The use of electronic plastic cards, known as ATMs, is on the rise, driven by demand from Bangladesh's booming middleclass that makes up one-fifth of the population, bankers say.

As customers prefer smooth and hassle-free banking transactions, they have said banks are trying to net customers by cutting back charges.

"Our 30 million-plus middle class is the key driver of growth of ATMs," Monindra Kumar Nath, Deputy Managing Director of Mercantile Bank Ltd, said.

"Even a few years ago, they (middleclass) were scared to use this due to higher charges. Now the bulk of the demand for such cards is coming from them only for lowering fees," he added.

He said that annually, card holders of the Bank are increasing at a rate of more than five per cent.

In 2009, customers of his Bank took 10,400 debit cards and withdrew cash worth more than Tk 800 million from automated teller machines (ATMs) while in 2010 customers holding debit-card were 16,300 in number and withdrew cash worth more than Tk 2.07 billion, Mr Nath said.

Last year, the number of debit-card holders increased by five per cent. The customers took 25,500 debit cards and they withdrew more than Tk 2.6 billion by using these cards, he said.

Moreover, 4,500 customers were provided with credit card in 2010 and they transacted nearly Tk 0.19 billion and in 2011 the Bank provided 5,400 credit cards through which the customers made transactions worth more than Tk 0.24 billion, Mr Nath said.

In just two months to February this year, the number of ATM booths reached 56, compared with 31 in 2010, he added.

"As the customers now prefer branchless transaction using electronic cards, the management has decided to install ATMs on all branch premises and in important places across the country to meet the demand," Mr Nath added.

Chief of Communication of Mutual Trust Bank Ltd Mohammed Sami-Al Hafiz told the FE the electronic card-bearing customers of the Bank are increasing significantly as they do not want to waste time by waiting in queues for long.

Every month the number of users is rising by more than 13 per cent as the customers are getting cash from any place at any time, Mr Hafiz said.

Deputy Managing Director of Islami Bank Bangladesh Ltd (IBBL) Abul Bashar told the FE: As the Bank grabbed a majority portion of customers among private banks, the management has planned to provide branchless money-withdrawing services.

"Now we have introduced only debit card and credit card for customers and as soon as possible many kinds of electronic cards with different names would be launched," Mr Bashar said.

In every month 20,000-25,000 customers are taking electronic cards and this number is increasing day by day, Mr Bashar added.

Now more than 0.2 million customers are using the card and by the end of this year the ATM card holders would be estimated at 0.5 million, he said further.

Head of IT Division of Prime Bank Ltd Iqbal Hossain told the FE: More than 10,000 customers are now taking ATM cards monthly but a year ago only 2,000 to 3,000 customers were taking this card in a month.

At present more than 0.2 million customers of the Bank are using electronic cards and by the end of this year the number will surpass 0.3 million, Mr Hossain said.

Head of IT Division of Trust Bank Ltd S M Akram Sayeed told the FE: The Bank has only debit card and the demand for cards is skyrocketing.

The number of card-holders of the Bank in 2010 was calculated at 18,906 while in 2011 the number was 111,157 and by the end of this year the number would exceed 0.2 million as thousands of people are applying for debit cards, Mr Sayeed said.

Misum Maleha Munni, a customer who was waiting for withdrawing cash on the premises of an ATM booth of Dutch-Bangla Bank Ltd (DBBL) at city's Elephant Road, told the FE: There is no need to expand branches but ATM booths should be increased across the country because we are getting necessary cash and information using electronic cards.

"I never thought of getting such kind of time-saving transaction facilities using the plastic cards in a developing country like ours, which made our life easier and smooth," the customer added.

Financial Express/Bangladesh/ 13th March 2012