E-banking in Bangladesh: Vulnerabilities and Securities

Abstract

Nowadays, e-banking security vulnerability is an inevitable part to operate digitized banking system. So, the area of e-banking vulnerability and security brings attention of bankers as well as its stakeholders during the last few years. Statistics show that banks business, image and its commercial success rather closely depend on proper security measures. On the contrary, reducing core risks, customer satisfaction and competitiveness are associated with e-banking vulnerabilities and securities. In Bangladesh, e-bankers have been facing diverse challenges continuously to render its services to the customer. Quick service, error free transaction, never-ending networking and tech-savvy experienced people are needed to provide quality services what is an integral part of e-security. The host study considers the above mentioned issues to keep the digital banking system safe and sustain. In order to do so, three major e-securities (i.e. technological, operational and legal frame or compliances) have fixed up for the population banks. This study basically searched major issues that influenced CB’s to adopt e-security to smooth banking operations. To meet the challenges, researcher used both qualitative and quantitative data. It is an evaluation research under applied social science research using survey method techniques. The logical process of the research investigation is inductive to move from the particular to general making decisions and is sometimes called a bottom-up approach. Collected data from the respondents were analyzed using the statistical tool SPSS software. Simple percentage method was used in the study to analysis security vulnerabilities and its relation with other parameters to clarify the results. Correlations and Pearson Chi-square tests were used for determining the association and relationship among the variables. Three divisional controlling offices and branches including head office of both banks were purposively selected for collecting primary data. The total sample size for the study was 119 (One hundred and nineteen) which were divided into different strata. The study evaluated data collected from two potential CBs of Bangladesh up to January 2016 and also used purposive sampling techniques. It had almost been completed on the basis of both primary and secondary data. The result of the study revealed that e-banking vulnerabilities and securities have significant association among the variables like core risks of bank, customer satisfaction and commercial success of bank. The study also found that systems of both sample banks (Sonali Bank Ltd. and Dutch-Bangla Bank Ltd.) are vulnerable in some context. But from security point of view one has better security system compare to another. The study findings suggest that security relating to technology, operation and compliance (both internal and external) is required to reduce vulnerabilities and rendering effective service to valued stakeholders. Hence, central bank of Bangladesh has to play all most all possible and time demanding measures as a regulatory authority to keep CB’s digital transactions safe and secure.