How apps are rewriting banking economics
Highlights:
Touhidul Alam Shiplu, a mid-level executive at a Dhaka-based firm, paused for a while when asked about the last time he stepped inside a bank branch. He couldn't quite recall.
He opened his phone, smiled, and said, "I think it was sometime before 2013."
That was the year he downloaded Citytouch, a banking app. Since then, he has never needed to go back.
From paying bills and rent to sending money, opening accounts, checking statements, downloading tax certificates, or simply recharging his phone, Shiplu does it all with a few taps on his phone screen — no lines, no waiting during working hours, and no physical presence.
Banking, for him and millions like him, has quietly moved into the palm of their hands.
This is not an isolated story. It's the story of how Bangladesh's banking habits are changing faster than most realise. The shift from traditional banking to digital platforms is now reshaping how money moves in the economy and how banks redefine their relationship with customers. This shift to digital platforms is also helping banks save substantial amounts on human resource costs.
Take for example the case of City Bank's Citytouch, one of the earliest digital banking platforms launched back in 2013.
For the first seven years, progress was modest — only about 72,000 customers came on board. But what followed was nothing short of a digital explosion. Over the next four and a half years, the user base surged to 8.82 lakh, growing at a compound annual growth rate (CAGR) of 65.4%. The Covid-19 pandemic played a catalytic role, as lockdowns and social distancing pushed people to rely on digital platforms for everyday transactions and services.
The transactions tell an even more compelling story. In 2020, daily transactions through Citytouch were at Tk27 crore. By July this year, that had soared to Tk400 crore, a CAGR of 73.6%.
That's not just a growth story — it's a statement on how quickly Bangladeshis are embracing digital money management, which is helping City Bank to save around Tk20 crore per month on staff costs.
Then there's BRAC Bank's Astha app, which has already surpassed the 10-lakh user milestone — now crossed 11 lakh. Managing Director and CEO Tareq Refat Ullah Khan described it as a "significant milestone." Customers transact about Tk20,000 crore every month, or nearly Tk700 crore daily, underscoring how digital banking has evolved from a convenience to an essential part of everyday financial life.
"With the Astha app, we've empowered customers to open an account or apply for a loan in the time it takes to enjoy a cup of tea. We're offering more than a service—we're creating instant access to opportunity. That's the very essence of genuine financial inclusion," said the BRAC Bank MD.
Dutch-Bangla Bank's NexusPay, another major player, commands a user base of nearly 70 lakh as of August. Transactions through NexusPay exceed Tk21,000 crore a month, placing DBBL at the heart of Bangladesh's digital payment ecosystem.
Eastern Bank's Skybanking app, though smaller in scale with 4.5 lakh users and Tk120 crore in daily transactions, has perhaps the most dramatic trajectory of all. Over the past five years, its user base has jumped 437%, transaction volumes surged 775%, and the total value of transactions skyrocketed 2,695% — showing how the bank is now catching up fast.
Other key players — Islami Bank's Cellfin, Standard Chartered's SC Mobile, and Bank Asia's SMART App — have also experienced sound growth as digital transactions become the default mode for a rising middle class and young population who value time, efficiency, and control, bankers and experts opined.
"It's 24/7 banking, it is convenient and a customer doesn't need to go to a branch or an ATM," said Abedur Rahman Sikder, Deputy Managing Director & Chief Operating Officer at Dutch-Bangla Bank Limited (DBBL), on the rise of app-based banking.
"But it is more than mere convenience", said Mokerrobin Mannan, Chief Digital Officer of BRAC Bank.
"It is a part of lifestyle and financial planning. Also, banking through apps makes a customer feel empowered," he told TBS.
Launched in 2021, Astha is now the top banking app with over a million users. Mannan said three lakh new customers have been added to the app in the last year and this year's transaction volume has doubled than that of 2024.
Syed Ibrahim Saajid, head of City Bank's digital banking, said Citytouch stands as a benchmark of innovation, scale, and customer-centricity. "Citytouch has evolved into a full-fledged digital lifestyle app, empowering users to manage their finances without ever needing to visit a branch," he said, adding that Citytouch now offers 100-plus banking services.
How app usage helps banks save crores of taka
Take City Bank, for example. On average, 1.10 lakh users access the bank's app each day. If these services were provided manually, it would require around 25,000 man-hours daily — equivalent to the work of about 3,000 employees. Considering the bank's average monthly staff cost of Tk60,000, this digital shift saves nearly Tk20 crore per month, or around Tk240 crore annually.
"Banks can raise issues such as the limitations of app-based banking with the central bank if they believe these challenges are holding back digital banking. The central bank will consider any specific proposals or demands put forward by banks to make digital banking more efficient and user-friendly."
The savings are likely even higher for BRAC Bank, where 1.5–2 lakh customers use the Astha app every day. Assuming each manual transaction takes about five minutes, that's 7.5–10 lakh minutes of service time saved daily. While BRAC Bank's Chief Digital Officer declined to share exact figures, insiders say the app is saving the bank crores of taka annually.
Similarly, tech-savvy banks like Dutch-Bangla Bank Limited (DBBL) and others are also saving substantial sums each year through increased digital adoption, according to industry insiders.
What banking apps now offer, what customers use most
In Bangladesh, once it was only 'check your balance'. But now banking apps have evolved from simple balance checkers into full digital branches, offering almost every service a customer needs without visiting a branch or sub-branch.
Through these apps, users can transfer funds instantly within the same bank or to other banks via BEFTN, RTGS, and NPSB networks, as well as send money to mobile financial services like bKash, Nagad, and Rocket, according to Mannan, Chief Digital Officer of BRAC Bank. They can pay utility bills, recharge phones, and pay school fees, credit card bills, and e-commerce payments directly.
Of the services, fund transfers through NPSB happen the most, followed by money transfer from banks to MFS, said Saajid of City Bank.
Customers can also open and manage accounts, apply for loans and debit/credit cards, and download bank statements, tax certificates, and interest certificates. Many apps now feature DPS and FDR opening, QR-based merchant payments, and cardless cash withdrawal from ATMs.
Enhanced with biometric login, real-time notifications, and AI-powered chat support, the apps also enable 24/7 service requests, including cheque book or card reissue, bankers said.
Who are the users?
Like elsewhere in the world, the primary age group for banking application users in Bangladesh is young people, specifically those between 20 and 30 years old. This demographic uses e-banking and e-payment services most frequently, followed by the 30-40 age range. Studies also indicate that users aged 25-35 are predominant users of banking apps.
For instance, Astha of Brac Bank. Around 53% of its users are between the age bracket of 21 and 35. Among those using Astha's lifestyle features, 61% are within the same age group, showcasing how the app is becoming integral to banking and their daily lives. Of the Citytouch users, over 50% are between 25 and 40 years.
Limitations of apps
There is the flipside as well when it comes to banking apps.
Take the case of Mohammad Kayes, a full-time freelancer who has been using a banking app for over a decade for convenience. But he faces a problem when his earnings from abroad come through bank-to-bank transfer instead of a money transfer company to a bank.
"In case of bank-to-bank transfer, I have to show the agreement (work order) and submit an invoice. But it is not required when the money comes into my bank account from a money transfer company," said Kayes.
However, a banker with knowledge of this issue said it is the rule of the Bangladesh Bank.
Saajid of City Bank pointed out two other limitations – the requirement of a wet signature, even for a Tk50,000 loan and the monthly transaction limit for digitally opened accounts.
He said a wet signature means that a paper-based signature is required for an app user, even for a small amount of Tk50,000 loan. "It should be increased," he added.
The other point he mentioned is that the monthly transaction limit is Tk 1 lakh only, whereas the monthly transaction limits for MFS are: Tk 300,000 for cash-in, Tk 200,000 for cash-out, and Tk 300,000 for person-to-person transfers.
What the BB says
When asked about the limitations of app-based banking, Bangladesh Bank spokesperson Arief Hossain Khan said banks can raise such issues with the central bank if they believe these challenges are holding back digital banking.
"We are open to discussion," he told TBS, adding that the central bank will consider any specific proposals or demands put forward by banks to make digital banking more efficient and user-friendly.