News & Events

Review Workshop on IT Operations of Banks held in BIBM

Press Release
Dhaka,10 April 2018
A day long Review workshop was held at the Bangladesh Institute of Bank Management (BIBM) on 10 April 2018, in its auditorium. A paper titled " IT Operations of Banks " was presented in the workshop by Md. Shihab Uddin Khan, Associate Professor of BIBM. Other members of the research workshop team are Md. Mahbubur Rahman Alam, Associate Professor, BIBM; Kaniz Rabbi, Assistant Professor, BIBM; Md. Foysal Hasan,Lecturer, BIBM and Mohammad Emdadul Haque Khan, FVP, Dutch-Bangla Bank Ltd.
The study identifies the problem areas as well as success factors in IT Operations of Banks in Bangladesh. A good number of participant’s senior bank executives, academicians, media representatives, faculty members, officers of BIBM participated in the review workshop.
Mr. Abu Hena Mohd. Razee Hassan, Chairman, Executive Committee, BIBM and Deputy Governor, Bangladesh Bank were present in the review workshop as the chief guest. Nazneen Sultana, former deputy governor, Bangladesh Bank; A.K.M Fazlul Haque Mia, Executive Director, Bangladesh Bank; Abul Kashem Md. Shirin, Managing Director & CEO, Dutch–Bangla Bank Limited; S. M. Mainuddin Chowdhury, Additional Managing Director, Southeast Bank Limited;Monitur Rahman, Country Technology Manager, Standard Chartered Bank; BIBM chair professor Muzaffer Ahmed, former Dhaka University economics department professor Barkat-e-Khuda, BIBM supernumerary professors Md Yasin Ali and Helal Ahmed Chowdhury spoke among others at the workshop.

Deputy Governor Abu Hena Mohd. Razee Hassan said, Bangladesh Bank (BB) has been playing notable role to maintain smooth and secured e-banking operations. BB has taken necessary initiatives for e-banking, e-commerce and e-payment, automated clearing house system, mobile phone banking etc.
He said, Banks have been allowed to make online money transactions, payment of utility bills, transfer of funds, payments for trading goods and services through e-channels like Internet, ATM, Mobile phone etc. Considering the paramount importance of information systems security in banks BB has issued new version of ICT security guidelines for banking and financial institutions.
Former BB deputy governor Nazneen Sultana Said, Communication among the banks regarding the problems that they face can play vital role in containing the same problem in other banks.
The also stressed on the essence of building qualified manpower for ensuring IT security along with awareness building of the customers as well.
According to BIBM Survey, As many as 68 percent of the banks do not have any IT governance framework, while 78 percent do not have a data leakage prevention system. Eight percent of the banks have still not initiated the implementation of IT governance, while 60 percent have but they do not have a definitive completion date. A lack of understanding on IT governance among the top managers and directors is responsible for the poor implementation record of IT security.
The survey found that 60 percent of the banks had updated their cybersecurity policy in 2017, in contrast to 73 percent in 2016. However, training for cybersecurity awareness increased as banks realised that IT training is vital for their survival. Last year, banks trained 97 percent of the employees, up from 84 percent the previous year, according to the survey. IT investment last year increased 13.49 percent to Tk 2,035 crore. Of the sum, 36.5 percent went towards procuring hardware.
Higher IT investment will reduce the cost of business, said Abul Kashem Md Shirin, managing director of Dutch-Bangla Bank, while citing his bank as an example.Dutch-Bangla's cost of fund has been the lowest among banks as it maintains low-cost deposit accounts. People are more interested in keeping money in savings and current accounts, which cost banks less because of IT facilities, Shirin added.
Banks are still reluctant to spend more for training purposes, said Helal Ahmed Chowdhury, former managing director of Pubali Bank, while sharing his managerial experience. The banking sector lacks in-house IT audit. “Banks still float international tenders for IT auditing,” said Chowdhury, also a supernumerary professor of the BIBM.
Southeast Bank additional managing director SM Mainuddin Chowdhury said, automation of whole banking system could be a solution to reduce cyber security risk.
Standard Chartered Bank country technology manager Monitur Rahman said that banks could take the cloud facility to save them from cyber-crime. He also said that the cloud facility would also be cost effective as well for the banks.

Written by Manager

Thursday 12th April 2018