Digital Banking Transactions Rise Sharply

Internet banking transactions in Bangladesh’s financial sector increased markedly during the first seven months of the current fiscal year, reflecting sustained growth in digital financial activity, according to data from the Bangladesh Bank.

During the July–January period of fiscal year 2025–26, the total value of transactions conducted through internet banking rose by more than Tk 1.99 trillion. This represents an increase of over 32 per cent compared with the corresponding period of the previous fiscal year. The data indicates a continued transition towards digital channels for financial transactions across the economy.

Bankers attribute the strong year-on-year growth to a combination of factors, including increased user confidence, improved service quality and the wider availability of mobile internet services. The expansion of the e-commerce sector has also contributed to the higher volume of online transactions.

Both individual and corporate users have played a role in this upward trend. Retail customers are increasingly relying on internet banking for everyday financial activities such as transferring funds, paying utility bills and making online purchases. At the same time, businesses are utilising digital platforms to carry out bulk transactions, including payroll processing and payments to suppliers.

Syed Mahbubur Rahman, Managing Director and Chief Executive Officer of Mutual Trust Bank PLC, stated that banks are actively encouraging customers to adopt cashless transaction methods. He noted that customers now have greater flexibility to conduct transactions from both domestic and international locations through online platforms.

The central bank has continued its efforts to promote digitalisation within the financial sector. Measures such as the development of payment infrastructure, strengthened regulatory frameworks and incentives for digital usage have supported the increasing adoption of internet banking services. These initiatives are intended to reduce dependence on cash and enhance efficiency in financial transactions.

However, certain constraints remain. Cybersecurity risks continue to pose challenges as digital transaction volumes expand. In addition, disparities in digital literacy and inconsistent internet access, particularly in rural areas, limit the wider adoption of internet banking services.

The growth of digital banking in Bangladesh accelerated during the COVID-19 pandemic, when restrictions on physical movement encouraged the use of online financial services. The latest data suggests that this shift has continued, with digital transactions maintaining strong momentum.

Summary of Internet Banking Growth

The figures highlight the expanding role of internet banking in Bangladesh’s financial system, as digital platforms become increasingly integral to both personal and commercial financial activities.