Internship Report on

Alternative Delivery Channels of Sonali Bank PLC:

Opportunities, Limitations and Challenges of Financial Technology
(Fintech)

Submitted For
Department of Accounting and Information Systems
Faculty of Business Studies
Jahangirnagar University

Submitted By
Md. Rosen Noor.
Exam ID: 2368
Registration: 47588
9th Batch
Department of Accounting and Information Systems
Jahangirnagar University

Date of Submission:
 Letter of Transmittal
Date:

Mohammod Nakib
Lecturer
Jahangirnagar University
Subject: Submission of Internship Report.

Sir,

With great gratification, I am submitting my internship report on “Alternative Delivery Channels

of Sonali Bank PLC: Opportunities, Limitations and Challenges of Financial Technology

(Fintech)” that you have assigned me as an essential requirement of the internship program. It is
an enormous prospect for me to gather vast information and appropriately grasp the subject
matter. I have found the study interesting, beneficial, and insightful and tried my best to prepare
an effective and credible report. I honestly, not only anticipate that my analysis will assist in
providing a clear idea about the overall condition of “ADC Products of SBPLC”, but also
optimistic enough to believe that you will find this report worth all the labour I have put into it. I
welcome your entire query & take pride in answering them.

Sincerely yours

………………………………………

Md. Rosen Noor.

Exam ID: 2368
Registration: 47588
9th Batch
Department of Accounting and Information Systems
Jahangirnagar University
 Letter of Approval
This is to certify that the internship report on “Alternative Delivery Channels of Sonali Bank
PLC: Opportunities, Limitations and Challenges of Financial Technology
(Fintech)” was prepared by Md. Rosen Noor. a student of the BBA program, Exam ID:
182416, Department of Accounting and Information Systems, Jahangirnagar University under
my supervision and guidance and approved with satisfaction. I wish him further success in life.

………………………………………

Mohammod Nakib
Lecturer
Department of Accounting and Information Systems
Jahangirnagar University
 Acknowledgements
I want to express my heartfelt gratitude to all those who have supported and guided me
throughout this internship. I sincerely thank my supervisor Mohammod Nakib for his
invaluable mentorship, constant encouragement, and insightful feedback, which played a pivotal
role in enhancing my skills and understanding. I am also indebted to the entire team for their
warm welcome, cooperation, and willingness to share their expertise.

Additionally, I appreciate the management for providing me with this opportunity and fostering
a conducive learning environment. I am thankful to my supervisor at the branch Mohammad
Shahid Ullah who allowed me to observe and learn from the environment of a commercial
bank, and my colleagues for their camaraderie and for explaining the handicrafts and making my
time here enjoyable.

Lastly, my family and friends deserve my deepest appreciation for their unwavering
encouragement and belief in my abilities. This internship has been an enriching experience,
largely due to the collective support of these individuals, and I am truly grateful for their
contributions to my professional growth.
 Abstract
This report is prepared to reflect the idea of Alternative Delivery Services of a commercial bank
named Sonali Bank PLC based on the dynamics of financial technology or Fintech. This report
also aims to elaborate on the idea of adapting financial technology by different departments of a
banking institution to serve the purpose of financial inclusion. Information technology has
developed so far today that it is almost impossible to think about a life with it. The technological
advancement has served the financial sector in a widespread way making transactions super
easy, faster and more secure than ever. The advancement of fintech has given rise to various
alternative delivery channels for banks attracting the unbanked community to the sphere of the
fintech environment. This study combines my personal experience with ADC products and gives
an idea that fintech plays a great role in the banking sector. All transactions are turning into
cashless ones. It is not an easy task to include people in the fintech world in a country like
Bangladesh due to various restrictions and scarcity. This study also suggests the challenges of
fintech that can be minimized with proper financial education. The study could not be executed
more broadly due to time and resource constraints. However, it opens a way to understand how
influential and important ADC products and Fintech can be in changing peoples' comfort levels
and a way to future research about an improved banking system.
Table of Contents
Opportunities, Limitations and Challenges of Financial Technology...............................................i

Letter of Transmittal........................................................................................................................ii

Letter of Approval...........................................................................................................................iii

Acknowledgments...........................................................................................................................iv

Abstract............................................................................................................................................v

Part 1................................................................................................................................................1

1.1 My Qualification at Sonali Bank Training and Research Academy to be an Intern..............4

1.2 The Practical Journey Begins at Savar Cantonment Branch, Sonali Bank PLC....................4

1.3 My Experience at Different Departments at the Savar Branch, SBPLC................................5

1.4 My Learnings at the Branch...................................................................................................7

1.5 My Views of the Environment...............................................................................................7

A Study on Alternative Delivery Channels of Sonali Bank PLC based on Financial Technology
(Fintech) Chapter 2: Background of the Report..............................................................................9

2.1 Introduction............................................................................................................................9

2.2 Objective of the Study..........................................................................................................10

2.3 Methods and Techniques of Data Collection.......................................................................11

2.4 Limitations of the Study.......................................................................................................12

Chapter 3: An Overview of the Organization................................................................................13

3.1 An Overview of Sonali Bank PLC.......................................................................................13

3.1.1 Mission..........................................................................................................................13

3.1.2 Vision............................................................................................................................13

3.3 Fundamental Features of Sonali Banks............................................................................14

3.4 Departments of Sonali Bank PLC........................................................................................15

3.4.1 General Banking:..........................................................................................................15

3.4.2 Investment Department:................................................................................................15

 3.4.5 ADC Products (Alternative Delivery Channels):..........................................................16

3.4.6 Rural Development Schemes (RDS).............................................................................16

3.4.7 Foreign Exchange and Remittance:..............................................................................16

Chapter 4: Alternative Delivery Services of Sonali Bank PLC.....................................................18

4.1 ADC Products and Their Features.......................................................................................19

Chapter 5: Benefits and Opportunities of ADC Products and Fintech..........................................24

5.1 Benefits................................................................................................................................25

5.2 Opportunities of Fintech......................................................................................................26

Chapter 6: Limitations and Challenges of Fintech.........................................................................27

6.1 Limitations of Fintech..........................................................................................................28

Chapter 7: Analysis........................................................................................................................30

7.1 Data Analysis and Findings..................................................................................................31

Chapter 8: Conclusion and Recommendations..............................................................................34

8.1 Conclusion...........................................................................................................................35

8.2 Recommendations................................................................................................................35

Chapter 9: References and Appendix.............................................................................................37

9.1 References............................................................................................................................38

9.2 Appendix..............................................................................................................................39
Part 1

1
My Experience and Learnings at the Savar
Cantonment Branch of Sonali Bank PLC

2
Chapter 1: My Internship Journey

3
1.1 My Qualification at Sonali Bank Training and Research
Academy to be an Intern
Sonali Bank PLC offers students from various universities in Bangladesh to join their internship
program as a part of their CSR activities.

The entire process is maintained by the Sonali Bank Training and Research Academy which
works to train and educate candidates such as interns, freshers or those who qualified in the bank
exam. However, after qualifying and submitting all the necessary documents, my journey at the
bank started on July 3, 2023. At the bank, they arrange several physical classes and additional
Zoom classes to teach students about basic and important topics and functions of Sonali Bank
PLC such as the History of Sonali Bank PLC, the difference between the contemporary economy
and Shariah-based economy, misconceptions about the activities of the departments and
functions: General banking, ADC, RDS, Foreign Exchange, Investment and others, bank
environment, report writing and presentation and many other things.

1.2 The Practical Journey Begins at Savar Cantonment Branch,

Sonali Bank PLC
The practical journey of my internship session finally started on July 16, 2023, at the Savar
Cantonment Branch of Sonali Bank PLC. The area of the branch is 10,000 square feet which is
the largest in the Savar subdistrict and many other branches in Bangladesh.

At first, I was introduced to the manager of the branch Md. Ashraf Ali. He was a very kind,
brilliant and knowledgeable person with a good sense of humour. Then we met the general
banking in-charge Mohammad Shahid Ullah who was the supervisor during our internship
period. He is a person with a lot of practical knowledge of profession and life.

However, with the help of our general banking in charge, the supervisor, I had an opportunity to
sit at a desk that handled digital banking service on the first day at the branch. Later, I was
shuffled to sit at another desk, the 'help desk', and visited other departments to gain more
knowledge.

4
1.3 My Experience at Different Departments at the Savar Branch,
SBPLC
The departments I visited at the Savar branch of SBPLC were General Banking, Digital Banking,
Alternative Delivery Channels (ADC), Agent Banking, Investment, Foreign Exchange, Rural
Development Scheme etc. Although I did not have the opportunity or enough time to sit down
and participate in every department, a few of them can be mentioned below:

1) Digital Banking: On the very first day, I sat at a desk that belonged to the Digital
Banking department. The Digital Banking department provided the benefits of digital banking
services to the customers. The key functions of the department were to handle Core Banking
System (CBS) accounts, data entry through eKYC, opening bank accounts with the Cellfin
mobile app and how to use this app and explain the functions of, introducing the iBanking app,
mCash service etc.

Two junior officers were working at the desk who operated the services through computers. My
job was to assist them in their work. The activities I performed at the digital banking department
were helping customers to introduce the Cellfin app, downloading the Cellfin app from Google
Play Store, opening Cellfin accounts using their National Identification Card (NID) or CBS/bank
accounts, helping to write Cellfin registration forms, explaining iBanking app and writing forms
for registration and debit approval, collecting signatures of managers/higher rank officers etc.

2) General Banking: After working a few days at the digital banking department, our
supervisor shuffled us to another desk. I got an opportunity to sit at the help desk. At the help
desk, my job was to assist clients in writing deposit vouchers, writing checks, filling RTGS,
BEFTN, remittance forms, pay orders etc. for those who are not able to write or do not
understand how to write and where to write. Since, SBPLC provides services to all levels of
people including educated, semieducated or uneducated, poor or rich, I had to handle all types of
clients with patience.

I also helped in fulfilling new bank account opening forms when there was too much pressure on
the account opening section.

3) Investment: In the investment department, I got to know about the procedure of acquiring a
loan for a purpose. The purpose of a loan could be purchasing a house, apartment, land, car, fund

5
to start a business etc. The investment department deals with big amounts of loans for those who
have a higher level of earnings.

I had a conversation with an officer who handled necessary documents for loans and others about
the loan procedure, how to obtain a loan, how to pay them, what are the necessary documents to
obtain a loan, the legal procedures, fieldwork, what are the penalties if someone fails to pay the
loan etc.

4) Foreign Exchange: The foreign exchange department deals with foreign currency
matters, export and import, payments etc. I talked to a department official who explained the
basic functions of the foreign exchange department such as

➢ To export or import a product, the bank must issue a letter of credit in favour of the client.
➢ The letter of credit is issued via SWIFT.
➢ All the necessary documents are collected from the client.
➢ The client must provide advance payment before the shipment of goods.
➢ The letter of credit is issued under the codes of regulation provided by Bangladesh Bank.
➢ The bank works as a trusted medium of payment between the importer and exporter since
the banks are regulated by the government.
5) Rural Development Scheme (RDS): The RDS department operates to make people
independent and able to earn by providing micro credits to the people belonging to the remote
area. The main activities of the RDS department are two: i) selecting a location, moving and
giving Dawah(message) of Islam and ii) providing micro credit to those who have the potential
to earn and make their lifestyle improved and better.

There are around 15000 registered members and 6000 active clients under this scheme. 99% of
clients are women as SBPLC works to increase the reputation and acceptability of women in
society. RDS provides micro-loans starting from 100 takas and up to 100000 takas. An account is
required for the loan.

The RDS follows the microcredit model initiated by the Nobel prize winner Dr. Muhammad
Yunus yet according to Shariah codes. The main difference between other bank's RDS programs
or NGOs is, SBPLC takes the responsibility of using the loan in favor of the client. The clients
cannot use the money from the loan themselves. The purpose of the loan will be fulfilled by the

6
bank. For example, if someone wants to purchase an auto-rickshaw, the client cannot buy it
himself rather the bank will purchase it and sell it to the client with profits. Thus, the loan is fully
utilized and cannot be used for other purposes, unlike other microcredit organizations. Another
difference is, the quicker the payments are made, the less amount has to be paid. Further, the
bank offers gifts on the occasion of a client's childbirth, academic results, marriage ceremony,
and funerals as human contributions.

1.4 My Learnings at the Branch

The training and lessons I have achieved while working at the branch are:

➢ Opening a bank account in SBPLC in a few moments with smartphones and manually.
➢ Perform checking account balance, fund transfer, mobile recharge, receive remittance,
mini statement, cash withdrawal, bill payments, and order checks books using digital
banking apps such as Cellfin, iBanking etc. in hand with smartphones.
➢ Using cards while withdrawing and transferring money from an ATM/CRM machine.
➢ Writing checks, deposit vouchers, RTGS, and BEFTN forms for inward and outward
transactions.
➢ Dealing with clients with lower or no education or banking and financial knowledge.
➢ My communication skills improved while dealing with various kinds of clients and their
inquiries and my colleagues and managerial personnel at the branch.
➢ Learned how to keep me calm and working while there is too much pressure from clients
or dealing with unexpected harsh behaviours from them.

1.5 My Views of the Environment

I liked the environment of the bank. My colleagues were helpful enough to teach me about
banking activities and the environment. All the officials were well-mannered and supportive. A
few issues I think need to be solved or improved are:

➢ The broadband connection was very poor which hampered opening accounts via apps
very often.
➢ The bank server and the government's NID server were often damaged or hacked for
which the customers were disappointed for incomplete tasks or wasting their valuable
time.

7
➢ There were not sufficient fans and some air conditioners were not working. As a result,
the environment got warmed at a higher temperature and I suffered often to work with
ease in a hot and uncomfortable environment.
➢ The branch does not have a 'One stop' service which indicates the employees are experts
only in their sectors instead of versatile sectors in the bank. Customers often do not find
the right spot to get their expected service and this leads to slow work and customer
disappointment.
➢ The branch does not have enough CCTV cameras. Although the security guards keep
announcing to the clients to beware of their money, phones, bags, and wallets, the
pickpockets are always a threat to safety. I experienced a thief getting caught at the
branch but could not restore the money that was passed to another guy.

Part 2
8
 A Study on Alternative Delivery Channels of
Sonali Bank PLC based on Financial
Technology (Fintech) Chapter 2:
Background of the Report

2.1 Introduction
Introduction The old banking system has been superseded by the electronic and automated
banking system as a result of the development of ICT technologies and processes. Because it has
provided banking services to the unbanked through various ADC products, electronic and
automated banking is now a global phenomenon. Due to its cutting-edge, affordable benefits and
services, electronic banking is widely adopted by developed nations.

Alternative delivery methods have revolutionized the way information is shared and accessible,
becoming a staple of contemporary communication. The old means of presenting reports have
evolved beyond paper copies and physical presentations in an increasingly digital and linked
environment. The fast development of technology and the rising desire for information exchange
methods that are effective, convenient, and environmentally friendly have propelled this
transformation. As a result, both businesses and people have adopted a range of alternate delivery
methods that provide more flexibility, a bigger audience, and more engagement in the banking
sector.

Recent years have seen a significant upheaval in the banking industry, driven by the constant
improvement of technology and shifting consumer. There are now more options for banking
services than just traditional physical and mortar-banks and paper-based transactions. Instead, the
sector has adopted a variety of alternative distribution channels that provide clients and financial
institutions with previously unheard-of levels of comfort, accessibility, and effectiveness. These

9
alternatives have altered not only how financial services are accessible, but also how banks
interact with their customers.

The convenience level in the banking industry has been further increased through mobile
banking, a branch of online banking. Customers can conduct financial transactions, check
balances and even deposit checks using just their mobile devices to the widespread use of
smartphones. Concerns about privacy and security have been allayed by the incorporation of
biometric verification and cutting-edge security measures, which has prompted more customers
to switch to mobile banking as a dependable substitute.

Another dependable alternative delivery route that has evolved significantly is the ATM
(Automated Teller Machine). These machines have developed beyond simply delivering cash to
providing a wide range of services like fund transfers, bill payments, and account enquiries.
Customers can do a variety of transactions using modern ATMs' touchscreens, receipt printers,
and cardless capability without going into a physical branch. In addition to speeding up the
transaction process, this shift has allowed banks to expand their service areas to places where
opening a full-fledged branch might not be feasible.

Due to the introduction of numerous ADC goods and services in Bangladesh, Sonali Bank
Bangladesh PLC has gained a lot of popularity. The spread, difficulties, and prospects of Sonali
Bank PLC's ADC products are therefore covered in this study. This study report has been divided
into four sections for this reason. The first section of this study discusses previous studies that
have been done on electronic banking and ADC products; the second section discusses the
methods and techniques for gathering data and presenting it; the third section describes the
findings and discussion; and the fourth and final section of this study offers conclusions,
suggestions, and a call for more research.

2.2 Objective of the Study

Here are the major objectives of the study regarding ADC products and Fintech:

➢ To explain how it is ensured that clients have convenient and widespread access to
banking services through a variety of channels, including online banking, mobile
banking, ATM/CRM, cards etc.

10
 ➢ To explain how utilizing technology can improve operational efficiency and optimize
banking operations would enable clients to transact and use services swiftly and
easily.
➢ To explain financial inclusion: reaching underserved and rural locations is a key
component of financial inclusion, allowing those who might not have easy access to
physical branches to join the banking system and obtain financial services.
➢ To explain how cost-effective the ADC service can be for both the institution and
customers.
➢ To find out the limitations and challenges of fintech implemented by Sonali Bank
PLC and how to eradicate them.
➢ To describe my personal experience of using ADC products and how I felt about it.
➢ To explain how SBPLC applies Shariah principles in financial transactions through
alternative channels.

2.3 Methods and Techniques of Data Collection

This report was created using data that was gathered from various sources. Nevertheless, I have
placed more emphasis on my practical observation. The majority of the report is made up of my
actual observations.

To create this report worthy, a certain process was used. Various sorts of information about
current rules, procedures, and methods of general banking operation are needed for the study. In
putting together this research, I combined primary and secondary data.

1) Primary data:

➢ Practical banking work

➢ Personal discussion with the officers and executives of SBPLC
➢ Personal interview with the customer

2) Secondary data:

➢ Annual report of SBPLC

➢ Files and documents of the branch.
➢ Different papers and forms related to account opening, closing and chequebooks.
➢ Official website of SBPLC and Google search.

11
Data is input in Excel software in the computer to provide expected analytical results. Different
tables and graphs have been used to analyse and represent collected data and information. Bar
graphs and tables have been designed according to the rules of APA style, 6th edition.

2.4 Limitations of the Study

It is necessary to recognize several limitations while performing an extensive investigation on the
ADC (Alternative Delivery Channel) products of SBPLC. These restrictions might affect the
breadth, depth, and generalizability of the conclusions, possibly affecting the study's overall
validity and reliability.

➢ First of all, the study may have limited access to current and particular information due to
its reliance on secondary data sources including annual reports, whitepapers, and web
sources. The analysis's accuracy may suffer if real-time data, consumer input, and recent
changes are not well-reflected.

➢ Additionally, the study's breadth and accuracy can be constrained by informational

limitations brought on by a dependence on secondary sources.
➢ The quantitative assessment of this study is solely based on secondary sources. The actual
significance of data accuracy and reliability might not be reflected in to report.
➢ The study was conducted within a very limited amount of time that contracted the area of
data collection. If more time was available, the level of data accuracy, sufficiency and
reliability would have been increased to make work more effective and successful. These
drawbacks combine to affect the study's thoroughness and its capacity to give current
information about the shifting landscape of ADC products at SBPLC.

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Chapter 3: An Overview of the Organization
3.1 An Overview of Sonali Bank PLC
Among commercial banks, Sonali Bank is one of the undisputed leaders in Bangladesh. This
bank was established in 1972 after nationalizing all Pakistani banks in this operating region.
Sonali Bank has the most connected and extensive branch network in our country. This bank can
reach both urban and rural areas in Bangladesh. This bank has been maintaining a foreign
presence, again this bank has subsidiaries in the USA, the UK, and other locations. This bank is
like the backbone of our country's financial system. This bank plays a very crucial role in
mobilising deposits and channelling them into several facts like loans, individuals, businesses,
and other government projects. This bank has been offering very comprehensive products and
services to the people of our country. Sonali Bank caters to several segments like microfinance
and other several governmental activities, as an example, this bank helps our government to
collect tax properly.

3.1.1 Mission
The official missions of Sonali Bank are not available publicly, but this bank is operating some
core functions which could be calculated as its mission. Some of the core functions of Sonali
Bank are promoting financial inclusion and economic development in our country. This bank has
achieved this performance by providing efficient services to the public of Bangladesh. From
every single business to large businesses, people from every segment of society, and every
individual in our country are getting the most effective service from the bank. And from the very
beginning of the establishment of this bank, it has been helping the government to reduce
poverty in our country.

3.1.2 Vision
This bank has a great vision, it aspires to be the most effective leading financial institution in
Bangladesh to drive our economic situation and reduce poverty from mass people. To complete
this vision, it is a must to work continuously to make it true in all kinds of financial services,
increasing the use of technology, and other technology-based services to develop the banking
system in our country. This bank has been working for those purposes from the very beginning.
Again, this bank has an aim to strengthen the presence of Bangladesh internationally.

13
3.2 Corporate Profile
Name of the Company: Sonali Bank PLC
Chairman:
CEO and Managing Director:
Company Secretary:
Legal Status:
Genesis: Emerges as Nationalized Commercial Bank in 1972, following the Bangladesh Bank
(Nationalization) Order No:1972 (PO NO: 26 of 1972
Date of Incorporation: 03 June, 2007
Date of Vendor’s Agreement: 15th November, 2007
Registered Office: 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh
Authorized Capital: 6000.00 Crore Taka
Paid-up Capital: 4530.00 Crore Taka
Number of Employees: 19609
Number of Branches: 1226
Phone-PABX: 9550426-31,31,33,9552924
Fax: 88-02-9561410,9552007
SWIFT: BSONBDDH

3.3 Fundamental Features of Sonali Banks

Sonali Bank PLC has been providing a very efficient service to the people of our country.
Nowadays it is committed to providing more efficient service through advanced technologies.
Some of the key features of Sonali Bank are given below.

There are 3 fundamental features of Sonali Banks.

 Unparalleled Branch Network: Sonali Bank has the most extensive branch network all
over the country. The presence all over the country allows this bank to provide every kind
of service to the consumers in an efficient way in a short time. Sonali Bank ensures any
kind of basic banking services all over the country for every level of society. This
extensive network of Sonali Bank empowers all of the rural communities in our country.
There are several advantages for agricultural businesses and local entrepreneurs.

14
  Comprehensive Financial Services: Sonali Bank Plc is offering almost every kind of
financial service to its consumers. Several consumers need different kinds of services, and
this bank can provide the required services to its customers. This bank has a good
presence in several countries, so people can get services from several places.
 Commitment to National Development: Sonali Bank has a great past that it has been
serving our country in several ways. This bank not only provides services to its
customers, it is also committed to the government to help with several issues. This bank is
a part of the national development agenda. It has a great role in collecting text. It is now
considering several big projects related to agriculture and entrepreneurship. It can be
assumed that those projects will play a very important role in the GDP of Bangladesh.

3.4 Departments of Sonali Bank PLC

A bank's activities are carried away through various departments that work combinedly. These
departments perform necessary activities such as account opening, deposit mobilization, check
and voucher clearing, currency exchange, online transactions etc. Here are the key departments
of Sonali Bank PLC:

3.4.1 General Banking:

➢ Involves core department handling routine banking transactions.
➢ Services include account opening, cash deposits and withdrawals, check clearing, and
fund transfers.
➢ Manages customer inquiries, issues bank statements, and provides account-related
information.

3.4.2 Investment Department:

➢ Accountable for overseeing the bank's investment portfolio and producing returns for
both the bank and its clients.
➢ Buys stocks, bonds, mutual funds, and other financial products, among other investment-
related activities.
➢ Carries out extensive analysis and research to find profitable investment possibilities
while taking risk factors into account.
➢ Creates investment plans that are in line with the objectives and risk tolerance of the
bank.

15
 ➢ Provides clients with investment advising services, educating them on market trends and
assisting them in making wise investment choices.
➢ Based on the interests of each client, strike a balance between the requirement for capital
growth and capital preservation.
➢ Observe changes in the market, monetary data, and geopolitical developments that can
affect investment performance.
➢ Works in conjunction with other departments to make sure that investments are legal and
in line with the bank's overall financial plan.

3.4.3 Digital Banking:

➢ Focuses on electronic and internet banking services.
➢ Provides electronic payment solutions, mobile banking, and the internet.
➢ Allows users to handle transactions, make payments, and manage their accounts from
anywhere.

3.4.4 Agent Banking:

➢ By using authorized agents, extend banking services to underserved or distant locations.
➢ On behalf of the bank, agents handle routine transactions like deposits, withdrawals, and
fund transfers.
➢ Reaching out to communities with little access to conventional bank branches increases
financial inclusion.

3.4.5 ADC Products (Alternative Delivery Channels):

➢ Refers to channels for banking services that are not branches.
➢ Includes self-service terminals, ATM, CRM and other cash-related equipment.
➢ Gives users access to banking services outside of typical branches around the clock.

3.4.6 Rural Development Schemes (RDS)

➢ Aims to encourage rural economic growth.
➢ Provides funding and resources for agricultural initiatives, rural businesses, and
neighbourhood improvement.
➢ Enables rural people's access to resources, training, and financing.

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3.4.7 Foreign Exchange and Remittance:
➢ Manages remittances and transactions in foreign currencies.
➢ Facilitates currency exchange for trade, investment, and travel needs.
➢ Ensures secure and quick cross-border transactions by managing international money
transfers. Each of these divisions is essential to a bank's ability to offer a variety of
services and meet the demands of various clients. As a primary purpose of the report,
only the Alternative Delivery Channel (ADC) is discussed in the report.

17
Chapter 4: Alternative Delivery Services of
Sonali Bank PLC

18
Through the introduction of various alternative delivery services, such as online banking, internet
banking, SMS banking, mobile banking (m-cash), Point of Sale (POS), SWIFT, Electronic Fund
Transfer (EFT), Real Time Gross Settlement (RTGS), call centres, ATM cards, immediate deposit
machines (CRM), Sonali Bank Bangladesh Limited has reached numerous unbanked populations
of Bangladesh.

SBPLC customers can deposit and withdraw money from any location in the nation via online
banking. Customers who use Internet banking can check their account balance and bank
statements, transfer money between accounts, recharge their mobile phones, pay their utility
bills, request checks, stop payments, and access a variety of other services without having to visit
a branch. Customers of SBPLC's SMS banking can receive balance notifications by sending an
SMS to the shortcode 26969.

Mobile banking offers customers cash-in and cash-out services via their phones. The POS
machine accepts payments from customers made using a VISA debit card.
Customers can withdraw and deposit money without travelling to the banks directly thanks to
ATM cards and IDM. Customers can open accounts, check account balances, and make deposits
and withdrawals, among many other services, at Sheba Ghor of SBPLC. To offer these different
shipping options, in addition to 770 CRM machines, Sonali Bank PLC has installed 2086 ATM
booths across the nation. To offer mobile banking services, SBPLC has already been connected
to the Robi, Grameen Phone, Banlalink, Airtel, and Teletalk mobile phone networks. It has
introduced a call centre to receive inquiries and complaints from clients, and clients can do this
just by dialling number 16639.

4.1ADC Products and Their Features

Some of the most common ADC products mostly used in SBPLC are described below:

1. SBPLC Card Service:

Instant debit/prepaid cards are now available from all branches and subbranches of SBPLC to all
eligible account holders, both new and old. This bank has sold about 25,000 quick dual currency
prepaid cards with the assistance of all branches and sub-branches, which enables SBPLC to
increase revenue.

2. Electronic Know Your Client (eKYC):

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This is a very digital process of electronically identifying and verifying a customer's identity and
other related details. This service is becoming famous daily because it is not necessary to be
present in the bank to take certain types of services. This service helps the customer to get better
services and customers' experiences are well with this service. There are lots of beneficial points
of this service. This process doesn’t require any kind of manual verification to open an account in
a significantly short time. When there is very little work with physical documents and other
activities, it is very coast effective. It also minimises several operational costs of the bank. This
process is very secure for both customers and management. it ensures secure digital channels and
verification methods. This is a paperless way of service to the customers.

The work process of this service is divided into several steps. The first step is initiating the
process. there are Sonali eSheba App, website, and Agent Banking Network where consumers
can go to open an account. The next step is identity verification, for this step, a consumer has to
go through national ID integration and facial recognition. After this, users have to go through a
document verification process. Liveness detection is another step. It requires random head
movements and blinking detection. After that data security is the last step. The bank encrypts all
of the data of a customer securely.

3. iBanking:

Sonali Bank PLC iBanking is also known as SBL Crop. iBanking. This is a secure online
platform that works remotely. This service reduces the need to visit a branch to take a service.
This service has multiple significant advantages. A consumer can maintain his or her finances at
any time, there is 24/7 accessibility. This service is very effective, it can do a lot of work without
wasting extra time. And this process is very secure. There will be a real-time history of all the
transactions of a bank account. As a result, this service can reduce lots of cost for both bank and
consumers.
Real-time account balance and other transactional details are available all the time to the
customers. This process makes easier to transfer fund from one place to another place in
Bangladesh. This service also includes several types of bill payments. Utility bills, government
bills, and other recurring payments can be done through this process electronically. There is
another important fracture of this service that there will be no lost or stolen checks, this service
reduces unauthorised transition.

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4. Point of Sale (POS) Terminal:
➢ Safe cashless transactions
➢ Automated and tips settlement
➢ No installation charge applied

5. QR Merchant:

Customers can receive merchant payments by scanning QR code through Cellfin and any other
bank apps which is very helpful to shopkeepers and small traders. This service can be used at
lower installation, maintenance and relevant costs.

6. Cash withdrawal and deposit services: ATM/CRM:

ATMs are common services in banks for instant cash withdrawals. Debit credit cards are used for
monetary transactions. The primary service provided by CRM is real-time cash deposit.
Additionally, CRM will make all of the ATM's current features easier to use. Real-time cash
deposit services are available in the following configurations:

1. The country's banking system uses card-based cash deposits (roughly debit/deposit
cards). Their position from a national standpoint is that:

2. Cash Deposit without a Card (Cash by Code)CRM can be used for the following tasks in
addition to cash deposits:

a. corporate collections at bazaars, malls, and hospitals, etc.

b. All ATM features, including bill payment, Cash by Code, and fund transfers.

7. Cash by Code:

➢ Sending funds to the recipient having no bank account.

➢ Cash withdrawal from ATM
➢ Can be performed by Cellfin, iBanking app

8. SMS Service:

➢ Multiple account registration

➢ International push and pull notifications
➢ Mini bank statement
➢ Account information

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9. BACH Module:
Bangladesh Bank Automated Clearing House (BACH) has three components:

1. Bangladesh Automated Cheque Processing System (BACPS): It is a service that clears

cheques and approved payment items for Bank companies.

2. BEFTN: With the use of the Bangladesh Electronic Funds Transfer Network (BEFTN),
money can be moved between banks electronically. No further fees are necessary. Within 48
hours, the transfer was supported by all Bangladeshi banks.

2. Real Time Gross Settlement (RTGS): Fund transactions within other banks with a high value
of a minimum of 5 lakh taka and a low value of a minimum of one lakh taka.

10. SBPLC WhatsApp Chatbot Services: SBPLC also has a chatbot service that helps
customers to know about their accounts, card balances, nearest branches/ ATM booth locations,
and mini bank statements just with one tap on the WhatsApp app on their smartphones.

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Chapter 5: Benefits and Opportunities of
ADC Products and Fintech

23
Alternative delivery channels, such as mobile apps, ATMs, and online banking are emergent
financial technologies that provide several advantages for both clients and banks in the modern
era. They offer convenience by making financial services accessible around the clock, which
eliminates the need for in-person visits. These channels enable banks to reach a wider audience
and tap into off-the-grid markets while lowering operational costs. They also improve
productivity and shorten lines. The potential for alternative delivery channels is increasing as
technology advances, promising better user experiences, cutting-edge services, and more robust
security measures, further revolutionizing the banking industry.

5.1 Benefits
1) Convenience: Customers now have the choice to access banking services around the
clock through ADCs including internet banking, mobile apps, and ATMs, which eliminates the
requirement for in-person branch visits.

2) Enhanced Customer Experience: These platforms provide a fluid and approachable

user experience, which raises general client satisfaction and loyalty.

3) Cost Efficiency: ADCs allow banks to save a significant amount of money by reducing
the requirement for employees and physical infrastructure.

4) Wider Market Reach: Banks don't require physical branches to develop their customer
base because they can access rural and underserved markets.

5) Reduced Queues: Long wait times in branches are reduced by ADCs, which enhances
the customer experience.

6) High-Speed Transaction: Financial transactions are processed more swiftly as a result of

online and digital payments.

7) Information Access: Through these channels, customers may easily access their account
details, transaction history, and statements.

8) Personalization: Cross-selling opportunities are increased by banks' ability to analyse

consumer data and provide specialized financial goods and services.

9) Real-time updates: Customers are informed in real-time about account activity through
alerts and notifications, ensuring security and transparency.

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10) Security: The safety of transactions is improved by cutting-edge security methods
including two-factor authentication and biometric verification.

5.2 Opportunities of Fintech

1) Innovation: Through partnerships with fintech companies, banks can adopt cutting-edge
technologies and provide cutting-edge services like chatbots, peer-to-peer lending, and
blockchain technology.

2) Improved Efficiency: Back-end processes are streamlined by automation and AI-

powered tools, requiring less manual work and fewer mistakes.

3) Data Utilization: With the use of FinTech, banks can better analyse risk, score credit,
and provide individualized financial solutions using client data.

4) Financial Inclusion: By providing accessible financial services to a larger population,

fintech solutions fill in gaps in underserved markets by including people to banking services.

5) Partnerships: To improve their digital skills and maintain competitiveness in the

continuously changing market, banks might collaborate with fintech companies.

6) Lending Transformation: The lending process is streamlined and accelerated via peer-
to-peer lending platforms and digital lending solutions.

7) Cost Reduction: Fintech integration lowers operating expenses by substituting more

effective and affordable technology for outmoded ones.

8) Cross-Border Transactions: Blockchain technology and digital payment methods for

safe and quick international trade.

9) Customer Engagement: Virtual assistants, interactive chatbots, and tailored

recommendations improve customer engagement and retention.

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Chapter 6: Limitations and Challenges of
Fintech

26
The financial technology (Fintech) sector has experienced tremendous development and
innovation in recent years, revolutionizing how financial services are obtained and provided.
Despite the quick developments and revolutionary possibilities, it is important to recognize the
complex web of restrictions and difficulties that come along with this disruption:

6.1 Limitations of Fintech

1) Security and Privacy Concerns: Customers' sensitive financial information is in danger
from cybersecurity threats like phishing and hacking when using online banking and mobile
apps. Strong data protection measures are required because of privacy concerns raised by the
gathering and sharing of personal data via ADC.

2) Digital Division: Several populations are left out of ADC services since not all clients
have access to smartphones, cell phones or the internet.

3) Technological Constraints: Due to unfamiliarity or lack of technical knowledge, certain

customers, especially the elderly, may find it difficult to adapt to digital platforms.

4) Dependency on Infrastructure: The smooth access to banking services is hampered by

ADC's reliance on consistent internet connectivity, which can be problematic in some areas.

5) Service Limitations: Customers may become dissatisfied if complex transactions

needing human help or specialized services aren't entirely available through ADC.

6) Fraud and Scams: With the expansion of ADC, fraudulent activities have also risen,
with con artists taking use of digital platforms to trick unwary clients.

6.2 Challenges of Fintech:

1) Regulatory Constraints: Regulatory frameworks are frequently outpaced by
developments in fintech, which leads to ambiguity and may expose clients to dangers related to
data security and financial stability.

2) Lack of Trust: Due to worries about stability and dependability, younger fintech
companies may find it more difficult than more established traditional banks to win customers'
trust.

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3) Market Competition: Traditional banks' aversion to fintech innovators makes it difficult
for them to enter new markets and work together in a way that benefits both parties.

4) Customer Support Challenges: Customers who seek rapid assistance may become
frustrated when problems cannot be resolved remotely.

5) Funding and Sustainability: For fintech businesses to maintain their operations,

particularly as they navigate the early phases of growth, securing reliable finance is essential.

6) Customer's Education and Knowledge: Fintech solutions frequently bring innovative

concepts, necessitating considerable work to inform users of the advantages and proper
application.

7) Data Management Complexity: Sophisticated infrastructure and strong security

measures are needed to handle massive volumes of financial and personal data and avoid
intrusions.

8) Integration Challenges: The complexity and effort required to integrate existing

banking infrastructure with fintech solutions may slow adoption.

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Chapter 7: Conclusion and
Recommendations

29
7.1 Conclusion
The landscape of financial services has been completely changed by the merging of Alternative
Delivery Channel (ADC) goods and Fintech. While Fintech technologies promote efficiency and
customer-centricity, ADCs provide accessibility and ease. Regulatory compliance, security
requirements, and the need for seamless connection with current systems are crucial factors, but
their growth is not without challenges. It is crucial to strike a balance between innovation and
stability. Collaboration among stakeholders will pave the path for a future where technology-
enhanced services are not just revolutionary but also sustainable and secure as ADCs and Fintech
continues to disrupt the financial industry. The use of information and communication
technology tools and techniques such as computers, tablet PCs, smartphones, internet services,
accessories, and social networks have seen significant revolutionary changes as a result of
Bangladesh. However, it is a fact that several foreign and private banking institutions in
Bangladesh still have a great possibility to offer alternative delivery channels, even though
various ADC products have already been offered by private commercial institutions such as
Sonali Bank PLC (SBPLC). Assuring network speed and quality, avoiding money laundering,
and combating terrorism financing are the key issues with IT-based banking. Adherence to ICT
laws and regulations that are upheld by Bangladesh Bank, the nation's central bank, can help
banks in this situation overcome these challenges. The government, foreign commercial banks,
private commercial banks, state-owned commercial banks, ICT policymakers, banking
policymakers, academics, researchers, and students are just a few of the interested parties who
will profit from the study's findings. Additionally, this study will broaden our understanding of
automated and electronic financial systems.

2.2 Recommendations
The negative side of everything exists, therefore SBPLC cannot ignore it. The banking
institutions in Bangladesh, particularly SBPLC, might be addressed with the proposals listed
below. These recommendations may aid them in increasing their utilization of ADC products and
successfully navigating the dangers and difficulties involved:

➢ Adding Separate IT Desks Across All Branches: If any branch lacks a dedicated IT
desk, the officers must divide up the IT-related responsibilities among themselves,

30
 making it difficult for them to focus on their more specialized duties. Consequently, each
branch should have its own IT desk.
➢ Set an ADC target: each branch should create an annual or half-yearly plan for ADC
products. By doing this, the banks will be motivated to work hard to boost ADC product
registration and transaction volumes.
➢ Evenly distribute ADC products throughout the nation: Though many Bangladeshi
banks, including SBPLC, have already launched a variety of ADC products, these are not
polarizing. More than individuals in the suburbs and in rural areas, urban residents benefit
from these services and benefits. Therefore, the banks should also offer ADC product
services in rural and suburban locations.
➢ Customer Awareness Campaign: To inform people about the features, services, and
advantages of utilizing ADC products, various customer awareness programs, such as
road shows and rallies, should be set up in most of the major cities.
➢ Launch IT-Related Training and Workshops: Local and corporate branches should
schedule various IT-related training and workshop programs for the staff so that they are
aware of the processes, advantages, difficulties, and risks associated with IT-based
banking.
➢ Utilizing the Full Capacity of the ADC Products: SBPLC has already launched a
number of ADC products, including CBS, ATM, SMS banking, i-Banking, m-Cash, EFT,
RTGS, and others, but they have not been able to fully utilize the capacity of each ADC
product equally. CBS and ATMs have higher registration and transaction volumes than
the competition. They ought to focus on other ADC products instead.
➢ Banks should be connected to various telecommunications networks, including as
Grameen Phone, Robi, Airtel, Teletalk, and others, in order to ensure continuous network
flow. They need also to have their locations well-equipped with IT tools and procedures.
➢ Prevent the financing of terrorism and money laundering: First, banks need to make
sure that all ICT-related rules and regulations are followed to the letter and are enforced
by Bangladesh Bank. The amount of transactions for clients should then be restricted. To
a certain extent, banks should centralize activities and establish a highly qualified and
experienced IT risk management committee.

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Chapter 8: References and Appendix

32
9.1 References

33
9.2 Appendix
Table-1
Number
ADC Products and Services
2020 2021 2022
1 Debit Card (Active only) 820,748 1,121,894 1,166,708

2 SMS Banking 1,210,435 1,523,211 2,620,512

3 Prepaid Card 199,527 384,033 2,147,074

4 e-KYC Account By CellFin 20,091 174,615 367,946

5 CellFin Customers 278,824 580,907 1,356,383

6 iBanking Customers 143,746 150,045 177,418

7 mCash Customer 121,023 112,005 135,596

8 mCash Agent 3,299 4,632 4,911

9 No. of ATM (Cumulative) 1,346 1723 2,086

10 No. of CRM (Cumulative) 406 595 770

11 Merchant POS 2,415 1,586 81

12 Branch POS 122 568 305

13 Agent POS 423 307 40

Table-2
Increase/Decrease
ADC Products and Services
2020-21 2021-22

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1 Debit Card (Active only) 36.69% 3.99%
2 SMS Banking 25.84% 72.04%
3 Prepaid Card 92.47% 459.09%
4 e-KYC Account By CellFin 769.12% 110.72%
5 CellFin Customers 108.34% 133.49%
6 iBanking Customers 4.38% 18.24%
7 mCash Customer -7.45% 21.06%
8 mCash Agent 40.41% 6.02%
9 No. of ATM (Cumulative) 28.01% 21.07%
10 No. of CRM (Cumulative) 46.55% 29.41%

11 Merchant POS -34.33% -94.89%

12 Branch POS 365.57% -46.30%

13 Agent POS -27.42% -86.97%

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