Conventional Banks to Gradually Transform into Digital Banks: BB Governor
Bangladesh Bank Governor Dr Ahsan H Mansur has said that the country’s conventional banks are expected to gradually transform into digital banks over the next one to one-and-a-half decades, driven by technological advancement and the growing shift towards cashless transactions.
The governor made the remarks on Monday, December 15, while speaking as the chief guest at a discussion held in Cox’s Bazar under Bangladesh Bank’s cashless transaction promotion campaign.
Highlighting the central bank’s initiatives to reduce cash-based transactions, Dr Mansur said Bangladesh Bank is running awareness campaigns across different regions of the country. He emphasised the importance of ensuring smartphone access for all, expanding the use of credit cards alongside debit cards, and increasing investment in the fintech sector.
“In the next 10 to 15 years, conventional banks will gradually evolve into digital banks,” the governor said, adding that technology-led financial inclusion would play a crucial role in shaping the future of the banking sector.
The seminar was held at the Sayeman Beach Resort in Cox’s Bazar and chaired by Bangladesh Bank Executive Director Arif Hossain Khan. Senior officials from banks and financial institutions took part in the discussion.
The keynote paper was jointly presented by Rafeeza Akter Kanta, Director of Bangladesh Bank’s Payment Systems Department, and Additional Director Md Parvez Anjam Munir. The presentation highlighted the progress, challenges and future roadmap of Bangladesh’s digital payment ecosystem.
Speaking at the event, Saiful Islam, Managing Director of SSLCommerz, said building a cashless economy requires cooperation rather than competition between banks and fintech companies. He also pointed out the significant potential for expanding digital transactions in tourism-driven areas such as Cox’s Bazar.
In his address, the governor also acknowledged that large-scale capital flight in recent years had severely strained the country’s financial sector. He noted that Bangladesh’s foreign exchange reserves had fallen sharply from a peak of $48 billion to around $20 billion at one point.
However, he said the situation has since improved, with foreign exchange reserves now exceeding $32 billion, resulting in a modest increase in liquidity in the market. Dr Mansur stressed that to expand money supply while keeping inflation under control, there is no alternative to boosting remittance inflows, foreign borrowing and foreign investment.
DBTech/BTL/EK
