ICT has become essential to banking and has brought significant changes to how banks operate and serve customers. Banks have invested heavily in ICT to improve customer service and reduce costs. ICT allows banks to offer various electronic services like online banking, ATMs, and remote account access. These electronic services allow customers to bank anytime anywhere with convenience. Major applications of ICT for customers include remote access to their accounts and transactions, cash withdrawals at ATMs, and electronic funds transfers. For banks, ICT provides efficient access to customer information and streamlines operations like report generation and daily transactions.

1. ICT & BANKING SECTOR
ZAHID ISLAM

2. Introduction
Information and communication technology (ICT) has become the heart of banking sector, while
banking industry is the heart of every robust economy.
Information and communication technology (ICT) has in particular brought a complete paradigm
shift on the bank's performance and on the customer service delivery in the banking industry.
The ICT development has a significant effect on development of more flexible and user friendly
banking services.
In a bid to catch up with global development, improve the quality of customer service delivery,
and reduce transaction cost, banks have invested heavily in ICT, and have widely adopted ICT.

3. Introduction
ICT has created a new infrastructure for the world economy to become truly global and also
provided the users of new technology a competitive advantage over their rivals.
Electronic banking system has become the main technology driven revolution in conducting
financial transactions.

4. Role of ICT in the Banking Industry
The development of worldwide networks has considerably decreased the cost of global funds
transfer.
Banks that are using ICT related products such as online banking, electronic payments, security
investments, information exchanges, financial organizations can deliver high quality customer
services delivery to customers with less effort.
Brynjolfsson and Hitt (2000) point out that "ICT contribute significantly to firm level output."
They determine that Information Technology capital contributes an 81% marginal increase in
output, whereas non Information Technology capital contributes 6%.

5. Role of ICT in the Banking Industry
Electronic Banking Systems, in its most proficient form, offer instant verification and transfer and
reduces the flow of costly paper in the record keeping process.
Electronic banking services can be grouped into three generations of evolution:

7. Major Applications
Major applications for the customers:
Self-inquiry facility: Facility for logging into specified self-inquiry terminals at the branch to
inquire and view the transactions in the account.
Remote banking: Remote terminals at the customer site connected to the respective branch
through a modem, enabling the customer to make inquiries regarding his accounts, on-line,
without having to move from his office.
Anytime banking- Anywhere banking: Installation of ATMs which offer non-stop cash withdrawal,
remittances and inquiry facilities. Networking of computerized branches inter-city and intra-city,
will permit customers of these branches, when interconnected, to transact from any of these
branches.

8. Major Applications
Telebanking: A 24-hour service through which inquiries regarding balances and
transactions in the account can be made over the phone.
Electronic Banking: This enables the bank to provide corporate or high value
customers with a Graphical User Interface (GUI) software on a PC, to inquire
about their financial transactions and accounts, cash transfers, cheque book
issue and inquiry on rates without visiting the bank. Moreover, LC text and
details on bills can be sent by the customer, and the bank can download the
same. The technology used to provide this service is called electronic data
interchange (EDI). It is used to transmit business transactions in computer-
readble form between organizations and individuals in a standard format.

9. Major Applications
As information is centralized and updates are available simultaneously at all places, single-
window service becomes possible, leading to effective reduction in waiting time.

10. Major Applications
Major applications for the Banks
Availability of a wide range of inquiry facilities, assisting the bank in business development and
follow-up.
Immediate replies to customer queries without reference to ledger-keeper as terminals are
provided to Managers and Chief Managers.
Automatic and prompt carrying out of standing instructions on due date and generation of
reports.
Generation of various MIS reports and periodical returns on due dates.
Fast and up-to-date information transfer enabling speedier decisions, by interconnecting
computerized branches and controlling offices.

11. Major Applications
Major applications for the Employees
Accurate computing of cumbersome and time-consuming jobs such as balancing and interest
calculations on due dates.
Automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the
staff from performing these time-consuming jobs, and enabling them to give more attention to
the needs of the customer.
Signature retrieval facility, assisting in verification of transactions, sitting at their own terminal.
Avoidance of duplication of entries due to existence of single-point data entry.

12. Electronic facilities given by different bank
The following Electronic facilities are providing by different Foreign, state owned, and Private
Commercial banks (PCBs) in Bangladesh:
Bank accounts: Savings, Current, FDR, PDS, Term Deposit Scheme.
Debit Point-of-Sale
Cards: Credit/Debit Card
Internet Banking
Home Banking
Automated Teller Machine (ATM)
Tele Banking
Easy Pay Machine

13. The common features of electronic
banking in Bangladesh
Electronic banking idea developed in Bangladesh since 1992 through several multinational
banks. But most of the local and foreign banks are maintained electronic banking in their all
branches.
o24- hours cash deposit & withdrawal facility
oQuick cash withdrawal without having queue
oAccount activities enquiry in any moment.
oStatement request through ATM/Debit/Credit Card
oTransfer own funds to other account number in same bank
o Present Balance enquiry

14. The common features of electronic
banking in Bangladesh
oMore than16-hours shopping facilities
oDeposit or Mail cash or cheque(s) (Cross cheque) through mechanical device.
oChanging Personal Identity Number
oCash deposit which will originally deposit very next day of deposit that means do not need to go
to the branch for every occasion.
oMini statement which contain 8-10 previous transaction records
oCan able to pay utilities bill
oWithdraw money by using VISA, PLUS, MASTER, MAESTRO and other credit card
oWithdraw money from dollar account which gives taka by converting foreign currency

15. Concluding remarks:
Modern electronic banking concept in the banking services is new for Bangladeshi people.
People are not also conscious about the advantages of the technology. Some multinational
banks are already introduced their marketing activities over their targeted customers for
specialized products like electronic products which is found very effective. The multinationals
are coming up towards people with variety of highly technical products, which can solve the
people’s problem and can able to modernize their lifestyle.

16. THANKS TO ALL