INTRODUCTION

1. Introduction of the topic

In the present world cash is flowed everywhere throughout the globe. Globalization, innovative
advances and different factors money is circling perplexingly .Financial Institutions for the most
part banks undertake a critical part in coordinating a contributor and loan specialists and directing
cash and making the economy more effective. In spite of the fact that the historical backdrop of
Banking backtracks to the fourteenth century in Europe yet Banks are currently all over the place.
Banks in Bangladesh assume a critical part compared with other money related Institutions.

However the hostility in the banking industry has strengthened like never before. Worldwide
monetary emergency, securities exchange crash, retreats and different variables influenced the
banking industry. So banks should place themselves at distinctive place in the minds of the clients
by offering appealing services, for example, greater interest rates or by offering superior facilities
to the clients. Services contain financial advice, elastic rates or dates of payment, portfolio
supervision etc.

Digital Banking is an administration offered to the clients which incorporates observing the
balances on accounts, checking the exchanges, downloading valuable data, exchange of funds,
paying outsiders, making advance applications and so forth from a secured site of the bank. Digital
banking has opened up another field of competition for banks. To run internet services an
individual needs the client number and password. Digital banking has begun in the 1980s yet it is
comparatively a new idea in Bangladesh.

Digital banking is the act of taking care of all the bank exchanges through web. We are grateful
with such exceptional advancements where every one of our works gets finished inside seconds.
Digital Banking is one of such innovations. With the assistance of digital banking in an account,
we can deposit and withdraw funds our self-straight to our account, make every kinds of bill
expenses, tax expenses etc. We can pay our bills with phone, versatile, charge cards and so on
through web just by once registering with our bank. Digital banking enable us to get to our record,
so that that we can know right away which sum is credited or charged in our financial balance. It
is a reliable way to exchange amount to another account to which we have to make fee. When we
apply for Digital banking, bank delivers us with login id and password. The password delivered
by the bank should be altered instantly and should not be given to somebody else. The given pass
should be changed on frequent basis and it must be alpha numeric. Digital Banking isn't going to

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change our money propensities. Rather, it utilizes the present computer technology to give us the
choice of avoiding the tedious, paper-based parts of habitual banking with the objective to deal our
funds more rapidly and proficiently. The appearance of the Internet and the popularity of
computers introduced both an open door and a test for the banking industry. For a significant length
of time, banks have utilized intense digital banking systems to computerize the day to day
exchanges. Since its clients are associated with the Internet through PCs, banks visualize
comparable financial situations by adjusting those same interior electronic procedures.

1.1Objectives of the study

Broad Objective:

The wide objective of this report is to accomplish my Bachelor of Business Organization program
that helps a lot to study about the applied situation of a financial institution and apply theoretical
information into practical and lifelike work environment.

Specific objectives: To obtain main objective, the other supportive objective need to be attempted,
which are –.

• To distinguish the risk identified with Digital Banking of JBL.

• To investigate the status of Digital Banking of JBL.

• To distinguish the gigantic issue of Digital banking and the issue of JBL related with
Digital Banking.

• To mention some methods to advance the system.

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1.2 Methodology of the report

Secondary date is used primarily in this report but primary data which is obtained from the Janata
Bank, Amin bazar branch, is also used to make the report successful.

Primary Data Sources

 Direct Conversation
 Related file and records delivered by the officers concerned.

Secondary Data Sources

 Periodic report of Bangladesh Bank
 Research articles
 Bank websites
 Related other researches

1.3 Rationale of the Report

The aim behind the accomplishment of this internship report is to determine whether the banks
and financial institutions are giving more priority on the Digital banking aspects and its
consequences. The report also aims at finding what the sectors for making improvement of digital
banking are.

1.4 Literature Review

1.4.1 Digital Banking:

Digital Banking is the move to web based online banking activities where banking facilities are
conveyed over the web. The customers and banks are benefited through digital banking system
due to more suitable and faster banking system. It includes higher amounts of process automation
and electronic administrations and may incorporate APIs empowering cross-institutional
administration piece to convey banking products and services. It gives the dimensions to clients to
get to monetary information through work area, portable and ATM services.
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1.4.2 Advantages of Digital Banking:

There are several advantages of the digital banking system. When talking about the advantages the
fast and foremost one is convenience. Through digital baking system one can pay one’s bills and
can complete any transaction. Through digital banking one can access to one’s account in any time
whereas in the traditional banking system one can only access to one’s account only in the banking
hours.

The second big advantage of digital banking is the speed and effectiveness. As digital banking is
occurred through internet, it can provide faster and accurate services than ATM.

1.4.3 Ordinary Digital Bank Services:

There are varieties of business transactions, some of them includes balance inquiries and some of
them include business to business funds transfer. Digital banking services are usually categorized
based on the category of customer they support. Some of the common retail online Digital Banking
services are given below:

 Application and approval of loan

 Opening of new account
 Management of account
 Payments of bills
 Brokerage and investment services

Components of digital banking:

Mandatory Physical infrastructures for Digital Banking are given below:

Internet: It is an integrated system that includes a huge number systems which are consisted of
interconnected network system. All the modern devices like computer or mobile or any other
advanced devices can be connected through the internet, a wide range of networks.

Intranet:

An intranet is a remote computer system that practices Internet Protocol tools to steadily share any
portion of an organization's data operating system within that group.

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Hardware:

The important hardware required to form a complete digital banking system includes:

 Computers (Personal or Laptop)

 Modems

 Routers

 Servers

 ATM (Automated Teller Machines) booths.

Software: For availing the digital banking services different types of software’s are used
now a days. These software’s assist a banks overall digital banking system by providing
the access to complete the transaction related to digital banking system.

1.4.4 Current Picture of Digital Banking in Bangladesh

At present situation the number of Digital Banking service providers and users is
increasing. Every year the number of users connecting to the internet is increasing. The
supported software for digital banking for example, FLEXCUBE is available in
Bangladesh. Again Bangladesh Government is functioning the copyright law and the
protection of licensed innovation act. After the effective usage of each one of these
approaches and procedures we are expecting that over half of the banks will offer digital
banking services.

2. Organizational overview

2.1 Historical background

With the rise of Bangladesh as an autonomous, sovereign state in 1971 following a stunning nine
month war against the West Pakistani armed force, a war, loaded with blood and tears, injury and
agony of a large number of our cherished ones, the legacy of restoring the effectively broken

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financial base of the nation was felt as a pressing call of the day against a smashed financial reality
of a recently conceived state.

2.2 Profile of Janata Bank Limited:

Company name Janata Bank Limited

Registered Office Janata Bhaban, 110, Motijheel C/A,

Dhaka1000, Bangladesh.

Legal Status Public Limited Company

Date of Incorporation 21 May 2007

Date of Commencement of Business 31 May 2007

Tax Identification No 001-200-2732

Vat Registration No 9011050160

CEO & Managing Director Mr. Md. Abdus Salam Azad

Chief Risk Officer Mr. Omar Farooque (DMD)

Head of Internal Control and Compliance Mrs. MahtabZabin (GM)

Chief Financial Officer (CFO) Mr. Md. NurulAlam FCA, FCMA (GM)

Company Secretary Mr. Md. Mosaddake-Ul-Alam (GM)

Domestic Network

Number of Branch 900

Number of Divisional Office 11

Number of Area Office 47

Number of AD Branch 56

Number of Branch 04

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2.3 Mission

Janata Bank Limited will be a successful commercial bank by keeping up a steady development
methodology, conveying fantastic budgetary items, giving incredible client benefit through an
accomplished administration group and guaranteeing great corporate administration in each
progression of managing an account arrange.

2.4 Vision

To become the current major commercial bank in Bangladesh to boost socio-economic growth of
the country and to be a prominent bank in south Asia.

2.5 Values

Janata Bank Ltd follows eight basic core values. These core values work as basic principles of
JBL. The core values of JBL are-

• Quality

• Transparency

• Variety

• Professionalism

• Transparency

• Accountability

2.6 Products and Services of Janata Bank Limited

JBL render both corporate and retail banking services with a solid spotlight on financial
advancement of the nation. The bank regularly provides working capital advance. In addition,
under corporate banking services JBL gives exchange fund, venture finance, syndicate finance.

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2.6.1 Deposits

 Current Deposit
 Saving Deposit
 Special Notice Deposit
 Fixed Deposits
 Schemes

2.6.2 Loans and Advances

 Agricultural Loans
 Term Loans
 Working Capital Loans
 Import Loans
 Export Loans
 Green Banking Financing
 Other Loans

2.6.3 Financial Services

 Foreign Remittance
 Other Financial Services

2.6.4 Other services

 Welfare Service
 Utility Service
 ATM service

3. Digital Banking Services of Janata Bank Limited

Janata Bank has brought new types of services for those who are not satisfied with the traditional
banking services. Among these, there are services like internet banking and real time internet core

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banking system. Bangladesh Automated Clearing House (BACH), the very fast electronic clearing
house, with its components- Bangladesh Automated Cheque Processing System (BACPS) and
Bangladesh Electronic Fund Transfer.

3.1.1 BACH
With the objective to make clearing activities automatic under Bangladesh Automated Clearing
House (BACH) automated clearing center has established at Local office of the bank. Bangladesh
Automated Cheque Processing System (BACPS) from this center execute clearing activities in
automated systems.

3.1.2 ATM facilities

Janata Bank Limited is offering ATM facilities with debit card and credit card by accepting the
modern technology and under the biggest network. Cardholders of the bank approach in excess of
4100 ATMs, including 15 of its own and have the benefit to utilize in excess of 5,000 point of
sales (POS). The bank is now trying to increase its customer satisfaction by expanding the ATM’s
to maintain the goodwill.

3.1.3 OMIS
OMIS, an online application program, has been acquainted with appropriate and normal checking
of the Bank's business. All branches need to submit useful data about their business in the OMIS
form in the site in week after week and month to month. It encourages branches, controlling
workplaces and administration specialist taking choice effectively by observing the general
position of the Bank.

3.1.4 CDMS
Since core deposit is the low cost deposit of the financial base of any bank, JBL targets to support
core deposit procurement activities for which a digital software ‘Core Deposit Monitoring System’
(CDMS) has been created.

3.1.5 Websites
Janata Bank Limited introduced its official website with domain named www.jb.com.bd. This
website has useful information including the different product and services they offer and circulars
and notices. This information’s are regularly updated in the website. The bank has presented an
electronic mailing framework by which all bureaus of the head office, divisional, territory
workplaces and branches enjoy email facilities.

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3.1.6 PMIS
PMIS or Personnel Management Information System collect and store all the basic and important
information of the employees. Employee’s performance and leave of absence are also monitored
by the PMIS. Personnel data sheet and service record are the reports which can be found in this
system.

3.2 Most beneficial services of Janata Bank Limited

3.2.1 Credit cards

Credit card is a method of giving loan to specific individual customer or a company or a specific
group. Through the credit cards a customer can purchase goods and services from market which
support credit card payment on account. Then the accrued balanced occurred due to usage of credit
card are adjusted or balanced from the balance of account on the customers. This credit card
services are provided in collaboration with the credit card companies including VISA,
MASTERCARD etc.

3.2.2 Debit Cards

Debit card is also a method of providing electronic payment like credit card but it is based on the
principal, ‘’ pay first and use later’’. Through debit card, a customer can purchase anything with
the personal bank account balances wherever this electronic payment system is accepted. This
credit card services are also provided in collaboration with the credit card companies including
VISA, MASTERCARD etc.

3.2.3 ATM Cards

ATM card is one type of card that can be used to withdraw money from a bank account or enquiries
of balances in the account. In order to use the ATM card a customer must have savings account or
current account in the particular bank. A specific PIN number is used to access to the account. The
card lock automatically in the machine if no switch in the ATM machine is pressed for 5 seconds.
After the enquiry or withdrawal the customer get back his ATM card from the machine which can
be used later on. However if the card is lost then the customer can take a new card from the bank
with a remuneration fee of tk500.

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3.2.4 Point of Sales
Point of sale (POS) is the area where a specific transaction occurs. It is simply the place where a
transaction is completed by a specific customer.

3.3 Functional Services of Janata Bank Limited

Internet banking is quiet absent in Bangladesh. Digital banking services are delivered by the banks
through:

3.3.1 Account Details:

A customer can select his or her account and view details of the account regarding funds those are
not cleared, overall limit and accrued interest.

3.3.2 Account Summary:

A customer can overview current, saving or term deposit and also overview the loan accounts with
the present balance.

3.3.3 Account Activities:

A customer can view or print out his activity of transaction for a specific period of time.

3.3.4 EFT:
Through Electronic Fund Transfer, a customer can easily transfer funds from his one account to
another account in the particular bank.

3.3.5 Loan Repayment

A customer can also reimburse the installment of the loan from the account.
3.3.6 Account statement:
A customer can request to check the statement of the account for a particular period.

3.3.7 Request of Cheque book:

The request of opening cheque can also be done by digital banking system.

3.3.8 Cheque Status Review:

A customer can view the status of the Cheque by providing specific Cheque number.

3.3.9 Interest Rate Inquiry:

A customer can demand for the rate of interest.

3.3.10 Foreign Exchange Rate Inquiry:

Using this particular function a customer can enquiry on Foreign Exchange Rates.

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3.3.11 Password Change:
Internet Banking Password can be easily changed by the customer using this function.

3.3.12 Application of letter of credit

A customer can make the application for opening Letter of Credit through Digital Banking System.

3.3.13 Bank Guarantee:

A customer can request for Bank Guarantee through Digital Banking System.

3.4 Digital Banking Security of Janata Bank Limited

Different banks have established different circular for maintaining the security of Digital Banking
System. JBL also has its own circular for establishing security for protecting customer using digital
banking services. Major part of this security systems of JBL are described below:

 Authentication(Assurance of the identity of the person dealing)

 Authorization( To make sure that the party has legal right for the transaction)
 Privacy of the information
 Data integrity

3.5 Risk attached with Digital Banking System of Janata Bank Limited

Digital Banking System is a mixed blessing to the banking system in Bangladesh. Even though it
has introduced lowest cost transaction method but it is not free of risk. Different types of risks
associated with the Digital Banking System of Janata Bank Limited are described below:

Money Laundering Risk: As Digital banking transactions are directed distantly it is difficult to
apply usual method for spotting and avoiding unwanted criminal activities. There are some forms
of electronic payment where the application of preventing money laundering activities may not
work. Thus banks are related to money laundering risk in the digital banking system.

Transactional Risk: Transactional Risk are very common term in digital banking system. It is the
risk which is connected to the inappropriate processing of a particular digital transaction. This risks
also include risk of invalid data integrity and risk of confidentiality or privacy because hacking or
cracking may reveal any personal data relating to bank account.

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Security Risk: If there is security problem or there is a breach of security then the bank could face
financial loss. Because any types of hacking or cracking can cause loss of data and as a result
confidential information may be revealed. Also the digital computers through which the digital
banking system runs can also be effected by virus which in turn can cause loss of data and also
cause disruption of the regular digital banking service.

Credit Risk: Credit risk is the risk that the customer will fail to pay the obligation. It can be most
likely to occur in the Digital Banking System because the creditworthiness of the customer cannot
be judged properly as the procedure has done through remote corner in digital banking system.

3.6 Problems of Digital Banking System in Janata Bank Limited

As digital banking system is a mixed blessing, so there are problems related with digital banking
system obviously. The major problems associated with the digital banking system in Janata Bank
Limited are described below:

 Lack of ATM Booths: ATM booths of Janata Bank Limited is not spread out through the
country which can be a cause of customer dissatisfaction.
 Technological Problems: There are various problems with technology regarding the Digital
Banking System of Janata Bank Limited. These includes rejection of PIN code, showing zero
balance even after having funds etc.
 Security Problem: There are yet some people who are reluctant to believe on a proper Digital
Banking System. That means that there remains some problem areas related to the security
issues of the Digital Banking Services of Janata Bank Limited.
 Infrastructure Problem: There is lack of infrastructure in Janata Bank Limited that is needed to
build a proper digital banking system. Lack if infrastructure can cause failure of providing
services which in turn can results in customer dissatisfaction.
 Deficiency of funds in the ATM booths: There are sometimes shortage of funds in some of the
ATM booths which can result in higher customer dissatisfaction.
 Lower number of users in digital banking: Still many users are not aware of the digital banking
service. They are unwilling to accept this new form of technology as they cannot rely on the
security system.

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 Lack of training and development: The employees who operate the Digital Banking system
are not highly trained in JBL.
 Lack of understanding of use: It is true that to lead the Digital Banking System, the users
of the Digital Banking System should have a minimum knowledge of operating computer
or other devices. But there are many peoples who have an account in the JBL are not
familiar with internet and computer.
 Fewer number of services: Actually Janata Bank Limited are currently not providing a wide
range of Digital Banking Services. They are just providing a few services including bank
transfer. So other services regarding payment disbursement, balance check is not widely
available in JBL.

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4. Findings and analysis

This part of the report consists of several analysis regarding the information on Digital Bank
Services of Janata Bank Limited. Analysis which are used in this case are given below:

4.1 SWOT Analysis

SWOT Analysis is the process through which an organizations Strengths, weaknesses,

Opportunities and Threats can be measured. A SWOT analysis clarifies what helps the firm in
achieving its purposes, and what difficulties should be minimized to attain entreated results. The
following determinants should be considered to determine the performance of Digital Banking
System of Janata Bank Limited.

4.1.1 Strength

 The use of OMIS as a tool for Digital Banking has brought a new height in the field of Digital
Banking System of JBL.
 Lower cost for regarding the Digital Banking Services.
 Fully Functional and well-fashioned website that attracts customers to buy their digital bank
services.

4.1.2 Weaknesses

 Limited number of ATM which can create a bit of dissatisfaction for the customers.
 Not enough amount of Digital Banking Services are currently provided by the Janata Bank
Limited.
 Absence of expert or trained employees.

4.1.3 Opportunities

 Lower cost of using internet which is the medium of Digital Banking System.
 Increasing number of users of the internet lead further opportunity to this sector.
 Expertise in the Digital Banking Sector is increasing day by day.
 Government is taking steps to lead the Digital Banking System to the next level.

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 Strengths

• Capabiliteis
• Resources
• Marketing advancement

Weaknesses

• Infrastructure problem
• Financial problem
• Lack of competitive strengths.

Opportunities

• Product devolopment
• Market Devolopment

Threats

• Security issues
• Other obstackles

4.1.4 Threats

 Current criminal occurrences on ATM decrease the trustworthiness of the customers.

 Hacking is also a risk to the Digital Banking System. Because any professional hacker can
hack the password of the account holder which are related to financial loss.

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4.2 Cost Volume Profit Analysis

The major benefit of the Digital Banking Services is the accuracy of the service within the shortest
possible time. . Even though digital banking is limited to dealing account and making digital
transactions, it lessens much of the needs to individual visit to bank. Digital Banking System has
also reduced the time needed for a particular transaction such as paying bills or clearing check. In
the traditional banking system it takes much time for completing a transaction compared to the
time needed in Digital Banking System. Payment of salary and wages are easier in the Digital
Banking System than the traditional banking system. However digital banking of JBL has chosen
an investment of more money but nowadays operating expense will be much subtler. But
customers will also be pleased over fast, accurate and complete distribution of services.

4.3 Percentage of most lucrative internet services of JBL

2015
35%

30%

25%

20%

15%

10%

5%

0%
Electronic Money Credit Cards Debit Cards ATM Point of Sales

Percentage

From the above chart it is clearly seen that people mostly use Debit Card Services as a tool for
Digital Banking System. Electronic Money, ATM, Credit cards are also widely used.

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4.3 Findings

 As the number of internet users are increasing day by day, people in the Janata Bank Limited
are more inclined to this Digital Banking System.
 For the last few years, Janata Bank Limited is trying to improve its security system and clarity
in the Digital Banking System.
 Different types of training program are developing to make sure the proper usage of the Digital
Banking System.
 As a robust medium of Digital Banking System, the number of ATM are not very large which
can create a sense of dissatisfaction in the customers mind.
 Janata Bank Limited should provide more emphasis on the security system of Digital Banking
System. The prevalence of hacker is increasing day by day. So they should make sure that there
is no breach in the security system of Digital Banking System of JBL.
 The amount of services in the Digital Banking Sector that JBL is currently providing is not in
large amount.
 The number of ATM booths is quiet few compared to other number of booths in other banks,
also there is lack of funds sometimes in the booths.

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5.1 Recommendation

It is known that, Janata Bank Limited is one of the popular state bank of Bangladesh. Recently
they are delivering satisfying Digital Banking Services. They have credit cards facilities, debit card
facilities ATM services, online bill paying facilities etc. But still they have some lacking which
should be eliminate to provide a complete and accurate Digital Banking System. To make a better
Digital Banking System they should take the following steps:

 Janata Bank Limited should increase the number of ATM booths and spread their ATM
services around the country.
 They should increase the services of credit cards everywhere to make a better Digital Banking
System.
 They have to make sure that there is enough amount of cash in all the ATM booths.
 Janata Bank Limited should also try to make the Digital Banking System less expensive than
before.
 They also need to ensure that there is no technical difficulties at the time of providing Digital
Banking Services.
 They should also increase the overall training and development program with employees to
successfully provide the Digital Banking Services. If the employee training programs are held
successfully then the employees will be able to create awareness among the customers
regarding Digital Banking System.
 They should also concentrate on developing proper mobile banking system. Now a days the
acceptance of mobile banking as a tool of Digital Banking System is increasing day by day.
 They should predict the laws regarding IT and Cyber. IT and Cyber Laws changes over time.

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5.2 Conclusion

Technology is modernizing and the usage of Digital Bank Services is increasing day to day. As a
state bank, the role of Janata Bank to provide a proper Digital Banking System is essential. Even
though they are taking important role in the Digital Banking System, but they have still some
lacking in providing fully functional and highly secured Digital Banking System. So Janata Bank
Limited should take some necessary steps to solve this issues to provide a complete and accurate
Digital Banking System. Digital Banking System is not free from flaws, but it can be highly
secured because in the Digital Banking System, the information and wealth of customers are kept.
So security can be an issue which should be looked more closely for the Digital Banking System
of Janata Bank Limited.

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