Dutch-Bangla Bank E-Banking

BY: MD RAFIQUL ISLAM RATUL(1844601005)

Introduction to Electronic Banking

of DBBL.

First Fully Automated Electronic Banking

Dutch-Bangla Bank is the first bank in Bangladesh to be fully automated and introduce Electronic Banking.
The automation was completed in 2003, but further additions and features are continuously being added and
upgraded. Dutch-Bangla Bank Ltd has adopted the same exact automation solution used my many international
banking giants. Although this was significantly more expensive than other solutions, it is a small price to pay
for a client's peace of mind.

Unrivaled Access to Banking

A Dutch-Bangla Bank Ltd client now has unrivaled access to banking from any Dutch-Bangla Bank Ltd
branch, ATM and POS. All of these services are free-of-charge and are surprisingly affordable for everyone.
Even though Dutch-Bangla Bank Ltd has invested more in Electronic Banking more than any other bank, the
division was never intended to be profitable. It was undertaken with the same mindset Dutch-Bangla Bank Ltd
undertakes its Corporate Social Responsibility tasks. This is why you pay barely nothing even though these
same services would cost you much more in other countries and other banks. Never has any bank given so
much for free.

Largest ATM Network in Bangladesh

Dutch-Bangla Bank Ltd also has the largest ATM network in Bangladesh. This gives Dutch-Bangla Bank Ltd
clients full access to 'anytime anywhere' banking nationwide. All international and many local banks use the
Dutch-Bangla Bank Ltd ATM network for their own clients. Dutch-Bangla Bank Ltd has installed over 4,100
ATMs nationwide. As with most things, ATM access to all Dutch-Bangla Bank Ltd ATMs is unlimited and
free for all Dutch-Bangla Bank Ltd clients. If a client of a member bank (not Dutch-Bangla Bank Ltd) uses a
Dutch-Bangla Bank Ltd ATM, the member bank may add a transaction charge.

We know from our previous discussion that in 2005 DBBL for the first time installed 32 ATMs, before that
year that means, from 2004 to before; there were no ATMs in Bangladesh by DBBL. In this part of the report,
index number is to be used to find out the rate of increase of “Deposit” in DBBL by assuming 2004 as the base
year (just the previous year before the initiation of ATMs by DBBL) and to figure out the rate of change in
deposit of DBBL in relation to that base year when no ATMs were installed.

The following table shows the deposits amount of DBBL from 2004 (in that year no ATMs were installed) to
2010. The table also contains the num of ATMs in corresponding years and Index numbers considering 2004
as the base year.

The following table shows the deposits amount as the base year:

Table: Fixed base index number (2004= base year) of deposit.

Year 2004 2005 2006 2007 2008 2009 2010

 Num of ATMs 0 32 85 210 350 700 1000

Deposit Tk. 21107.56 27241.11 40111.54 42110.15 51576 80000 92000

(in million)

Index Number 100 129 190 19

(2004=100)

Base year

Largest IT Budget

Dutch-Bangla Bank Ltd has the largest IT budget in Bangladesh. Dutch-Bangla Bank Ltd maintains the state-
of-the-art Electronic-Banking Division. The Electronic-Banking Division oversees and maintains Dutch-
Bangla Bank Ltd.’s investment as well as implementing upcoming projects.

Dutch-Bangla Bank Ltd is the only local bank to have a off-site Data Recovery Site (DRS). DRS ensures that
customer records are safe, backed-up, and up to date in the event of a major catastrophe at the Electronic-
Banking Division headquarters.

Since 2004, Dutch-Bangla Bank Ltd has introduced SMS and Alert banking. With a mobile phone, customers
can perform many banking operations with their phone.
Rocket

2011 was a historic year for the banking sector of Bangladesh as Dutch-Bangla Bank Ltd inaugurated
Bangladeshi's first mobile banking. It’s a Banking process without bank branch which provides financial
services to unbanked communities efficiently and at affordable cost. Rocket provides banking and financial
services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign
remittance, government allowance disbursement, ATM money withdrawal through mobile technology devices,
i.e., Mobile Phone.

VISA and Mastercard

Dutch-Bangla Bank Ltd is a primary license holder for both VISA and Mastercard. It is authorized to issue and
accept payments from both organizations. Dutch-Bangla Bank Ltd also works closely with both organizations
to bring you the latest in card technology. Dutch-Bangla Bank Ltd also offer Visa and Mastercard Debit Cards.

Agent Banking

Following the successful launch of the Rocket services, DBBL realized the potential to increase customer
reach by offering Agent Banking services through agents for the rural customer who does not have access to
formal banking system even through Rocket.

For smooth operation of Agent Banking function, a separate Department in the name and style "Agent Banking
Department" has been created. The Department will serve wide range of customers throughout the country by
providing banking and financial services with the help of mobile telecommunication devices/ computer
system/ using biometric technology. Especially for clients in remote locations, Agent Banking Department will
help them deposit and withdraw funds and other admissible services at banking agents, i.e., retail outlets that
turn Deposit to electronic funds and vice versa. With the help of the agent banking service customer can enjoy
the convenience of banking service at any place of the country

DEFINITIONS OF TERMS USED IN E-BANKING

E-Banking                 

Electronic banking is an umbrella term for the process by which a customer may perform banking transactions
electronically without visiting a brick-and-mortar institution.

E–Money

E-money includes electronic debit and credit system, smart card. The smart card has been defined many ways,
but is generally defined as “portable data storage device with intelligence (chip memory) and provision for
identity and security.”

Smart Cards

“Portable data Storage device with intelligence (Chip Memory) and provisions for identity and security”
(Barbara A. Good, 1997).

Automated Teller Machine (ATM)

An ATM is simply a data terminal with two input and four output devices.

ATM has two input devices- card reader and keypad. An ATM has four output devices- Speaker, Display
screen, Receipt printer, cash dispenser.

SMS Banking

SMS- Banking is developed to provide transactions related to client’s card account via SMS.

Tele-banking

Tele-banking is a form of remote banking which is essentially the delivery of branch financial services via
telecommunication devices.

Online Banking

Online banking (Internet banking) is a term used for performing transactions, payments etc. over the internet
through a bank’s secure website.

Call Center
Call center is a streamlined customer interface and offers a range of banking services through its call center
agents.

Internet Banking Features

Dutch Bangla Bank Ltd allows you to do seamless internet banking. This allows you to review your account,
statements, paying bills as well as making some transactions. Because of local banking regulations, Dutch
Bangla Bank Ltd is not allowed to provide some types of transactions even though it is fully capable.

Internet Banking Forms

Internet Banking Features

Account Summary the Customer will be able to view the list of Current, Saving, Term Deposit and Loan
accounts with the current balance.

Account Details the Customer can choose a particular account and see the account details including unclear
fund, limit, interest accrued etc.

Account Activity The customer can see or print his transaction activity in a given account for a particular
period.
Transfer Funds The customer can transfer funds from one of his accounts to another of his accounts within
the bank.

Third Party Transfer *The customer can transfer funds from one of his accounts to another customer's
account within the bank.

Pay Bills The customer can pay his utility bill (like Dutch Bangla Bank Ltd Credit Card Bills, Alico, Mobile,
Tuition Fees etc.)

Standing Instructions, the customer can setup, modify or delete standing instructions for transferring fund
from one of his account to another account (his account or 3rd party).

Open/Modify Term Deposit The customer can open a term deposit by transferring funds from one of his
current or savings accounts with the bank. He can also modify the TD and redeem / part-redeem it.

Loan Repayments The customer can make payment of the loan installment from his CASA account.

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

Cheque Book Request the customer can make a request for a Cheque book.

Cheque Status Inquiry The customer can choose an account and enter the Cheque number for which the
status should be viewed.

Stop Payment Chequeen customer can mark his Cheque leaf as stop payment.

Interest Rate Inquiry The customer can query on the interest rates on CASA & Term Deposit Products.

Foreign Exchange Rate Inquiry The customer can query on the Foreign Exchange (FX) Rates using this
function.

Change Password The customer can change his Internet Banking Password using this function Additional
Internet Banking Features for Corporate Banking

Scenario regarding the E- Banking in Bangladesh

BRAC   Bank Ltd

BRAC Bank deployed a layer of security system for its Internet Banking. These measures extend from data
encryption to firewalls. BRAC Bank uses the most advanced commercially available Secure Socket Layer
(SSL) encryption technology to ensure that the information exchange between the customer’s Computer and  
BRACBank.com over the internet is secure and cannot be accessed by any third party.

Arab Bangladesh Bank Ltd.

AB bank Ltd. is the first private bank of Bangladesh with a long-standing experience in domestic and
international banking. Its 153 branches in all the major commercial centers of the country and 152
correspondents worldwide provide proficient e-banking services to its customers.

Standard chartered Bank Ltd

Standard Chartered offers the client a comprehensive range of Cash Management services.  Electronic Banking
provides various types of support through a wide range of operating systems, sweeping transaction accessories
with the provision of reporting features or other special functions.

Bank Asia Ltd

Bank Asia symbolizes modern banking with innovative services in Bangladesh. It has centralized Database
with online ATM, SMS and Internet query service. Bank Asia has 21 ATMs as a member of ETN along with
eleven other banks. Bank Asia is maintaining its Online Banking Software and modern IT infrastructure.

Through Internet:

Through the Internet Banking of DBBL, the following can be performed:

 Checking of account balance

 Print-out of account statement for a particular period.

 Transfer of found within the customer’s own accounts

 Payment of mobile/T&T phone, Gas, Electricity, Water, Internet bills from customer’s account.

 Payment of School/College/University fees by debiting one’s account

 Purchase of activation number for mobile/internet pre-paid cards.

  Deposit of loan installments

 Stop Cheque payments

 Opening of an FDR (Fixed Deposit Receipt) account by debiting one’s Savings/Current/STD (Short
Term Deposit) account

 Submission of L/C (Letter of Credit) application on-line

 Foreign Currency Exchange rates and interest rates enquiry.

The development of the DBBL’s ATM and other key

 E-banking services

DBBL is a technology driven institute. DBBL had undertaken a comprehensive IT project in the year 2003 in
order to make the banking system automated. After the successful implementation and testing of that project
DBBL introduces the ATM and POS system on 30th December, 2004. Initially bank installed 32 ATM centers
in different branches.

In 2004 After the successful implementation and testing of that project DBBL introduces the ATM
and POS system. Initially bank installed 32 ATM centers in different branches.
(At year end)

In 2005 DBBL has started to issue MasterCard’s debit product-Maestro and cirrus cards. And also
accept the MasterCard’s entire product range including MasterCard credit card and
Maestro and cirrus credit cards.

In 2006 DBBL has started to issue Visa debit products-visa electron & Plus cards and accepting
the visa card’s entire product range including the visa debit card, visa credit card, visa
electron and plus.

In 2007 DBBL extended its ATM service with other prominent commercial banks of Bangladesh.

IN 2008 DBBL introduced SMS alert in E-Banking.

 In 2009 DBBL starts the mobile ATM service which increases the service availability.

In 2010 DBBL starts MOBILE banking systems to increase the service

availability of customers.

This Section of the report focuses on the growth of ATM system by DBBL in the divisional level and show
how rapidly DBBL increasing its coverage of this ATM system. Another major aspect this section focuses is
the year-to-year growth of the ATM system and the development of the DBBL’s other key e-banking services
along with the collaboration of World class e-banking service providing Corporation .

CONCLUSION

Electronic banking is relatively a new concept for Bangladesh. It is not long ago when people wait in queue for
long time with token in hand and collects money. But today the scenario is a little different at least in the urban
areas. With the blessing of modern banking facility, people can enjoy 24 hours banking facility without going
to the bank physically even from client’s residence through Internet Banking or through ATM, POS terminals.
At the same we need to be very careful about the fraud. This can be done through proper education on
information technology & sufficient software & hardware support. Proper implementation of online banking
will create a positive impact on economy. Dutch-Bangla Bank Limited is the leader in the electronic banking
among the private banks of Bangladesh. It has employed almost all types of modern-day banking facilities to
provide convenience to its customers. All automated delivery channels are providing round the clock service
through the mentioned hardware and software. DBBL contributes 5% of its profit for helping the destitute to
develop their standard of living and earn a respectable way to keep up with their everyday activity.
Considering the issues discussed earlier we may conclude that the Dutch-Bangla Bank Ltd. is not only a profit-
making organization, it is also a perfect “Corporate Citizen” who always carry out its duties of corporate social
responsibilities.  As banking sector is service oriented, therefore, banks of Bangladesh must move towards
fully online banking. This will enable them to provide round the clock services through all the service channels
without deployment of much manpower thus saving time & money and most important of all ensuring
transaction security.

.
Sources

https://www.dutchbanglabank.com/

https://www.dutchbanglabank.com/electronic-banking/core-banking.html

https://www.dutchbanglabank.com/electronic-banking/atm.html