1 Use of ICT in Banking Business Enhancement Md. Mahbubur Rahman Alam Associate Professor, BIBM, Mirpur, Dhaka. Cell: , Mail:

2 Traditional BankingOnline Banking Customer is King and Time is Money Customer is King and Information is Money Customer is Geographically DependentCustomer is Geographically Independent Customer goes to BankBank goes to Customer Scheduled Time BankingRound the Clock Banking Physical BankPhysical Bank and Cyber Bank A Customer is a Customer of a BranchA Customer is a Customer of a Bank Traditional Vs Onine Banking

ProductionBackup PC banking/ Home banking Tele-banking Mobile banking ATM Internet banking Kiosk POS Terminal

Head Office Central Server Terminals Internet Customer Banking Network SWIFT Network Banking Information System Central Server Terminals Head Office of another bank POS Terminal ATM Banking Kiosk Branch Terminals

5 Sonali Bank Extranet DBBL Intranet Internet Bangladesh Bank Intranet Islami Bank Intranet Extranet Internet, Intranet and Extranet

6 Kiosk Branch Internet Customer POST PSTN ATM Branch Other Bank Mobile

7 ATM6419 POS28920 Credit Card Debit Card Prepaid Card Internet Customer Agent Mobile Account Agent Account41752 ADC

Number of Transaction in Different Delivery Channels (2015) July 2015 (Monthly)Yearly (2015) TransactionsAmount (Cr)TransactionsAmount (Cr) MICR 1,721, , ,659,368 1,520, Non-MICR 4, ,664 1, EFT 1,327,946 6, ,935,352 79, Credit Card 1,036, ,435,444 7, Debit Card 11,063,479 8, ,761, , Prepaid Card 50, , International Card 492, ,914,692 4, Total Card 12,643,279 9, ,719, , Internet 519,671 1, ,236,052 20, Mobile 97,334,572 13, ,168,014, , Agent 70, ,080 2, POS 1,527,163 1, ,325,956 12, E-commerce 93, ,123,

Volume of Transaction in Different Delivery Channels ( )

Number of Employees in Banks ( )

11 Impact of ICT  National Level, Customer Level, Bank Level Benefit  Information Store, Manage and Process  Fast Data Access and Accurate Information Processing  Enhance Productivity  Paperless Office without Calculating Device  Improve Efficiency  Provide Better and Quick Services  Increase Competitiveness

12  E-CRM, E-marketing, AGM Report, Easy Access to Customer  24x7x365 Global Banking  Business Diversification through New Product and Services (ATM, POS, KIOSK, Mobile, Internet)  Business Volume Increases through New Products, Services and Attracting new Customers  Income Increases through ATM, SMS, Internet Banking  Plastic Money Implementation Impact of ICT

13  Less Space Required and Elimination of Brick and Mortar Branch  Quick Human Resource Management  Reduction of Postal and Courier Service Cost by EFT (Removal of TT, DD, Pay Order, Check)  Instant Remittance Transfer  Quick Business Decision  Transform into an E-business Impact of ICT

14 Average Cost Per Transaction USAIndiaBangladesh Manual Branch Banking $ 1.27Rs. 256Tk. 200 Computerized Branch Banking $ 1.14RS. 150Tk. 150 Phone Banking $0.52Rs. 15- ATM Banking $ 0.27Rs. 27Tk. 40 Mobile Phone Banking $ Internet Banking $0.10Rs. 11-

15 Profit = f (Interest Income, Interest Expenditure, Administrative Cost,...) Profit Maximization

16 Profit Maximization

17

18 ICT is the Aircraft

19 ICT Professionals are the Pilots Auditors are the Engineers Bank is the Passenger

20 Safe Landing or Crash?

21 Disaster and Recovery?

22 Questions are Welcome Thank You