The banks, which are not investing funds to improve their digital banking platform, will not be found in Bangladesh after 5-7 years, said Selim RF Hussain, chairman of the Association of Bankers, Bangladesh (ABB).

The local banks will get obsoleted if they fail to invest in the improvement of their technology-based banking, he said today.

Hussain came up with the remarks at a press briefing on the sidelines of a two-day summit titled "Banking on Digital Transformation" organised by the ABB at Pan Pacific Sonargaon Dhaka.

Along with the improvement of technology-based banking, a skilled workforce is also important who will be able to run digital banking in an efficient manner, he said.

Technology will also help mobilise remittances from abroad to a large extent and the central bank is also now encouraging the banks in this regard, Hussain said.

Many lenders will create mobile banking apps to mobilise remittances, which will help remitters send their hard-earned money through the platform.

The expatriate Bangladeshis will be able to send their money through the apps on a real-time basis by sitting abroad.

If banks can't increase their profitability, they will be unable to invest in strengthening digital banking platforms, which is why default loans will have to be contained.

Digital literacy is also important to make technology-based banking popular, said Hussain, also managing director of Brac Bank.

"Many people think that senior citizens cannot use banking apps, but the thought is not right as many aged people are now using our (Brac Bank) app."

If anyone helps the senior citizens, they can easily do it, he said.

The use of smartphones is now on the rise in Bangladesh, which will help digital banking grow at a faster pace as well, he said, adding that the price of the internet should be decreased.

Many foreign professionals and bankers took part in the summit, which helps the local banks learn from them, he said.