Fintech services in Bangladesh: benefits and challenges

Financial technology (Fintech) is used to describe new technology that seeks to improve and automate the delivery and use of financial services. At its core, financial technology is utilized to help companies, business owners and consumers better manage their financial operations, processes and lives by utilizing specialized software and algorithms that are used on computers and increasingly, smartphones. Financial technology now describes a variety of financial activities, such as money transfers, depositing a check with your smartphone, bypassing a bank branch to apply for credit, raising money for a business startup, or managing investments, generally without the assistance of a person. 

Financial Technology has become the heart of the finacial sector in Bangladesh now-a-days. The banking industry is the heart of every robust economy. Financial Technology is helping the banking sector improve its efficiency and effectiveness of services offered to customers, and enhance business processes, managerial decision making, and workgroup collaborations which strengthen their competitive positions in rapidly changing and emerging economies. 

All banks in Bangladesh have made substantial investments in technology platforms and systems, built multiple distribution channels, including an electronically linked branch network, automated telephone banking, internet banking and banking through mobile phones to offer its customers convenient access to various products. By and large, the banks have been successful in developing innovative product features, reducing operating costs, enhancing customer service delivery and minimising inherent risks. IT facilitates all our core business processes and components, and serves to support, sustain and grow transformation and realisation of our strategic objectives at group and business unit levels. 

In Bangladesh, banks have established their large ATM and POST networks for providing ATM access for 24 hours for their customers. Besides offering access to ATM network across the country. they are also providing the same access to their customers worldwide through the network of VISA/MasterCard. They are also establishing and expanding their own ATM/POST network. Many banks have installed POS terminals in major shops, hotels, sales centers etc. all over the country. Some of the technology-driven banks are providing internet banking channel with the inclusion of a number of customer-friendly features. The systems software is providing the customers access to their accounts from mobile devices like smart phones and tablets. The customers are now able to do banking from any place of Bangladesh at any time. Mobile banking refers to access to accounts, transfer of funds, summary sheets and other banking services through dialing a telephone number. 

In case of mobile banking, banking services are provided to the customers having credit card accounts. Services are provided by the association of banks and cellular service providers through SMS or WAP enabled mobile instruments. And there are many helpful sides of financial technology and these are Contact/Call Centre, Automated Clearing House System (ACHS), Electronic Fund Transfer (EFT). Online CIB, the Core Banking Solution (CBS), Corporate Intranet System and so on. 

Trickery and imposer uses bring hazardous problems in the banking. Sometimes hackers change password and enter into one's account which latter may cause of one's capital theft. In ATM booth. these are a common problem today and that is inadequate of money. Without electricity. E-banking is ineffective. Besides, it directly creates an unemployment problem. Virtual banking may bankrupt one's account sometimes which is not unprecedented in our country. 

In Bangladesh banks are yet to fully embrace the electronic fund transfer services even four years after its launch due to lack of awareness and incentives among bankers about the cost effective, quicker and securer system.