The banking landscape in Bangladesh has undergone a remarkable evolution, and the rise of app banking is a game-changer. Get ready to be amazed by how this digital revolution is transforming the country's financial system!
Over the last five years, mobile apps have revolutionized the way Bangladeshis manage their finances. With nearly every private commercial bank offering their own mobile banking apps, customers can now handle their daily financial tasks from the comfort of their homes, eliminating the need for branch visits.
The impact is evident: according to Bangladesh Bank data, internet banking, primarily through mobile apps, accounted for an impressive 40% of all monthly banking transactions in July. This shift has created a win-win scenario, benefiting both customers and banks alike.
But here's where it gets controversial: some argue that the surge in mobile app usage is not solely due to the convenience factor. Banks have strategically built a robust digital payment ecosystem, making online transactions particularly appealing to younger users. From paying bills and rent to sending money and opening accounts, mobile banking has simplified these tasks, making them accessible with just a few taps.
And this is the part most people miss: the rise of app banking is not just about convenience; it's about empowering individuals and businesses to participate in a cash-light economy. Digital payments now support every layer of commerce, from micro-merchants to major corporations.
Take City Bank's Citytouch, for example. Launched in 2013, it took seven years to reach 72,000 users. But then came the Covid-19 pandemic, which acted as a catalyst, pushing people towards digital services. The result? An extraordinary surge, with the user base jumping to 8.82 lakh, growing at an incredible compound annual growth rate (CAGR) of 65.4%.
The transaction data is even more eye-opening. Citytouch's daily transactions skyrocketed from Tk27 crore in 2020 to a whopping Tk400 crore in July 2024, reflecting a CAGR of 73.6%. This massive shift has not only saved City Bank money on staff costs but also showcases the rapid adoption of digital money management by Bangladeshis.
BRAC Bank's Astha app has also achieved remarkable success, surpassing 10 lakh users and now reaching 12 lakh. Tareq Refat Ullah Khan, Managing Director and CEO, called it a "significant milestone." He noted that customers conduct Tk20,000 crore in transactions each month, emphasizing how digital banking has evolved from a convenience to an integral part of daily financial life.
Today, a staggering 71% of BRAC Bank's total transactions occur through the Astha app. Tasks that once took hours, like paying bills or applying for deposits, can now be completed in minutes. Customers can also manage education fees, pay insurance premiums, and access various loan facilities directly from the app. This ease of use has made financial management more intuitive, freeing up time for individuals to focus on other aspects of their lives.
The shift towards digital payments is not just a trend; it's a movement towards a cash-light society. Astha facilitates digital payments at all levels of the economy, from micro-merchants using BanglaQR to large corporate transactions. Annual transactions through the app have soared, reflecting a significant behavioral change and growing trust in secure, traceable digital channels.
BRAC Bank has invested heavily in building a robust digital infrastructure to support this momentum. "With the Astha app, we've empowered customers to access financial opportunities instantly. It's more than a service; it's about genuine financial inclusion," said the bank's MD.
Dutch-Bangla Bank's NexusPay is another key driver of this digital transformation. With nearly 70 lakh users, monthly transactions through NexusPay exceed Tk21,000 crore, positioning DBBL at the heart of Bangladesh's digital payment network.
Abul Kashem Md Shirin, Managing Director of DBBL, emphasized that mobile banking has not only modernized the banking system but has created a parallel, mobile-first financial ecosystem. In rural areas without physical branches, agent banking supported by apps or USSD codes has become the local "branch," providing access to services that were once limited to urban areas.
DBBL's Rocket, one of the pioneers of MFS, played a crucial role in changing customer behavior. Before Rocket, banking meant cash. But with simple services like Cash-In/Cash-Out, P2P transfers, and merchant payments, people began to view their mobile phones as secure wallets. This instant access to funds transformed the lives of garment workers, small business owners, and remittance recipients, eliminating the need to travel to bank branches and lose a day's wage.
bKash, the largest mobile financial services provider in Bangladesh, now has 8.2 crore customers using its app. Users can also add money directly from their bank accounts, further streamlining digital payments.
Azmal Huda, Chief Product & Technology Officer of bKash, shared, "We designed the app to enhance people's lifestyles, not just as a financial tool. We moved away from text-heavy interfaces to a visually engaging, icon-driven design that bridges literacy gaps. bKash's intuitive nature, where users don't have to 'learn' the app, is the reason it has become the preferred choice for millions. Every pixel is designed to reduce cognitive load and empower everyone with financial freedom."
Eastern Bank's Skybanking, while smaller in scale, has shown impressive growth. With 4.5 lakh users and Tk120 crore in daily transactions, it has one of the fastest growth trajectories. In the last five years, users increased by 437%, transaction volume by 775%, and total transaction value by an astonishing 2,695%.
Ali Reza Iftekhar, Managing Director and CEO of EBL, stated, "Nearly half a million people now rely on Skybanking, with a Bank-to-App conversion rate close to 50%, one of the highest in Bangladesh. This shift reflects a mindset change; customers are no longer 'trying out' digital banking but have embraced it as their primary financial interaction mode."
He added, "Mobile banking is a powerful catalyst in Bangladesh's journey towards a cashless society. Every digital payment, every QR transaction, and every online transfer reduces our dependence on cash."
Mutual Trust Bank's MTB Neo app offers 24/7 access to various services, including balance checks, fund transfers, and bill payments. Its user base has been growing steadily, reaching nearly 2.5 lakh users, with monthly transactions increasing by 90% year-on-year, totaling around Tk2,000 crore.
Syed Mahbubur Rahman, Managing Director and CEO of MTB, said, "MTB Neo has transformed the way our customers perceive banking. Our goal is to ensure that if a customer can do something at a branch, they can do it from MTB Neo. Whether it's paying bills, sending money, or accessing loans, we aim to make everything accessible to our customers."
The rise of app banking in Bangladesh is a testament to the power of digital innovation. It's not just about convenience; it's about empowering individuals and businesses to participate in a modern, cash-light economy. As the country continues its digital transformation, the future of banking looks brighter than ever.
