Another new dimension in digital banking is Mobile Banking which is handier to the customers. It is also known as M-Banking. The banking transactions under this system are performed through a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called 'apps', downloaded to the mobile device. The services rendered by a mobile bank are: mini-statements and checking of account history; alerts on account activity; monitoring of term deposits; access to loan statements; card statements; mutual funds/equity statements; status of cheque, stop payment of cheque; ordering cheque books; recent transactions; due date of payment; PIN provision, change of PIN and reminder over the internet; blocking of (lost/stolen) cards; domestic and international fund transfers; micro-payment handling; mobile recharging; commercial / bill payment; deposit at banking agent, etc. Despite huge prospects, only a few Bangladeshi banks have started very limited mobile banking.

Now let's see why is this digital banking? I-banking is time-saving, cost-effective, safe, convenient, and provides any time access from any location. If the we think from bank's point of view, e-banking has a number of advantages like low set up cost, low operational cost, capability to cater to a large customer base, saving a lot of operational cost, offering personalized services to customers, and reduction of burden on branch banking and many more. [Figure-1]

Although I-banking has bright prospects, it involves some financial risks as well. The major risk of e-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), etc. Security of Internet transactions is of paramount concern to most customers particularly where financial information is involved. Banks must convince their customers that their web sites are secure and sufficient safety measures have been taken to assure security at the transaction levels. Protection of customers' financial information and profile are indispensable if the public is to embrace Internet banking. For effective security measures both the bank and customer must play their respective role together. The banks should develop their own online software rather depending on other vendors. Simultaneously, our government should think about formulating law for tackling the imminent cyber crime.

One thing must be remembered that for maintaining security the clients should not depend on the bank alone, rather s/he should be aware of phishing, pharming and use the internet or other devices properly, carefully and wisely.

Phishing is a way of attempting to acquire information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication. Attempts to deal with the growing number of phishing incidents include legislation, user training, public awareness, and technical security measures.

Pharming is a hacker's attack aiming to redirect a website's traffic to another, bogus website. Pharming can be conducted either by changing the host's file on a victim's computer or by exploitation of a vulnerability in Domain Name System (DNS) server software. In recent years both pharming and phishing have been used for online identity theft information. Pharming has become of major concern to businesses hosting e-commerce and online banking websites. Sophisticated measures known as anti-pharming are required to protect against this serious threat. Antivirus software and spyware removal software cannot protect against pharming.

In spite of having a number of drawbacks in our country there is still some prospects for Digital Banking. Bangladesh Railway has a high-speed optical fiber network of 1,800km covering most major parts of the country. This optical fiber network can be a blessing for e-banking in Bangladesh. It is praiseworthy that some commercial banks are already using this optical fiber network for operating their online transactions, ATM and Point-Of-Sale services. Digital telephone exchanges are available in 389 Upazilas. Work on rest of the Upazilas is under way. Though late, Bangladesh has joined the information super-highway by connecting itself with international submarine cable system in 2006. A total of 159 Internet Service Providers (ISPs) have now been connected with this system of which 64 are actively providing services. We have got WiMAX (Worldwide Interoperability for Microwave Access) which is a part of fourth generation wireless-communication technology. Presently two WiMAX operators are providing this high speed internet connection. Setting up ICT park, raising allocation for developing ICT infrastructure, waiving taxes on computer peripherals have accelerated the prospects of e-banking in Bangladesh. Bangladesh Bank is encouraging the scheduled banks to introduce digital banking system. It has introduced some online services for the scheduled banks such as, online CIB services, LC monitoring system, Online export monitoring system, Bangladesh Bank e-tender system, submission of weekly statement, prize bond matching, and online EXP submission etc. Bangladesh Electronic Fund Transfer Network (BEFTN) is already under way led by the central bank.

Some critics may complain that the automation will induce job cuts. As a result, the unemployment problem will further deteriorate. What should be made clear at this point is that automation will help create skilled jobs like administrator, system analyst, programmer, operator etc. and actually help reduce the unemployment problem, not increase it.

Source: The Financial Express/ Bangladesh/ 6th Dec 2011