (IVR) and SMS Banking are clubbed.
Another one is Managed Service in which Call Center is present.
Different wings under the Alternative Delivery Channels were introduced in the mid ’90 by the
Foreign Banks by executing transactions from their corporate heads located outside the country.
The physical infrastructure for data management used to reside in regional Data Centre. Local
Banks lagged behind due to unavailability of Centralized environment. Thus, after first integration
of CBS in 2003, Different Private Banks started introducing new alternate channel services and
services found prominence shortly.
Internet Bank (IB) System:
Interchangeably used as Online Banking, Internet banking services for customers was introduced
to do banking from anywhere globally. Initially started with very minimalistic services e.g. check
balances and conduct queries, eventually grew to provide widespread services for the customers.
Features are:
a) View account summary, Balance inquiry, view transaction details, view Loan
details
b) Generate e-statement
c) Open Term Deposit
d) Fund transfer within the customer’s own accounts and also in others account in the
same bank.
e) Fund transfer in others accounts in other bank in Bangladesh using BEFTN
(Bangladesh Electronic Fund Transfer Network) feature.
f) Can do utility Bill payments, Credit Card Bill payments,
g) Send e-mail for Positive Pay
h) Do Cheque book request, stop cheque and cheque Inquiry

40 | P a g e
i) Mobile top-up, customer can recharge to any mobile number using his Internet
Banking 24 x 7 from any part of the world.
j) Can upload Bulk data and bulk e-mailing etc.
k) Two Factor Authentication (2FA) for Internet Banking to ensure security during
fund transfer.
In Internet Banking service, Third Party Fund Transfer is accommodated according to the
guideline of Bangladesh Bank.
Card Business
Different types of Debit card, Credit card and Pre-paid cards, in different currencies, are offered
to cater all card business requirements. Customers can now withdraw cash from ATMs and do
shopping any point of time.
Some benchmark projects of Card Business has been implemented to provide better service to
customers and to enhance the spectrum of Card business. With the introduction of Installment
Module for credit card holders, Credit cardholder can enjoy monthly installment based credit
facility in purchasing commodity.
SMS alert is sent to both debit and credit card holder just after completion of ATM and POS
transaction.
Point of Sale (POS)
Some bank ventured into Point of Sale (POS) acquiring business. Cash-In and Cash-Out facilities
through POS for Prepaid Cardholder was introduced. Through POS, customers can do shopping
using Credit and Debit Card.
Mobile Banking application
With this application customer can check all his accounts by his/her own. Using this application
customer can access to his / her account(s) using internet from his mobile device from anywhere
any time.
Customer can access some of basic services like own account transfer, other bank transfer, mobile
top-up and other bills pay, view information of enlisted Deposit accounts and Loans, can view

41 | P a g e
transaction in deposit accounts and transactions of credit card, place new cheque book request, and
can get list of partners with the bank who can provide installments, discounts and other benefits.
Document Management Solution (DMS)
This software gives the sigh of relief from the hassles of maintaining hard copy. Through this
solution, all the documentation of previous and concurrent period, within and outside of the
concerned department is now within the reach of few clicks. Any of the document (or series of
documentation) with any customer or any other quarter can be retrieved on-the-spur-of-the-
moment with safety and security using this solution. Using this solution, multiple soft copies of all
the documents are kept; hence the chance of losing any document due to disaster is thin.
Digitization of official document is in place in many banks. Most of the documents of the banks
are converted into softcopy. Lion share of the internal and external communication are done
through authenticated E-mail.
IP Telephone system
IP Telephone system was introduced in many branches and departments through which
accountability of the caller is more ensured. History of the call is kept using this phone
management system. This reduces the communication cost of the bank as a whole.
Interactive Voice Response (IVR)
Customers can also do Balance Inquiry of various accounts by themselves using their own cell or
land phone automatically through Interactive Voice Response (IVR). They can do fund transfer
from one account to another account using mobile devices through IVR.
Positive Pay
Bank has developed the Positive Pay solution. This is the solution to prevent fraudulent cheque
transactions. As advised by Bangladesh Bank, to prevent any possibility of fraud through
counterfeit cheque, fake signature, MICR Line distortion etc., every individual customer/personal

42 | P a g e
accountholder has to provide a mandatory Positive Pay Instruction through Internet Banking,
Corporate Self Service Portal, E-mail, SMS, Call Center and by filing out a form through Branch.
Customer Service, Customer Relationship Management (CRM)
This project will be taken up. With this technology, it will enable the Bank to manage Customer
Relationship and to learn more about customers’ needs and behaviors in order to develop stronger
liaison with them.
Loan Application Processing System
This is introduced to improve processing for retail and SME loan applications significantly without
increasing any headcount and is online real-time with CBS. This is another platform for automation
of whole loan application process for both Consumer and SME business. This is a workflow based
loan application processing mechanism.
Following benefits will accrue from using LAPS: Status of every loan application can instantly be
known from this system by the concerned person from any branch. Quick analysis and fast
disbursement of loan become possible through LAPS which, in turn; ensures the efficiency of
Bank to handle the loan application with an ease.
Remittance Solution
Most Advanced Remittance Solution was implemented which is considered as the most advanced
remittance solution in the world. Following benefits will accrue from using this newly introduced
system:
The whole NRB operations are made automated Payment to the beneficiaries through EFT, Credit
to MTBL and other Banks’ account & payment through Telco (m-wallet) can be done easily. Once
payment is sent by bank to the respective account of the beneficiary, SMS alert is sent to him/her
instantly to collect the proceeds from the nearest collection point.
Green Banking Initiatives:
In February 27, 2011 BPRD released Green Banking Policy for all scheduled banks operating in
Bangladesh. It laid down several directives for the banks to set up green banking policy and green

43 | P a g e
banking unit. It gave strong emphasis on Digitalization for Eco Friendly practices by the banks.
Harmonizing to this policy banks started various digital initiatives hereafter.
E-Statement EBL introduced E-Statement first which reduced the usage of hard copy statement.
This statement is generated by the system and sent to the customer automatically at specified
interval with full authentication and security. The introduction of soft copy of customer’s statement
goes parallel with the concept of Go-Green to save the nature.
Through E-statement and SMS status checking solution, if bank receive any complaint from any
customer pertaining to non-receipt of E-statement or SMS then, it is possible to know the actual
cause and status of e-statement or SMS. Call Center has been using this solution and providing
instant response to the customer queries pertaining to the delivery status of E-statement or SMS.
Along with SMS alert, bank has also introduced to send mail against each transaction with all
details of transaction to the account holder.
IT Infrastructure: Banks are using the most energy efficient IT equipment e.g. Blade Server which
consumes less power, less space with maximum capacity.
Server Virtualization has been implemented by a handful number of banks. Through this new
system, multiple operating systems and applications can be run on a single server. It consolidates
hardware to get vastly higher productivity from fewer servers. This technology reduces cost as a
whole.
Some Banks have also planned to introduce the Desk top virtualization project as a Green Banking
initiative.
Automated Advice and confirmation: As part of Green Banking initiatives, in-house software has
been developed to send automated advises and automated loan balance confirmation letters
through e-mail. Automated advises for Letter of Credit, Export & Import Bill are being sent to
customer’s e-mail on a daily, weekly and monthly basis and this has served the customers need
immensely by reducing the wait time for such information.
c. Mobile Financial Services
Because of Increased Digitalization process in the country the practice of Mobile financial service
has emerged as new phenomenon in Banking Industry. Mobile Financial Services has been a

44 | P a g e
landmark development of digitalized banking services in recent years contributing highly in the
Financial Inclusion and expanding the scope of operation in every geographic area having
cellphone network. The Term has interchangeably used as Mobile Banking.
Mobile banking is a mechanism that coordinates mobile devices, mobile network operators and
commercial banking channel to enable bank’s customers for accomplishing a set of financial
activities. However, the major weight is placed on data transmission through SMS and internet
service while finalizing transactions. Now a day, the strictest kind of mobile banking excludes the
use of dial-up phone calls or automated voice response.
In March 2011, Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile
banking service expanding the banking service from cities to remote areas. Former Bangladesh
Bank Governor Atiur Rahman inaugurated the service by depositing Tk 2,000 and withdrawing
Tk 1,500 through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank
had then allowed 10 banks to initiate mobile banking. Of them DBBL kicked off first. The
following year bKash, mobile financial services of Brac Bank kicked off and currently leading the
market of Mobile Financial Service.
There are 3 business models of Mobile banking which are - Bank Focused, Bank-Led and
Nonbank-Led. From legal and regulatory perspective, only the bank-led model is allowed to
operate in Bangladesh. According to Bangladesh Bank (2015), 28 banks got the permission to
offer the services of mobile banking in Bangladesh, among which 20 banks have started the
operation of mobile financial services.
Currently Approved Mobile Financial Services (in broad categories) are listed below -
1. Disbursement of inward foreign remittances.
2. Cash in /out using mobile account through agents/Bank branches/ ATMs/Mobile
Operator's outlets.
3. Person to Business Payments ‐ e.g. a. utility bill payments, b. merchant payments.

45 | P a g e
4. Business to Person Payments e.g. salary disbursement, dividend and refund warrant
payments, vendor payments, etc.
5. Government to Person Payments e.g. elderly allowances. Freedom‐fighter allowances,
subsidies, etc.
6. Person to Government Payments e.g. tax, levy payments.
7. Person to Person Payments (One registered mobile Account to another registered mobile
account).
8. Other payments like microfinance, overdrawn facility, insurance premium, DPS, etc.
Table 3 1: Mobile Financial Services (MFS) comparative summary statement of November,
2017 and December, 2017
Serial
no.
Description
Amount in
November, 2017
Amount in
December,
2017
% Change (November, 2017 to
December, 2017)
1 No. of Banks
currently
providing the
Services
18 18
2 No. of agents 777,179 786,459 1.2%
3 No. of
registered
clients in Lac
585.70 588.10 0.4%
4 No. of active
accounts in
Lac
231.30 210.10 -9.2%
5 No. of total
transaction
158,584,216 166,315,916 4.9%
6 Total
transaction in
taka(in crore
BDT)
27,573.40 28,571.40 3.6%

46 | P a g e
7 No. of daily
average
transaction
5,286,141 5,365,030 1.5%
8 Average daily
transaction (in
crore BDT)
919.10 921.70 0.3%
9 Additional
information
Amount (in crore
BDT)
Amount (in
crore BDT)
a. Inward
Remittance
5.04 4.60 -8.7%
b. Cash In
transaction
11,823.60 12,027.90 1.7%
c. Cash Out
Transaction
10,445.60 10,894.70 4.3%
d. P2P
transaction
4,222.70 4,425.20 4.8%
e. Salary
Disbursement
(B2P)
396.10 405.40 2.3%
f. Utility Bill
Payment
(P2B)
191.20 184.70 -3.4%
g. Merchant
Payment
118.86 130.03 9.4%
h. Government
Payment
17.99 128.21 612.7%
i. Others 352.28 370.59 5.2%
Source: Bangladesh Bank
*Actual No of days in month has been used for average calculations.
d.Agent Banking
Agent banking which has been initiated as a program of Financial inclusion program by
Bangladesh Bank is a major implication of Digitalization of Banking Operations in 2013. Agent
Banking refers to providing limited scale banking and financial services to the underserved
population through engaged agents under a valid agency agreement. The important technological
features separates agent banking from General Banking Operations:

47 | P a g e
1. Real Time Transactions: All transactions involving deposit, withdrawal, payment,
remittances or transfer of cash from or to an account shall be real time.
2. Centralized execution of operation: Operation outlets are connected to Agent Banking
Department CBS
3. Biometrics Authentication: Biometrics Fingerprints are taken to facilitate transaction
instead of Negotiable Instruments
These 3 features makes the functionality of Agent banking service Cost Efficient, Convenient and
Secure banking operation for target population suitable for Agent Banking.
Currently 18 scheduled banks have been provided with license to operate agent banking operation
from Bangladesh bank. 14 banks among the licensed banks have started their agent banking
operation.
Currently Permissible Activities of an Agent
An agent may provide any of the following services as may be specifically agreed between it and
the bank:
1. To Cash deposit and cash withdrawal;
2. Inward foreign remittance disbursement;
3. Disbursement and repayment of loans;
4. Collections of bills/utility bills;
5. Collection of insurance premium;
6. Payment of retirement and social benefits;
7. Transfer of funds;
8. Payment of salaries;
9. Balance enquiry;
10. Generation and issuance of mini bank statements;
11. Collection of documents in relation to accounts;
12. Collect account opening forms, loan application forms, credit and debit card applications;
13. Monitoring and recovery of loans and advances sanctioned by the bank; and
14. Any other activity as Bangladesh Bank may prescribe from time to time.
(Source:BFIU Prudential Guideline for Agent Banking )

48 | P a g e
Chapter 5.2: Digitalization in Mutual Trust Bank Limited
Chapter 5.2.1 Core Banking Solution:
Mutual Trust Bank Limited has been using Florabank software since the inception of the Bank in
1999 for automation of branch banking. It has been since then went through regular up-gradation
to the current package. Presently it provides a comprehensive solution providing through Retail
and Corporate Module for the banking operation. Current version of the Software is Florabank
2.2.1.
CBS Modules:
CIF Module:
CIF is the Customers Information File Management of FloraBank. CIF are integrated with all
others module like Deposit, Loans and Advance, Bill and Remittance, Foreign Exchange and Swift
Module. Customers is identified by unique code which is auto generated by this system. This
customer code is used in the whole function of the customers where is necessary. The following
are covered in the CIF function
o Customers Group Maintenance
o Basic Customers Information
o CIB-Information
o TIN Information
o Sector Code Identification
o Money Laundering parameter of customers
o KYC information
o Customers group position
o Customers limit and Group Limit to reduce the credit risk
o Capture of Signature and photo graph.

49 | P a g e
Retail and Corporate Banking:
Corporate and Retail Banking modules offer banking products and services to corporate and retail
clients through various channels. Retail and Corporate Banking features are customized in such a

50 | P a g e
way to optimize strength of best-fit, effective solutions across the core banking practices. This
solution also empowers banks to provide their corporate and retail customers anytime anywhere
access to real-time consolidated information.
Features of Retail Banking:
o Product define (Retail Banking)
o Product opening
o Product authorization
o Loan scheduling
o Loan disbursement
o Loan recovery
o Loan re-scheduling
o Early settlement
o Partial settlement
o Disbursement reversal
o Reports
Features of Corporate Banking:
o Product define
(Corporate Banking)
o Limit load
o Product opening
o Product authorization
o Loan disbursement
o Monthly provision
calculation
o Periodical interest
posting
o Recovery
o Reports
Source: (Florabank Website)
Apart from CBS there are a number of software’s used for different purposes.
These are
 Transwire for Card Management from Russian Vendor
 Document Management System (DMS)
 Batch Process from Srilankan Vendor
 Florabank solution customized for RTGS Processing
In House Software’s developed over the years are:
1) Payroll Reconciliation
2) M-net for Intranet Facility
3) Provident Fund Management
4) Utility payment
5) Management Information System
6) Cheque Requisition
7) User Management System

51 | P a g e
8) Document Management System
9) Regulatory Reporting
10) Other Organization Bill Payment Management
Chapter 5.2.2 Technological Infrastructure:
MTB Group ITS Division:
MTBL IT Division provides comprehensive solution to provide necessary foundation of banking
operation pertaining to Information technology and complements departments reliant on it.IT
Division is supported and upgraded in various areas including those of operational business
intelligence; bank-wide system; networks; infrastructure; and security. The Bank strengthened its
practices and procedures in compliance with the Central Bank standards for IT Governance.
Mutual Trust bank, having mostly centralized operation has established its Primary Data Centre
with all the Main frame Application servers, Database servers and Database centrally hosted at
Head Office Gulshan, and all the branches was connected with the Data Centre by WAN (Wide
Area Network) system.
As part of effective risk management Data Centre has been established at MTB’s own Head Office
premises at Head Office Group ITS Division, Gulshan 1. , while the previous Data Centre located
at Dilkusha, has been shifted to the aforesaid location. This Data Centre is equipped with
sophisticated data replication technology to protect loss of customer sensitive information, and
their transaction in case of failure of primary data centre due to any disaster. First Disaster
Recovery Site is located in MTB Tower, Banglamotor, Dhaka. The Bank also has 2nd
Disaster
Recovery Site located in Kashimpur,Gazipur. The Disaster Recovery Site has Identical Servers
comparing to Data Centre.
Important features of Mutual Trust Bank Data Centre are:
 Virtualization has been implemented for live Servers.
 The Bank has Central Database at ITS Divison Head Office.
 The Servers at branches are used for only communicating and processing accounting
information.

52 | P a g e
 The Branch Server is connected to Central Server at Group ITS Division.
 The Data Centre consists of 75 live servers.
 There are 10 additional test servers working as backups for the working live servers.
 The bank also has its central storage system at Data Centre
 The storage System at Mutual Trust bank is acquired from EMC and Net App.
 The Data Centre has Data Replication system from both Data Centre and Disaster
Recovery Site. The Replication System in Data Centre is synchronous and in few cases,
it is asynchronous.
 The time gap between asynchronous replication systems is 15 minute.
 The media used for taking data backups of core banking data is removable Disk.
 There is a process established to check the correctness of Data. Every day the data from
the backup media is restored in the test system to check the correctness of data to be
used in case of Disastrous event.
 Microsoft Bitlocker is used to protect Data in Transit. Bitlocker is designed to protect
data through encryption and is handy for the volumes of data in transit.
Chapter 5.2.3 Intranet Facility:
Intranet Facility for MTB is known as Mnet. It has been developed through in house software
development facility. It was first launched in 21 August, 2007
MNet contains the following:
 Mnet-Mail
 MTB Circulars
 BB Circulars
 Corporate Notice Board
 MTB News
 Internet News
 IT Help Desk
 Departmental Homepages
 MTBians Information & More services
The employee ID provided by Group HR is to be the User ID to log into MNet. The first time log
in password is also conveyed to the newly joined MTBian by HR
MTB Corporate Intranet (MNet) Applications Hold by MNet are:

53 | P a g e
1.1 MTB Circulars with trackers
1.2 Bangladesh Bank Circular
1.3 Training Management
1.3.1 E-Nomination
1.3.2 Training Calendar
1.3.3 Training Invitation
1.3.4 Training MIS
1.4 Leave Management
1.5 Online Requisition
1.6 Business Card Requisition
1.7 Auxiliary Staff Bill Management
1.8 E-Requests with Documentation
1.8.1 Florabank User Management
1.8.2 Lien Marking
1.8.3 Interest Rate Change
1.9 MIS
1.10 Performance Management System
1.10.1 Objective Settings & Acceptance
1.10.2 Midyear Review
1.10.3 Yearly Review & ACR Management
1.11 E-Attendance
1.12 MTB News
1.13 MTB Notice Board
1.14 External News (RSS Integrated)
1.15 Staff News
1.16 Daily Quotes
1.17 MTB Library Catalogues
1.18 Event Photo Albums
1.19 Department Homepage
1.20 Branch Homepages
1.21 Dictionaries

54 | P a g e
1.22 E-Signatures
1.23 Forex-Rates
1.24 MTB Trivia (Quiz)
1.25 MTB E-Learning
1.26 Branch Reporting with Monitoring
1.27 iMail with message Readability Tracking
1.28 Employee Statements
1.28.1 Salary Statement
1.28.2 Tax Statement
1.28.3 PF Statement
1.28.4 A/C Statement
1.28.5 Engagement Statistics
1.29 Dashboards
1.29.1 Staff Anniversary
1.29.2 Staff On Leave
1.29.3 BACH-EFT Dashboard
1.29.4 EFT Pending
1.29.5 Govt Cheque Marking
1.29.6 Loan/Deposit Expiry Monitoring
1.29.7 Profit Monitoring
1.30 Confirmation of Compliance
1.31 Deposit Contribution Tracker
1.32 Registrations:
1.32.1 MTB Sky Dining
1.32.2 MTB Tower Dining
1.32.3 MTB Club Events
1.33 Participations: Naming Competitions
1.34 ATM/ POS Register
1.35 ATM Low Cash Alert
1.36 Contractual Staff Management
1.37 Deposit Dash Board

55 | P a g e
1.37.1 Star MTBians of the Day/Month
1.37.2 Star Branch of the Day
1.37.3 Star Product of the Day
Chapter 5.2.4 Alternative Delivery Channels (ADC)
Card Business:
Aiming towards building cashless society, Mutual Trust Bank provides a range of bank card
products through dedicated card Division. Currently line of card products consists of:
 Credit Card
 Debit Card
 FlexiPay
 MTB Protection Plan
 Discount Partners
 Promotional Offers
 Payment Channels of Credit Card
All of these Europay, Master Cards and VISA Cards currently issued cards are equipped with
EMV Chip and transacted through 2 factor authentication process more secured transaction. The
transition of Card products offered by MTBL can be summarized below:
Table 4 1: Transition of Card Products MTBL
2007  Started Visa Debit Card 2008  Started Visa Prepaid &
Credit Card
2011  Started ATM & POS
Acquiring
2011-15  Value Addition: FlexiPay,
Card Cheque, Balaka
Lounge etc.
2016  Implemented EMV Chip
Based Card
 Launched Master Card
2017  Launched first time ever
Co-branded Cards:
EasyPay Prepaid Card,
Cadet College Club Credit
Card

56 | P a g e
 Premium Cards: Visa
Signature, MasterCard
World
 Obtained Principal
Membership of Visa &
Master Card
 Inaugurate MTB
Protection Plan
 Launched MTB Air Lounge
at HSIA
 Became Strategic Partner
with- NovoAir
Source: MTB Quarterly Publication, March, 2018
Internet Banking
Internet banking facility was scheduled to be launched for the usage of the customers from
January 1, 2010. Internet Banking Facility allowed customers to avail a number of facilities by
logging into the account by typing username and password.
The significant features a customer will enjoy with our new version are:
 Summary of all accounts and access account statements
 Order cheque book(s)
 Transfer funds to any Mutual Trust Bank account
 Set up payees (within MTB), to whom you transfer funds regularly
 View credit card details and pay any MTB credit card bill
 Pay utility bills
 Manage customer profile information
 Mobile Topup
Customers would have to sign up for Internet Banking Facility by applying for Internet banking
Facility in CIF Form. Every Transactions are secured by 2 factor authentication through one time
password directing to the customer.
Mobile Banking Service:
Mutual Trust bank has been providing a number of services for the banking customers through
24/7 Call Centre, SMS Response, and Mobile App not taking any initiative towards in Mobile
Financial Service. These services can be further expounded in the below:

57 | P a g e
i. SMS Banking: SMS Banking from MTBL enables customers to send and receive textual
information anywhere 7 days a week and 24 hours a day. It allows customers to access
information as well as receive transaction alerts on your account by using your mobile
phone.
Amenities available at present:
Access customer account from anywhere in the world through a cellular phone.
Ability to make balance inquiries without visiting the physical branch.
Ability to collect mini statement of last 5 transactions.
Transaction Alert lets customer get informed whenever there is a cash withdrawal
transaction on your account.
ii. MTB Smart App: Mutual Trust Bank has developed a mobile app available at Play Store
and Apple Store.
Fig: MTB Smart App Interface
Through MTB Smart Banking App, the services a customer can avail are:
 Check available balances,
 Transfer money, pay bills,

58 | P a g e
 Top-up mobile,
 View credit card details,
 Pay credit card bill,
 Order cheque book
 Locate to the nearest branch and ATM Location
 Subscription to the Latest Card Offer News
iii. 24/7 Call Centre Service: MTB Contact Centre provides 24 hours and 7 Days service to
the customers for various account related service.
The services can be subdivided into 5 categories. These are as follows:
a) Accounts Services
o Account Balance Information
o Transaction Details Information
o Customer Feedback & Complaint
b) Card Services
o Debit & Credit Card Activation
o Card Transaction Details
o Card Block, Lost & Stolen Report
o Credit Card Balance Inquiry
o Card Cheque Activation & Block
o Card Replacement
o Credit Card Application Status Inquiry
o Credit Card Payment Inquiry
o Credit Card Statement Inquiry

59 | P a g e
o Card Dispute Resolving Request
o Customer Feedback & Complaint
o E-statement Enrollment Request
o Email Address Update Request
o Complaint regarding E-statement
c) Value Added Services
o Internet Banking & SMS Banking related information
o Internet Banking User Unlock
o Internet Banking Password Recovery
o Internet Banking Access change
o Internet Banking Mobile number change
o Internet Banking User Type change
o Complaint regarding Fund Transfer or Mobile top up
o Complaint regarding SMS Banking
d) Remittance Services
o Remittance Send & Receive Inquiry
o Exchange House Related Inquiry
o NRB Account Balance & Transaction Details
e) Product Information
o Deposit Product Information
o Loan Product Information
o Cards Product Information
o NRB Product information

60 | P a g e
o SME Product Information
o Value Added Services Information
o Application for New Credit Card
o Daily Exchange Rate Information
(Source: MTBL Website)
Multi-purpose Kiosk:
Multi-purpose Kiosk are placed as part of Smart Banking Package in the year 2015. Kiosk are used
for collection of Bill, Utility Payment account query etc through Cash or Instruments. Currently
There are 10 Kiosk placed at different locations for convenience of customer service.
Chapter 5.2.5 Significant Digitalization Initiatives carried out by Mutual
Trust bank over the years:
Implementation of Real Time Gross Settlement (RTGS): MTBL implemented the RTGS
system which exchanges Payment messages between central bank’s RTGS and MTB’s CBS.
Since it is a real-time settlement system, the system affects final settlement, continuously, rather
than, periodically, at pre-specified times, provided that a sending bank has sufficient covering
balances or credit. To exchange RTGS messages with Bangladesh Bank, the management has
decided to use the SWIFT backbone as the media of communication so that no payment - related
information is lost in RTGS. The payment instruction, if provided in accordance with the
standards, will always be forwarded in its entirety to the beneficiary. RTGS helps boost business
to business (B2B) transactions, along with the other general transactions by enabling instant
settlement of high value local currency transactions as well as government securities and foreign
currency based transactions.
Development of Anti-Money Laundering (AML) Sanction Screening Software: Under the
Bangladesh Bank AML & CFT guideline, real-time screening of CBS CRM against UNSCR,
OFAC and Domestic sanction lists became compulsory for the banks, especially for MTB, which
was selected as one of the 05 (five) leading banks by Bangladesh Bank to have demonstrated its

Digitalization_of_Banking_in_Bangladesh.pdf

Digitalization_of_Banking_in_Bangladesh.pdf

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Digitalization_of_Banking_in_Bangladesh.pdf

Similar to Digitalization_of_Banking_in_Bangladesh.pdf (20)

Recently uploaded

Recently uploaded (20)

Digitalization_of_Banking_in_Bangladesh.pdf