Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail

or virtual bank, credit union or building society. Online banking

solutions have many features and capabilities in common, but traditionally also have some that are application specific. The common features fall broadly into several categories

Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer, apply for a loan, new account, etc.) o Payments to third parties, including bill payments and telegraphic/wire transfers o Funds transfers between a customer's own transactional account and savings accounts o Investment purchase or sale o Loan applications and transactions, such as repayments of enrollments Non-transactional (e.g., online statements, cheque links, cobrowsing, chat) o Viewing recent transactions o Downloading bank statements, for example in PDF format o Viewing images of paid cheques Financial Institution Administration Management of multiple users having varying levels of authority Transaction approval process

Features commonly unique to Internet banking include

Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.

[edit] History
The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Home banking can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the citys major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services[1] using the videotex system. Because of the commercial failure of videotex these banking services never became popular except in France where the use of videotex (Minitel) was subsidised by the telecom provider and the UK, where the Prestel system was used. The UK's first home online banking services[2] was set up by Bank of Scotland for customers of the Nottingham Building Society (NBS) in 1983.[3] The system used was based on the UK's Prestel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td1400)

connected to the telephone system and television set. The system (known as 'Homelink') allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Homelink system. Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was later used to transfer the payment directly. Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in October 1994.[citation needed] Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better interest rates and online banking features.

[edit] Security

Security token devices Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there dfis no additional encryption needed.

Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in

Germany and Austria, many banks have adopted this "SMS TAN" service as it is considered very secure.

Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.

Attacks Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information. A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background. A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states.[2] The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the destination account number and also the amount.

Online Banking in Multi National Banks of Bangladesh:

Online Banking functionalities offered by Multi national banks operating in Bangladesh:

1. Payment transaction initiation: a. issuance of Corporate cheque b. issuance of managers cheque / Pay Order c. Utility Bill Payment d. Fund Transfer within accounts of the same entity 2. Trade Transaction initiation: import LC issuanc

3. Real time reports and statement: a. Account statement b. Payment transaction issuance and outstanding reports c. Collection reports for reconciliation d. Trade related reports for import and export Major Multi national commercial banks operating in Bangladesh:

HSBC Standard Chartered Bank Citibank, N.A.

Online Banking in HSBC:

Online Banking Platform: HSBCnet

HSBCnet provides access to transaction banking functionality ranging from payments and cash management to trade services features as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality. This is a global service platform that caters to local business needs by offering specialised functionality for different regions worldwide. The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions. HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.

Features: 1. 2. 3. 4. 5. Browser based tool that helps manage customer implementation Customer and bank have same single view of tasks, plans and timeframes. Personalizaed portal: Can be customized according to users personal preference Can deal with Foreign exchange and Money markets instruments online Trade tracking website: separate component of HSBCnet that enables user to identify status of Letter of Credit transactions. 6. Integrations of clients ERP can be done. 7. Payment advices

Security: Audit trail reports for transactional activities Data encryption using Secure Socket layer (SSL) 128 bit encryption technology Access Control: system administrators determine what info each user has access to. System log in and installation: Smartcard based authentication and statis ID/ Password option for system logging in. HSBCnet software must be installed on users computer.

24/7 security monitoring and centralized incident management team.

Online Banking in Standard Chartered Bank:

Standard Chartered Banks Online Banking Platform: Straight2Bank Features: Web based internet banking service that can be accessed from anywhere using a personal computer connected to internet. Can be interfaced with SWIFT. One single platform to access cash management, custody, continuous link settlement, trade finance and online treasury management. Only supported on Internet Explorer for windows. Transactions can be done in over 100 currencies

Security: 128 bit encryption Company administrator has full controm of user administration: User set up, user access, password reset etc. User Login: Smart card based on Global Trust Infrastructure (GTI) encryption solutions

Citibank, N.A.s Online Banking Platform: CitiDirect Features:

Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers[1]. Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device.

Contents
[hide]

1 A mobile banking conceptual model 2 Trends in mobile banking 3 Mobile banking business models o 3.1 Bank-focused model o 3.2 Bank-led model o 3.3 Non-bank-led model 4 Mobile Banking Services o 4.1 Account Information o 4.2 Payments, Deposits, Withdrawals, and Transfers o 4.3 Investments o 4.4 Support o 4.5 Content Services o 4.6 Future functionalities in Mobile Banking 5 Challenges for a Mobile Banking Solution o 5.1 Handset operability o 5.2 Security

5.3 Scalability & Reliability 5.4 Application distribution 5.5 Personalization 6 Mobile banking in the world 7 See also 8 Notes 9 References

o o o

[edit] A mobile banking conceptual model

In one academic model,[2] mobile banking is defined as: Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information." According to this model Mobile Banking can be said to consist of three inter-related concepts:

Mobile Accounting Mobile Brokerage Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Mobile phone banking may also be used to help in business situations as well as financial

[edit] Trends in mobile banking

The advent of the Internet has enabled new ways to conduct banking business, resulting in the creation of new institutions, such as online banks, online brokers and wealth managers. Such institutions still account for a tiny percentage of the industry.[citation needed] Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now (2009) exceeds 2.5 billion (of which more than 2 billion are GSM).[citation needed]

This article appears to contain unverifiable speculation and unjustified claims. Information must be verifiable and based on reliable published sources. Please remove unverified speculation from the article.

According to a study by financial consultancy Celent, 35% of online banking households will be using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale. "Mobile contactless payments will make up 10% of the contactless market by 2010.[3] Another study from 2010 by Berg Insight forecasts that the number of mobile banking users in the US will grow from 12 million in 2009 to 86 million in 2015. The same study also predicts that the European market will grow from 7 million mobile banking users in 2009 to 115 million users in 2015.[4] Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even more.

[edit] Mobile banking business models

A wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rural locations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important part of the mobile banking business model since customer care, service quality, and cash management will depend on them. Many telcos will work through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc. These models differ primarily on the question that who will establish the relationship (account opening, deposit taking, lending etc.) to the end customer, the Bank or the NonBank/Telecommunication Company (Telco). Another difference lies in the nature of agency agreement between bank and the Non-Bank. Models of branchless banking can be classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.
[edit] Bank-focused model

The bank-focused model emerges when a traditional bank uses non-traditional low-cost delivery channels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to banks customers. This model is additive in nature and may be seen as a modest extension of conventional branch-based banking.

[edit] Bank-led model

The bank-led model offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. This model promises the potential to substantially increase the financial services outreach by using a different delivery channel (retailers/ mobile phones), a different trade partner (telco / chain store) having experience and target market distinct from traditional banks, and may be significantly cheaper than the bank-based alternatives. The bank-led model may be implemented by either using correspondent arrangements or by creating a JV between Bank and Telco/non-bank. In this model customer account relationship rests with the bank
[edit] Non-bank-led model

The non-bank-led model is where a bank has a limited role in the day-to-day account management. Typically its role in this model is limited to safe-keeping of funds. Account management functions are conducted by a non-bank (e.g. telco) who has direct contact with individual customers.

[edit] Mobile Banking Services

Mobile banking can offer services such as the following:
[edit] Account Information 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Mini-statements and checking of account history Alerts on account activity or passing of set thresholds Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / equity statements Insurance policy management Pension plan management Status on cheque, stop payment on cheque Ordering cheque books Balance checking in the account Recent transactions Due date of payment (functionality for stop, change and deleting of payments) PIN provision, Change of PIN and reminder over the Internet Blocking of (lost, stolen) cards

[edit] Payments, Deposits, Withdrawals, and Transfers 1. Domestic and international fund transfers 2. Micro-payment handling 3. Mobile recharging

4. 5. 6. 7. 8.

Commercial payment processing Bill payment processing Peer to Peer payments Withdrawal at banking agent Deposit at banking agent

A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchant's account. Kenya's M-PESA mobile banking service, for example, allows customers of the mobile phone operator Safaricom to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha, a US-based nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones.[5]
[edit] Investments 1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices [edit] Support 1. 2. 3. 4. Status of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests Exchange of data messages and email, including complaint submission and tracking ATM Location

[edit] Content Services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based services

Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment.

[edit] Future functionalities in Mobile Banking

Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications. Illustration of objective based functionality enrichment In Mobile Banking

Communication enrichment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Comprehensive Mobile wallet Customer Education: - Test drive for demos of banking services Connect with new customer segment: - Connect with Gen Y Gen Z using games and social network ambushed to surrogate banks offerings Content monetization: - Micro level revenue themes such as music, e-book download Vertical positioning: - Positioning offerings over mobile banking specific industries Horizontal positioning: - Positioning offerings over mobile banking across all the industries Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. Build Brand: - Built the banks brand while enhancing the Mobile real estate.

[edit] Challenges for a Mobile Banking Solution

Key challenges in developing a sophisticated mobile banking application are :
[edit] Handset operability

There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS. Initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication achievable with any phone. The desire for interoperability is largely dependent on the banks themselves, where installed applications(Java based or native) provide better security, are easier to use and allow

development of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions. There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS.[6]
[edit] Security

Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments. The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network :
1. Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more important. 2. Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application. 3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. 4. User ID / Password authentication of banks customer. 5. Encryption of the data being transmitted over the air. 6. Encryption of the data that will be stored in device for later / off-line analysis by the customer.

One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud[7]. Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumers phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as

well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform.
[edit] Scalability & Reliability

Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations.
[edit] Application distribution

Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over The Air" updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components.
[edit] Personalization

It would be expected from the mobile application to support personalization such as :

1. 2. 3. 4. 5. 6. Preferred Language Date / Time format Amount format Default transactions Standard Beneficiary list Alerts

[edit] Mobile banking in the world

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank. In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access

mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service. Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking.[8] In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[9] Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March, 2011. This service is launched with Agent and Network support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, bank-nominated Agents perform banking activities on behalf of the banks, like opening mobile banking account, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by mobile phone & PIN instead of card & PIN. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions

Introduction: Bangladesh is still lagging behind to avail the opportunity of e-business. However, banking sector as a whole has been introducing on line banking system which plays complementary role to spread of e-business. Internet has opened a new horizon of e-business, creating immense opportunities for marketing products as well as managing organizations banking internationally. Gradually wire less Internet system has been creating a new paradigm and electronic fund transfer can have a suitable formation. E-business can improve the quality of the services, save customers valuable time, movement from one place to another and receiving the goods accurately. Ebusiness brings a new channel of distribution process. But this leads to change in the regulatory issues, cross border trade through emerging new marketing distribution channel. This reduces transaction time, boundary less trade, and accuracy. In developed nations, e-business creates an opportunity to directly selling of the product to the customer without using any intermediaries. This process occurs mainly in the four systems: businesses to business (B2B), business to consumer (B2C), business to government (B2G) and consumer to consumer (C2C).E-business expedite the process of better customer relationship management. It also helps to attain enterprise resource management as well as e to e process. As such on line banking system can add value and value chain can be created in the e-business process. In turn it helps to raise gross domestic product of the country. Governments as well as different international organizations have also identified that underdeveloped banking technology creates hindrance on economic progress of the country. On line banking system is a way of conducting, managing, and executing banking transactions utilizing information and communication technology (ICT) and electronic communication networks such as the Internet, intranet and extranet. Environment of electronic banking requires authentication procedures for electronic payment system, network environment, computer hardware and software, electronic hardware, legal bindings, etc. The security and authentication of modern banking are very much dependent on cryptography and its applications. Ramakrishnan(2001) argued that many banks have assumed that Internet banking primarily increases information security risks and have not sufficiently focused on the effect on other banking-specific risks. Risk management disciplines have not evolved at the same speed and many institutions, especially the smaller ones, have not been able to incorporate Internet banking risk controls within their existing risk management structures. As information symmetry and free flow of information is gaining more importance due to globalization process, Bangladeshi companies have to compete in the world market to serve corporate and other clients with round the clock services. Access to computer would be beneficial to Bangladesh like any other country. Social and economic disparity and lack of Internet accessibility which creates digital divide is a great hindrance towards customer dissatisfaction of the business organization which ultimately results negative customer relationship management. As a result it creates negative impact on economic development of the country. E-business process creates an opportunity for doing business through arranging real time sharing business. Organizations can take help of transaction process through e-business solutions from around the world where on line facility can be available.
4

Due to advancement of technology, business process of the globe is gradually

becoming complex for which e-business especially in the banking sector can supersede the traditional business process. Through e-business the country can compete with the changing global business trend and on line banking can facilitate ebusiness. Literature Review: Buffam(2000) depicted that companies that build the better e-business solutions will outperform their competitors. Companies that build the very best e-business solutions will transform themselves into zero-latency enterprises. Companies that choose not to embrace e-business, or do so ineffectively, will underperform or be driven out of business. Turban et al. (2000) argued that following points of managerial issues are very important: Focus of Electronic commerce management; Sales promotion; Purchase process reengineering; Just-in Time delivery; New electronic intermediary business; Provision of solutions; Business ethics. Rahman (2001-2002) observed that issues relating to electronic fund transfer require security, availability, authenticity, non-repudiability and audibility. He suggested for appropriate control and efficient security measures and also for proper utilization of audit trail in the e-commerce system. Ali(2003) argued that Bangladeshi companies, organizations have several problems to start full swing e-business. These include limited resources, backwardness in technology, managerial inefficiency, socio-infrastructural problem such as corruption, default culture law and order situation, rampant corruption, strike etc. which penetrate for long time. Ali, Mohsin, and Yasmeen( 2004) observed that maximize e-business efforts to focus on information dissemination, knowledge transfer, and technical assistance are required .Steps need to create appropriate knowledge among various procedures of e-business. Huda, Momen and Ahmed(2004) commented that the banking sector in Bangladesh is clearly recognizing the importance of information technology to their continued success. Hoq, Kamal and Chowdhury (2005) argued that a key reason why ecommerce, especially the business-to-business segment, is growing so quickly is its significant impact on costs associated with inventories, sales execution, procurement, intangibles like banking, and distribution costs. If these reductions become pervasive, e-commerce has the potential to be the application that ushers in the large productivity gains. Achieving these gains is therefore contingent on a number of factors, including access to e-commerce systems and the needed skills. However, what is unique about ecommerce over the Internet and the efficiency gains is that it promises the premium placed on openness. To reap the potential cost savings fully, firms must be willing to open up their internal systems to suppliers and customers. This raises policy issues concerning security and potential anti competitive effects as firms integrate their operations more closely.
5

Uddin and Islam(2005) observed that the multifarious projections of ICT in human life plead a wining case for institutional integration of ICT related components in rural support programs taken by Governments and NGOs. Chaffey (2006) dealt with strategy and applications of E-Business and ECommerce in a logical but robust manner. He stressed that e-business and e-commerce is very important for management implications as such a bridge to link leading edge research and professional practice is required.

Mia, Rahman and Debnath(2007) observed that the latest development in marketing financial services by banks is online banking, where banks have now put themselves in the World Wide Web to take advantage of the Internets power and access to cope with the accelerating pace of change of business environment. Pires and Stanton (2007) commented that policy wise government must recognize that the ability of countries to engage in e-commerce is tied both directly and indirectly to their attractiveness for FDI. Ahmed and Islam (2008) observed that adopting e-banking services, banks in developing countries are faced with strategic options between the choice of delivery channels and the level of sophistication of services provided by these delivery channels. Chandrasekhar and Sonar (2008) depicted that banks will reap the benefits of IT truly and totally, if and only if they pay adequate attention to technological progress as well as efficiencies on the input and output sides. Shamsuddoha(2008) argued that in Bangladesh, banking industry is mature to a great extent than earlier period. It has developed superb image in their various activities including electronic banking. Now modern banking services have launched by some multinationals and new local private commercial banks. Electronic banking is one of the most demanded and latest technologies in banking sector. Ahshan(2009) agued that online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalisation, the Internet makes the world smaller and e-commerce facilitates marketing and shopping from home. E-commerce facilitates business with customers over the internet. In e-commerce, customers can buy goods and services over the Internet. Islam and Yang(2009) observed that service quality satisfaction and informational trust had important mediating effects on the Balance score card performance process. These two mediating roles explain that, when an institution creates and raises the levels of service quality satisfaction and informational trust, the results lead to a favorable customer interaction relationship and thus could help the institution achieve higher levels for Balance score card performance measure. Nyangosi , Arora , Singh (2009) argued that banking through electronic channels has gained increasing popularity in recent years. This system, popularly known as 'e-banking', provides alternatives for faster delivery of banking services to a
6

wide range of customers. The overall result indicates that customers in India and Kenya have developed positive attitudes and they attach much importance to the emergence of e-banking. Shah and Clarke (2009) focused on human, operational, managerial, and strategic organizational issues in e-banking. They argued that e-banking management can help to expedite doing business through using electronic medium. Rahman(2010) who is the Governor of Bangladesh Bank argued that Bangladesh Bank has achieved a historic milestone in the trade and business arena ,departing from conventional banking with the introduction of e-commerce recently; a giant stride towards digital Bangladesh . From the aforesaid literature review, it is evident that on line banking can act as a complementary towards e-business. With the help of e-business the country can create opportunities as this will help both producers and customers. But these theoretical observations may not be feasible in this country .As such the study seeks

to evaluate whether the country has proper infrastructure for doing e-business? What are the statuses of e-business and on line banking of the country? Does on line banking really works as a complementary to e-business in Bangladesh? Aforesaid questions arises which the study intends to examine. Objectives of the Study: The study has been undertaken with the following objectives: i) To examine infrastructural situation of the country to prosper e-business and on line banking system in Bangladesh; ii) To observe present status of on line banking in Bangladesh; iii)To evaluate whether on line banking system can work as a complementary to ebusiness process ; iv)To provide some recommendations so that e-business can bring fruitful results in the country. Methodology of the Study: The study is based on secondary sources and also primary sources. As such the study has reviewed different published articles, books, newspaper, and websites. However, exact references are mentioned in this article. The study will also collect related information regarding present status of the on line banking through field visit in forty eight banks (forty- seven banks after merger of two banks on 3rd January,2010) head office and in charge of IT and MIS Dept. Moreover, also visited Central Bank i.e. Bangladesh Bank to collect related information. The study collects data on following points: Services provided by the banks, software use by the banks, name of the vendors and banks name which is given in Appendix in Table: A. Moreover, the study also did a survey through preparing a questionnaire. For collecting data from the respondents, the study used snowballing sampling technique which is also known as a chain referral sampling type. Snowball sampling technique is used to discover and enlist hidden populations, who may be difficult to locate. The survey was conducted among 500 customers comment those have been using on line banking system. Customers are of following banks: Sonali Bank Ltd., BASIC Bank Ltd., Dutch Bangla Bank Ltd., Standard Chartered Bank, Trust Bank Ltd., Prime Bank Ltd., Uttara Bank Ltd. Detail list of no. of respondents of each banks
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(including male and female customers) are given in Table: B in Appendix. These customers are from Dhaka and also Chittagong city. Fact that on line banking is mainly concentrated in the Dhaka city .However, in Chittagong city also on line banking system is also being expanded .Out of 500 respondents, 381 persons are from Dhaka city while 119 person from Chittagong city. Observations through field study were obtained are being reported at the present status of the on line banking system. Time period of the study is up to February 2010.The study did not use any sort of correlation or regression analysis as this study is mainly based on qualitative nature. Present Status: Bangladeshi companies, organizations are facing problem to start full swing ebusiness. Network is a mode of communications with the computers. Networks of computers can be classified in following ways: Local area network, Metropolitan area network, and World Wide area network. Multiple computers connected through telephone lines, cable systems, and in wireless technology are also required. According to a report published in The Daily Star(4th April,2010) Bangladesh ranked 118th in the global Network Readiness Index in 2009-10 up from 130th a year ago, showing an

upward trend in the information and communication technology sector. In South Asia, India ranked 43rd, Sri Lanka 72nd, Pakistan 87th and Nepal 124th in the 'Global Information Technology Report 2009-2010' released by The World Economic Forum (WEF) on 3rd April,2010.As such Bangladesh has to go long way to develop its network for arranging Digital Bangladesh by the year 2021 and public and private cooperation and strategic alliance is required to develop e-business system in the country. Electronic Payment Systems for e- business includes characterized by broad geographic presence and acceptance by a large number of merchants or programs. Participants in an electronic payment system may include users, financial institutions, business personnel, industrialist, merchants, third party processor etc. WiMAX stands for Worldwide Interoperability for Microwave Access which offers wireless transmission of data via different transmission modes, from point-to-multipoint links to portable and fully mobile internet access.The Finance Minister recently argued at trial launching of operation of the countrys first-ever wireless broadband technology WIMAX. He commented that entrepreneurs of the telecommunications sector must reach the digital communications system to the doorsteps of the rural people. He hoped that the WiMax technology will be available at every divisional headquarters within a year(Source: http://www.bangladeshinfo.com/gadgets/news_inner.php?nid=2343, July 22, 2009) Telephone density is awfully little in Bangladesh. It is far much less in comparison with other developed nations of the world as well as neighboring countries. Kabir(2008) depicted that Mobile Phones(millions) are 36.4, Fixed Lines (PSTN) (millions) are 1.2 Total telecom users (millions) are 37.6, Teledensity (%) is 26.8 in the year 2008. Outside Dhaka, at present a few computer network infrastructures have been developed so far. Apart from some educational institutes outside Dhaka, observation finds that most of the LAN setups are Dhaka centric. Bangladesh has been connected to worldwide Internet Super High Way from 2006 through an under sea submarine cable. But this single submarine cable frequently faces disruption resulting in slow bandwidth.
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A huge digital divide exists among the city of Dhaka , Chittagong and other parts of the country. Private-public partnership is a crucial issue for information and communication technology (ICT) development and application. Private enterprise and capital can lead ICT revolution in Bangladesh. This, however, would require the government to provide the basic business environment. Rapid growth in ICT is not possible without massive investments for ICT infrastructure and human resource development in the computer and electronics l and telecommunication engineering courses through ensuring quality education. Still now call charge of cell phone is not competitive in Bangladesh. Bangladesh Telecommunication Regulatory Commission (BTRC) is not playing due role in the development process of communication sector. Infrastructural problems are creating less scope to successfully implement e-business. Under the private initiative, Internet was started in 1996 by ISN in Bangladesh. ISN is the first ISP operator in this country. Still now all the Internet service providers have the server in abroad, for which they are facing competitive disadvantage, as cost remains high. Security problem is still high in this country. Lack of digital accessible personnel is real problem for the country. Moreover, some software developers of the country arent well conversant with the market demand for which they cannot supply application software with faultlessness. Policy makers of the country are not aware about the benefits of e-business .As such they

dont put significance on proper and systematic development of the process of e-business. In this connection it may be stated that Bangladesh bank is trying to implement automated clearinghouse through utilizing (Magnetic Ink Character Recognizer) MICR procedure. But in developed nations MICR procedure is now replaced by more sophisticated procedure such as cheque truncation process. Total numbers of Banks in Bangladesh are forty seven. Banking sector in Bangladesh on the basis of utilization of electronic devices can be subdivided into three groups: i)Foreign Commercial Banks and Private Commercial banks especially 2 nd(except few banks) and 3rd generation Private Banks :Fully Online banking; ii)1st generation private banks and some 2nd generation Private Commercial Banks: Medium range Online banking system ;iii)Nationalized Commercial Banks , Specialized Banks and Few foreign Bank branches of this subcontinent :Low grade online banking system.. At present the banks in Bangladesh are using the limited electronic banking services. It is expected that bank can attain more profit and offer better services to its customers by, introducing on line banking facilities. The foreign commercial banks operating in Bangladesh like Standard Chartered Bank , Citi Corp. N.A. and the HSBC are the pioneers to introduce the electronic banking facilities. They provide ATM, Debit Card, Credit Card, Home Banking, Internet Banking, Phone Banking, on line banking etc. services. Among the indigenous banks, the Private Banks are ahead of the public banks. Prime bank ltd. , Dhaka bank ltd., BRAC bank ltd., Dutch-Bangla bank ltd.,, Eastern and Mercantile bank ltd., are already stepped on towards electronic banking facilities. Apart from these banks, Mutual Trust Bank ltd., also introduced ATM service. Among the four Nationalized Commercial Banks (NCBs), Janata bank ltd., has some access to the electronic banking facilities. Bangladesh Bank, the Central Bank of Bangladesh, is also trying to formulate the wide structure of electronic banking facilities. All of these private banks offering limited on line banking services. Most of these banks only offer services by providing ATM card. Most of them do not offer wide range of internet banking facilities which is the main advantages of e-banking. Can deposit money in any branch and withdraw money from ATM machine- is treated the best e-banking facility available in Bangladesh While electronic money transfer starts in a limited edition. Sonali and Agrani bank ltd., is also providing on line banking services in a limited scale. Rupali Bank ltd. is also developing on line banking. BASIC bank which is 100 percent public owned but served as private sector banking has a technological advancement. Detail types of banking services offered by various banks are given in appendix.
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A broad spectrum of Internet banking services, a subset of electronic finance, is available in Bangladesh with different degree of penetration. The credit card is available from VISA, MasterCard and VANIK. Some foreign banks provide electronic fund transfer (EFT) services. It is at an early stage and used on a very limited scale. Microchips embedded Smart Card is also becoming popular in the country, particularly for utility bill payment. Automated teller machine (ATM) is expanding rapidly in major cities. A group of domestic and foreign banks operate shared ATM network, which drastically increase access to this type of electronic banking service. The network will gradually be extended to other parts of the country. Last couple of years shows dramatic improvement in the awareness situation in the banking sector regarding the comprehensive application of ICT. Local software companies have been starting competition to supply useful complete banking software with all the basic features of banking module. However, many forms of electronic banking services are

not possible to offer in Bangladesh at this moment due to the technology backwardness, infrastructural underdevelopment and legal infrastructure. Those products would be very useful for export-oriented industry to reduce lead-time in export and keep comparative advantage in the international market. For sending foreign remittance four nationalized banks and fifteen private banks are working collaboratively with mobile phone service operators. Recently remittance could be sent in Bangladesh by banking channel through account transfer (normally takes 3 working days) or in the form of instance cash (takes 24 hours). Foreign resident people can send their money and PIN (personnel identification number) through mobile phone. As a result money transfer becomes relatively easy, quick and hassle free. But this system also superseded by mRemittance system. According to a Ahemd (15th April,2010) in a revolutionary step on April 13,mobile remittance service or mRemittance was introduced in the country opening doors to millions migrants workers to help transfer their hard earned money easily ,effectively and most importantly ,swiftly. The first ever remittance service for Bangladesh was jointly launched by two local banks Dhaka Bank ltd. and Eastern Bank ltd. and the countrys second largest mobile operator ,Banglalink. Credit card facility fully can not be extended in the country, as common gateway between financial institutions can not be established. Pricing mechanism of the products of country is not competitive, rater it is very much volatile. This creates a negative impact on the customers. To eradicate digital divide process has been started very slowly. Bogora, Kushtia, Barisal and Modhupur village of Tangil was bringing under preview of Internet banking is a complete virtual bank which started on 2nd May of 2000. This will gradually give following services: e-marketing, e-shopping mall, e-marriage scheme, e-mail, e-tender , evoting/ polling, search engine, chat, e-commerce, e-stamp, e-Cash, e-music, eentertainment, e-treatment, e-Advocacy etc. E-governance can help us to achieve good governance of the country. If Govt. doesnt take proper incentives to spread the computerization process then there will be no benefit. The parliamentary members of the country must be aware of the benefits of Information and Communication Technology (ICT) otherwise it can not be successful. It wont bring any dramatic changes in the economy. Entrepreneurship Development fund (EDF) of Bangladesh bank is should be utilized properly. Only a few companies can avail the fund. ICT related companies are trying to develop e-business processes but their activities are limited. If proper procedure of e-business can be developed in the agribusiness sector especially in the rural areas through utilizing etechnology then it will be beneficial for the producers of the agricultural commodities. Acute shortages of human resources interested to do online banking business are also one of the main reasons for lagging behind. However, as law and order situation is deteriorating so there is a positive impact on the e-banking considering the safety of the people. From the field visit, it reveals that banking sector requires rapid modification and adaptation to keep harmony with the world business. It becomes more obvious by
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observing the increased number of customers in some modern banks while others are losing them. In the context of Bangladesh, a country of more than 150 million people, it is to be realized that there is no other option for us than to join the current trend According to news report published in the new Nation on 28 th August 2009 the government has formulated a policy on the national information and communication technology as part of its announced plan for digitization of the nation. The policy has

earmarked activities in three phases in the short, medium and long-term plans to be implemented within 2021.The government aims at doubling the gross domestic products (GDP) during this time to achieve the goal. The policy details suggest a number of activities including spreading the use of keyboard by functionaries at different levels, encouraging the use of standard code by software sellers, developing a national web-portal and popularizing the use of e- citizen services, paying service charge through mobile phones or ticketing etc. Land registration, passport renewal, digitization of police case dairy and case position in the court, spreading the use of broadband internet throughout the country and such other essential services may also be brought under the scheme. The new policy will be the common property of all departments and organs of the state targeted to develop a digitized nation within the stipulated time. Most of the existing banking system in the country outside Dhaka and Chittagong city is manual (paper based) thats why is awkward, slow and error-prone. It, in one hand, fails to meet the customers demand and, on the other hand, it causes some significant losses both for the banking authority and traders. Electronic banking, on the other hand, solves the above problems. Furthermore, it opens up some other salient aspects such as increased foreign trade and foreign investment. At present weekly bank holiday in Bangladesh is in Friday and Saturday where as in rest of the world it is in Sunday. As such Bangladesh has only 4 banking days for foreign exchange transactions. With preliminary stage e- business facilities and this limited time period (banks transaction days) how long we can survive- is a debate. Bangladesh government should consider this case carefully. According to a report on Bangladesh is developing electronic payment infrastructure(May 20,2008) the Securities and Exchange Commission (SEC) in Bangladesh proposed IT Consultants Limited (ITC), a manager of Q-cash brand of ATM and different cards, to raise their paid-up capital up to Tk 500 million if the company is to proceed to initial public offerings. The Securities and Exchange Commission (SEC) has asked us to raise the company's paid-up capital Tk 50 crore from the current Tk 37 crore. In case the company fails to comply with the SEC requirements to increase the paid-up capital within the time specified, it will have to gain the approval of the SEC again. This measure is believed to extend the sphere of the company's influence. The company began as a private limited business in 2001. But now it is the local leader in electronic payment systems which are developing in the country with increased speed. ITC possesses necessary tools to process transactions for banks and retailers. It has the largest independent network of more than 100 ATMs in the country. There is also a wide network of point-of-sales (POS) centers operated by the company.(Source: http://www.ecommercejournal. com/news/bangladesh_is_developing_electronic_payment_infrastructure_0?drgn=1 ) According to the report published in The Financial Express(3rd November,2009) Bangladesh Bank gave the ground breaking directives to commercial banks through a circular issued on 2nd Novemebr,2009, saying that from now on their clients can pay power, water, gas and phone bills from bank accounts and transfer funds within a bank or to other banks. The central bank said that online payments will be treated like any other cash transaction although it reminded the banks that these money transfers would be regulated by the country's strict Anti-Money Laundering Act. The country had only about 400,000 credit card holders at the end of June last year, according to Bangladesh Bank Payments and transactions by credit cards were nearly Tk11 billion in June 2008 --- one of the lowest in the world. However, banks still need massive ICT backbone to ensure that online transaction can not be misused.Meanwhile, Bangladesh bank started Automated
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Clearing house on trail basis from 8th November, 2009.Bangladesh Bank also declared that the clearing house wont accept any cheque from 1st April 2010 if size of the cheque is not as per the guideline of the MICR system. However, in Bangladesh digital divide among the Dhaka city and rest of the country is conspicuous. E-business as a whole is confined among very few business organizations and on line banking business is expediting process of the e-business of the country. Filed level study: Total numbers of different categories of banks are currently forty -seven. The Bangladesh Development Bank Ltd (BDBL) began operations, on 3rd January, 2010 through merger of Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha. From the filed survey we observe that following banking services are being provided by different banks: Core Banking Cluster Banking Phone Banking SMS Banking Internet Banking Various Cards ATM Shared (VISA/MASTER) ATM own (VISA/MASTER) EFT SWIFT PC Banking POS Terminal Banking KIOSK Offline Branch Computerization Detail of the field survey regarding software uses, vendors name and services are given in the appendix in Table: A. However, from the field survey it is evident that foreign commercial banks and private commercial banks are relatively in a better position to provide on line banking services. Moreover, when contacted with Bangladesh Bank then it was informed that BACH (Bangladesh Automated Clearing House) is yet working in SIT (System Integration Testing) phase. SIT is expected to be completed within first half of January 2010. In the first phase, only Dhaka will be under this umbrella and all bank branches in Dhaka region must be part of BACH. Bangladesh Bank (BB) in its Dhaka office is using 7 inch * 3.50 inch MICR encoded cheques in BACH. Cheque truncation will be done, some banks will truncate fully (meaning at branch level) while some partially (meaning at a central point). BB will also provide bureau service, if needed by any bank initially. Clearing is for interbank transaction. It will be settled by BB after t+1 days. Customers Response: Out of five hundred customers who have been using on line banking system, following results have been gathered from the questionnaire through using snowball sampling technique. Table:1 Customers Response who have been using on line banking system (% of Respondents who expressed Yes comment)
Comment Dhaka(In percentage)

Chittagong(In percentage) On line Banking services is relatively good than manual system 79% 65% On line banking provides good Customer service 72% 61% 12 Just in time services in Banking can be provided 56% 48% Bank Personnel behave properly 52% 56% Dealing officer is well conversant about their respective Desk work 48% 47% Technologically improved but quality of banking services worsen off 51% 44% Better E-business environment 67% 61%

(Source: Compiled on the basis of Customers response) From the aforesaid findings it is observed that impact of on line bank has a mixed result though most of the customers support that it provides good customer services. This supports our null hypothesis. But the problem lies that customers thought that technologically improved but quality of banking services are worsen off. In case of other opinion survey most of the customers are providing yes results which also indicate that null hypothesis is correct However, in the opinion pull survey there is a question regarding dealing officials of the commercial banks whether they are well conversant about their desk work? The reply indicates that 52% and 53% customers of Dhaka and Chittagong thoughts that dealing officers of the banks are not well conversant about their desk work. Now we are showing diagrammatic representations.
Fig:1Opinion of the Cusomers' who are habituated On line Banking system

On line Banking services is relatively good than manual system On line banking provides good Customer service Just in time services in Banking can be provided Bank Personnel behave properly Dealing officer is well conversant about their respective Desk work Technologically improved but quality of banking service worsen off Better E-business environment

Analysis of the Findings: E-business is still not very much progressed in Bangladesh. Mass awareness is not feasible. The country faces problem of developing human-ware. Without preparing human capital at the level of international standard, we cannot be able to compete in global market and successful e-business cannot be feasible. From the filed level study we observe that still nationalized commercial banks and specialized banks are lagging behind of on line banking services. Moreover, customers are not satisfied with the quality of the services. They are not also very happy with the behavior of the bank personnel. However, it reveals that e-business especially with the help of on line banking can manage economy of Bangladesh in a far better way as customer relationship management increases. Local Banking software should be developed properly and must have greater accessibility within the country and outside the country. Moreover, to produce hardware especially computer and its accessories, local entrepreneurs are not taking any sort of strategic planning. Bangladesh Bank should adopt latest technology but due to lack of vision they are adopting old technology i.e. introduction of MICR for Bangladesh Bank automation procedure. MICR system should be substituted by cheque truncation system. The shortage of technology-based human resources and poor telecommunication infrastructure needs to be overcome to break low equilibrium trap. Bridging the digital divide would provide technology-based human resources, who can contribute to raise gross domestic product (GDP), national savings ,investment ,creation of employment and

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moving out from the vicious circle of underdevelopment. . Numerous problems have been identified from the field survey on line banking system in Bangladesh. Some of them are in the followings: Inefficiency and inadequate knowledge of the bank management about the on line banking. Lack of proper Strategic plan to gain and retain market share of the indigenous banks. Lack of international standard communication channel. High cost of establishing on line banking system. Inadequate back and front office management. Lack of integrated plan among the banks and the Central Bank authority. Inefficient Clearing House Facilities. Inappropriate software and less trust by the Bank authorities on local software. Biased-ness of the management of bank towards foreign software. Legal barriers and appropriate policy framework. The number of customers taking banking services does not capable to bear the cost of additional equipments like computer, computer accessories , Internet etc. from their own organization or at home. Biometrics should be more strengthened. Using Internet facility still very costly and people has little knowledge in operating computers. A few numbers of cyber caf is available but for banking purpose customers do not feel safe to use these facilities. As a result total numbers of customers who are habituated in on line banking systems are limited. In these circumstances investment for establishing e -banking facilities seems profitless. Although on line banking has bright prospects, it involves some financial risks as well. The major risk of on line banking includes operational risks (e.g. security risks, system design, implementation and maintenance risks); customer misuse of products and services risks; legal risks (e.g. without proper legal support, money laundering may be influenced); strategic risks; reputation risks (e.g. in case the bank fails to provide secure and trouble free e-banking services, this will cause reputation risk); credit risks; market risks; and liquidity risks. Therefore, identification of relevant risks, and formulation and implementation of proper risk management policies and strategy formulations and implementations are important for the scheduled banks while performing on line banking system. Ramakrishnans(2001) suggestion may be followed for risk management. Benefits of Electronic Business and on line banking system: Managers at various levels of organizations especially in underdeveloped country like Bangladesh will have to play vital roles to successfully implement e-business. They may act as strategic leaders at different stages of managerial capabilities. They are the key forces to initiate dedicated strategy to change from the traditional business processes to the technology driven business processes. This is not involving only huge costs as a transition period of organizations but adaptability of the human being in the new processes to adding values are required. Due to global changing environment, to succeed in the global arena as well as domestic business, organizations often forced to do business in the electronic ways. Moreover, to succeed over the competitors organizations needs to be changed their strategy and they are gradually become bound to adopt e-business. At these stages successful implementations depends on all the stages of the Hierarchy of the Management i.e. starting from the Top Management level to the lower level management. On line banking system works as a complementary factor of electronic business. Though electronic business has a greater set of field but on line banking can work as a

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subset of the e-business .Benefits derived form the e-business largely depends on successful implementation of the business process. Managing external pressure as well as internal pressure should be coordinated by the management so that e-business can supersede traditional business processes of organizations .Moreover, transformation process requires huge cost especially organizations of Bangladesh. Greater and cautious resource management especially financial capability should be handled by the management of the organizations. Flexible innovative changes processed by the management of the organizations are required for the organizations to succeed in the transformation process. Changing processes should consider socio-economic and cultural environment as well as labor surplus country. Business process reengineering may be designed with the aim that personnel of the organizations will use the technological functionalities which will lead to further enhancement of the organizations. As such strong motivations by the management towards all level of personnel of the organizations are required. Managers functionality to implement e-business is a stressful task for which their mindset should be strong and they should consider not only global considerations but also consider domestic situations. E-business can add value through knowledge management as it helps to attain new services to the customers. Successful e-business depends on sharing of strategic knowledge for which dissemination of the information and free flow of knowledge around the globe is required. On line banking can provide twenty four hours banking facilities. Through electronic data interchange customers are able to draw money from one branch to another. Letter of credits can be sent through SWIFT or electronic fund transfer from one country to another can be feasible. Actually on line banking provides faster, reliable services. Encryption and decryption can be used to send money from one place to another. As such on line bank management handles customers in a far better way. In Bangladesh decision makers are generally reluctant about advancement of technology. It is difficult for people who do not have much technical knowledge to understand the necessity of adoption of new technology. So the pace of computerization in various offices, business enterprises and sectors are low. Another problem of initiating E- business is that in our country policy makers, managements are generally reluctant to accept something new. As such management prefers to maintain current business model and thats why they are reluctant to introduce some thing new. To avail the advantage of E- business, organizations including banks have to invest for software, hardware, infrastructure development etc. The owners are uncertain about the positive return on investment as transformation from manual system to electronic transaction involves huge cost. This is a great drawback to implement E-business at a full swing. But the organizations are not interested to invest because they consider huge expenses. In Bangladesh most of the business organizations are running centralized manner. As such visions, missions, goals of the top management of various organizations are very important. Top management should change their mindset and like Bangladesh Bank, they should encourage e-business process. Top management views are reflected to the mid level management and lower level management. Unfortunately most e-business efforts fail for non-performing visions, missions, goals and tactics at the business processes of the organization. Discussions and Conclusions: Due to advent of e-business especially on line banking system, the distribution

channel is also changing. But quality of banking services should be international standard.
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To attain more effective and efficient business procedure, Bangladesh has to produce commodities of global standards. Ali, Mohsin, and Yasmeen( 2004) observation may be followed to attain e-business efforts through information dissemination, knowledge transfer, and technical assistances. However, Bangladeshs global Network Readiness Index should be improved from present situation. From the respondents opinion in the area of Dhaka City and Chittagong city of the on-line banking user customers we observed that null hypothesis is accepted while alternative hypothesis is rejected. It indicates that on line banking can provide better customer relationship management. As per findings behavior pattern of the bank personnel should be improved. Not only technological improvement is desirable but also banking service as a whole should be better off. Chandrasekhar and Sonars(2008) comment should be considered as not only technological progress but efficiency of the banking services are required as on line banking customers are not still fully satisfied with the services. Study on customers feedback is partially supported by the findings of Nyangosi , Arora , Singh (2009) as they argued that banking through electronic channels has gained increasing popularity in recent years. However, policy makers should consider Shah and Clarke (2009) observation. Because from the customers feedback, the study observes that paying attention on human, operational, managerial, and strategic organizational concern in e-banking is required. Moreover, bank personnel should be well conversant about their respective desk work. This is also applicable to other organizations which are implementing e-business in the country. Otherwise customer relationship management cannot be improved. Buffams (2000) comment is more practical for the companies of Bangladesh as e-business will lead to attain competitive advantage as will they can outperform their competitors. The study also done to observe different types of services and use of softwares by the banks. From the field level study we observe that Core Banking, Cluster Banking, Phone Banking, SMS Banking, Internet Banking, Various Cards, ATM ,SWIFT,PC Banking, POS Terminal, Banking KIOSK, Offline Branch Computerization are being provided. From the point of view of on line banking, still foreign banks are providing more on line banking services than private commercial banks. Then nationalized commercial banks and last being on line banking services are being provided by specialized banks. Ahshans(2009) observation is important for Bangladesh as it will help to enhance economic development. Creation of appropriate personnel/professional can improve the economic condition of the country. As such stress should be given to develop human ware. E-business can play important role to reduce poverty only when it can be effectively utilized for spreading the business both in rural and urban areas, creation of job opportunities, removing middlemen in the business process and one to one direct selling process and increasing both income and saving. Internet accessibility should be used for poverty reduction. Following should keep more emphasis on e-business: IT firm; Export/Import traders; Export oriented/Potential export business; Facility provided ISP/Internet; Infrastructure development- Govt.; Ministry of Commerce, Ministry of Law, Ministry of Science & ICT, Export promotion bureau; Telecommunication / Infrastructure ;Awareness on IT benefits among the mass. In this regard Governor of Bangladesh Bank Rahman (2010) rightly points out that a holistic approach needs to be taken by all the stakeholders to reach the ICT facilities to the doorstop of the common people. Actually e-technology can be utilized with other computer peripherals to

enhance communication, skill ness and understanding and provide a sound basis for implementing e-business. It can be helpful to accelerate the learning process, including the acceleration of the development and application of knowledge and technology. This includes development of the system and infrastructural development and support where
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followings are required: (a) E-procedure, (b) Browser based system development, (c) Web enable of legacy and/or client server systems, (d) Enterprise application integration, (e) Implementation or use of application server technology. Ahmed and Islams (2008) observation should be cautiously taken so that adopting on line banking services for which banks in Bangladesh can develop strategies for expediting not only banking business but also providing customers satisfaction. Business sector should be encouraged that make their own investment in the application of ICT in production, trade and services. Procurement and utilization of funds from national sources, both public and private should be pursued. International development and donor agencies should be approached to provide funds to set up necessary infrastructure and development of human resources, confirming to the objectives of ICT policy. Shah and Clarke (2009) observation about the e-banking can be transformed for successful e-business policy formulation as it depends on human, operational, managerial, and strategic organizational issues. Islam and Yang(2009) rightly observed that service satisfaction and information trust can play positive role to attain e-CRM and balance score card model which is not only valid for the financial institutions but in a large extent i.e. business process of the country. Economy of Bangladesh is still underdeveloped and one of the main reasons is banking system is not properly developed. Technology is one part but personnel should be well conversant with their respective desk work and behavior pattern should be improved. Government as well as different international organizations have also identified that underdeveloped banking causes some costly obstacles on the way of even economic progress of the country. Investors are frequently scared in invest because of its sluggish banking system. Hence the task of making the banking system of Bangladesh at per international standard deserves the highest priority. Business processes should be reengineered. Banks will have to face stiff competition in the world market with increasing of impact of globalization and the banks will be forced to offer twenty four hours banking services online. Regulatory issues relating to security measures of electronic banking can be improved through the following ways: a) Analyzing the potential risks in the electronic payments systems; b) Existence of tradeoff between the efficiency of the financial system and the amount of risk incurred; c) Competitive pressures that may encourage the banks to engage in competitive deregulation; d) Effective provision and arrangement for cryptography and its applications; e) More customers are willing to accept e-business as psychological patterns of the customers have been changing. Global financial system has getting stronger day by day and it is strengthening by the e-business. Around the globe, consumer market has greater potentialities and producers must be active otherwise they may lose their share in the marketing strategies. Customer retention is feasible through arranging e-business otherwise if switching cost is low and other factors in between two companies are similar then customer will switch from one company to another where technological advancement is relatively higher. Moreover, rate of call charge of cell phone should be lowered. Hidden cost in cell phone should be removed. However, on line banking as well as electronic fund transfer and electronic data

interchange is not free from risk. Not only security risk, but cost of transactions may also be raised .In this regard Rahmans (2001-2002) observation regarding risk should be cautiously handled. The country can be benefited through successful utilization of e-business .This will help to enhance productivity and customers will be satisfied. Producers will also be benefited and monetary gain can be attained. E-business especially with the help of on line
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banking can manage economy of Bangladesh in a better way as customers satisfaction can be increased. Recommendations: To implement e-business successfully in Bangladesh following recommendations are given below: Digital Bangladesh may be activated by 2021 to develop the economy of Bangladesh. Successful team building with a coherent manner for developing human ware, hardware, software and web ware are required to increase e-business process in a systematic way. Moreover, greater emphasis should be given on security system and to prevent fraud so that any sort of financial transactions including on line banking payment or any other electronic fund transfer can be properly handled. Career path of hardware and software engineers should be properly designed. Otherwise professionals will be de-motivated and they wont work with job satisfaction. In Bangladesh, on line banking systems are yet at a take off stage. The Clearing House operation in Bangladesh should be fully automated system. Banks and business organizations especially corporate houses should have adequate research, skilled manpower and technology driven strategies in this regard. Initiatives to develop integrated e banking software through in house built may be taken. Preference should be given by the bank authority to use local software over foreign software. Common gateway is required so that inter bank transactions can be feasible. Bank can charge normal profit to enlarge the market size on the on line banking products. Banks should have their own strategic plans to implement on line banking system. Creating awareness and consciousness among the clients of the banks are also required. The country needs to develop e-business with the help of ICT facilities. ICT application and development of software are very much dependent on the quality of the workforce, and supportive infrastructure and environment. Upzilla level may be considered as the base unit which may be connected with district and then connectivity with the capital of the country can be done. However, more stress should be given on wire free connectivity for which priority should be given on WIMAX technology. Public and private participation (PPP) for e-business should be encouraged for economic development. Spread of on line banking is a very good initiative. But it is not only sufficient. Business sector as a whole should be focused on using E-business. It should be accompanied with e-governance system and should be moved towards other areas of the e toe system like e-tender, e-trafficking, e-ticket, e-learning etc. More stress should be given to the wireless transactions and working environment due to rapid technological advancement. E-business should be used both for agricultural sector and industrial sector. Equal importance should be given so that domestic trade and international trade can be effective. Distortion from the market should be driven out and information should be passes systematically. E-business can help to improve total quality management. This can also ensure quality assurance of the business sector. As such business policy formulation and strategies are

required and this should be properly implemented. Adequate training and technological support to be developed so that trained manpower and technology driven organizations can be created with the help of partnership between Govt. and non Govt. organizations. Quality maintenance of local software should be arranged. Initiatives should be taken to set up hardware industry so that computer and computer accessories can be prepared in the country and easily purchasable for the lower and lower middle class people. Quality education and training in the field of ICT to develop human resources are essential.
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Moreover, entrepreneurship should be developed for developing hardware and computer peripherals. More high-speed fiber optical data communication infrastructures should be well established for speedy data communication for domestic and global high speed communication system. This will help to attain better e-business including on line banking system. Competitive situation should be arranged so that e-business management can be improved through efficiency and effectiveness of customer services. BTRC as a regulatory body should work with long term vision, mission and fulfillment of goal oriented strategies. They should work as a facilitator rather not creating hindrance. VOIP should be legalized after examining and finalizing proper rules and regulations in the country. References:
Ahmed,Feroz and Islam,Md.Tarikul(2008):E-Banking: Performance, Problems and Potentials in Bangladesh, Business Review,Vol.06,No.1&2,January to December. Ahmed,Nafid Imran(2010):Encashing mobile remittance ,The Daily Star,April,15. Ahsan, AFM Mainul (2009):E-commerce in Bangladesh, The Financial Express, Bangladesh, January 12 Ali ,Muhammad Mahboob(2003):E-Business in the age of Globalization: Bangladesh perspective, The Bangladesh Observer,September,13. Ali,Muhammad Mahboob,Mohsin,Chowdhury ,Sifat-E and Yasmeen Farzana (2004).E-Business in the Globaized world with special reference to Bangladesh: An analysis, Business Review,Vol.4,No.1&2. Buffam,William J.(2000):E-business and is solutions :An Architectural approach to Business Problems and Opportunities, Addison-Wesely, USA. Chaffey , Dave(2006). E-Business and E-Commerce Management, Prentice Hall: Financial Times Press, UK , 3rd edition Chandrasekhar,M and Sonar, Rajendra M(2008).Impact of Information Technology on the efficiency and total factor productivity of Indian Banks ,South Asian Journal of Mangement,Vol.15,No.3,July-September,pp.74-95. Hoq, Ziaul, Kamal, Md. Shawkat and Chowdhury, A H M Ehsanul Huda(2005). The Economic impact of E-commerce, BRAC University Journal, Vol. II, No. 2. http://www.bangladeshinfo.com/gadgets/news_inner.php?nid=2343, July 22, 2009) http://cnews.canoe.ca/CNEWS/TechNews/NewStuff/2006/05/25/1597447-ap.html http://www.jobsproject.org/content/publication/E-Commerce_in_Bangladesh_status.pdf http://www.ecommercejournal. com/news/bangladesh_is_developing_electronic_payment_infrastructure_0?drgn=1 Huda,Shakil,Momen,Mohammad Abdul,Ahmed,Mushtaque(2004):On Line Banking System, Finance and Banking,, Vo.6,No.1 & 2. Islam ,Majidul and Yang,Yi-feng(2009). Service Satisfaction, Information trust and e-CRM Performance in BSV model in the Empirics of Financial Institutions ,Journal of Business & Policy Research,Vol.4,No.1,July. Kabir, Md. Anwarul(2008): Designing ICT Roadmap: A holistic approach, The New Nation,23rd July.

Nyangosi , Richard, Arora , J.S. ,Singh , Sumanjeet(2009). The evolution of e-banking: a study of Indian and Kenyan technology awareness, International Journal of Electronic Finance. Vol.3,Issue:2 Mia,Md.Abdul Hannan, Rahman ,Mohammad Anisur and Debnath, Nitai Chandra(2007).Consumer behaviour of Online Banking in Bangladesh, Journal of Business Studies, Vol.XXVII, No.2,December. Pires ,Guilherme, and Stanton,John(2007):"Macro Issues in Electronic Commerce and Foreign Direct Investment", Global Business & Economics Anthology ,Volume II,December,2007. Rahman,Atiur(2010):Digital Bangladesh Bank, The Daily Star,January,13.
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Rahman,M.Lutfar(2001-2002):E-Commerce and Concern for E-commerce in Bangladesh, Journal of The Institute of Bankers Bangladesh,Vol.48. Ramakrishnan, Ganesh(2001): Risk Management for Internet Banking, Information Systems Control Journal, Volume 6. Shah , Mamood and Clarke , Steve(2009):E-Banking Management: Issues, Solutions, and Strategies ,Information Science Publishing, UK. Shamsuddoha, Mohammad(2008). Electronic Banking in Bangladesh, Journal of Business Solutions, Vol. 1, No. 2, December . The Financial Express(Bangladesh),03rd November,2009. The New Nation,28th August,2009. The Daily Star,4th April,2010. Turban,Efraim et al.(2000). Electronic Commence A Managrial Perspective,Pearson Education. Uddin,Md.Kamal and Islam,ABM Shahidul(2005):Contribution of Information and Communication Technology to the Development of Rural Bangladesh, Dhaka University Journal of Business Studies,Vo..XXVI,No.2.

Appendix: Table: A Banks Name, services, software uses and vendors Name
Service Software use Vendors name Banks Name Core Banking Equation Misys International Banking System Ltd. UK AB Bank Limited STELAR ERA InfoTech Limited Bank Asia Limited Standard Bank Ltd. Flexcube (IBM AIX, Oracle) Oracle Financial Services Software Ltd., India (Local Representative: Dataedge limited) Dhaka Bank Ltd. Eastern Bank Ltd. Citibank N.A. (In-house.. ) Dutch Bangla Bank Ltd. PC Bank 2000 Leads Corporation Ltd First Security Islami Bank Social Islamic Bank Ltd. HUB Core Bank In-house The Hongkong & Shanghai Banking Corporation Ltd. Temonas DataSoft Limited Janata Bank Ltd. Flora Bank Flora Systems Ltd. Mutual Trust Bank Ltd. Jamuna Bank Ltd.

A2Z Multiuser Banking System A2Z Computer Service,BD National Bank Ltd. PC Bank-2000 LEADS Corporation Limited National Bank of Pakistan Micro Banker VPro/5 Data-edge ONE Bank Ltd. Bank Ultimus Leads Corporation Ltd Southeast Bank Ltd. eBBS In-house Standard Chartered Bank ABABIL Millinum Information System Ltd (MISL)BD Al Arafah Islami Bank The City Bank Ltd. Finacle Infosys Solution BRAC Bank Ltd. The City Bank Ltd. 20 T24 Temenos Switzerland EXIM Bank Ltd. Prime Bank Ltd. Agrani Bank Ltd. Flora UBS Flora System National Credit and Commerce Bank Ltd. Equation Branch Server Misys International Banking System Ltd. UK International Finance Investment and Commerce Bank Ltd. Equation Branch Automation DO Trade Innovation DO Infinity Banking System Rupali Bank Ltd. Cluster Banking PC Bank 2000 Leads Corporation Ltd First Security Islami Bank United Commercial Bank Ltd. Phone Banking Tele Banking ERA InfoTech BD Bank Asia Ltd. Call Center Integrated System In-house The Hongkong & Shanghai Banking Corporation Ltd. Flora Bank Phone Banking Flora Mutual Trust Bank Ltd IVR Suprico Standard Chartered Bank Access Phoenix Soft Switch, International Acumen BRAC Bank Ltd. CISCO System LEADS Dutch Bangla Bank Ltd. Telebanking Flora System ltd Jamuna Bank Ltd.

SMS Banking Mobile Banking Management SSL Wireless Limited AB Bank Ltd. SMS Banking ERA InfoTech BD Bank Asia Ltd. Flexcube Oracle Financial Services Software Ltd., India Dhaka Bank Ltd. Dutch Bangla Bank Ltd. SMS Banking LEADS Corp. First Security Islami Bank Ltd. United Commercial Bank Ltd. Win2000 LEADS Mercantile Bank Ltd. Flora Bank SMS Banking Flora Mutual Trust Bank Ltd. Balance query by Cell Phone Business Automation ONE Bank Ltd. Tagged with Banking LEADS Shahjalal Islami Bank Ltd. SMS Banking Upload Systems Southeast Bank Ltd. Mobile Banking In-house Standard Chartered Bank 21 Web Service, Windows Service In-house BRAC Bank Ltd. For SMS Banking Software Shop Ltd. International Finance Investment and Commerce Bank Ltd. O/S WAP M/S S.S.L Sonali Bank Ltd. City Bank Ltd. Internet Banking OmniEnterprise InfrasoftTech Limited AB Bank Ltd. MyBank ERA InfoTech BD Bank Asia Ltd. Flexcube Dhaka Bank Ltd. Eastern Bank Ltd. Dutch Bangla Bank Ltd. HSBCnet Advising In-house The Hongkong & Shanghai Banking Corporation Ltd. HSBC Win+SQL Server Desktop Limited Janata Bank Ltd. Flora Internet Banking Flora Mutual Trust Bank Ltd Web Statement In-house One Bank Ltd. iBank Ultimus LEADS Southeast Bank Ltd. iBanking In-house Standard Chartered Bank Phoenix Soft Access International Acumen BRAC Bank Ltd. CitiDirect USA Citibank N.A. TIB(Temenos Internet Banking) Temenos Holdings Corporation, Switzerland Prime Bank Ltd. Various Cards BAs proprietary Debit Card ERA InfoTech BD Bank Asia Ltd.

CARDPRO BEPS Dhaka Bank Ltd. National Credit and Commerce Bank Ltd. Trans Master for Prepaid Credit and Debit Card Tietonator Eastern Bank Ltd. Proprietary Debit Card, PC Bank ATM Interface LEADS First Security Islami Bank Ltd. Dabit Card + Credit Card ITCL, BD Janata Bank Ltd. Win+SQL Server, LEADS Mercantile Bank Ltd. CTL Prime & CTL Online TSYS International, USA Mutual Trust Bank Ltd Cardpro Sungard System, Malayasia National Bank Ltd. BRAC Bank Ltd. Prime Bank Ltd. VISA Debit Card, VISA Prepaid Card (International), VISA Gift Card Shahjajal Islami Bank Ltd. 22 eCAPS In-house Standard Chartered Bank VISA(Card-Pro) BEPS, Bangladesh Exim Bank Ltd. ACCESS Card Management International Acumen Standard Bank Ltd. Card Suite(AIX, Oracle) Tleto Enator, Latvia Dutch Bangla Bank Ltd. Q-cash ITCL Jamuna Bank Ltd. Probashi Agrani Remittance card Cash Link, BD Agrani Bank Ltd. Tranzware card management system IT Consultants Ltd., Russia International Finance Investment and Commerce Bank Ltd. City Ltd. Finacle Connect24 CityBank Ltd. ATM Shared (VISA/MASTER) ITCL AB Bank Ltd. STELAR ERA InfoTech BD Bank Asia Ltd. ITM, Euronet Switzerland local-CASH LINK Bangladesh Dhaka Bank Ltd.

Agrani Bank Ltd. ITCL, Q-Cash Singapore Mercantile Bank Ltd. IST switch of DBBL Mutual Trust Bank Ltd Tranzware,Compass Plus IT Consultants Ltd, Russia National Bank Ltd. National Credit and Commerce Bank Ltd. International Finance Investment and Commerce Bank Ltd. Sonali Bank Ltd. City Bank Ltd. VISA, Q-Cash, OMNIBUS & DBBL switch & ATM Network Shahjajal Islami Bank Ltd. Q-Cash Shared ATM Card Uttara Bank Ltd. National Credit and Commerce Bank Ltd. Cardpro Sun Gard BRAC Bank Ltd. City Bank Ltd. Card Management System (CMS) for PC Cashlink Bangladesh Ltd Social Islamic Bank Ltd. VISA ITCL Jamuna Bank Ltd. ATM own (VISA/MASTER) STELAR Bank Asia Ltd. Wincor Nixdorf Protopas ITCL Eastern Bank Ltd. ATMP 6.0 In-house The Hongkong & Shanghai Banking Corporation Ltd. 23 Q-Cash Singapore Mercantile Bank ltd. Under process -CTL Prime & CTL Online, ATM Controller TSYS International, USA Mutual Trust Bank Ltd TietoEnator Card Suite Dataedge One Bank Ltd. ITCL Shahjajal Islami Bank Switching Software Cynergon Intelisys Ltd Southeast Bank Ltd ATM SPARROW/HAWK, CR2 Standard Chartered Bank Ltd. Phoenix Soft International Acumen BRAC Bank Ltd. Standard Bank Ltd. IST 7.5 HMA STARware,India Origin-Canada Prime Bank Ltd. Iswitch Interblocks, Srilanka United Commercial Bank Ltd. IST(AIX, Oracle) FIS, USA Dutch Bangla Bank

Ltd. Tranzware Compass Plus, IT Consultants Ltd, Russia City Bank Ltd. EFT Feature available on Internet & SMS Banking Bank Asia Ltd. Eldorado Interblocks (Sri Lanka) Dhaka Bank Ltd. Al Arafah Islami Bank Ltd. Western Union Money Transfer BRAC Bank First Security BankLtd. Bangladesh Commerce Bank Ltd. Ease Limited BD and Desktop Limited, BD Janata Bank Ltd. Through IVR Servion System DataEdge BRAC Bank Ltd. Through ATM Own Phoenix Soft International Acumen Through Internet Banking- Internet Banking BRAC Bank Through Mobile Banking- Mobile Banking BRAC Bank FTI In-house Citibank N.A. Online Remittance s/w In-house Agrani Bank Ltd. Money Gram IME RemitOne Infinity Remittance Money Gram International Finance Investment and Commerce Bank Ltd. X-press UAE Exchange, UAE Placid Express Plasic N.K corporation USA Coinstar Money Transfer Coinstar Money Transfer, India SWIFT Messaging, SWIFT AB Bank Ltd. SWIFT Alliance Bank Asia Ltd. 24 Service SWIFT Syscom Information Systems Limited Dhaka Bank Ltd. SWIFT

Eastern Bank Ltd. One Bank Ltd. BRAC Bank Ltd. Dutch Bangla Bank Ltd. Jamuna Bank Ltd. National Credit and Commerce Bank Ltd. SWIFT Belgium First Security Bank Ltd. Mercantile Bank Ltd. Uttara Bank Ltd. Al Arafah Islami Bank Prime Bank Ltd. Social Islamic Bank Ltd. Standard Bank Ltd. United Commercial Bank Ltd. International Finance Investment and Commerce Bank Ltd. City Bank ltd. Group Messaging Gateway In-house The Hongkong & Shanghai Banking Corporation Ltd. SWIFT Alliance Janata Bank ltd. Mutual Trust Bank Ltd. Southeast Bank Ltd. International Finance Investment and Commerce Bank Ltd. SWIFT Alliance Belgium National Bank Ltd. Agrani Bank Ltd. Sonali Bank Ltd. Rupali Bank Ltd. PC CONNECT NBP Karaci, Pakistan National Bank of Pakistan International Finance Investment and Commerce Bank Ltd. SWIFT Alliance Access 6.0 Cambridge Worldwide, India Shahjajal Islami Bank Bangladesh Commerce Bank SAM In-house Citibank N.A. 25 SAA SAM SWIFT EXIM Bank Ltd. PC Banking PC Bank-2000 LEADS Corporation Mercantile Bank Ltd. National Bank of Pakistan

POS Terminal Q-Cash Singapore Mercantile Bank Ltd. Under process -CTL Prime & CTL Online Mutual Trust Bank Ltd. Hypercon Aamra Technology, USA National Bank Ltd. VISA, Q-Cash, OMNIBUS & DBBL switch & POS Network Shahjajal Islami Bank Ltd. Switching Software Cynergon Intelisys Ltd Southeast Bank Ltd. TNMS Aamra Technologies STIS International Acumen BRAC Bank Ltd. Hypercom Aamra(USA) Prime Bank Ltd. Ingenico ATCL(France) Dutch Bangla Bank Ltd. ITCL Jamuna Bank Ltd. OS/400, Cash Link Agrani Bank Ltd. Tranzware Online Switching IT Consultant, BD, Russia International Finance Investment and Commerce Bank Ltd. City Bank Ltd. Banking KIOSK ERA- KIOSKBanking ERA InfoTech Bank Asia Ltd. International Acumen Ltd. Eastern Bank Ltd. Colors of Bangadesh Southeast Bank Ltd. Customized S/W International Accumen, BD Dutch Bangla Bank Ltd. Offline Branch Computerization E-Bank Ethics Advance Technology Ltd. (EATL), BD Bangladesh Shilpa Bank JBSoft Banking Application In-House Janata Bank Ltd. Easy Banking Desktop Limited Flora Bank Flora BexiBank Beximco Computers Janata Bank Ltd. Sonali Bank Ltd. A2Z Multiuser Banking S/W A2Z Computer Service National Bank Ltd. PCBANK2000 Leads Corporation Shahjajal Islami Bank Ltd. In-house Developed Uttara Bank Ltd. BexiBank4000 Beximco Computers Agrani Bank Ltd. International Finance 26 Investment and Commerce Bank Ltd.

IBS Infinity Technology Rupali Bank Ltd. Agrani Bank Ltd. Sonali Bank Ltd. Janata Bank Ltd. Krantibank Kranti Associates Ltd Agrani Bank Ltd. FloraBank Flora System Ltd Daffodil bank Daffodil Computers Ltd ABLsofT In-house AgraniSolution In-house Flora Bank Software Flora Bangladesh Commerce Bank Ltd. (Source: Prepared by Filed Observations on 30.12.09)