Mohammad Robaitur Rahat1*, Fatema Tuz Zuhora2, and Chotan Chowdhury 3
1Department of Business Administration in Finance and Banking, Bangladesh University of Professionals, Dhaka, Bangladesh. Email: robaiturr@gmail.com
2Department of Business Administration, Bangladesh Army International University of Science and Technology (BAIUST), Cumilla, Bangladesh. Email: ftztarin.dba@baiust.ac.bd
3Independent Researcher, Cumilla. Bangladesh. Email: chowdhury.chotan42@gmail.com
*Corresponding Author
Abstract: The drive towards financial inclusion, coupled with the competitive pressures from Fintech, is accelerating the banking sector towards increased levels of digitalization, particularly in developing nations. This research explores the potentials and challenges faced by digital banks in Bangladesh. This study employed qualitative interviews with purposively selected fifteen banking and IT professionals from the banking and Fintech sectors of Bangladesh. Our analysis, conducted by using Atlas.ti 2023 software, indicates that digital banks in Bangladesh can exploit the widespread mobile penetration rate to offer user-friendly mobile applications, agent networks, and QR code-based payment methods to enhance financial accessibility. However, challenges such as limited customer interaction, the necessity of technological expertise, and concerns regarding data security exist. Our study also suggests using AI-powered chatbots, tailored communication, and targeted marketing strategies could mitigate the challenges of limited customer engagement, while substantial investments in technological infrastructure and stringent security protocols are essential to safeguard customer privacy and trust.
Keywords: digital bank, neo bank, banking sector, revolution, Bangladesh
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