Majority of the banks in Bangladesh have turned to foreign IT firms for software to run their online banking operation.
This is because the quality of local software has declined over the years, sources in the central bank said on Thursday. High quality software is essential for providing smooth and faster banking service to clients. It ensures safe transaction and checks fraudulence and forgery.
Local software used to cover 100 per cent banking operation in the country till the mid-1990s, but these had not been upgraded by local companies to match the rising demand of the banking sector.
"In terms of the current volume of software trade in the banking sector, the dominance of local software has declined to less than 50 per cent. Over 50 per cent are being covered by foreign IT firms and dependence on foreign software is on the rise," said an IT official of the central bank.
Local software is sub-standard in terms of quality.
Nearly 20 banks have introduced online banking and mobile banking services. These banks require high quality software to run their daily operation.
Majority of these banks have hired software from foreign IT firms as their managements could not find any local software fit for their requirement.
He said foreign IT firms, such as Tamenos, Iflex (Oracle), Infosis, Polaris and Mysis, have been dominating the country's banking sector. Only three local firms - Lead Computers, Flora Systems and BEXIMCO Computers - have been providing quality software to some five or six banks across the country.
He said local software like Bexibank, a product of BEXIMCO Computers, had covered 100 per cent banking operations till the 1990s. But now other software are  being used.
Talking to The Independent, Tapan Kanti Sarkar, president of the Chief Technology Officers' Forum of Banks in Bangladesh, said the IT sector requires huge investments to produce efficient and quality software. "But big investors in Bangladesh do not usually lay emphasis on the IT sector," he rued.
There is no alternative to safe software for providing efficient service in mobile banking and online banking. "Improving the quality of local software is a must. Otherwise, it will not be possible to check foreign companies from monopolising the software trade in Bangladesh," he added.
Mahboob Zaman, president of the Bangladesh Association of Software and Information Services (BASIS), said banks are not keen to finance the IT sector.
"Funds are the most challenging factor for the IT industry. The government and industry leaders together must address the issue," he opined.

News: The Independent / Bangladesh/ Aug-19-2011

National Credit and Commerce (NCC) Bank Limited, a private commercial bank, has signed the Select Plus Agreement with the world-leading software company Microsoft on Wednesday in Dhaka.

Mohammed Nurul Amin, managing director and CEO of NCC Bank and Feroz Mahmud, country manager, Microsoft Bangladesh, signed the Agreement on behalf of their respective organisations, said a press release.

Other senior officials of both the organisations were present during the event. The agreement on using Microsoft’s genuine software demonstrates the bank’s commitment and respect for copyright.

Under the agreement, Microsoft will deliver different applications and server’s software to NCC Bank to use for its office productivity, identity and network management and emailing system.

 News: Daily Sun/ Bangladesh/ Aug-19-2011

Dhaka Bank Limited has recently signed a participation agreement with Bangladesh Bank to utilise the central bank’s refinance scheme for setting up agro-processing rural industries in the country, according to a press release. Knondker Fazle Rashid, managing director of Dhaka Bank Limited, and Sukomol Sinha Chowdhury, general manager of SME at Bangladesh Bank, signed the deal.
The main purpose of the refinance agreement is to boost country's agro-processing industries through disbursement of SME loans at easy terms and conditions in the rural areas.
Chowdhury Mohidul Hoque, executive director of Bangladesh Bank, was the chief guest on the occasion. Neaz Mohammad Khan, DMD, Sirajul Hoque, EVP of Dhaka Bank, and Ali Ahmed, joint director of Bangladesh Bank, and other senior officials were also present.
The agreement will add new dimension to Dhaka Bank's financing strength under SME.

News: The Independent/ Bangladesh/ Aug-18-2011

Pubali Bank Limited (PBL) offered a daylong workshop recently to enhance the efficiency of its officers for handling remittance by increased use of technologies.

Information Techn- ology Division organised the workshop on 'collection and distribution of foreign remittance and increase of remittance business' at the bank's head office.Managing Director of PBL Helal Ahmed Chowdhury, Additional Managing Director M.A. Halim Chowdhury and Deputy Managing Director Mahbub Mustafizur Rahman were present at the function chaired by General Manager and Chief Technical Officer of IT Division Mohammad Ali. MD said PBL is committed to provide the best and innovative banking services to its both rural and urban clients at a fastest possible speed by using modern technologies. He claimed that the bank received more remittances in just-concluded fiscal year than the previous year because of prioritising the services.

News: Daily Sun/ Bangladesh/ Aug-18-2011

Bangladesh Bank (BB) has cautioned commercial banks against harassing people willing to change soiled and torn notes.
The department concerned of the central bank is receiving allegations from people that most of the commercial banks are reluctant to change their torn and soiled notes, said a BB official. “We’ve asked a commercial bank’s managing director to take punitive measures against the officials who are refusing to change torn or soiled notes,” said M Masum Kamal Bhuiyan, general manager of the department of currency management and payment systems of the central bank.
“As per BB’s rules, commercial banks are bound to change torn and soiled notes in all denominations and banks must hang a notice in each branch to provide people this service,” he added.
“No bank can refuse to give people such a service,” the official said, adding that the central bank would take immediate steps against the bank concerned if it gets specific allegations from aggrieved people.
He said the central bank often sends its officials on surprise visits to banks to stop harassment of people. It has been trying to increase the number of teams for surprise visits despite manpower shortage, the official added.
“The central bank’s inspection department officials have also been asked to monitor the matter when they go to inspect the operation of a bank branch,” the BB official said.

News: The Independent/ Bangladesh/ Aug-17-2011