Internet Banking Sees Strong Seven-Month Growth

Internet banking transactions in Bangladesh’s financial sector recorded significant growth during the first seven months of the current fiscal year, according to data released by the Bangladesh Bank.

The figures show a continued shift towards digital financial services, with users increasingly opting for online platforms to complete transactions more efficiently. This trend has contributed to reduced reliance on physical banking channels, offering both time and cost savings.

Between July and January of fiscal year 2025–26, transactions conducted through internet banking rose by more than Tk 1.99 trillion, representing an increase of over 32 per cent compared with the same period in the previous fiscal year. Bankers attribute this growth to rising user confidence in digital systems and the broader integration of online financial services into daily economic activity.

Industry representatives report that both individual and corporate clients are driving the expansion. Retail customers are increasingly using internet banking for routine purposes such as fund transfers, utility bill payments and online shopping. Meanwhile, corporate entities are adopting digital platforms for bulk transactions, including salary disbursement and supplier payments.

Syed Mahbubur Rahman, Managing Director and Chief Executive Officer of Mutual Trust Bank PLC, said that banks are placing greater emphasis on promoting cashless transactions and encouraging customers to use digital channels. He noted that customers are now able to conduct transactions conveniently from home or abroad, reflecting increased accessibility and functionality.

Bankers also highlighted several contributing factors behind the growth. Improvements in service reliability, expansion of mobile internet coverage, and the rapid development of the e-commerce sector have collectively supported higher transaction volumes.

The central bank has continued to promote digitalisation across the financial sector. Its initiatives include strengthening payment infrastructure, enhancing regulatory oversight, and introducing measures to encourage digital adoption. These efforts are aimed at reducing dependency on cash and improving overall transaction efficiency.

Despite the positive trajectory, challenges remain. Cybersecurity risks are an ongoing concern as transaction volumes increase. Additionally, limited digital literacy and uneven internet access in rural areas continue to restrict broader participation in digital banking services.

Digital banking services gained prominence during the COVID-19 pandemic, when movement restrictions necessitated alternative methods of conducting financial transactions. The current growth trend suggests that the shift towards digital channels has persisted beyond that period.

Key Transaction Data (July–January FY 2025–26)

The data underscores the growing role of internet banking in Bangladesh’s financial ecosystem, as both consumers and businesses continue to adopt digital solutions for a wide range of transactions.