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Business and Social Sciences

Volume 3 Number 1 2025

Article Contents

RESEARCH ARTICLE   (Open Access)
Contents Vol 3 (1)

Digital Transformation and FinTech in Modern Banking: Impacts on Banking Efficiency, Customer Experience, and the Future of Digital Finance

Tanveer Ahmed Siddquee 1*

+ Author Affiliations

Business and Social Sciences 3 (1) 1-9 https://doi.org/10.25163/business.3110332

Submitted: 02 June 2025 Revised: 18 August 2025  Published: 20 August 2025 

Abstract

Background: The banking sector in Bangladesh has rapidly evolved through digital transformation fueled by FinTech innovations, smartphone penetration, and regulatory initiatives. These advancements have enhanced operational efficiency and customer experience but introduced challenges such as cybersecurity risks, low digital literacy, and infrastructure gaps. While global research highlights the role of technology in banking, empirical evidence from Bangladesh remains limited. Methods: A quantitative, cross-sectional survey of 400 bank customers and practitioners was conducted using stratified random sampling. Structured questionnaires captured data, which were analyzed with descriptive and inferential statistics in SPSS. The study investigated the relationship between digital banking adoption, operational efficiency, and customer satisfaction, while identifying key barriers. Results: Results indicated that 83% of respondents agreed digital platforms reduced transaction time, costs, and errors, thereby improving efficiency. Customer satisfaction was strong, with 81% citing convenience and 78% valuing 24/7 service availability. Trust and security were significant, with 70% expressing confidence in digital transactions, though 39% voiced concerns over cybersecurity. Adoption was higher among younger, educated, and urban populations. Barriers included technical glitches, digital illiteracy, and weak IT infrastructure. Discussion: Digitalization improved service speed, accessibility, and automation, while FinTech offerings such as mobile wallets and online transfers enriched customer experience. However, full-scale adoption is hindered by security risks, rural-urban disparities, and low digital readiness. Conclusion: The study concludes that digital transformation and FinTech have reshaped Bangladesh’s banking by enhancing efficiency and customer experience. Sustainable progress requires robust ICT infrastructure, expanded digital literacy programs, user-friendly applications, and strong regulatory and cybersecurity measures to build a secure and inclusive digital banking ecosystem.

Keywords: Digital Transformation, FinTech, Customer Experience, Banking Efficiency, Digital Banking, Operational Efficiency

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