The financial landscape of Bangladesh is undergoing a significant transformation, with banks and Mobile Financial Service (MFS) providers increasingly adopting fintech (financial technology) to provide more inclusive and efficient banking services. Fintech combines traditional banking with cutting-edge technologies such as the Internet of Things (IoT), big data, cloud computing, and Artificial Intelligence (AI). This combination has made financial services more accessible, cost-effective, and user-friendly, particularly for underserved populations, including rural communities and women.

Commercial banks have embraced fintech to enhance their service offerings. City Bank is a key player in adopting fintech to improve its banking services. The bank has introduced mobile wallets and QR code payments, which allow users to make transactions quickly and securely. Additionally, City Bank has introduced NFC (Near Field Communication) technology, which enables contactless payments through smartphones or smartwatches. These innovations have streamlined payment processes and reduced transaction times. Arup Haider, Head of Retail Banking at City Bank, highlights the growing trend of wearable devices such as smartwatches, which now support contactless payments, further enhancing convenience for customers.

City Bank has also been incorporating AI and machine learning into its services. By using AI-powered systems, the bank can analyze data to assess creditworthiness and offer tailored financial products. These technologies also help automate tasks like loan profiling and statement analysis, making banking more efficient for both clients and financial institutions. In December 2021, City Bank, in collaboration with bKash, launched 'Digital Nano Loans', a partnership that continues to run successfully.

Mutual Trust Bank (MTB) is also enhancing financial services through technology. Its Interoperable platforms allow seamless transfers between MFS operators and banks, while QR code payments simplify retail transactions. MTB is using AI-driven credit scoring to provide microloans and collaborating with fintech firms for microcredit offerings. The bank is also exploring blockchain for cross-border payments and expanding agent banking in rural areas. MTB has also implemented biometric systems for account registration, ensuring compliance with KYC and AML regulations. Through Open Banking and API integration, MTB fosters a collaborative fintech ecosystem, broadening access to financial services.

Al-Arafah Islamic Bank has integrated fintech to provide more inclusive financial services. Md Salah Uddin Tanvir, Head of Strategy & Business Planning, explained that the bank is working to connect its mobile services with platforms like bKash and Nagad, enabling seamless fund transfers across platforms. The bank also uses e-KYC for digital onboarding, allowing customers to open wallets remotely, and employs biometric authentication for secure access. Additionally, API integration enhances functionality by connecting with third-party services.

Dhaka Bank is also actively adopting fintech to expand its digital offerings. The bank provides a range of services, including mobile apps for convenient banking, digital loans for SMEs, and online payment solutions. Mosleh Saad Mahmud, Head of Liability & Cash Management at Dhaka Bank, stresses the importance of delivering customer-centric services, particularly in rural areas, where access to physical bank branches is limited. The bank is focusing on providing solutions directly to customers' doorsteps, further enhancing the accessibility of banking services.

BRAC Bank has partnered with bKash to offer loans to its agents and merchants. The bank is working on developing efficient collection mechanisms for SMEs and is aiming for a cashless society. M. Sabbir Hossain, DMD & COO of BRAC Bank, emphasizes the importance of state intervention to support financial inclusion, particularly by promoting online payment systems for essential services like tuition fees and utility bills. The bank is also exploring the use of AI and machine learning to provide more personalized and cost-effective financial products.

Non-Banking Financial Institutions (NBFIs), such as IDLC, are playing a significant role in the fintech ecosystem. Through its collaboration with bKash to offer Digital Payment Services (DPS), IDLC has successfully opened over 1.2 million accounts, many of which are held by women. Md Ariful Islam, Deputy General Manager at IDLC, emphasised that this partnership has improved financial access for underserved groups like housewives and small business owners. IDLC is also enhancing the customer experience by using digital onboarding, e-KYC, and AI-driven analytics to offer personalised solutions.

As Bangladesh continues to embrace the Fourth Industrial Revolution, fintech is expected to play an even more significant role in the country's economic development. By leveraging technology to provide more inclusive, accessible, and secure financial services, banks and MFS providers are helping bridge the gap between the unbanked and the financial system. The combination of fintech and MFS has the potential to transform the banking sector, making financial services available to all, regardless of location or income level.