E-Banking in Bangladesh

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E-BANKING IN BANGLADESH
FUTURE, HURDLES & PROSPECTS

1.0 E-BANKING - INITIAL INTRODUCTION
E-banking is defined as the automated delivery of banking products and services directly to customers through electronic, interactive communication channels. Customers access ebanking services using an intelligent electronic device, such as a Personal Computer (PC), Personal Digital Assistant (PDA), Automated Teller Machine (ATM), Kiosk, or Touch Tone Telephone. E-banking refers to the PC Banking, Internet Banking, Virtual Banking, Online Banking, Home Banking, Remote Electronic Banking, and Phone Banking. E-banking includes the systems that enable Bank customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. The following chart exhibits the definition of E-banking.

E-Commerce

E-Finance

E-Money

E-banking ATM Services Any Branch Banking Internet Banking Virtual Banking SMS Banking

Other Online Financial Services and Products

Wireless Application Protocols Telephone Banking Electronic Fund Transfer (EFT) 1

SWIFT Channel Other electronic delivery channels

2.0 THE BANKING INDUSTRY AND THE APPLICATIONS OF E-BANKING
Banking has never been more important to our society than it is today. The way Bill Gates (2008) announced that « Banking is essential, Banks are not ». This quotation means that the traditional bank branch is going to vanish in order to be surrogated by Electronic Banking which continues to attract new users. The Banking industry believes that by adopting new technology, the Banks will be able to improve customer service level and tie their customers closer to the Bank. Meanwhile, the Banking industry has been also looking for new methods to expand its customer base and to counteract the aggressive marketing effort of those nontraditional banking entities. Larger Banks that maintain expensive branch

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