AN INTERNSHIP REPORT

ON
PROBLEMS AND PROSPECTS OF ONLINE BANKING IN
AGRANI BANK LIMITED

INSTITUTE OF BUSINESS ADMINISTRATION

UNIVERSITY OF RAJSHAHI
PROBLEMS AND PROSPECTS OF ONLINE BANKING IN
AGRANI BANK LIMITED

Prepared By
Md. Ibrahim Khalil
ID: B060041
MBA for BBA Graduates
6th Batch
Institute of Business Administration
University of Rajshahi

Supervised By
Md. Shariful Islam
Associate Professor
Institute of Business Administration
University of Rajshahi

November 12, 2015

Letter of Endorsement

The Internship Report entitled Problems and Prospects of Online Banking in Agrani
Bank Limited has been submitted to the office of Placement in partial fulfillment of the
requirements for the degree of Masters of Business Administration, Major in Finance,
Institute of Business Administration (IBA.RU) on November 12, 2015 by Md. Ibrahim
Khalil, ID-B060041, MBA for BBA Graduates, IBA, RU.6th Batch. The report has been
accepted and may be presented to the Internship Defense Committee for evaluation.

..
Md. Shariful Islam
Internship Supervisor
Associate Professor
Institute of Business Administration (IBA)
University of Rajshahi.

Letter of Submission
November 12, 2015
To
The Director,
Institute of Business Administration (IBA),
University of Rajshahi.

Subject: Submission of Internship Report in Problems and Prospects of Online

Banking in Agrani Bank Limited.

Dear Sir,
With the greatest pleasure, I would like to submit my report on Problems and Prospects of
Online Banking in Agrani Bank Limited. I have tried my best to gain practical experience
and also tried to reflect the same in report with my limited scope and knowledge. I wish
you hearty consideration, if there is any deviation in my report.

I wish to thank for your friendly co-ordination to make the program success.
Thank you very much.

Yours Sincerely

.....
Md. Ibrahim Khalil
ID-B060041
MBA for BBA Graduates,
Major in (Finance), IBA, RU.
6th Batch

Executive Summary
Electronic business or E-business, which has dispelled the geographical bar among
countries. ICT has influenced every sectors of business. The financial institutions are now
compelled to be involved in ICT to cope with the changes in the modern business trend. As
a third-world developing country, Bangladesh is far behind to rear. Due to incredible
proliferation of Information and communication technology (ICT) the concept of money
has been radically changed. Different kinds of business sectors have been merged in a
single that can be accessible in a global way and that has been possible just for the
proliferation of ICT. So the business takes a new name internet service. This service is
expected level in global banking system. So it is our urgent need to upgrade its banking
system. This Internship Report aims at to explain the present scenario of banking sectors in
Bangladesh and at the same time it demonstrates the scope and benefits of E-banking
compared with the existing system. At the end, some what-if analyses have been carried
out to depict the efficiency, security of the proposed infrastructure under various situations.

Acknowledgements
I would like to express my gratitude to my supervisor, Md. Shariful Islam, Associate
Professor, Institute of Business Administration (IBA) University of Rajshahi who assists
me to prepare a Internship Report on Problems and Prospects of Online Banking in
Agrani Bank Limited as a part of my academic activities. I believe, this would help me a
lot in my coming career.
I also thanks to my internship coordinator, Institute of Business Administration (IBA)
University of Rajshahi, who assigns me to the AGRANI BANK for doing my internship
program.
I cordially thanks to Md. Sirajul Islam (Assistant General Manager) & Md. Shaharier alam
(officer- online banking sector), Shaheb Bazar Branch, Rajshahi who always help me to
provide the necessary information to the report.
Finally, I would like to thank my friends Md. Shirazul Islam, Md. Mahabub ,Md. Fhamidul
and so on who encourages me to cope with the turbulent competitive market for providing
me banking information during the Internship Report period.

Table of Content
Page No.

Chapter-1(Introduction)... (1-7)
1.0-Introduction ...........2-3
1.1- Origin of the study.... ..3
1.2- Statement of the problems...3-4
1.3- Background o of the Study.....4
1.4-Objective of the Study....4-5
1.5- Methodology of Study...5-6
1.6-Importance of the study....6
1.7- Location of the study...6
1.8 -Limitation of the study............7

Chapter-2(Organization profile) (8-21)

2.1-About the company...9
2.2-History of ABL9-10
2.3-Mission of Agrani Bank10-11
2.4-Vision of Agrani Bank..11
2.5-Agrani bank limited..............11
2.6-Hierarchy of Agrani Bank Limited.....12
2.7-Functions of Agrani Bank Ltd......13
2.8-Function of online banking in ABL....13-16
2.9-Online-banking Product Available in ABL...16-19
2.10-Online-banking Service Available in ABL......19-20
2.11-List of ATM Booth in ABL......20-21

Chapter-3(Conceptual frame of online banking)....(22-43)

3.1. Definition of Online Banking..........23

3.2- Online Banking in Bangladesh..................23-24

3.3- Online Service Provided by ABL.......24
3.4- Critical evaluation of online Banking.....(24-25)
a. Advantages of Online Banking....24-25
b. Disadvantages of Online Banking........25
3.5- Factors Affecting Adoption Of Online Banking......25-26

3.6- Channels of Online Banking.....26-27

3.7-Drawback of the system.....27-28
3.8- Online Banking Principles.....28-31
3.9-Features of online banking..........32
3.10- Role of Government.................32-33
3.11- Business models..33-34
3.12- Types of online banking......34-35
3.13- Future outlook of online banking in ABL.......35-36
3.14-The prospective and prim services on online banking..........36-37
3.15-The Prospects of online banking of ABL (Bazar Branch, Rajshahi).........37
3.16-Growth of National Economy through online banking........37-39
3.17- Problems of online banking of ABL...........39-41
3.18-Limitation of Online Banking of ABL (Bazar Branch,Rajshahi).........41-43

Chapter-4(Analysis).(44-61)
4.1-Records of online service by ABL......45
4.1.1- Telegraphic Transfer.......46

4.1.2- Online Corporate Banking..........47

4.1.3-Electronic Fund Transfer (EFT)...........48

4.1.4-ATM Card........49
4.1.5-Inter Branch Money Transfer...........50
4.1.6-Debit Card..........51
4.1.7-Merchant Services To Merchant (Agency Services).............52
4.1.8- M-Remittance:...........53
4.2-Customer satisfaction of online banking service quality of ABL.............54
4.2.1-Customer satisfied by ATM Services in ABL...............54

4.2.2 -Customer Satisfied by EFT Service in ABL............55

4.2.3-Customer Satisfied By Tele Banking in ABL...............56
4.2.4-Customer satisfied by Debit Card services in ABL..........57
4.2.5-The employees in Agrani Bank always willing to help you..........58
4.2.6-You feel safe in your transactions with Agrani Bank...........59
4.2.7-How are you satisfied with the fees/service charges of ABL...........60
4.2.8-How are you satisfied with the time you have to wait for a service

at Agrani Bank's branches..........61

Chapter-5(Findings, Recommendations and Conclusion)......(62-66)

5.1-Findings.......63
5.2-Recommendations........64
5.3- Conclusion.......65
Reference..................66

Chapter-1

Introduction

1.0-Introduction:
Bangladesh is still lagging behind to avail the opportunity of online banking. However,
banking sector as a whole has been introducing online banking system which plays
complementary role to spread of e-business. Internet has opened a new horizon of ebusiness, 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. Online
banking system can improve the quality of the services, save customers valuable time,
movement from one place to another and receiving the goods accurately. It 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. 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. 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. Online banking
system 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. Due to advancement of
technology, business process of the globe is gradually becoming complex for which ebusiness 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
online banking can facilitate e-business.

1.1-Origin of the Study:

As a student of Institute of Business Administration, University of Rajshahi, MBA for
BBA graduates, 6th batch. I have to prepare a Master Paper on any organization that will be
accepted as satisfactory for the partial fulfillment of the requirements for the degree of
MBA. I, hereby, declare that the work presented in this Master Paper is the outcome of the
research performed by me under the kind supervision Md. Shariful Islam, Associate
Professor, IBA, University of Rajshahi. I am working according to the instructions and
guidance of my supervisor to have a trustworthy Master Paper on Problems and
Prospects of Online Banking in Agrani Bank Limited. It has been started at the
beginning of the July 7, 2015.

1.2-Statement of the Problem:

Banking sector plays a vital role in economy of Bangladesh. There are different types of
Bank in Bangladesh such as Central Bank, State-owned Commercial Bank, Private
Commercial Bank, Specialized Bank, Foreign Bank, Islami Bank, Exchange Bank etc. All
of the Banks have its different information systems. But all of them are using a system of
latest technology in some of the sectors in their banks, not in all the sectors. Infrastructure
of information systems is not good enough and so the internal and external environment is
badly affected. The lack of coordination among organization, government, customers and

banks is present. The managements are facing the problems of decision making without
information systems. After all the customers is not satisfied enough with the existing
service provided by the banks with or without information systems. A better Online
Banking Systems (OBS) can ensure the satisfaction of customers and hence ensure the
maximum revenue of its organization.
1.3-Background of the Study:
Bangladesh is a developing country and Bank plays a vital role in the economy of a
developing country like Bangladesh in many aspects. The Financial sector of Bangladesh
largely depends on bank and hence it has been playing vital role in economy of
Bangladesh. Agrani Bank Limited (ABL) is one of the largest banks controlled by
Bangladesh Bank (BB) under Ministry of Finance of the Peoples Republic of Bangladesh.
The former name of Agrani Bank Limited is Habib Bank Limited and Commerce Bank
Limited. According to Bangladesh Banks (Nationalized) Order, 1972 (PO No. 26), Agrani
Bank is created by six corer taka. It is registered Public Limited Company through Register
of Joint Stock Companies and Farms on 17th May, 2007. Bangladesh Bank gives license on
5th June, 2007. All assets and liabilities are given under Agrani Bank Limited on 15 th
November, 2007 by vendors contact between Government and Agrani Bank which is
affected on 1st July, 2007. Now-a-days, Online Banking in Agrani Bank Limited has
revolutionary changed from January 1, 2011. There are 513 branches under online banking
systems in Agrani bank Limited and others many branches are being prepared to go OBS.
1.4-Objective of the Study:
The main objective of the study is to explore Problems and Prospects of Online Banking
in Agrani Bank Limited at Shaheb Bazar Corporate Branch, Rajshahi.
The specific objectives of the study are as follows:
(i) To identify the emerging characteristics of online banking in Agrani Bank Limited.
(ii) To measure the effectiveness of online banking in Agrani Bank Limited.

(iii) To find out the problems on Online Banking in ABL.

iv) To find out the prospects on Online Banking in ABL.

1.5-Methodology of the Study

The report was fully exploratory in nature. Data have been collected from both primary
and secondary sources.

1.5.1-Primary data:
i.) Conversation with the bank officers and staffs.
ii.) Informal conversation of the clients.
iii.) Official record of the ABL Shaheb Bazer Corporate Branch, Rajshahi.
iv.) Observation of daily activities.
v.) Practical desk work.
vi.) Some executives of IT & MIS Division in Agrani Bank Limited

1.5.2-Secondary data:
i.)

Data collected from different NOCS (Network Operations and Customer Services)

ii.)

Some performance data may be collected from the monthly review and previous
research paper which will be available in the ABL web site and other library of
different Banking sectors offices.

iii.)

The study will utilize historical sources like documents, remains, etc to study
events or ideas of the past.

iv.)

Both quantitative and qualitative data will be used in this report.

v.)

Annual report of ABL.

vi.)

Official files and folders, working papers, published and unpublished documents.

vii.)

Website of Agrani Bank limited.

viii.)

Different text books & materials.

ix.)

Internet and various study selected reports.

1.6- Importance of the study:

The banking business has been in effect since the importance and need of finance and
money as well transaction in business. We got the banking culture in a usual form within
the relationship between customers and bankers. In course of time banking became the
inevitable part of our daily necessities throughout our state. Banking business always
appears to fulfill the need and convenience of customers in home and abroad. Nowadays,
the banking business refurbished itself in accordance with variation in customers need and
utilization. Accordingly a larger section of population is still unaware of Online Banking
owing to many reasons and legitimate crises. Moreover, this Online Banking culture is
such a culture or trend as people ought to know, considering the issue. We should go
forward to work immensely in this area or field as though this trend or culture spreads and
gets access to the realization of people in no time.
The money embezzlement in a bank poses tense and threat to the belief of people on bank,
that man be eradicated through updated, modern service ensured in change of traditional
banking management. Therefore, our research work regarding this banking culture might
grow the confidence, eagerness to large extent. On the contrary, this study would let the
people and students be familiarized and come to a close contact in behalf of this banking
system. And, widespread study of this issue is expected to identify all advantages and
strains concerned which pave the bank to modernize as well demonstrate the services of
Online Banking in an exclusive for to enhance the betterment and well being of all in this
regard.

1.7-Location of the Study:

The Study will be conducted at Agrani Bank Limited, Shaheb Bazar Corporate Branch,
Rajshahi.

.1.8-Limitations of the Study:

The study may have some pitfalls. These may be as follows:
The study should have high degree of involvement regarding Questionnaire, collection of
data, creation of database and analysis of data. In spite of providing best effort to collect
and analyze related data and compare them within the stipulated time, the study may have
the following limitations:
i.)

The main limitations of the study are lack of experiences of the researcher.

ii.)

ABL authority could not provide all the necessary information those are
confidential. So confidentiality of ABL authority is major limitation of study.

iii.)

This study did not cover all the branches of the bank of the country.

iv.)

The scheduled time 12 weeks for the study is not enough to make the study. The
time should be one year.

Chapter -2
Organization Profile:

2.1-About the company:

Agrani Bank as the name implies a stated owned commercial Bank Bangladesh. It has
incorporated in Dhaka, Bangladesh as public limited company and its Head office of the
Bank is located at Motijheel, Dhaka.
In the word of consumerism, the business organization of the world strive for the
consumers satisfaction as a number one business strategy whatever may the product of the
organization, either service or non- service. Service is the product of the Bank building.
The guard at the door is the first person represents the Bank; receive a customer with
wishes in smiling face

2.2-History of ABL:
The word AGRANI implies the meaning of its operation. Though it is a stated owned
commercial Bank in Bangladesh, it is familiar with so many countries in the world such as
export import Bank of United States, Export Import Bank of Japan. Despite it is a local
Bank, it has spread its operation in the whole world through foreign Banking. To achieve
the desired goal, it has intention to pursuit of excellence at all stages with a climate of
continuous improvement, because it believes, the line of excellence is never ending. It also
believes that its strategic place and business networking will strengthen its competitive
edge over in rapidly changing competitive environment. Its motto is providing quality
services to the customers all over the world. So the slogan of the Bank Local Bank
global Network is completely adjustable.
Agrani Bank was nationalized after liberation of Bangladesh. It started functioning as a
commercial bank in 1972 and continued as a public sector bank till 16 May, 2007. On 17
May the bank started the third chapter of its life as a limited company. It is formed by the
composition of ex-Habib Bank Ltd and ex-Commerce Bank Ltd. Agrani Bank Limited is a
Bank with an Authorized Capital and Paid-up Capital of Tk.800.00 million and Tk.248.00
million respectively. The total equity of the bank stands at 725.00 million as of December,
2012. The total profit of last year is about Tk.680.00 million.

Agrani Bank Limited, a leading commercial bank with 926 outlets strategically located in
almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and
hundreds of overseas Correspondents, came into being as a Public Limited Company on
May 17, 2007 with a view to take over the business, assets, liabilities, rights and
obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972
immediately after the emergence of Bangladesh as an independent state.
Agrani Bank Limited started functioning as a going concern basis through a Vendors
Agreement signed between the ministry of finance, Government of the People's Republic
of Bangladesh on behalf of the former Agrani Bank and the Board of Directors of Agrani
Bank Limited on November 15, 2007 with retrospective effect from 01 July, 2007. Agrani
Bank Limited is governed by a Board of Directors consisting of 12 members headed by a
Chairman. The Bank is headed by the Managing Director & Chief Executive Officer;
Managing Director is assisted by Deputy Managing Directors and General Managers. The
bank has 11 Circle offices, 34 Divisions in head office, 62 zonal offices and 926 branches
including 27 corporate and 40 AD (authorized dealer) branches. Now-a-days, Online
Banking in Agrani Bank Limited has revolutionary changed. There are 460 branches under
online banking systems in Agrani bank Limited.

2.3-Mission of Agrani Bank:

Agrani Bank Limited has completed its successful existence on its career and now has
taken a revolution of its business operation in 1971 searching for incremental improvement
in productivity, operational efficiency and structure consequently, a new organization
structure has been developing to business focus and priorities and competitive pressures.

2.4-Vision of Agrani Bank:

Vision of Agrani Bank is to always strive to achieve superior performance, be considered a
leading stated owned reputation and performance. Goal of Agrani Bank Ltd is to establish
and maintain the modern banking techniques, to ensure the soundness and development if
the financial system based on banking principles and to become the strong and efficient
organization with highly motivated professionals, working for the benefit of people, based
upon accountability, transparency and integrity in order to ensure the stability of financial
system.

10

2.5-Agrani bank limited

Type

: Public Limited Company

Industry

: Banking, Financial Service

Founder

: 26 March 1972

Headquarters

: Dilkusha Commercial Area, Dhaka, Bangladesh

Products
Corporate Banking,

: Finance and Insurance, Consumer Banking,

Investment Banking, Investment Management.

Net income

: Tk. 2646 million (us$ 38.35 million)

Number of employee

: 13269

Number of online branch

: 513

Website

: http//www.agranibank.org

11

2.6-Hierarchy of Agrani Bank Limited

Board Of Directors
Chairman
Directors

Managing Director

Deputy Managing Director

General Manager

Deputy General Manager

Assistant general manager

Senior principal officer

Principal Officer

Senior officer

Officer cash

Attorney assistants

Clerical staff member

Non- Clerical staff member

12

2.7-Functions of Agrani Bank Ltd:

The various operations are being functioned in the Agrani Bank Ltd. The major functions
of Agrani Bank can be described briefly1. Deposit mobilization,
2. Payment function,
3. Collection function,
4. Fund Transfer,
5. Investment functions,
6. Issuing Letter of Credit (LC),
7. Issuing Bank Gurantee,
8. Foreign trade services e.g. export, import, remittance etc.
9. Issuing PO/DD/TT/MT/FDD/FTT,
10. SWIFT operation,
11. Operations of clearing house,
12. Maintenance of internal accounts of the bank,
13. Correspondent banking,
14. Financing to export on profit or loss sharing.
15. Overseas banking.

2.8-Function of online banking in ABL:

The customers can perform almost all types of banking activities through online banking
from any branch.
1. Account Summary: The customer will be able to view the list of current, savings, term
deposit & retail loan accounts held & the current balances in each account in the
account currency. An indicative valuation of the account balances can be performed in
the customers preferred currency.

13

2. Account Details: The customer can choose a particular account (savings, checking
account,

term deposit or loan account) & see the account details such as date of

opening, date of maturity, outstanding balance, interest accrued, interest paid, limit
amount etc.
3. Account Activity: The customer can see transaction activity in a given account for a
range of dates specified by the customer.

4. Transfer Funds: The customer can transfer funds from his one account to his another
account with the bank.

5. Open Term Deposit (TD): The customer can modify a term deposit by transferring
funds from one of his current or savings accounts with the bank.

6. Modify Term Deposit: The customer can modify the maturity & interest instruction
details of the existing term deposit accounts.

7. Close Term Deposit: The customer can close a TD account prematurely in part or in
full. He will be shown the penalty applicable as per the product definition.

8. Loans Repayment: The customer can make payment of the loan installment or any
amount by specifying the amount. The amount will be transferred from his deposit
account.
9. Early & Final Settlement: The customer can make an early payment of the entire loan
amount due. The amount will be transferred from his deposit account.

10. Standing Instruction: The customer can set up standing instructions for transferring a
fixed amount of funds from his deposit account to another deposit (self or third party)
or loan account in the bank in a fixed date of every week/month/quarter/year. He can
specify the start date & the final date for execution of the standing instruction. The

14

users can set up multiple instructions for each account & define the priority in which
they can be executed. The instructions can be set up for one-time transfer or recurring
transfers at a predefine frequency.

11. Payee Maintenance: The customer can set up templates for use in Third Party Fund
Transfer mentioning account number & other details of the Third Party. The Third
Party means an individual who has account with the same bank. However an
educational institute or utility company is not a Third Party. To be effective &
available in the list during the Third Party Transfers, such entries need to be
approved by a bank officer.

12. Third Party Transfers: The customer can transfer funds from one of his accounts to
another Third Party account within the bank. The Third Party account must be prerecorded in the system using Payee Maintenance and authorized by a Bank Officer
for making this available in the list.

13. Statement Request: The customer can make a request for account statement for a
required period. The bank will manually service this request.

14. Cheque Book Request: The customer can make a request for a cheque book for an
account choosing the number of leaves desired from the set that the bank officer.

15. Stop Cheque Request: The customer can choose an account & enter the cheque
number/range of cheque for which the cheque encashment should be stopped. He can
also specify the reason for stopping the encashment.
16. Cheque Status Inquiry: The customer can choose an account & enter the cheque
number for which the status should be viewed. In case the cheque is returned or
stopped, the reason for rejection will also be shown.

17. FX Rates Inquiry: The customer can query on the FX rates that the bank officers using
function. The rates displayed are the TT, cash & DD rates.

15

18. Interest Rates Inquiry: The customer can query on the interest rates offered on savings
& term deposit products offered by the bank.

19. Change Password: The customer can voluntarily change the internet password using
this function. In addition the user is forced to change the password by the system at
first Logon & defined intervals. In both cases the password needs to confirm to the
policy defined by the bank.

2.9-Online-banking Product Available in ABL:

Online banking product and services can include wholesale products for corporate
customers as well as retail and fiduciary products for individual customers. Ultimately the
product and services obtained through internet banking may mirror product and services
offered through other bank delivery channels. A brief description of e-banking products is
described below:

2.9.1-Automated teller machine:

An automated teller machine (ATM) is a computerized telecommunication device that
provides a financial institutions customers with a method of financial transaction in a
public space without a need for a human clerk or a bank teller.

2.9.2-Debit card:
A debit card is a plastic card which provides an alternative payment method to cash. While
making purchases the amount of a transaction is typically displayed on a card reader, after
which the customer swipes the card and enters the pin number. There is usually a short
delay while the EFTPOS (electronic fund transfer at point of sale) terminal contact the
computer network (over a phone line and mobile connection) to verify the authorize the
transaction.

16

2.9.3-Point of Sale (POS):

This means a retail shop or a checkout counter in a shop or a variable location where a
transaction occurs in this type of environment. Additionally point of sale sometimes refers
to the electronic cash register system being used in an establishment. Point of sale system
are used in restaurants, hotels and stadiums as well as retail environment in short , if
something can be sold, it can be sold where a point of sale system is in use.

2.9.4-Check Truncation:
This is such a service in which a financial institution doesnt return the rejected checks
with the monthly statement to their customer, rather they provide statement of rejected
checks with their monthly statements. The banks store the rejected checks for a certain
time period (usually 90 days). During this time period a customer can adjust /rectify the
account if any imbalance is found between his own record and the bank statement provided
by the bank. After the expiration of the stipulated period the rejected checks are spoiled
and the bank maintains a micro film copy for a period.
Check Truncation: This is such a service in which a financial institution doesnt return the
rejected checks with the monthly statement to their customer, rather they provide statement
of rejected checks with their monthly statements. The banks store the rejected checks for a
certain time period (usually 90 days). During this time period a customer can adjust /rectify
the account if any imbalance is found between his own record and the bank statement
provided by the bank. After the expiration of the stipulated period the rejected checks are
spoiled and the bank maintains a micro film copy for a period.

2.9.5-Home banking:
At first bank introduced telephone bill payment (TBP) so that customer could be able to do
their banking activities from their home. The next version for the home banking was Video
Home Banking (VHB). The internet is expected to be a major factor for home banking.

17

2.9.6-Retail Automated Clearing House Service:

It is an electronic network for financial transaction. ACH process large volume of both
credit and debit transactions which are originated in batches. ACH credit transfers
including direct deposit, payroll payment and payments to contractors and vendors. ACH
debit transfers including customer payment of insurance premiums, mortgage loans and
other kinds of bills. Businesses are also increasingly using ACH to collect the customers
online rather than accepting credit or debit cards.

2.9.7-Wire transfer:
Wire transfer is a process which ensures fast and appropriate timing of fund transfer from
the sender to the recipient. This kind of transfer of money could be either within the
country or abroad. Funds are transferred under the following network: FED wire (Federal
Reserve communication system) Bank wire CHIPS (clearing house inter-bank payment
service) SWIFT (the society for worldwide inter-bank financial telecommunication).

2.9.8-M-remittance:
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 m-Remittance system. Mobile remittance service or M-Remittance 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 15 services for Bangladesh were jointly launched by two local banks Dhaka
Bank ltd. and Eastern Bank ltd. and the countrys second largest mobile operator,
Banglalink.

18

2.9.9-Security measures of e-banking:

The security of a system is the extent of protection against some unwanted occurrence such
as the invasion of privacy, theft and the corruption of information or physical damage. At
this system is developed through the internet there is a big chance of hacking through our
system. Current browsers counter security threats with a network communication protocol
called secured sockets layer (SSL). SSL is a set of rules that tells computers the step to
take to improve the security level of the communication.

2.9.10-Corporate automated clearing house:

The automated clearing house (ACH) is an electronic network for financial transaction.
ACH processes large volumes of both credit and debit transactions. Which are originated
in batches other retail and fiduciary products and services may include balance inquiry,
funds transfer, downloading transaction information, bill presentment and payment, loan
application, investment activity and other value added services. Other Online banking
services available in Bangladesh: Core Banking, Cluster Banking, Phone Banking, SMS
Banking, Various Cards, ATM Shared (VISA/MASTER), ATM own (VISA/MASTER),
PC Banking, Offline Branch Computerization E-payment. The credit card is not available,
Master Card. Agrani Bank limited provides electronic fund transfer (EFT) services. It is at
an early stage and used on a very limited scale. Micro chips 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.

2.10-Online-banking Service Available in ABL:

1. Cash Service:
ATM Service
Cheque encashment
Foreign currency

19

2. Fund Transfer:
Inter-branch money transfer
Swift
Telegraphic transfer
Issuing & enchasing foreign draft

3. Value Added Services:

Local services
Agency services
Inland remittance services
2.11-LIST OF ATM BOOTH IN ABL
#

Bank Name

No's

Branch/Booth Name

Agrani Bank Limited

Principal Branch

Agrani Bank Limited

Agrani Bank Limited

District

ATM
Brand

Principal Branch, Agrani Bank

Bhaban,Motijheel, Dhaka.

Dhaka

WINCOR

Jatio Press Club

Dhaka

Jatio Press Club, Dhaka

Dhaka

WINCOR

ICDDRB Mohakhali
Dhaka

ICDDRB Mohakhali Dhaka

Dhaka

WINCOR

Agrani Bank Limited

Rajshahi
UniversityBranch

Rajshahi University Branch,

Rajshahi

Rajshahi

WINCOR

Agrani Bank Limited

Elephant Road
Branch

Elephant Road Branch, Dhaka

Dhaka

WINCOR

Agrani Bank Limited

Jahangir Gate BAF

BhbonBranch

Jahangir Gate BAF Bhbon,

Dhaka

Dhaka

WINCOR

Agrani Bank Limited

Jahangir Nagar
UniversityBranch

Jahangir Nagar University,

Dhaka

Dhaka

WINCOR

Agrani Bank Limited

New Market Branch

New Market, Chittagong

Chittagong

WINCOR

Agrani Bank Limited

Strand Road Branch

Strand Road, Chittagong

Chittagong

WINCOR

10

Agrani Bank Limited

10

Bangabandhu Road
Corporate Branch

Bangabandhu Road Corporate

Branch,Narayangonj

Narayangaj

WINCOR

11

Agrani Bank Limited

11

Rampura TV Branch

Rampura TV Branch, Dhaka

Dhaka

WINCOR

20

Details Booth Address

12

Agrani Bank Limited

12

Central Road Branch

Central Road, Paira Chattar,

Sadar,Rangpur

Rangpur

WINCOR

13

Agrani Bank Limited

13

Mymensingh Choto
Bazar Branch

Mymensingh Choto Bazar,

Branch

Mymensinh

WINCOR

14

Agrani Bank Limited

14

Faridpur Corporate
Branch

Faridpur Sadar

Faridpur

WINCOR

15

Agrani Bank Limited

15

Netrokona
Corporate
Branch

Netrokona Sadar

Netrokona

WINCOR

16

Agrani Bank Limited

16

Jagannath University, Dhaka

Dhaka

WINCOR

17

Agrani Bank Limited

17

Jagannath
University Dhaka
Branch
Kamlapur Ideal
SchoolBranch

Kamlapur Ideal School, Dhaka

Dhaka

WINCOR

Source: www.agranibank.org

21

Chapter-3
Conceptual frame of Online Banking

22

3.1 Definition of Online Banking:

Online systems allow customers to plug into a host of banking services from a personal
computer by connecting with the bank's computers over telephone wires. The convenience
can be compelling. Not only is travel time reduced, but ATM machines, telephone banking
or banking by mail are often unnecessary. Moreover, technology continues to make online
banking, once attempted only by computer enthusiasts, easier for the average consumer.
Even that may not be easy enough, though. Many systems that offer greater financial
control also require more work. Online bill payment is an example of an effort that requires
setting up which leads to ultimate convenience.
Banks use a variety of names for Online Banking services, such as PC banking. Home
Banking, Electronic Banking or Internet Banking. These systems offer certain advantages
over traditional banking methods.

3.2- Online Banking In Bangladesh:

3.2.1- Entrance of Internet:
Internet came late in Bangladesh. In the late 80s, Bangladesh was repeatedly invited to get
connected to the submarine fiber optic information super highway link but she didnt
respond. After that, Bangladesh had no option other than to use satellite uplink with VSATs, connecting to Hong Kong and Singapore based hubs. First, UUCP e-mail came in
1993. Then IP connectivity came in 1996. In June 1996 the Bangladesh government
decided to allow private companies to act as Internet Service Provider (ISPs) using VSATs. In 1998 the governments decision to withdraw all import duties and VAT from all
computer hardware and software brought the prices of computer down to a level affordable
by the middle income house hold in Bangladesh.
3.2.2- Internet in Banking Sectors:
The foreign banks are the pioneers in adopting electronic banking in Bangladesh. Most of
the foreign banks are using the computerized transaction system and taking advantage of
the superior technology by attracting customers and providing inter-branch and inter-bank

23

linkage. Foreign banks through successful use of a global network have increased the
timeliness and accuracy of information, benefiting its customers, employees and also
management.
The most extensive use was by the large foreign banks such as the American Express Bank
with an emphasis on networks of computers to help with reducing costs and increasing the
speed of settlement of transactions. Most of the banks of Bangladesh use computerized
system but they do not yet offer online service. Standard Chartered Bank first launched
online banking in August, 2000.

3.3- Online Service Provided by ABL:

Most of the online Banks have the equivalence in the services. Considering the services of
banks given, we can show the view of services offered based on the following forms given
bellow:
Services available
Basic (Most bank offer)

Advanced (some banks offer)

Check account balances

Transfer funds among accounts
Pay bills electronically
Inter-branch money transfer

Apply for loans

Agency services

EFT

Telegraphic transfer

Remittance

ATM Service

Foreign currency

Debit card service

Source: www.agranibank.org

3.4- Critical evaluation of online Banking:

3.4.1-Advantages of Online Banking
For consumers
The privacy of customers.

24

 Online services are available for consumers 24 hours daily during the whole
week.
Customers might save time and efforts of doing their finance transactions.
It will be easy for them to view all information they need clearly and simply.
Searching of any branch of a bank will be accessible by online users.
For Banks
One way of attracting more customers is to use their services.
Increasing the bank's reputation around the world is well known by many people.
It doesn't need to employ lots of suffer or bankers to deal with customers directly.
Banks can deal simply with their branches all over the world with one network.
3.4.2-Disadvantages of Online Banking
For consumers
Some people feel uncomfortable to provide their passwords or any kind of
information about their funds over the internet.
Some websites might be difficult for consumers for the first time to check their
finance.
It is possible for banks to update their websites, which needs from consumers to
type in again their data.
It is necessary to have knowledge and skills on using the Internet.
For Banks
Banks may require big amount of money to establish a website with attractive
features.
They may lose their information if the network broke with other branches.
Hacking and viruses will cause problems for online banking, which could broke
and damage the information.

3.5- Factors Affecting Adoption Of Online Banking:

Factors promoting or hampering the adoption of IT applications are numerous and have
been a prime concern for many researchers and practitioners. In this rich variety of

25

literature adoption fact ors were sometimes examined in the specific context. Both internal
and external factors must be taken into account when trying to understand a firms criterion
for deciding about technology.

3.5.1-Consumer Awareness:
One of the more important characteristics for adoption or acceptance of any innovative
service or product is the creation of awareness among the consumers of the product or
services. Consumer go through a series of process in knowledge , conviction, decision,
confirmation before they are ready to adopt the product or service and the adoption or
rejection begins when the consumer becomes aware of the product or service.

3.5.2-Ease of Use:
However awareness alone is not sufficient since consumers would reject an innovation if it
was very complex and not user friendly. In this context ease of use of innovative product
or service as one of the three important characteristics for adoption from the consumer
perspective. First one, complexity-the degree to which the innovation is relatively difficult
to understand or use. The user friendliness of domain names as well as the navigation
tools available in the website is an important determinant for ease of use.

3.6- Channels of Online Banking:

There are so many channels of online banking to get the online operation accomplished
within a few branches of a bank in banking sector.
3.6.1-Wide area network (WAN):
A Wide area network interconnects LANs. WAN can be located entirely within a state or a
country, around the world. For the network of the outside of branch WAN is used. WAN
are characterized by the following:
They exists in limited geographical area
They usually interconnects multiple LAN
They often transfer data at lower speeds (lower band with)

26

 Connectivity and resources, especially the transmission media, usually are managed
by a third-party carrier such as a telephone or cable company.
3.6.2-WAN by radio link (Communication using Radio Frequency):
By introducing Radio Link communication network WAN can be set up between Head
office and branch office. It is a point-to-point communication network, which uses radio
frequency. Radio frequency of that particular bandwidth should take the approval from
Bangladesh Telecommunications Company Limited (BTCL). WAN through Radio
Linking provides 11 mbps bandwidth.
3.6.3-WAN by V-set (Very small Aperture Terminal:
Online communication between two single nodes VSAT can be installed. For this, a fixed
amount of fees is to be paid to the satellite company for renting bandwidth each year.
3.6.4-WAN by optical fiber backbone line:
"WAN" can be set up by installing a switch consisting 72 Fiber Optic port at the place of
Main Server that can make a connection directly with the Govt. and private Commercial
Bank's Head Office server by putting the Optic Fiber Line but this is very difficult and
expensive. Data can be transferred and received through a continuous speed.
3.6.5-WAN by T&T leased line:
These are simple copper wire leased lines provided by T&T. These connections are the
most cost effective solution and provide sufficient data transmission speed up to 19.2
kilobytes (kbps). The facilities are as follows:
Relatively cheap and easier maintenance facilities
Available live connection
Easily can be scaled to a longer distance

3.7-Drawback of the system:

The main drawback of this system would be security, since T&T switchboard can easily be
tapped. For prevention, data encryption methods can be implemented. Secondly, speed and

27

transmission path is also of concern. T&T lines may go down, for this case back-up
dedicated dial up connection may be kept standby.
3.7.1-X.25 connection:
X.25 is a packet-switching network standard developed by the international Telegraph and
Telephone Consultative Committee (CCTTT). In this system, in case of the central router
in the Head Office, an X.25 PAD can be used and all other routers are connected as virtual
PBX Id. For establishing connection, each branch has to manually dial in the destination
branch number.
3.7.2- Internet:
The Internet sometimes called simply "The Net", is a worldwide system of computer
network- a network of networks in which users at any one computer can, if they have
permission, get information from any other computer (Sometimes talk directly to users at
other computers). Internet is a self-sustaining facility accessible to hundreds of millions of
people worldwide. Actually it is a portion of the total resources of the currently existing
public telecommunication networks. Electronic mail is the most widely used application on
the net. You can carry on live "conversations" with other computer users, using IRC
(Internet Relay Chat). Most recently, Internet telephone hardware and software allows realtime voice conversations. The most widely used part of the Internet is the World Wide
Web (WWW or the Web).

3.8- Online Banking Principles:

Supplement to consumers Union policy on Electronic money and Banking security:
1. Providers of on-line financial services should provide sites that are secure. Secure sites
should include the most effective existing protections such as passwords and
encryption, and should be routinely reviewed and updated to ensure that new security
features are added as they are developed.
2. Financial services providers should be vigilant to expose imposters using their names
or similar names to include consumers to reveal personal financial information.

28

3. Federal and state regulations should carefully scrutinize the operating practices,
security and solvency standards, and privacy policies of both on-line providers of
financial services and of third-party providers, contractors and subcontractors.
4. Financial services entities should take responsibility to make the consumer whole for
losses from computer crime not caused by the consumer; for security breaches; for
failures and losses caused by third parties selected by the financial services entity or
by its subcontractors; and for losses contributed to by the financial institution's sharing
of customer data internally, with an affiliate, or with a third party.
5. Providers of on-line financial services should accept the responsibility to try to
prevent, detect, and eradicate viruses and other security breaches. Viruses sometimes
cannot be prevented, but some on-line banking contractors offered today attempt to
eliminate all responsibility on the provider even to try to do so. Because a consumer's
ability to access funds needed for daily living can be affected by viruses and other
security breaches, on-line financial services providers should accept more
responsibility than is commonly accepted by web site providers of lower cost, less
financially sensitive products.
6. Banks should take affirmative steps to make on-line banking services available in
neighborhoods where access to on-line services is low. This may include providing
access and training in community centers, housing projects, and urban high schools, as
well as other creative approaches.
7. On-line banking channels should not replace other channels that permit in-person
activity unless and until there is clear evidence that all demographic groups (including
age and income groups) are in fact bearing equally well served by on- line banking as
by other bank channels, including brick and mortar branches.
8. Banks who provide special offers to internet customers must also have an effective
method to make those offers available to customers without access to the internet.
9. Access to on-line banking services should not be tied to the purchase of another
product or service, nor to high minimum balance requirements.
10. Banks and other providers of on-line financial services should protect and respect
consumers' financial privacy. Information about account numbers, account balances,
transaction patterns, specific transactions or similar information should never be

29

provided to third parties, affiliates or internal divisions without the express permission
of the customer. Material used to check permission should desirable all of the types of
information that might be shared and with whom the information might be shared.
11. Banks who use an opt-out method should provide a means to exercise the opt-out
directly through the sign-up process, in addition to providing a phone numbers or
other methods. The customer who knows he or she wishes to opt-out at the time of
signing up for on-line banking should not have to take a separate step to do so. If optout is used, it must include the opportunity to opt-out from information sharing among
both affiliates and internal bank departments, as well as with third parties.
12. Financial services providers should not condition the provision of on-line services
upon consent to share financial information with an internal division, affiliate, or third
party, except to the extent that the internal sharing of such information ID both
necessary for the provision of the service and fully disclosed to the consumer.
13. Financial services sites should never store information about the consumer in any
location where it can be accessed by a third party. On-line financial services providers
should fully disclose the nature and purpose of any electronic markets they propose to
place in the consumer's system, secure the consumer's consent to place those markets,
and permit the consumer to decline to accept such markets.
14. Banks and others offering uninsured on-line financial services should prominently and
effectively disclose which services, accounts, or products are not insured by the FDIC.
At a minimum, insured and uninsured products should not be offered on the same
screen. When linking from an insured to an uninsured product screen, special care
must be taken to identify the uninsured nature of the products offered through the link.
Providers should test their customer base to evaluate the effectiveness of these
disclosers. Regulators should actively enforce these requirements, and should conduct
their own tests to evaluate the effectiveness of disclosers.
15. Banks and other FDIC-insured entities should never permit their names to be used by
or licensed to uninsured entities, nor to be used by any third party in a fashion that
creates an impression that a communication from the third party is from the Bank.
16. Increases in fees and changes in material terms should be accompanied by at least 30
days advance notice. The notice should be sent by a means calculated to actually

30

communicate the information to the customer. Posting information on the bank's web
site about new fees or changes in material terms is not sufficient.
17. Providers of on-line financial services should make their contracts available before the
customer must give personal financial information and should make those agreements
available in a form which the customer can download, print, and retain in a manner
that shows what the agreement was when the consumer entered into it.
18. On-line bill payment services, whether or not associated with on-line banking, should
clearly disclose on the screen which is used to schedule the payment the date and time
that the payment will be sent and whether the payment will be sent electronically or by
ordinary mail.
19. On-line financial services providers should use the power of the electronic
environment to facilitate more effective consumer discloser and education.
20. On-line banking services should meet the consumer protection and other statutory
requirements and restrictions of the consumer's home state.
21. Disputes arising from on-line banking and bill payment should be resolved promptly,
and should be at least as prompt as the voluntary time frame of not more than five
business days to re-credit disputed funds which have been developed for debit cards.
22. If an arbitration clause is used, it should permit the consumer to choose whether to
agree to arbitration after the dispute arises, and should provide fair, cost-effective
procedures for the consumer.
23. On-line bill payment services should not impose an earlier time for stop payments than
the time the payment could be stopped if it were made by check.
24. Financial services providers who use electronic mail to communicate with their
customers should provide two-way
25. Customers wishing to close their accounts should be able to do so with an
instantaneous electronic transfer of funds to another designated account
26. On-line banking contracts contain to provision presuming that a consumer is in receipt
of information simply because the bank has sent or posted met information.

31

3.9-Features of online banking:

The features available from an on-line bank account are similar to those which are
available via 'phone banking or visiting the local branch.' on-line banking features do differ
between the banks, but usually include:
1. Trans of funds between accounts
2. Payment of bills
3. View balance and statements
4. View and maintain Standing Orders
5. View Direct Debits

3.10- Role of Government:

This is particularly important for countries like Bangladesh where very little has been done
in development these technologies and skills to promote and support online banking. The
government can take the following policies to promote online banking in our country:
1. The intergovernmental agreement for harmonizing the rules and regulations that can
help in smooth transformation of the world economy and expansion of a unified
world market.
2. The regulations should simply foster competition, protect intellectual property and
privacy, and prevent fraud to do businesses under whatever terms they agree upon.
An international uniform commercial code is needed to simplify and encourage
electronic commerce under consistent rules and rights.
3. Govt. can undertake perfect initiatives to construct feasible, platform of information
technology within affordable capacity. Financial allocation should be more widen for
global standard banking technology.
4. Adequate number of bank employee will have both computer and banking
aptitude and cognizance, suitable in the banking perspective to improve the banking
sector.

32

5. "Tele-communication" sector is pre-conditions to make fastest online banking

services. Unfortunately a tale-communication service of govt. is yet to reach to
remote and rural area.
6. Frequent inflow of information technology in the shape of broad band internet
access, sub-marine optical fiber utility processed, might be patronized by govt.
rapidly to step ahead in respect to information technology for enhancement of
blessing of on line banking. As well, this linkage of internet service will be
encouraging for implementation of online banking in Bangladesh.
7. A project of "software development" should be under process to continue the
function of banking software and expertise of banking network. Thus, banks and
bankers enjoy creating creditable, demanding and world standard services for the
sake of greater interest of nation and economy.

3.11- Business models:

Business model is the way that a company uses to operate its business in order to make
revenue. Internet has changed those traditional methods of generating profits for the
business. The web presents certain types of business models that make visible
improvement for the business.
The major types of business models are:
o Brokerage

o Advertising

o Infomediary

o Merchant

o Manufacturer

o Affiliate

o Community

o Utility

Each type of those business models has individual way to be used by any business. For
example- Brokerage model depends on helping both sellers and buyers with their
transitions. Brokers charge for fees of doing transactions depending on the value of
business. This model can be business-to-business (B2B) and business-to-consumer (B2C)

33

and consumer-to-business (C2B). Advertising is another kind of business models that

operates with web advertising such as creating banners of the business.
Online banking follows the merchant type as a business model to generate its revenue.
They sell services and products such as loans, credit cards and other facilities against
gaining charges and interests or commissions. It seems to be similar as traditional banks
with its business model of operating their income but with electronic services it could be
more simple and faster than traditional methods. This kind of model can be business-tobusiness (B2B) and business-to-consumer (B2C). This means that online banks can
provide and help consumers with loans, paying bills, opening accounts, credit cards and
other services. Furthermore, online banking can offer certain services for businesses with
the loans that invested in such projects

3.12- Types of online banking:

The common assumption is that Internet banking is the only method of online banking.
However, this is not strictly the case, as several types of services are currently available:
3.12.1-PC Banking- The forerunner to Internet banking has been around since the late
1980's and is still widely used today. Individual banks provide software which is loaded on
to an SME's office computer. The SME can then access their bank account via a modem
and telephone link to the bank. Access is not necessarily via the Internet.
3.12.2-Internet Banking- Using a Web browser, a user can access their account, once the
bank's application server has validated the user's identity.
3.12.3-Digital TV Banking- Using the standard digital reception equipment (set top box
and remote control); users can access their bank account. Abbey national and HSBC
services are available via digital TV providers. One of its main selling points is that no
account details are transmitted via the World Wide Web.
3.12.4-Text phone Banking- HSBC has introduced this service to allow customers with
text phones to check their balance, pay bills and transfer money.

34

3.12.5-Internet banking can be split into two distinct groups:

Traditional banks and building societies use the internet as an add-on service with which to
give businesses access to their accounts.

3.13- Future outlook of online banking in ABL:

The unimposing feature of globalization is free market economy across the whole globe.
Under the aegis of rushing globalization, distinct, vibrant culture of banking place a few
significant noteworthy and creditable roles with classic features penetrate and grab the
loyalty of targeted number of population. Free checks, free trade related affairs, ATM, free
online bill payment are fundamental chores in mechanism of online banking to be
substantiated. Viable 'IT' layout that has been offering a number of customers option, used
to indicating and regarding as electronic form of banking in past. Consequently, a bank is
to obviously be a member of 'SWIFT' society of worldwide inter-bank financial
telecommunication is expected to enable the prosperity of technology be furnished having
these major conveniences to secure matchless, peerless fortune of online banking:
1. Account credit card payment online benefits at participating online merchants, hence
payments on purchase; discount of purchase can be coordinated with credit card
partnership business.
2. Instant credit approval unlike so-called delayed nature of lean payment and additionally
there is a provision of additional cash consideration.
3. Bill payment, internal bill payment system act much like the PC software of the past that
scheduled payment and printed cheques.
4. 24 hours customer services by phone or e-mail is commodious to ensure bliss with
customer rather than expensively branch based human services in 24 hours hurriedly.
5. Online mortgage and CD applications bank's offering online mortgage and CD applications
are ahead of the pack in bringing their products to the online market.
6. Touch-tone bill pay augment online bill pay at no extra charge. A customer is in the need
of checking balances and liquidity in his account with no chance of internet connection can
jump into it medium touch tone phone without extra charge in the banking action, as they
faster change in computer technology throughout global platform.

35

7. The management of our domestic banking technology in effect on website in lieu of MSDOS process. Benefits, opportunities for striking impact of online banking is most likely to
be able to capture the whole banking sector in a network with centrally regulated software
in website that must eliminate problems and frequent in conveniences of all other banks
adjoined to this process.

3.14-The prospective and prim services on online banking are expected to

be materialized after commencement of online banking to a large
extent:
1. As empirical evidence here a SWOT analysis can be an effective measure. For
analyzing the performance of the Internet Banking in Bangladesh the following SWOT
Analysis is considered:
2. Internet Banking is still to grow more in Bangladesh; most of the banks are providing
several services of E- Banking. Thus, this product will enjoy the benefit of first mover.
3. It is cheap for both banks and customers; banks will be able to lower overhead costs and
make more profit out of it. Moreover, this requires less man power for banks; customers
can save time and avoid hassles.
4. E- Banking is convenient as the service is available all the tome at just a click away.
5. The system may have a problem of security breakdown which refers to the problem of
identification of customers whose initiating transaction as in Bangladesh
6. The transaction can only be cancelled via Internet while the Internet infrastructure in our
country is not satisfactory and supportive to provide all time access to web. So, there
comes the problem in executing service with its full functionality.
7. All types of internet services are being appreciated and applied by people of different
walks as this eases the activities. So, such unattractive offer package provided by
online- banking will be popular everywhere very soon.
8. People have concern about security & privacy; they like to fell money with their hand;
they actually dont believe in virtual money transfer.

36

9. In the field of IT new technology is coming every day. The one which is very popular
today might get obsolete tomorrow. So to have a competitive edge over competitors the
banks must always update their services.
10. Despite the presence of online internet service in Bangladesh, its scopes underutilized.
The reasons include high service charges, lack of awareness, poor telecommunication
systems, government policy, low buying power of potential clients and lack of
institutional support.

3.15-The Prospects/effectiveness of online banking of ABL (Shaheb Bazar

Corporate Branch, Rajshahi)
1. Use real time e-mail or pager alerts to notify customers when they are in danger of
bouncing any cheque for other activities.
2. Give customers the option Via-e-mail of paying bills now or later and from which
account.
3. Offer clients a personal computer or just 'smart phone' possibly with free internet
access essentially giving them a personal 'ATM' in home.
4. Offer VIP customers a palm-held computer that gives them an access to real time
banking information anywhere in the planet.
5. Provide free, private, extranet sites in exchange for setting up an account. This would
feature pages to manage mortgage, home insurance, education loan etc.
6. Offer an online payment calculator and provide hyperlink to real estate agents on auto
movers.
7. Give customers an online personal finance program that would track their transactions
according to purpose, category or tax deductibility. It should summaries their assets
and liabilities by comparing their financial ratios to others.

3.16-Growth of National Economy Through online banking:

Managers at various levels of organizations especially in underdeveloped country like
Bangladesh will have to play vital roles to successfully implement on-line banking. They
may act as strategic leaders at different stages of managerial capabilities. They are the key

37

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 subset of the ebusiness. Benefits derived from the e-business largely depend 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.
Online can add value through knowledge management as it helps to attain new services to
the customers. Successful online banking depends on sharing of strategic knowledge for

38

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 something 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.

39

3.17- Problems of online banking of ABL:

3.17.1-Infrastructural deficiency:
To implement online banking in our state, the infrastructure is necessary. For this we need
availability of electricity supply and telecommunication. Without developing these we
can't develop this online banking system properly.
3.17.2-Budget allocation:
The software is vary intricate to develop because e lacking of apposite in-house. In this
regard, banks are to rely on software developing concerns at extreme costs.
3.17.3-Hackers
The hacking, the serious crime of computer causes the injury and hazard to the security and
safety of users of computer involved in online technology. As a result, hackers are the
influential troubles of users of online business of a bank. Online banking services will not
be feasible for an economy as most people are illiterate. They are beyond the scope of
normal banking service. So online banking service is not only absurd but also anti-people.
Micro-credit industry is now not only providing small credit but also mobilizing savings.
3.17.4-The big problems are in the regulatory framework:
1. Lack of full convertibility. Bangladesh citizen cannot have access to the world wide
online banking service due to regulatory restrictions.
2. The reserve position will not allow free inter-country fund transfer.
3.17.5-Bankers
The institutional structure of the market place will be changed radically. Most of the
decisions of online banking products talks about how we can serve existing customers, and
how can enhance the services to existing customers. To attract new customers
electronically credit card is going to find in the electronic world. Structure of the industry
is going to have serve competition from truly large scale alternative suppliers. The big

40

question of the 21st century banking is the tiny banks of Bangladesh to compete with their
old fashion.
3.17.6-Risk
The credit information available for banks is often wrong, so it is very difficult to check
whether the customer has difficult on a card issued by another bank. A data bank is
required to see the list of the defaulters. More unconventional banks fill that gap in the
market, trying to grab a share of the internet money, on the premises that they represent the
richest and most educated part of the population.
3.17.7-Privacy
Another central issue to the consumer is privacy. Database marketing is nothing but the
manipulation of data over which customers feel that they want to have some kind of
control. The general rule is that consumer privacy rights should be respected. Individuals
should easily opt out of online marketing as an extension of their right to be removed from
junk mail lists.
3.17.8-Unemployment
One pre-conceived widespread idea is computers will displace labor. This is a matter of
empirical study. Productivity and profitability are closely interrelated terms. The
experienced excess staffs can be easily absorbed in to the expanding financial market. The
unemployment will only be structural unemployment since the displaced labor will sooner
have later acquired the necessary computer skills and thus become more efficient.
3.17.9-Cost-effectiveness
Another misconception is that it is not cost effective. None of the banks that have designed
properly on automation plan and implemented it with proper cost benefit analysis became
less superior. Actually the acceptance of financial modernization is a matter of vision to
the future. Unless computers become cheaper and online facilities become within the reach
of middle class, they will remain unfamiliar with internet, and will thus avert them.

41

3.18-Limitation and Constraint Of Online Banking System Of ABL

(Shaheb Bazar Corporate Branch, Rajshahi)
3.18.1-Lack of awareness and human capital:
Online-Banking is still not very much progressed at Shaheb Bazar in Rajshahi. 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.
3.18.2-Unsatisfying services and customer relationship:
Government banks (As a ABL) are lagging behind of online 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 online banking can manage economy of Bangladesh in a far better way as
customer relationship management increases.
3.18.3-Erstwhile technology:
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. Numerous
problems have been identified from the field survey online banking system in Bangladesh
as well as Rajshahi. Some of them are in the followings:

Inefficiency and inadequate knowledge of the bank management about the onlinebanking.

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 man agreement.

42

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

3.18.4-Limited number of online customer due to high cost:

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 on -banking
facilities seems profitless.
3.18.5-Financial risks:
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.

43

Chapter -4

Analysis

44

4.1-Records of online banking service by ABL:

For users, online banking provides 24 hoursa-day accesses to banking services. The
primary services provided by e-banks are any branch transactions, fund transfer, bank
statement, paying utility bills and checking account balances. Loans, brokering, share
trading, service bundling and a host of other financial services are being added to this
primary services.
TYPES OF SERVICES

2012

2013(million)

2014(million)

(million)

TELEGRAPHIC TRANSFER

14

20

24

ONLINE CORPORATE BANKING

12

EFT(ELECTRONIC FUND TRANSFER)

15.4

15

18

14

15.4

17

10

23

25

10

12

18

3.8

12

7.6

12

ATM

INTER BRANCH MONEY TRANSFER

DEBIT CARD
MERCHANT SERVICES TO
MERCHANT(AGENCY SERVICES)
ONLINE BANKING (M-REMITTANCE)

Source: Agrani Bank Limited, Bazzar branch, Rajshahi

45

4.1.1- TELEGRAPHIC TRANSFER:

TYPES OF SERVICES

TELEGRAPHIC TRANSFER

2012

2013

2014

(million)

(million)

(million)

14

20

24

CHART- 1: Performance of Telegraphic Transfer over years

TELEGRAPHIC TRANSFER
24
20
14

2012

2013

2014

Comment:
In 2014, 2013 and 2012, Telegraphic Transfer transaction

operated

into

the

country

through ABL was 24, 20, and 14 million showing an increase of 4 and 6 million over the
previous year. This growth was possible due to introduction of different instant payment
products and technology including extending SWIFT, online, EFT etc. and further efforts
are being made for more speedy payments.

46

4.1.2- ONLINE CORPORATE BANKING:

TYPES OF SERVICES

ONLINE CORPORATE

2012 (million)

2013 (million)

2014 (million)

12

BANKING

CHART- 2: Performance of online Corporate Banking services over years

ONLINE CORPORATE BANKING

12
8
5

2012

2013

2014

Comment:
In 2014, 2013 and 2012, Online corporate banking transaction occurred into the country
through ABL was 12, 8 and 5 million showing an increase of 4 and 3 million over the
previous year. This growth was possible due to those customer are interested with this
services. So this service is so popular only within corporate level.

47

4.1.3-ELECTRONIC FUND TRANSFER (EFT):

TYPES OF SERVICES
EFT

2012 (million)

2013 (million)

15.4

15

2014 (million)
18

CHART- 3: Performance of EFT services over years

EFT
19
18
17
16
15
14
13
2012

2013

2014

Comment:
From this analysis, in 2014, 2013 and 2012, EFT fund transferred into the country through
ABL was 18 million showing an increase of 3, 0.4 million over the previous year. This
transaction was increased by year to year due to EFT system is so modern banking in
online. Most of the people are so comfortable in this service because we can get money
easily by electronic fund transfer.

48

4.1.4-ATM CARD:
TYPES OF SERVICES

2012 (million)

ATM CARD

14

2013 (million)
15.4

2014 (million)
17

CHART- 4: Performance of ATM CARD services over years

Comment:
Here, after completing analysis, in 2014, 2013 and 2012, ATM Card transaction occurred
into the country through ABL was 17, 15.4 and 14 million showing an increase of 1.6, and
1.4 million over the previous year. This growth is not perfectly for this bank, because
ATM booth is not available in agrani bank Ltd. So my point of view ATM booth must be
increased in this situation.

49

4.1.5-INTER-BRANCH MONEY TRANSFER:

TYPES OF SERVICES

2012 (million)

INTER-BRANCH MONEY

10

2013 (million)

2014 (million)

23

25

TRANSFER

Chart- 5: Performance of Inter- Branch Money Transfer services over years

INTER-BRANCH MONEY TRANSFER

25
10
2012

23

2013

2014

Comment:
I can easily understand from this chart, in 2014,2013 and 2012, Inter-Branch money
transfer transaction operated into the country through ABL was 25,23,and 10 million
showing an increase of 3, and13 million over the previous year.

50

4.1.6-DEBIT CARD:
TYPES OF SERVICES
DEBIT CARD:

2012(million)

2013 (million)

10

2014 (million)

12

18

CHART- 6: Performance of Debit Card services over years

DEBIT CARD

2014

18

2013

12

2012

10

Comment:
Here, In 2014, 2013 and 2012 Debit Card transaction occurred into the country through
ABL was 18,12 and 10 million showing an increase of 6 and 2 million over the previous
year. This growth was possible due to customers were so enthusiam for this service. This
service is better service than other.

51

4.1.7-MERCHANT SERVICES TO MERCHANT (AGENCY SERVICES)

TYPES OF SERVICES

2012 (million)

2013 (millions)

3.8

2014(million)
12

MERCHANT SERVICES TO
MERCHANT(AGENCY SERVICES)

CHART- 7: Performance of Merchant Services to Merchant (Agency Services) over years

MERCHANT SERVICES
12
2

2012

3.8

2013

2014

Comment:
According to chart, In 2014,2013 and 2012 Merchant services (Agency services) operated
into the country and abroad through ABL were 12,3.8 and 2 million showing an increase of
8.2 and 1.8 million over the previous year. Merchant service increased day by day due to
provide better opportunities for the agency.

52

4.1.8- M-REMITTANCE:
TYPES OF SERVICES

2012(million)

2013(millions)

2014(million)

ONLINE BANKING

7.6

12

(M- REMITTANCE)

CHART-8: Performance of M- Remittance services over year

Comment:
Here, I can easily define from this chart In 2014,2013 and 1012 foreign remittance brought
into the country through ABL was 12, 7.6, 3 million showing an increase of 4.4, 4.6 and
million over the previous year. This growth was possible because foreign communications
were high. so this transaction will be increased by the bank foreign performance is
effective.

53

4.2-Customer satisfaction of online banking service quality of ABL:

It refers the transformation of raw data into a form that will make them easy to understand
and interpret; rearranging, ordering, manipulating data to provide descriptive information.
It refers a set of data organized by summarizing the number of times a particular value of a
variable occurs. I targeted my person size is 30. In my sample size my main target is to
know about online banking service customer satisfaction of service quality of Agrani Bank
ltd. Those are given descriptively and graphically as follows:

4.2.1-Customer satisfied by ATM Services in ABL:

Cumulative Percent

persons

Percent Valid Percent

6.67

6.67

6.67

13.33

13.33

20

Uncertain/Neutral

12

40.0

40.0

60

Agree

10

33.33

33.33

93.33

6.67

6.67

100.0

30

100.0

100.0

Strongly Disagree
Disagree

Strongly agree
Total

Customer satisfied by ATM Services in ABL. With this statement 4 disagreed and 2
strongly disagreed. Strongly agreed were 2 people, 10 persons were agreed and 12 people
were neutral. The bar chart shows below:

Neutral
40%

disagree
13%

agree
33%

Other
40%
strongly
disagree
7%

54

strongly agree
7%

4.2.2 -Customer Satisfied by EFT Service in ABL:

persons
Strongly disagree

Percent Valid Percent

Cumulative Percent

6.67

6.67

6.67

10.0

10.0

16.67

Uncertain/ Neutral

26.67

26.67

43.34

Agree

10

33.33

33.33

76.67

Strongly
agree
Total

23.33

23.33

100.0

30

100.0

100.0

Disagree

I can get clear idea about customer satisfied by EFT Services in ABL from this statement 3
disagreed and 2 strongly disagreed. Strongly agreed were 7 people, 10 persons were agreed
and 8 people were neutral. Most of the customers are agreed this service. The bar chart
shows below:

neutral
27%

agree
33%
Other
56%
strongly agree
23%

disagree
10%

strongly
disagree
7%

55

4.2.3-Customer satisfied by Tele Banking in ABL:

Persons
Strongly Disagree

Percent Valid Percent

Cumulative Percent

8.0

8.0

8.0

12.0

12.0

20.0

Uncertain/ Neutral

20.0

20.0

40.0

Agree

10

40.0

40.0

80.0

20.0

20.0

100.0

25

100.0

100.0

Disagree

Strongly agree
Total

From this statement, I can get clear concept about customer satisfied by Tele banking
Services in ABL. Maximum customers are so popular and agreed with this facilities. 3
disagreed and 2 strongly disagreed. Strongly agreed were 5 people, 10 persons were agreed
and 5 people were neutral. Most of the customers are agreed this service. The bar chart
shows below:

56

4.2.4-Customer satisfied by Debit Card services in ABL:

Cumulative Percent

persons

Percent Valid Percent

10.0

10.0

10.0

10.0

10.0

20.0

Uncertain/ Neutral

35.0

35.0

55

Agree

35.0

35.0

90

Strongly
agree
Total

10.0

10.0

100.0

20

100.0

100.0

Strongly disagree
Disagree

Here, analysis shows that most of the respondents were neutral and agreed by Debit Card
services in ABL. Among the 20 respondents 7 respondents were neutral and agreed and 2
respondents were strongly agree and rest of the persons were disagreed and strongly
disagreed. So it is a modern online banking system in ABL. The ratio among them is given
below as the bar chart:

57

4.2.5-The employees in Agrani Bank always willing to help you:

persons percent

Valid percent

Cumulative percent

Uncertain/Neutral

12

24.0

24.0

24.0

Agree

29

58.0

58.0

82.0

Strongly Agree

18.0

18.0

100.0

Total

50

100.0

100.0

Employees in Agrani Bank ltd are willing to help you. With this statement no one were
disagreed or strongly disagreed. Strongly agreed were 9 people, 29 persons were agreed
and 12 people were neutral. Maximum employees are so helpful and frankly for motivate
the customer. The bar chart shows below:

58

4.2.6-You feel safe in your transactions with Agrani Bank:

persons
Disagree

Percent Valid percent

Cumulative percent

6.67

6.67

6.67

Uncertain/ Neutral

10

33.33

33.33

40.0

Agree

12

40.0

40.0

80.0

20

20.0

100.0

30

100.0

100.0

Strongly agree
Total

With this statement most of the respondents were agreed. Among the total respondents 12
persons were agreed with this statement and 6 persons were strongly agreed. 10 persons
were neutral and 2 persons were disagreed. But there were no strongly disagreed people.
The pie chart shown below:

disagree
7%
strongly agree
20%
uncertain/neutral
33%
agree
40%

59

4.2.7-How are you satisfied with the fees/service charges of the ABL:

persons

percent Valid percent

Cumulative percent

Uncertain/Neutral

16.67

16.67

16.67

Satisfied

10

33.33

33.33

50.0

Highly satisfied

15

50.0

50.0

100.0

Total

30

100.0

100.0

Though, the fees/service charge of the Agrani Bank is more than other bank that is why
these banks are provided more safety. Here, analysis shows that most of the respondents
were highly satisfied with the fees/service charge of the Agrani Bank. Among the 30
respondents 15 respondents were highly satisfied and 10 respondents were satisfied. There
is no any dissatisfied. The ratio among them is given below as the bar chart:

60

4.2.8-How are you satisfied with the time you have to wait for a service at

Agrani Bank's branches:

persons

percent

Valid percent

Cumulative percent

Highly dissatisfied

16.67

16.67

16.67

Dissatisfied

15

50.0

50.0

66.67

Neutral

20.0

20.0

86.67

Satisfied

13.33

13.33

100.0

30

100.0

100.0

Total

From this observation, govt. bank as an ABL is not better service at just time. Here
analysis shows that most of the respondents were dissatisfied which was 50 %.They were
satisfied with the time have to wait for a service at Agrani Banks branches. Among the
total respondents 50% were dissatisfied and 20% were neutral. Others were satisfied and
highly dissatisfied. The ratio among them is given below in the Pie chart.

satisfied
13%

highly dissatisfied
17%

Neutral
20%

dissatisfied
50%

61

Chapter -5
Findings, Recommendations and Conclusion

62

5.1-Findings
After analysis the data, I have come up with some findings. The summary of findings is
given below:
1. Agrani Bank ltd should computerize all its functions and should provide online
banking facility at all branches. Because, maximum client want to send money by
EFT.
2. Customers are always willing to get their service at a time. Agrani Bank ltd should
provide their service at a time. Because I found that most of the customers were
dissatisfied at this point.
3. Agrani bank ltd should provide better ATM booth service. Because it has limited
number of ATM booth. For this reason most of the customers were not strongly
agreed for this service.
4. Agrani bank ltd should provide effective debit card facilities. Because I found that
most of the clients were not strongly satisfied by this service.

5. From this observation about service charge I found that most of the respondents are
highly satisfied. They have no complaint about fees or service charges.
6. Customers are not also very happy with the behavior of the bank personnel.
However, it is better to increases customer relationship management.
7. Inefficiency and inadequate knowledge of the bank management about the on line
banking and lack of proper Strategic plan to gain and retain market share of the
indigenous banks and international standard communication channel.
8. 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.

63

5.2-Recommendations:
To implement online banking 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 online
banking process in a systematic way.
Agrani bank should increases customer relationship management for improving
customer satisfaction.
Agrani bank should provide the lowest service charge for instigating of customer
response.
Career path of hardware and software engineers should be properly designed.
Otherwise professionals will be de-motivated and they wont work with job
satisfaction.
Agrani bank should provide better ATM service. For this reason, this bank must
increase number of ATM booth.
The country needs to develop online-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. Public and
private participation (PPP) for e-business should be encouraged for economic
development.
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.
E-business can help to improve total quality management. This can also ensure
quality assurance of the business sector.
More high-speed fiber optical data communication infrastructures should be well
established for speedy data communication for domestic and global high speed
communication system.

64

5.3- Conclusion:
This report is an effort to reflect a clear idea about problems and prospects of online
banking systems in Agrani Bank ltd. From my study I also found online banking services
have more priority in terms of selecting the different type of schemes according to the
customer perception. I present this report on the basis of the knowledge and experience
gained during the internship period. Throughout the report my objectives to seek and find
out the customer satisfaction of online banking service quality of Agrani Bank ltd. From
this report I found that most of the customers of the bank are not proper satisfied about the
service quality of the bank. Considering the volume of operation and limitations of
resources and proper management the bank is doing better than many modern banks. If its
possible for the bank management to provide recommended services, the perception of the
customers will be positive about the service quality of the Agrani Bank. Agrani Bank ltd
started with a vision to be the most efficient financial intermediary in the country and it
believes that the day is not far off when it will reach its desired goal. Agrani Bank Limited
looks forward to a new horizon with a distinctive mission to become a highly competitive
modern and transparent institution comparable to any of its kind at home and abroad.

65

Reference:
E-banking, URL: http://www.american.edu/initeb/rw9257a/banking.htm
On line banking security: http://www.bankbranchonline.com/security.html
Cryptography in Microsoft.NET Part II: Digital Envelop and Digital Signatures.
Mohammad M. Islam Proposed ICT infrastructure for E-banking in Bangladesh
Web.<http://onlinebanlung.org/models.
www.agranibank.org
Information collect for customer by survey

Others:
Journals
Newspapers
Reports
Friends
Senior brothers & Classmates

66