INTRODUCTION
Recently, Artificial Intelligence has become an important part of Bangladesh’s development. AI can perform tasks that normally require human intelligence, such as problem-solving, decision-making, language understanding, and data analysis. In Bangladesh, AI is gradually being used in sectors like traffic, banking, healthcare, education, agriculture, and business to improve productivity and efficiency. The effectiveness of AI in Bangladesh’s finance sector can be observed through faster transaction processing, reduced human error, improved fraud detection, and enhanced customer experience. Financial institutions like banks, mobile finance, micro banks are adopting AI to increase their productivity and accuracy and help to do much of the work that previously required a lot of time manually. One major effectiveness of AI in Bangladesh’s finance sector is in customer service. Many banks now use AI-powered chatbots and virtual assistants to answer customer queries quickly and provide 24/7 support. Some banks also use AI to generate PINs, account assignments, and differentiate between normal customer behavior and fraudulent activity. Brac Bank, Eastern Bank Limited, Citibank, Prime bank, BKash are using AI-based systems for fraud detection, chatbots, transaction monitoring, risk analysis, and card security. However, despite its growing potential, Bangladesh still faces challenges in fully implementing AI, such as limited technological infrastructure, lack of skilled professionals, concerns about job displacement and data security, and lack of trust.
Current State of AI in Bangladesh’s Finance Sector
In Bangladesh, the financial sector is gradually moving toward AI-driven transformation but this sector is still developing.Recently few banks and fintech organization adopting the AI technologies into selected areas such as fraud detection, cybersecurity, customer service, transaction monitoring, and risk assessment. Although large scale implementation remains limited, the growing interest in AI reflects Bangladesh’s broader push toward digital financial modernization. According to a study conducted by the Bangladesh Institute of Bank Management (BIBM), only 6% of banks in Bangladesh are fully equipped to integrate AI technologies into their operations. Mobile financial service providers such as bKash are also applying AI-based to monitor user behaviour and reduce financial fraud. Several banks have introduced chatbot services and digital automation to improve customer experience and operational efficiency.According to the survey of (BIBM) about 70% of banks have either no automation 46% or are still in the planning stage 24% for integrating AI into their cybersecurity response systems.
Eastern Bank PLC: Eastern Bank Ltd (EBL) has become the first bank in Bangladesh to launch an artificial intelligence (AI) based chatbot.EBL’s Digital Interactive Agent (DIA) will communicate with customers via Facebook Messenger, providing information about their accounts, credit and prepaid cards, and general information about EBL’s products and services.EBL says the chatbot will also soon be available on Twitter and Viber.
Prime Bnak: Prime NOW is a digital banking platform introduced by Prime Bank PLC, and it is heavily integrated with Artificial Intelligence (AI) and machine learning technologies The app powers the first numberless debit card in Bangladesh, where app-based AI features manage security, limits, and instant digital reissuance, remote account opening.
(Photo:TBSNEWS)
Brac Bank:This bank is aggressively driven into artificial intelligence and machine learning to their core system and streamline operation.Brac Bank uses Ai bases credit scoring model to evaluate the eligibility of underserved SME entrepreneurs. This system is named as SHAFOLLO.Also they have equipped AI in talent acquisition The bank eliminated paper based testing by deploying AI driven screening and assessments for their flagship “Young Leader Programme.BRAC Bank has a dedicated Process Automation and R&D (AI/ML) team to design Large Language Models (LLM)
BRAC Bank hosts an entrepreneur conference to promote its pioneering SME Digital Loan ‘Shafollo’ Photo:Brac Bank)
City Bank PLC: City Bank has also adopted modern digital banking tools and AI for its AI-driven microloans, Fraud detection and risk management, Customer service chatbot, and Corporate and SME loans. City Bank also partnered with Filps to improve its digital banking app, Citytouch, by adding AI-powered features such as personalized services, smarter transaction processing, and predictive banking solutions.
Bangladesh Central Bank: Bangladesh Bank is actively developing an AI framework to modernize the country’s financial sector.Their core initiative are in Central Bank LLM ,Automated oversight,Credit and risk management.
The Bangladesh Institute of Bank Management (BIBM):BIBM actively researching and doing surveys to adopt AI in finance sector.
Major Uses of AI in Bangladesh’s finance sector
Fraud Detection and Cyber Security:One of the major uses of AI in the financial sector is detecting fraud and suspicious activities.AI powered system monitors the transactions in real time and quickly identify suspicious activities or unusual payment patterns.
Customer Service Automation: Nowadays, AI is broadly used for customer services and quaries. These systems provide 24/7 support, answer customer questions instantly, and reduce waiting time. For example, Eastern Bank PLC introduced an AI-powered banking chatbot to improve customer interaction and banking efficiency.
Credit Scoring and Loan Approval:It helps people and small businesses who do not have a lot of banking history to get loans and financial services easily. Fintech companies are starting to use that,which can judge if someone is a risk for a loan. These programs help them make lending decisions faster and with less risk.AI-driven credit assessment systems are key here. This way small businesses and people who were underserved can get the help they need. They reduce risk.
Productivity and Operational Efficiency: AI significantly improves productivity in Bangladesh’s finance sector by implementing AI and reducing manual workloads. Before AI adoption, many banking operations depended heavily on paperwork and manual processing, resulting in delays and human error. AI-based systems have helped reduce processing time, lower operational costs, and increase overall efficiency within financial institutions.
Digital Banking Expansion: Many rural and previously unbanked populations now have access to digital financial platforms through mobile banking applications and AI-supported financial technologies
Challenges of AI in Bangladesh’s Finance Sector
Although AI is helping Bangladesh’s financial sector, there are still several challenges that Bangladesh’s financial sector is facing, which are narrowing the use of AI.
Lack of skill force: According to the Bangladesh Institute of Bank Management (BIBM), many banks lacks AI specialized man power. As a result, institutions often depend on external vendors or foreign expertise for AI-related projects. This creates an excessive amount of dependency on 3rd party companies.
Limited technological infrastructure: Many banks in Bangladesh still rely on traditional banking systems and outdated technology. While banks such as Eastern Bank Limited, City Bank PLC, Brac Bank Fintech like Bkash Nagad have invested in their technology. As AI requires strong digital infrastructure, high-quality data, and advanced computing resources, which are not yet available in all financial institutions.
High implementation cost: Advanced and high-quality technology needs high-quality equipment and skilled personnel. It requires significant investment in software, cybersecurity, cloud computing, and employee training. This is easier for large-scale fintech companies like bKash Nagad and banks like a Brac Bank, City Bank, Eastern Bnak etc. For small range finance company its still not possible.
Cybersecurity and Data Privacy: Bangladesh has experienced several cyber attacks in the financial sector, including the Bangladesh Bank Heist, which highlighted the importance of strong cybersecurity measures. As AI systems rely heavily on customer data, ensuring data protection remains a major challenge.
Digital Divide: Many rural region still faces internet issues and don’t have proper access to all equipment for AI-based finance.On the other hand, the AI-based service is expanding in urban areas, but the digitial illiteracy one of the major constraints.
Future of AI in Bangladesh’s Finance Sector
The future of Artificial Intelligence (AI) in Bangladesh’s finance sector is highly promising. Very soon, AI will be more widely used in fraud detection, cybersecurity, credit scoring, risk management, and personalized banking services. Banks will be able to detect fraud customer and analyze customer data more accurately and effectively within a very short period of time. AI is also expected to transform lending and credit assessment.Ai chatbots are more accurate for providing data and guiding customers. For example, Eastern Bank PLC has already introduced AI-based customer support solutions. AI systems will be able to provide more personalized financial advice, answer complex customer queries, and offer seamless banking experiences 24 hours a day which will increase the productivity.In a few years, AI bots will lead the customer service sector, which is now controlled manually. International institutions such as Citibank demonstrate how AI can be used for payment monitoring, risk management, compliance, and fraud prevention. As Bangladeshi banks adopt similar technologies, the country’s financial sector will become more efficient, secure, and globally competitive.Bangladesh Bank and financial institutions are increasingly exploring digital transformation initiatives, which may encourage greater investment in AI technologies.As infrastructure improves and a more skilled workforce enters the adoption of AI in finance sector will be accelerated. AI will not only improve banking operations but also contribute significantly to the country’s broader economic growth and digital transformation.
Public Perceptions of AI in the Finance Sector
AI is becoming more important in the finance sector, and a recent survey of 13 people conducted by the author provides valuable insights into public opinion regarding its adoption in Bangladesh. The findings indicate a generally positive attitude toward AI-based financial services, although certain concerns remain.
According to the survey, 46.2% of respondents believe that AI-based financial services can save time, improve customer service quality, increase transaction security, and reduce human errors. Meanwhile, 30.8% were uncertain and selected “Maybe,” suggesting that many people are still learning about AI’s capabilities. On the other hand,23.1% of respondents stated that people do not easily trust AI in financial services, highlighting the importance of building public confidence in AI-driven systems.
When asked about their concerns regarding AI-based finance, the majority of respondents 61.5% identified privacy and data security as their primary concern. Another 23.1% believed that a lack of awareness is a significant barrier to AI adoption in Bangladesh. These findings suggest that while people recognize the benefits of AI, they remain cautious about its potential risks.
The survey also revealed strong support for the future implementation of AI in Bangladesh’s banking industry. A significant 76.9% of respondents stated that they would like to see AI-based banking services introduced in Bangladesh, while only 23.1% opposed the idea.
However, the survey findings show that AI has significant potential to transform Bangladesh’s finance sector. That’s why increasing public awareness, strong data protection measures, building trust in AI systems will be essential for successful adoption in the future.
Conclusion
AI is gradually transforming Bangladesh’s finance sector by improving fraud detection, customer service, operational efficiency, and financial inclusion. Although AI adoption is still in its early stages in Bangladesh. Organizations such as bKash, Eastern Bank PLC, Citibank, Brac Bank ,City Bank,Prime Bank demonstrate how AI can enhance security, streamline operations, and provide better financial services. However, challenges must be addressed to unlock AI’s full potential.However ,with proper investment, policy, advanced technology Bangladesh’s financial sector can over come the constraints. . “আগামী দিনের ব্যাংকিং শুধু ডিজিটাল নয়, হতে হবে বুদ্ধিমানও” As Bangladesh moves toward a digital future, the successful AI into the finance sector will not only modernize banking services but also contribute significantly to sustainable economic growth and national development.
Rifah Tasnia Ahona
An Economics student at the Department of Economics, East West University. She completed her schooling at National Ideal School and her Higher Secondary education from BAF Shaheen College, Dhaka. She has experience in digital management, graphic designing, event management and organizing. Known for her perfectionism and strong multitasking abilities, passionate about combining analytical thinking and professional responsibilities efficiently.
MD. Samin Aziz
Samin Aziz is a Civil Engineering graduate from Ahsanullah University of Science and Technology (AUST). He completed his HSC and SSC from Police Lines School & College, Rangpur. His interests include structural and geotechnical engineering, research, and sustainable construction practices. Beyond academics, he is passionate about writing, leadership, and teamwork, and enjoys exploring innovative solutions to real-world engineering challenges.
