current status of e-banking md. mahbubur rahman alam associate professor, bibm bangladesh institute...
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Current Status of E-Banking
Md. Mahbubur Rahman Alam
Associate Professor, BIBM
Bangladesh Institute of Bank Management (BIBM)
2
Classification of Banks According to BB Guideline
Source: Survey Information
3
Computerization of Bank Branches 1998-2014
Source: Survey Information
4
IT Investment 2011-2014 (Crore)
Total investment up to 2014 was estimated at Tk. 23,149 crore since
1968 (considering the installation of computer at Agrani Bank in 1968
which was the first installation of computer in the banking sector of
Bangladesh).
5
IT Budget Allocation: 2011-2014
Source: Survey Information
6
Penetration of Computer (PC) and E-mail ID, 2012 - 2014
7
Intranet Facilities used by Banks in 2013-2014
Facilities 2013 2014
Bulletin board service (BBS) where a message is displayed
instantly to be seen by all employees who logs into the
system.
20 40
To view employee information (name, designation, phone,
email etc.)27 48
Bank’s circular with a search engine 20 52
Group collaboration service where a group of employees
working in a task force can collaborate to execute their
activities. Audio / video chatting with IP phone.
20 25
Attendance of employee through user login 13 16
8Source: Survey Information
Some Important Ratios
IT Employees : Non IT Employees2011 2012 2013 2014
Min Max Min Max Min Max Min Max
State-Owned 1 : 100 1: 206 1 : 99 1 : 203 1 : 95 1 : 201 1 : 92 1 : 198
Specialized 1 : 32 1 : 523 1 : 31 1 : 519 1 : 31 1 : 512 1 : 30 1 : 508
Private 1 : 26 1 : 92 1 : 26 1 : 88 1 : 22 1 : 85 1 : 20 1 : 82
Foreign - - - - 1 : 15 1 : 35 1 : 14 1 : 35
IT Employees : Computerized Branch2011 2012 2013 2014
Min Max Min Max Min Max Min Max
State-Owned 1 : 7 1 : 14 1 : 7 1 : 13 1 : 6 1 : 14 1 : 5 1 : 13
Specialized 1: 15 1 : 54 1: 15 1 : 54 1: 15 1 : 54 1: 15 1 : 51
Private 1 : 0.5 1 : 2.6 1 : 0.5 1 : 2.1 1 : 0.85 1 : 3.6 1 : 0.81 1 : 3.4
Foreign - - - - 1 : 0.65 1 : 2.1 1 : 0.62 1 : 2.1
9
Classification of Banking Software (% of Banks)
Source: Survey Information
10
Replication and Clustering (% of Banks)
Source: Survey Information
In 2011, only 78% banks had real-time database replication
technology, whereas in 2014, it increased to 84%. However,
research findings show that, still 16% banks may not able to
provide accessibility of data in case of any technical fault in the
production database server.
Types of Clustering 2011 2012 2013 2014
Clustered Network Server 8 8 8 14
Clustered Database Servers 69 73 73 76
Clustered Application Servers 23 23 24 28
11
Application Software
On an average 23, minimum 6 and maximum 80 application software are
being used in the banks. Minimum 40% to maximum 100% are web based.
But on average around 80% software are based on three tier web based
architecture.
System Software (OS)
Source: Survey Information
Client ServerLicensed 97.7253 88Free 2.27468 12
Client OS %Windows 97.0093Linux 0.23605Google 2.14592Unix 0.49356Mac 0.02146
Server OS
13
Data Center and Disaster Recovery Site
Source: Survey Information
71% banks have centralized database operations through data center
having DRS. Only 16% banks have Certified Data Centre Design
Professional (CDCDP).
31.5% banks test it monthly.
12.5% banks test it Quarterly.
28% banks test it half yearly and
17.5% yearly.
Rest of the 10.5% banks did not
mention their testing duration.
50% of the banks are afraid of testing
the disaster recovery site by shutting
down the data center any time!
Types of DRS 2011 2012 2013 2014
Hot 69 72 72 74
Warm 16 16 18 17
Cold 15 12 10 9
14Source: Survey Information
In case of any disaster, disaster recovery plan plays an important
role. About 33% banks have approved guidelines of BCP/DRP.
Among the banks all are following the BB ICT Security Guidelines
and 20% follow ISO standard in addition. Only 15% banks have
separate BCP and DRP department. Minimum, maximum and
average number of employees are working in these departments
are 3, 12 and 6, respectively.
Disaster Recovery Plan (DRP)
15
Dual Communication Link Used in Online Branches/ADCs
Source: Survey Information
Name of Link
% of Total Number of Links Used
2011 2012 2013 2014
Optical Fiber 58 67 69 77
Radio Links 24 23 23 15
Satellite/VSAT 8 3 3 2
Others 10 7 5 6
16
At the end of 2014 only
64% banks provided
some sort of Internet
banking services in
Bangladesh, which was
61% at the end of 2013.
Internet Banking
17Ref: 3.18 Page -24
Internet Banking Facilities
Sl. No.
Internet Banking Facilities 2013 2014
1 Fund Transfer (Customer’s A/C to A/C transfer) 29 52
23rd Party Fund Transfer (One customer’s A/C to another customer’s A/C)
21 40
3 Credit card bill payment 14 32
4 Utility bill payment (Gas, Electricity etc.) 7 12
5 Transfer fund from credit card account to his own A/C 0 0
6 Transfer fund from Bank A/C to his mobile banking A/C 0 4
7Transaction history of all accounts of the same customer
36 64
8Transaction history of all loan accounts of the same customer
21 60
9To view the Credit card information of the same customer
7 7
10To view the Mobile banking information of the same customer
0 0
11 iRecharge (Mobile Airtime Top Up) 21 40
12 Wimax Recharge 14 22
18
Internet Banking Problems
19
There were 5,661 ATMs
in Bangladesh at the
end of 2014. Most of the
ATMs are installed in the
divisional cities and
district level. Around
49% ATMs are installed
in Dhaka. A very few
ATMs are being
operated in rural areas,
less than 4.84.
ATM Banking
20
ATM Banking Problems
2013 2014
Number of Banks Permitted 28 28
Started MFS Operation 19 19
Registered Customers 1,31,80,000 25,186,250
Agents 1,88,647 5,40,984
Number of Transactions (Millions) 228.85 589.48
Transactions ( BDT Billion ) 664 1,031.55
A Holistic View of the Mobile Financial Service Status
Source: Data: PSD, BB; Compilation: FSD, BB
Volume of Transaction in Different Delivery Channels (2011-2014)
23
BACH
24
BEFTN
The Bangladesh Electronic Fund Transfer Network (BEFTN) started
its operation on 28 February 2011. On average, approximately
20,950 EFT transactions were processed in a day in 2012. The total
monetary amount of EFT transactions under BEFTN in 2012 and
2011 was Tk. 284.3 and 18.7 billion, respectively. On average,
approximately 21,072 EFT transactions were processed in a day in
2013. Total monetary amount of EFT transactions under BEFTN in
2013 was Tk. 396.1 billion, which is 44 percent higher than 2012.
25
Trends in Technology Adoption 1998-2014
Source: Survey Information
26
Types of Training Provided 2011-2014 (% of Total Training)
Source: Survey Information
58 % of CTOs are not Satisfied !
Only 2% IT Budget goes to Training !
27
Why Training was not Provided?
Bangladesh Institute of Bank Management (BIBM)
Thanks for Patience Hearing
Current Status of E-Banking