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Use of ICT in

Banking Business Enhancement

Md. Mahbubur Rahman AlamAssociate Professor, BIBM, Mirpur, Dhaka.

Cell: 01556323244, Mail: alam_mr@yahoo.com

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Traditional Banking Online Banking

Customer is King and Time is MoneyCustomer is King and Information is Money

Customer is Geographically Dependent Customer is Geographically Independent

Customer goes to Bank Bank goes to Customer

Scheduled Time Banking Round the Clock Banking

Physical Bank Physical Bank and Cyber Bank

A Customer is a Customer of a Branch A Customer is a Customer of a Bank

Traditional Vs Onine Banking

Production Backup

PC banking/ Home banking

Tele-banking Mobile banking ATM

Internet banking Kiosk

POS

Termina

l

Head Office

Central Server

Terminals

Internet

Customer

Customer

Customer

Banking Network

SWIFT Network

Banking Information System

Central Server

Terminals

Head Office of another bank

POS Terminal

ATM

Banking Kiosk

Branch

Terminals

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Sonali Bank Extranet DBBL Intranet

InternetBangladesh Bank IntranetIslami Bank Intranet

Extranet

Internet, Intranet and Extranet

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Kiosk

Bran

ch Internet

Customer

POSTPSTN

ATM

Branch

Other Bank

Mobile

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ATM 6419

POS 28920

Credit Card 563464

Debit Card 7952877

Prepaid Card 122991

Internet Customer 1467383

Agent 543819

Mobile Account 29467913

Agent Account 41752

ADC

Number of Transaction in Different Delivery Channels (2015)

July 2015 (Monthly) Yearly (2015)

Transactions Amount (Cr) Transactions Amount (Cr)

MICR

1,721,614

126,675.00

20,659,368

1,520,100.00

Non-MICR

4,222

90.40

50,664

1,084.80

EFT

1,327,946

6,616.00

15,935,352

79,392.00

Credit Card

1,036,287

637.00

12,435,444

7,644.00

Debit Card

11,063,479

8,410.00

132,761,748

100,920.00

Prepaid Card

50,622

32.00

607,464

384.00

International Card 492,891

356.00

5,914,692

4,272.00

Total Card

12,643,279

9,436.00

151,719,348

113,232.00

Internet 519,671

1,674.00

6,236,052

20,088.00

Mobile

97,334,572

13,745.00

1,168,014,864

164,940.00

Agent

70,340

203.00

844,080

2,436.00

POS

1,527,163

1,053.80

18,325,956

12,645.60

E-commerce

93,650

29.30 1,123,800

351.60

Volume of Transaction in Different Delivery Channels (2011-2014)

Number of Employees in Banks (1993-2014)

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Impact of ICT National Level, Customer Level, Bank Level Benefit

Information Store, Manage and Process

Fast Data Access and Accurate Information Processing

Enhance Productivity

Paperless Office without Calculating Device

Improve Efficiency

Provide Better and Quick Services

Increase Competitiveness

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E-CRM, E-marketing, AGM Report, Easy Access to Customer

24x7x365 Global Banking

Business Diversification through New Product and Services

(ATM, POS, KIOSK, Mobile, Internet)

Business Volume Increases through New Products, Services and

Attracting new Customers

Income Increases through ATM, SMS, Internet Banking

Plastic Money Implementation

Impact of ICT

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Less Space Required and Elimination of Brick and Mortar Branch

Quick Human Resource Management

Reduction of Postal and Courier Service Cost by EFT (Removal of TT,

DD, Pay Order, Check)

Instant Remittance Transfer

Quick Business Decision

Transform into an E-business

Impact of ICT

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Average Cost Per Transaction

USA India Bangladesh

Manual Branch Banking

$ 1.27 Rs. 256 Tk. 200

Computerized Branch Banking

$ 1.14 RS. 150 Tk. 150

Phone Banking $0.52 Rs. 15 -

ATM Banking $ 0.27 Rs. 27 Tk. 40

Mobile Phone Banking

$0.16 - -

Internet Banking $0.10 Rs. 11 -

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Profit = f (Interest Income, Interest Expenditure, Administrative Cost, ...)

Profit Maximization

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Profit Maximization

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18ICT is the Aircraft

19ICT Professionals are the Pilots

Auditors are the Engineers Bank is the Passenger

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Safe Landing or Crash?

21Disaster and Recovery?

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Questions are

Welcome

Thank You