Full Length Research Paper
Adoption of e-banking in Bangladesh: An exploratory study
A. H. M. Saidul Hasan1, Md. Azizul Baten2*, Anton Abdulbasah Kamil2 and Sanjida Parveen3 2
Dhaka Commerce College, Dhaka, Bangladesh. Mathematics Section, School of Distance Education, University Sains Malaysia, 11800 USM, Penang, Malaysia. 3 Bhuiyan Computers, Dhaka, Bangladesh. Accepted 10 June, 2010
Nowadays e-commerce, e-business and financial services industry have increasingly become a necessary component of business strategy and a strong catalyst for economic development. As a thirdworld developing country, Bangladesh is far behind to reach the expected level in global banking system. So it is our urgent need to upgrade its banking system. This study has been done mainly based on primary and secondary sources of data or information, which included different publications. This paper is aimed at to determine the present scenario of e-banking and banking sectors in Bangladesh and at the same time it demonstrated the scope and benefits of e-banking compared with the existing system. This paper addressed significant gaps in existing knowledge about the internet banking and landscape. We tried to present actual situation of e-banking in the marketing point of view in Bangladesh. The results showed that e-banking serves several advantages to Bangladeshi banking sector, however, this study also observed that the Bangladeshi customers have not enough knowledge regarding e-banking which is rendering by banking sector in Bangladesh. A discussion of the implications of these results and limitations are provided at the end. Key words: Banking sector, e-banking, economy, Bangladesh. INTRODUCTION E-banking is now a global phenomenon. It is an invaluable and powerful tool driving development, supporting growth, promoting innovation and enhancing competitiveness (Kamel, 2005 and Nath, Shrick and Parzinger, 2001). Technological innovations have been identified to contribute to the distribution channels of banks and these electronic delivery channels are collectively referred to as electronic banking (Goi, 2005). The evolution of banking technology has been driven by changes in distribution channels as evidenced by automated teller machine (ATM), Phone-banking, Telebanking, PC-banking and most recently internet banking (Chang, 2003; Gallup Consulting, 2008). The developed country as a part and parcel of their economy is now using electronic banking or online banking. There have already been a number of studies related to Internet banking covering a range of research dimensions. For example, Pyun et al. (2002) in the U.S., Japan and Europe, Gurau (2002) in Romania; Sathye (1999) in Australia; Polatoglu and Ekin (2001) in Turkey; Balachandher et al (2000) in Malaysia; and Jasimuddin (2004) in Saudi Arabia focused also related studies of internet banking. Apart from the developed countries, the developing countries are experiencing strong growth in ebanking such as India and the Republic of Korea are experiencing particularly strong growth in e-banking. In Southeast Asia, internet banking is also developing rapidly in Thailand, Malaysia, and Singapore and in Philippines (Mia et al., 2007). We refer also Thulani et al. (2009) in Zimbabwe; Guangying (2009) in China; Dhekra (2009) in Tunisia; Adesina and Ayo (2010); Maiyaki and Mokhtar (2010) in Nigeria; Salehi and Alipour (2010) in Iran, explored the extent of adoption and usage of internet banking. In Nepal, ATMs are the most popular electronic delivery channel for banking services but only
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Hasan et al.
a few customers are using internet banking facilities. A strong banking industry is an...