In a major move to enhance transparency, innovation, and competition within the financial sector, Bangladesh is set to roll out an open banking system. Modeled after the framework used in technologically advanced nations, this system will allow customers to access services from multiple banks and fintech institutions on a single platform.
A senior official from Bangladesh Bank confirmed that with the introduction of open banking, customers will be able to use the transaction history from one bank, even if they have an account with another, through authorised third-party fintech providers. For example, if a customer holds an account with City Bank, they could also access services such as loans or investments from Eastern Bank, based on their financial performance, without the need to switch banks. In this case, Eastern Bank would assess the customer’s financial information through a third-party fintech platform.
Through open banking, customers can voluntarily share their financial data with third-party apps or fintech companies. This will enable them to access a range of services, such as loan applications, bill payments, expense analysis, investment planning, and savings—all from one platform. Sharafat Ullah Khan, Director of the Payment Systems Department at Bangladesh Bank, mentioned that open banking could be introduced soon with the joint efforts of banks, fintech firms, and regulatory bodies. He stated that the initiative would play a crucial role in the development of credit bureaus, payment initiation services, and digital banking.
Bangladesh Bank plans to release guidelines for open banking and a standardised application programming interface (API) protocol by June 2026. A working committee will be established next month to provide guidance during the implementation process.
Humayra Azam, Managing Director of LankaBangla Finance, noted that traditional banking has been operating within a limited framework for many years. She believes that the introduction of open banking will allow banks to collaborate with third-party fintech firms to improve customer service. If the proper infrastructure and skilled workforce are in place, Bangladesh can reach international standards.
Arfan Ali, former Managing Director of Bank Asia, pointed out that open banking has already become an integral part of banking systems in Europe, Australia, and Canada, where customers have full control over their data and can combine information from different banks. For open banking to succeed in Bangladesh, customer consent, cybersecurity, and data protection laws must be ensured.