The future of banking in Bangladesh: Embracing the digital revolution
Dr. Md. Touhidul Alam Khan :
Bangladesh’s banking sector is on the brink of an exciting transformation, driven by rapid technological advances and a pressing need to modernize.
The message from industry leaders and global futurists is clear: to stay competitive in this digital age, banks must innovate or risk falling behind.
This is a moment of incredible opportunity—one that calls for strategic thinking, bold collaboration, and a vision for an inclusive, tech-driven future.
At the heart of this evolution is the move toward digital-first banking. Brett King, a renowned futurist and fintech expert, warns that the divide between traditional banks and the nimble fintech startups is widening fast, thanks to developments in artificial intelligence (AI), automation, and real-time customer engagement.
For Bangladeshi banks, the message is urgent: they need to abandon outdated legacy systems and embrace the principles of Bank 5.0, which prioritizes seamless digital infrastructure, hyper-personalized services, and customer-centric innovation.
During his recent address to the local banking community, King emphasized that banking is becoming intricately tied to technology and that local institutions must harness AI and emerging tech immediately to avoid losing ground in the global arena.
Strategic partnerships are also emerging as key drivers of digital transformation.
Leading Bangladeshi banks are forging alliances with fintech firms to upgrade their core systems and develop innovative offerings.
These include digital micro-loans aimed at empowering small entrepreneurs and underserved communities, as well as smarter payment solutions that make banking more accessible.
For instance, digital on boarding tools are helping banks reach rural populations more easily, reducing costs and expanding financial inclusion—transforming banking into a more inclusive service for all segments of society.
Looking ahead, the future of digital banking in Bangladesh will focus on several vital areas.
Automation and AI will streamline routine processes such as customer verification, credit scoring, and transaction monitoring, improving efficiency and security.
AI-powered chat bots will offer 24/7 support, providing personalized services that deepen customer relationships.
Moreover, innovative financial products like digital nano loans will open new avenues for entrepreneurs and low-income households, fostering economic growth from the grassroots level.
A shift toward upgrading digital platforms including mobile apps, internet portals, and APIs will enable smoother integration with third-party services, creating a more interconnected financial landscape.
Data analytics will become a powerful tool in tailoring financial advice, targeted promotions, and proactive risk management—building stronger loyalty and trust.
Additionally, integrating sustainability initiatives such as green finance and renewable energy investments will help align Bangladesh’s banking system with global environmental goals, paving the way for responsible growth.
King’s message underscores the urgency of these changes. He warns that the banking industry is nearing a point where human involvement could diminish significantly—with predictions that robots and AI will dominate banking operations by 2035.
He emphasizes that the future belongs to those who adopt and adapt to AI and automation now, or risk being left behind.
His stark vision that “humans will no longer run banks in the next 30 years” serves as a wake-up call for Bangladesh’s banking sector to prioritize digital innovation and agility.
Beyond technology, this transformation is about rethinking how banking can better serve society. With a young, digitally savvy population eager for modern solutions, Bangladesh has a unique opportunity to lead regional innovation.
Policymakers and regulators must play a vital role by creating supportive policies, nurturing innovation hubs, and ensuring cyber security. Equally important is investing in talent—training staff and fostering a culture open to change.
The future of Bangladesh’s banking industry is bright if it embraces the blend of human ingenuity and technological prowess.
Digital payments, AI-driven services, and strategic collaborations are shaping a resilient, inclusive, and forward-looking financial ecosystem that can fuel economic growth and social progress.
The key message from Brett King is simple yet powerful: act now. The digital revolution in banking is unstoppable, and those who lead it will shape the future of Bangladesh’s economy and society. The journey has begun—ready or not, the era of smarter, more inclusive banking is here.
(The author is Managing Director & CEO of NRBC Bank PLC and fellow cost & management accountant
of ICMAB)