Banking in Bangladesh is rapidly shifting away from brick-and-mortar branches as more people turn to digital channels. Mobile applications, in particular, are emerging as a preferred way to manage everyday financial needs, with customer adoption accelerating across the country.
Bangladesh Bank data shows that in November, 8.57 million customers used mobile banking apps, up nearly 13 percent from 7.6 million the previous month. In June, the number stood at 7.17 million. Bankers attribute the surge to wider smartphone adoption and growing participation by women customers.
Industry leaders view this trend as part of a broader move toward automation and digitalisation. Ali Reza Iftekhar, Managing Director of Eastern Bank PLC, said mobile apps now place most banking services directly in customers’ hands, significantly reducing the need for branch visits.
“App-based banking in Bangladesh is expanding rapidly as customers increasingly depend on digital channels for everyday financial needs,” he said. “Widespread smartphone use, improved mobile internet access, and demand for fast, 24/7 services are driving this shift.”
Eastern Bank’s app, EBL Skybanking, now has around 500,000 users and has processed over Tk 500 billion across digital and “phygital” channels such as ATMs and CRMs. The bank has recorded a 79 percent year-on-year rise in average transaction numbers, a 90 percent increase in transaction volume, and a 59 percent growth in digital youth users.
Bangladesh Bank reports that internet banking usage is also rising, though overall transaction value through internet platforms fell 12 percent month-on-month to Tk 107,993 crore. Despite the dip, digital transaction volumes have remained above Tk 100,000 crore for six consecutive months.
Currently, 58 out of 61 banks in the country offer internet banking services. Sending money to mobile financial services remains the most common transaction, followed by cash withdrawals, bill payments, and mobile recharges. Central bank data shows that wallet top-ups, payments, and digital transfers are increasing, while cash withdrawals through digital channels are declining—signalling a gradual shift away from cash.
Md Arup Haider, Deputy Managing Director and Head of Retail Banking at City Bank PLC, said apps now allow customers to bank from home. “We are continuously adding new features based on customer preferences,” he said.
Mutual Trust Bank’s MTB Neo app has 280,000 users and processed Tk 4,000 crore in transactions last month. The bank aims to reach 500,000 users by year-end. BRAC Bank’s Astha app has over 1.2 million users and handles around Tk 20,000 crore in monthly transactions, offering more than 120 integrated services.
Bangladesh Bank has set a target for at least 75 percent of retail transactions to be settled digitally by 2027. Bankers say digital channels reduce operational costs and allow staff to focus on higher-value services, while giving customers the freedom to bank anytime, anywhere.
Despite the momentum, challenges remain. Limited digital literacy, especially outside major cities, inconsistent internet connectivity, and rising cybersecurity concerns continue to slow wider adoption. Bankers say improving onboarding, strengthening security, and expanding access will be critical to sustaining trust in digital banking.
