Artificial Intelligence (AI) is steadily transforming Bangladesh’s banking landscape, making financial services faster, more secure, and increasingly customer-centric. Banks across the country are adopting AI-driven tools to improve operational efficiency, reduce fraud, and offer tailored digital services to meet the growing demands of tech-savvy customers. Leading institutions are now integrating AI into various aspects of their services—ranging from customer service chatbots and fraud detection systems to credit risk assessment and financial forecasting. This technological shift is helping banks process large volumes of data with speed and accuracy, enabling better decision-making and reducing manual errors. In Bangladesh’s banking sector, chatbots are one of the most noticeable examples of AI being used. These AI-powered virtual assistants are available 24/7 to answer common queries, assist with transactions, and provide account information in real-time. This reduces the burden on call centers and enhances customer satisfaction. AI is also playing a key role in improving fraud detection mechanisms. By analyzing user behavior, transaction patterns, and anomalies, AI systems can flag suspicious activities in real time, helping prevent potential financial losses. Several banks have already reported a significant drop in fraudulent transactions after introducing AI-based monitoring tools. Moreover, AI helps assess creditworthiness with greater accuracy. Traditional credit scoring methods often exclude informal sector workers or those with limited financial history. AI, however, can analyze alternative data such as mobile payments or utility bills, making loans more accessible to underserved populations and promoting financial inclusion. The benefits of AI also extend to internal operations. Banks are using automation and machine learning to streamline back-office processes such as document verification, compliance checks, and data entry. This approach not only cuts expenses but also allows employees to concentrate on tasks that bring greater value. However, as AI adoption grows, industry leaders stress the importance of strong data privacy protocols and ethical AI usage. Banks must invest in cybersecurity and ensure transparent algorithms to build trust with customers. Training and upskilling staff is also essential. Banks are partnering with educational institutions and tech firms to equip employees with the necessary knowledge to work alongside AI systems effectively. Bangladesh Bank and other regulatory bodies have expressed support for the digital transformation, encouraging innovation while laying out guidelines to ensure responsible AI deployment. As the country continues its journey toward a smart financial ecosystem, AI is poised to play a central role in shaping the future of banking. With proper oversight and inclusive strategies, AI-powered banking could help boost efficiency, reduce costs, and bring more people into the formal financial system.
