Digital Banking Adoption: 75pc of customers still outside digital services

Business Report :

Despite rapid digital transformation in Bangladesh’s banking sector, nearly 75 per cent of customers still remain outside any form of digital banking, according to a new study by the Bangladesh Institute of Bank Management (BIBM).

The latest report, titled “The Influence of Digital Transformation on Retail Banking: Innovations in Banking Products,” shows that only 24.24 per cent of customers use at least one digital banking product such as mobile apps, internet banking or digital payment tools.

Banking account users reached 418.90 million in FY2025. Among them, 40.34 per cent hold branch-based deposit accounts, while 34.76 per cent rely on Mobile Financial Services (MFS), excluding Nagad. The study also accounted for MFS agents, card users and app or internet banking users as part of the expanding digital ecosystem.

BIBM Professor Md Mahbubur Rahman Alam and Associate Professor Dr Shamsun Nahar Momotaz presented the findings based on a survey of 32 banks and 320 customers at a roundtable on Thursday.

Bangladesh Bank Deputy Governor Nurun Nahar said digital banking holds promise but continues to face major challenges, including high technology costs and rising cyber risks. She noted that 68.50 per cent of banks remain stuck at the “Evolving and In Progress” stage due to outdated core systems, which has created a significant satisfaction gap-48 per cent of customers are dissatisfied or neutral because of service disruptions.

Digital literacy remains another barrier, with 23.2 per cent of customers lacking the skills to use digital services confidently.

Service delivery channels have expanded to over 1.6 million by 2025, with MFS agents making up 88.27 per cent. Mobile banking apps are now the most used digital channel (81.62 per cent), followed by ATMs (72.90 per cent). Smartphones dominate device usage, accounting for 71.21 per cent of total digital banking activity.