Analysis of eJanata Implementation in Janata Bank

Financial Inclusion

1
 Internship Report on

Analysis of eJanata Implementation in Janata Bank

Financial Inclusion
Submitted By:
Name: Rokeya Sultana
ID: 029-14-032
Batch: 14th
Section: B

Submitted to:
Mohammad Moqbul Hossain Bhuiyan
Professor
Department of MIS
University of Dhaka
Department of Management Information Systems
Faculty of Business Studies
Date of submission: 20th December 2023

Letter of Transmittal
2
Date: 20th December 2023

To

Mohammad Moqbul Hossain Bhuiyan

Professor
Department of Management Information Systems (MIS)
Faculty of Business Studies
University Of Dhaka.
Sub: Submission of Internship Report

Sir,

With due respect, I have worked in Janata Bank PLC for 45 days to complete my internship. I’m writing
to let you know that I have finished my Internship Report on “Analysis of eJanata Implementation in
Janata Bank Financial Inclusion”. It has been a very positive and great experience, as I have learned a
lot that would not have been possible without conducting this internship program. Finally, I would like
to inform you that, I have tried to complete the Internship Report as per your guidance and my research
objectives.

I shall be thankful if you kindly take a step for the evaluation of the report at your earliest convenience.

Sincerely Yours

Rokeya Sultana

ID No: 029-14-032
Batch: 14th ; Section: B
Department of Management Information Systems (MIS)
Faculty of Business Studies
University of Dhaka

Declaration
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Here the report on “Analysis of eJanata Implementation in Janata Bank Financial Inclusion” is
prepared by me. This is fully supervised directly by Mohammad Moqbul Hossain Bhuiyan, Professor,
and Department of Management Information Systems (MIS). The purpose of the report is only to fulfill
the requirement of completing a BBA degree. All types of liabilities of this report go with me. To show
the exact information that I am assigned, I have tried my best to make it assign. This is clarified that this
report is not submitted to any universities or institutions before.

Sincerely yours,

-----------------------------------

Rokeya Sultana
Id: 029-14-032
Batch: 14th
Section: B
Department of Management Information Systems (MIS)
University of Dhaka

Supervisors Certification

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This is to certify that Rokeya Sultana; Student ID no 029-14-032; has done internship under my
supervision. It is a part of the fulfillment of BBA Program in Management Information Systems
department. This internship report titled “Analysis of eJanata Implementation in Janata Bank
Financial Inclusion” may be submitted for defense.

--------------------------------------

Mohammad Moqbul Hossain Bhuiyan

Professor
Department of Management Information Systems (MIS)
Faculty of Business Studies
University Of Dhaka

Acknowledgement

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At first, I want to express my gratitude to Almighty Allah for giving me the ability and patience to finish
the report. When it came to completing the internship report, I had a few people in the Janata Bank PLC
who aided me with their unwavering support during intern period and direction in completing the report
on time. At first, I would like to confess my heartiest gratitude to Professor Mohammad Moqbul Hossain
Bhuiyan, Department of Management Information Systems (MIS), and University Of Dhaka for his
guideline, supervision to finish my work on time and all stages of preparing the report. I would also
want to express my heartfelt gratitude to all of my well-wishers who assisted me in various ways
throughout the preparation of this report.

Internship Report Summary

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 INTERNSHIP DETAILS
Student Name: Rokeya Sultana

ID: 029-14-032 Registration No. 2018-421-066 Batch: 14th

Name of Janata Bank Limited TSC Branch
organization:

Full postal address of the organization and

Web Address:
https://www.banksbd.org/janata-bank/dh
aka-university-campus-branch-4708.html
Mohammad Moqbul Hossain Bhuiyan
Contact or Supervisor Name:

Professor

Department of Management Information Systems (MIS)

Contact or Supervisors Job Title:
Faculty of Business Studies

University of Dhaka

Contact or Supervisors Phone & Email:

Start Date: 11.10.2023 End Date: 12.12.2023

BRIEF OUTLINE OF ACTIVITIES

Executive summary
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This paper delves into the endeavors of Janata Bank PLC, a significant state-owned bank in Bangladesh
established in 1972, emphasizing its commitment to promoting financial inclusion through the
innovative eJanata system. The eJanata system, an AI-powered mobile app, has witnessed remarkable
success since its February launch, amassing over 50,000 downloads. Users experience seamless
financial transactions, including credit card payments, interbank transactions, and upcoming bKash
money transfers, totaling Tk 22 crore in transactions.

The strategic deployment of eJanata aligns with Bangladesh's rapid financial inclusion, echoing the
National Financial Inclusion Strategy (2021–2026). Janata Bank's dedication is underscored by its
creative software team, introducing new services and ensuring real-time scheduling and feedback
through the integrated eJanata solution. With a focus on an equitable mindset for the unbanked, the
study explores how financial inclusion enhances Janata Bank's competitive edge. Objectives encompass
understanding digital banking, efficiency comparisons, emphasizing eJanata's significance, and
investigating associated needs and security systems.

Utilizing primary sources, including bank official questionnaires and interviews, alongside secondary
materials such as yearly reports, the research concentrates on Janata Bank's financial inclusive growth,
particularly within the general banking and IT divisions. Despite challenges faced during the internship,
including a learning curve, time constraints, limited supervision, and legal data restrictions, the report
strives for a comprehensive analysis of Janata Bank's eJanata system and its pivotal role in advancing
financial inclusion.

Table of Contents
Chapter 01: INTRODUCTION............................................................................................11

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 1.1 Analysis of eJanata Implementation in Janata Bank Financial Inclusion........................................11
1.2 Rational of the Study........................................................................................................................12
1.3 Objective of the Study......................................................................................................................12
1.4 Secondary objectives........................................................................................................................13
1.5 Research Methodology....................................................................................................................13
1.6 Organization of the Repot................................................................................................................13
1.7 Limitations of the Study...................................................................................................................14
Chapter-2: Description of the Organization.......................................................15
2.1 About Janata Bank...........................................................................................................................15
2.2 Vision...............................................................................................................................................16
2.3 Mission.............................................................................................................................................16
2.4 Values...............................................................................................................................................16
2.5 eJanata Services...............................................................................................................................16
2.6 Janata Bank Profile..........................................................................................................................17
2.7 Costing of Digital Banking..............................................................................................................18
2.8 Bangladesh Bank instructions for eJanata.......................................................................................18
2.9 Information Technology (IT) governance:......................................................................................19
2.10 Main principles of IT security:.......................................................................................................19
2.11 IT operations..................................................................................................................................20
2.11.1 IT service outsourcing............................................................................................................................20
2.11.2 Information system audit:......................................................................................................................21
2.12 Cyber fraud....................................................................................................................................21
2.13 Responsibilities, organizational structure, and roles......................................................................21
Chapter-03: Literature review.............................................................................23
3.1 Literature review on eJanata............................................................................................................23
3.2 Literature review on financial inclusion in the banking sector........................................................24
3.3 Literature review on eJanata implementation in Janata Bank financial inclusion...........................25
Chapter-04 Data Analysis and Findings.............................................................26
4.1 Tabular and Graphical Presentation of Data Analysis.....................................................................26
4.2 Findings............................................................................................................................................31
4.3 Discussion........................................................................................................................................31

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Chapter 05: Summary, Conclusion and Recommendation.................................32
5.1 Summary..........................................................................................................................................32
5.2 Conclusion.......................................................................................................................................32
5.3 Recommendation.............................................................................................................................33
References..............................................................................................................................................33

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 Chapter 01: INTRODUCTION
1.1 Analysis of eJanata Implementation in Janata Bank Financial Inclusion
Janata Bank PLC is the subject of my internship report. Janata Bank PLC. is a state-owned commercial
bank of Bangladesh established in 1972. Its headquarters is situated at Motijheel in Dhaka, the capital
city of Bangladesh. It is the second largest commercial bank in Bangladesh. In recent years, it is using
most valuable and modern age required eJanata system and ensuring financial inclusion to the banking
sector. The primary goal of this research is to evaluate Janata Bank PLC’s eJanata system usage and
applications.

Janata Bank has launched an artificial intelligence-based mobile app "eJanata". The app enables
customers to transact funds with any commercial banks of the country and pay savings or credit card
installments. Officials informed that an "add money" option will be added soon with bKash alongside
cash withdrawal and payment options through quick response (QR) codes. Customers have to provide a
13-digit account number, national identity number, registered mobile number, email address and related
information to "sign-up" in the app. The eJanata has been downloaded over 50,000 times from Google
Play Store since being launching on February 15 while customers have transacted around Tk 22 crore so
far, said a press release.

Bangladesh has been experiencing rapid financial inclusion in sync with faster adoption of eJanata
technology. Financial inclusion is a must for an inclusive society, where anyone can access financial
services to maximize his or her financial gain. In a landmark 2021-2026 National Financial Inclusion
Strategy, the Bangladesh government has clearly stated its goal to achieve social cohesion and stability
through ensuring access and usage of quality financial services for all. Especially for those women who
are from low income rural households or those who are unemployed made up about half of the unbanked
population.

Janata Bank PLC has been devoted to serve its customers since inception and is committed to introduce
new services, make existing services faster and better than ever. It has a capable, energetic and
innovative software team which has been introducing bank’s systems and applications according to
customers' need. eJanata modules can be configured in such a way that the entire banking sector is fully
integrated into business intelligence software, which not only generate reports and status but also a real

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time scheduling and feedback for each segment individually, collaboratively, and in multi-tasking
deliberations.

In the frame work of financial and organizational development research, the contribution of financial
inclusion to a strategic edge has yet to be investigated. It is best described as an equal and adaptable
philosophy that encourages everyone to participate in the quest of excellence financial service. The
unbanked and under-banked people are the focus point of financial inclusion since the bank is driven by
inclusive growth policy. As a result, the major motive is achieving inclusive growth. This bank requires
participation from everyone in the organization, from the top ranking CEO to the lowest ranking
employee. Obtaining world-class financial inclusion is a continuous process, not a one-time event.

1.2 Rational of the Study

Rapid changes in worldwide competitiveness have forced banking companies to adopt new strategies to
obtain a competitive edge. The limits of financial growth standards for banks have retreated to critical
levels as a result of the implications of growth policies in international banking industry. That is why
Janata Bank has adopted various phases of eJanata and digital development approaches based on
numerous modules as a target provided by the Bangladesh Bank. The report focuses on the electronic
performance of the bank and find out the financial inclusive growth derived from using eJanata system.

Janata Bank’s eJanata system plays an important role in enhancing banking service, product quality,
client reach and lowering banking costs by eliminating client presence, decentralized banking and
scrapping.

1.3 Objective of the Study

To demonstrate how Janata Bank PLC’s financial inclusion benefits from eJanata system. The
report also shows comparative efficiency and difference to the other banks.

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1.4 Secondary objectives
1. To get a broader outline of Digital Banking.
2. To show comparative difference and efficiency to the other banks.
3. To identify the Importance of eJanata Activities from both banking and inclusive growth
perspective
4. To learn the basic requirement of the bank for providing eJanata facilities for the customers
and also figure out the security system for eJanata performance.

1.5 Research Methodology

In order to make the study more meaningful and presentable, two sources of data and information will
be used widely. The sources of data are as follows-

1) The Primary Sources:

 Getting Answers from Unstructured Questionnaire made by me from the FCAD, MTO, SAVP.
 Face-to-face conversation with the respective officials & clients.
 Informal conversation as well as a direct interview with officials of Janata Bank PLC.
 Relevant file study as provided by the officers concerned.
2) The Secondary Sources:
 Annual report and website of Janata Bank.
 Different publications, Newspapers and Journals of the bank.
 The internet was also used for theoretical information.

1.6 Organization of the Repot

During my internship, I had the chance to work with Janata Bank PLC IT and general banking
department, and my internship report was titled “Analysis of the implementation of eJanata system
towards financial inclusion of Janata Bank PLC”.

This report was written as part of the internship program, which is a requirement for earning a Bachelor
of Business Administration degree. In this report, I will try to focus on the performance of financial
inclusive growth in different sections of the bank.

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1.7 Limitations of the Study
During the internship period I have faced some limitations of the report are:

 New comer: It was completely a new experience for me. I did not familiar with the internal
banking activities before. So, it was difficult for me to cope with the banking sector.
 Confidentiality: There was legal restriction for some data. Bank has obligation to publish their
data in publicly for the security purpose.
 Lack of time: For doing this internship I have very short time. In this short period, it was difficult
to fulfill all activities to prepare a report.
 Lack of supervision from the bank: As I am a new comer, I have to learn from the descriptive
and practical way from the bank officers. But they were not free from their daily banking
activities to brief me broadly.

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 Chapter-2: Description of the Organization

2.1 About Janata Bank

Janata Bank PLC, the second-largest state-owned commercial bank in the country, was formed in 1972
through the merger of United Bank PLC and Union Bank PLC. Under the Enterprise Growth and Bank
Modernization Project, it transformed into a company in 2004-05. Operating since November 15, 2007,
the bank is governed by an 8-member board of directors appointed by the government.

Janata Bank offers a range of services, including deposit collection, development initiatives, welfare
programs, and off-balance sheet activities. It plays a crucial role in various sectors such as agriculture,
industry, and poverty alleviation. The bank is actively involved in financing small and medium
enterprises (SMEs) to contribute to economic growth and job creation.

With a focus on SMEs, Janata Bank has disbursed funds across diverse sectors, including textiles,
agriculture, healthcare, education, and more. It supports the government's goal of achieving middle-
income status by reducing poverty and promoting SME expansion.

The bank is also directly involved in financing agricultural activities in rural areas through its branches.
It has implemented credit policies to facilitate loans for different agricultural sectors, contributing to
rural development.

Janata Bank emphasizes performance evaluation through a function-based performance budget and
implements human resource development programs. In recent years, the bank has expanded its activities
in off-balance sheet sectors and introduced initiatives such as merchant banking and plans for Islamic
banking.

The bank's management has adopted strategies to advance its operations, including expansion into the
capital market and the introduction of Islamic banking. Janata Bank's expert management system has
contributed to increased foreign remittance, export business, and profitability in foreign exchange
operations. Overall, the bank plays a vital role in the economic development of the country.

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2.2 Vision
To become the effective largest commercial bank in Bangladesh to support socio-economic development
of country and to be a leading bank in South Asia.

2.3 Mission
Janata Bank PLC will be an effective commercial bank by maintaining stable growth strategy, delivering
high quality financial products, providing excellent customer service through an experienced
management team and ensuring good corporate governance in every step of banking network

2.4 Values
Fair Treat everyone fairly with respect.

Dependable Deliver outcome on their promises

Reliable Doing job to the best of their ability

Professional Fostering a professional environment
Dynamic Passionate to accomplish
Trustworthy Doing what is right

2.5 eJanata Services

The eJanata app enables users, including Customers, Buyers, and Users, to access product information,
apply for services, locate ATMs and branches, view account balances and transactions, perform fund
transfers, and access additional services through their Eligible Mobile Devices.

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2.6 Janata Bank Profile
FEATURES VALUES

Name Janata Bank PLC.

Industry Banking

Founded 1972; 51 years ago in Dhaka, Bangladesh

Headquarters Head Office Janata Bank PLC. 110, Motijheel Commercial Area Dhaka-
1000, Bangladesh

Number of 922 branches across the country including 4 overseas branches in United
locations Arab Emirates.

 S. M. Mahfuzur Rahman (Chairman)

Key people
 Md Abdul Jabbar (Managing Director & CEO)
Products Banking services, ATM services, Consumer Banking
Corporate Banking
Investment Banking, Islamic Banking, Treasury Management, Internet
Banking, Locker Services
Paid up Income BDT 23,140 Million
Authorized BDT 30,000 Million
Capital
Subsidiaries Janata Capital and Investment PLC
Janata Exchange Company srl.
Janata Bank PLC, Asset Management Arm
Janata Exchange Co. SRL
Janata Exchange Co, Inc
Website [email protected]

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2.7 Costing of Digital Banking
eJanata offers a wealth of advantages to mankind as a whole as to the bank. Finance is economical
because of using eJanata:

 Bank operational expenses are reduced,

 processes are automated,
 credit decisions are made more quickly, and
 Minimum loan sizes are reduced to make loans profitable.

Marginal costs potentially decline: Lower entrance barriers, a wider range of finance options, and
greater transparency are the three goals. Increase reaches by using self-service: Reduced transaction
costs, some corporate services that are economically viable for society, and instant exposure to account
and loan information are all goals of this strategy. For transactions involving interbank internet banking
financial transfers through National Payment Switch Bangladesh, the Bangladesh Bank has established a
Tk10 service fee (NPSB). According to a press release, the Payment Systems Department of the
Bangladesh Bank published a circular on Monday and sent it to all parties involved, including scheduled
banks and mobile financial service providers. In accordance with the new regulations, the acquiring
company would bill micro merchants for Bangla QR transactions at a merchant discount rate (MDR) of
0.7% per transaction. The card issuing bank will receive 0.4% of the amount as an interchange
reimbursement fee (IRF). The branch cost of online banking is almost zero as it does not require any
physical space for operating and maintaining banking transactions. Over one, two, and three years, the
use of the online banking channel is linked to improved customer retention rates. Therefore, the
retention costs of customers tend to be lower in the case.

2.8 Bangladesh Bank instructions for eJanata

Bangladesh Bank or Central bank of Bangladesh incorporates various guidelines for operating eJanata
activities in Bangladesh. These guidelines can be categorized in the following ways:

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2.9 Information Technology (IT) governance:
A core banking solution (CBS) or alternative distribution methods including online banking, android
pay, mobile payments, and ATMs are now present in practically every corporate banking institution.
When adopting IT Governance, clearly outlined roles and duties of the Board and Senior Management
are essential. Well-defined roles facilitate efficient project management. Individuals can perform jobs on
schedule, within budget, and to the anticipated level of professionalism when they are aware of what is
expected of them by others.

 Executive Board,
 IT Strategy Committees,
 Chief executives,
 Wealthy Businessmen, CIOs,
 IT Steering Committees (operating at an executive level and focusing on priority setting,
distribution of resources, and project tracking), Chief Officer,
 Risk Committee meetings and others are among the interested parties in IT governance.

2.10 Main principles of IT security:

The CIA triad—confidentiality, consistency, and availability—has been the cornerstone of data
protection for more than 20 years. The idea of enlarging this timeless trio is constantly under discussion.
Other concepts like responsibility, originality, and semi are gradually emerging important factors for
realistic security setups.

 Confidentiality: The term confidentiality is used to describe the practice of not disclosing
information to unapproved people or systems. For instance, when using a credit card online, both
the consumer and the shop must communicate the card-holders information to the online
payment network.
 Integrity: In terms of information security, integrity refers to the inability of data to be changed
without permission. Referential integrity in databases differs from this.
 Availability: Information must be accessible when needed for any information system to fulfill
its intended function. This necessitates the proper operation of the computing systems, security
measures, and communication channels used to process store and process information.

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  Authenticity: Its important to make sure that the data, transactions, conversations, or documents
(physical or electronic) are real in computing, e-business, and information security. Validating
that both parties involved are who they say they are is also crucial for authenticity.
 Non-repudiation: In the law, non-repudiation denotes a parties determination to uphold their end
of a deal or contract. Furthermore, it suggests that a party to a transaction cannot dispute
receiving or sending an electronic record. To establish authenticity and non-repudiation,
electronic commerce uses technologies such as digital signatures and encryption.

 Identification: When a subject declares their identity, identification is the first step in the
accountability process. Access must be permitted after a subject has been authenticated. The
authorization procedure makes certain that the requested activity or access to an object will

2.11 IT operations
IT Operations for banks should enable information processing and storage so that the needed
information is accessible in a timely, dependable, secure, and resilient manner. Banks employ
information technology (IT) systems to handle information. IT operations are a group of specialized
organizational skills that deliver IT services to clients, whether internal or external. For managing
services across the course of the technology lifecycle, capabilities take the shape of functions and
procedures. To guarantee value for customers, IT Operations should assure effectiveness and efficiency
in the supply and support of these services.

2.11.1 IT service outsourcing

There is a growing reliance on external service providers as partners in reaching growth targets and as
efficient cost alternatives in Bangladesh as banks boost growth and expand companies. The term &
outsourcing can be used to describe a banks employment of a third party (either an affiliated entity
within a corporate group or an entity that is external to the corporate group) to carry out ongoing tasks
that the bank would typically handle, either now or in the future, on its own. A PLC-term contract is
included in the term “continuing basis”.
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2.11.2 Information system audit:
As banks have adopted technology more often over the past ten years, the complexity of the IT
environment has raised the number of technology-related risks that must be effectively managed. This
prompted the Banks to put in place an internal control architecture based on several standards, their own
control needs, and the most recent BB directives. As a result, the management of the Bank and BB
require confirmation of the efficacy of the internal controls in place and anticipate that the IS Audit will
offer an impartial assessment of the level of risk management.

2.12 Cyber fraud

Due to information technology advancements, the majority of banks in Bangladesh have switched to
core banking platforms and transferred transactions to electronic channels including ATMs, Internet
Banking, and Mobile Banking as well as payment cards (debit and credit cards). Customers have been
followed into this area by fraudsters. To avoid placing the entire burden on the client, the response of the
majority of banks to scams in these areas needs to be improved. Additionally, institutions lack consensus
on how to properly report these occurrences as frauds. Due to information technology advancements, the
majority of banks in Bangladesh have switched to core banking platforms and transferred transactions to
electronic channels including ATMs, Internet Banking, and Mobile Banking as well as payment cards
(debit and credit cards).

Customers have been followed into this area by fraudsters. To avoid placing the entire burden on the
client, the response of the majority of banks to scams in these areas needs to be improved. Additionally,
institutions lack consensus on how to properly report these occurrences as frauds.

2.13 Responsibilities, organizational structure, and roles

Board: The methods for ensuring that legal risks resulting from cyber laws are identified and addressed
the need to be put in place by the Risk Management Committee at the Board level. In addition, it must
guarantee that the relevant positions are filled with qualified personnel who have received the necessary
training.

Operational Risk Group: In cooperation with its legal duties within the bank, this group must include
legal risks as part of its operational risk framework and take action to reduce the risks involved.

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Legal Department: The banks legal division must provide business groups with legal regarding the risks
associated with the usage of information technology.

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 Chapter-03: Literature review
3.1 Literature review on eJanata
The tremendous growth of information and communication technology (ICT) over the past few decades
has opened up new opportunities and altered business landscapes globally (Sivathanu, 2019). ICT-
enabled banking activities should be embraced and executed in banks to support the sustainable
expansion of the banking sector.
According to the literature of Al-Omoush the banking industry has adopted innovation and its
application to stay up with the modernization of companies, which has resulted in the transformation of
banking operations from a manual system to a technology-based digital banking system globally
(Aduda, 2018). Due to this, ICT-based banking operations also referred to as online banking or eJanata,
are regarded as the core of the banking sector in the modern financial environment (Al-Omoush, 2020).
EJanata, also known as digital banking or Digital Banking, is a relatively recent practice in Bangladesh
because of the country's lack of technological infrastructure. In 2001, banks in Bangladesh started
deploying Digital Banking systems (Ali, 2017). Before that, the banking industry was entirely run on an
analog system (Siddik, 2022), which involved the manual processing of all bank transactions and
activities. This process was laborious, time-consuming, and necessitated a sizable workforce. In
actuality, Bangladesh lagged in seizing the tremendous prospects brought about by technology-based
business activities like e-commerce and e-business (Ahmed, 2018). But over the past few years, banks in
Bangladesh—both private and public (state-owned) sector banks—have been implementing ICT-based
eJanata activities (Hasan, 2020). Previous research showed that a variety of exogenous and endogenous
factors, such as customer retention, better service offers, and general performance improvement,
influenced firms' decisions to adopt and apply technology (Hossain, 2021).
According to Kondabagil, just like other businesses, banks are motivated to implement eJanata by
perceived benefits (such as increased efficiency, retaining current customers, lower expenses, etc.). It is
crucial to assess the bank's performance under the adoption of eJanata to track the actual and potential
progress of current and prospective adopters of eJanata systems since improved performance enhances
the likelihood that businesses will elect to employ new technology (Azam, 2022) The majority of studies
have focused on analyzing the development of commercial banks’ profitability from an economically
strong viewpoint since commercial banks are more important in developing markets than in established
nations (Siddik, 2022).
However, a comprehensive analysis of the literature indicated that there is currently no information
covering the assessment of how Bangladesh's governmentally commercial banks' financial performance
has been affected by the implementation of eJanata. The current study aims to empirically analyze the
impact of Digital Banking to assess the contribution of financial inclusion in the banking sector. Data
from one of the Bangladeshi leading commercial bank Janata Bank PLC that embraced the eJanata
system between 2001 and 2022 were used in the study.

23
3.2 Literature review on financial inclusion in the banking sector
Financial inclusion refers to the availability of practical and reasonably priced financial goods and
services, including payments, operations, assets, loans, and insurance, which have been offered ethically
and environmentally friendly (The World Bank). In the policy community, the value of an inclusive
financial system is widely acknowledged. By facilitating opportunities for safe and reliable saving
habits, an inclusive financial system promotes productivity and well-being. It makes a variety of
effective financial services, such as credit, insurance, and payment solutions, possible.
In nations with a large unbanked population, electronic financial services are also well-liked. Online
Mobile banking is utilized as a various funding service with little to no equipment in several of these
emerging nations where banks are typically only available in large cities and customers must drive
hundreds of kilometers to the nearest bank.
According to Ivatury and Mas (2016), internet banking can greatly promote financial inclusion in
developing countries. It assists in overcoming the two primary problems with access to financing: the
cost of overseeing low-value transactions and the expense of implementation (physical presence). By
considerably lowering the cost of delivering financial services to the poor, particularly in rural areas
where the bulk of the poor live, online banking has the potential to significantly improve the
population's ability to obtain formal finance. They make the argument that the less fortunate have less
access to information about new items and are therefore more likely to be technology, early adopters. It
thus has substantial baller and counter effects on households, communities, and national economies
(Ivatury, 2016).
According to Anyasi and Otubu (2017), mobile banking has a positive economic impact and can speed
up economic growth in areas where most people lack access to established banking institutions. For the
poor world to handle money without handling currency, online banking services may prove to be a
significant advance (Anyasi, 2017).
According to Deb (2018), online banking, for an instance, is becoming increasingly common in distant
and rural locations around the world, including Bangladesh. The financial sectors in Bangladesh have
significantly developed from earlier times and draw attention from all demographic groups with their
different operations, including Digital Banking. They use a regression model to attempt to examine the
reliable elements of online banking and discover that mobile phones will be the most popular and
practical tool for doing so, as well as one of the major payment channels (Deb, 2018).
According to Makin (2019), Digital Banking via mobile banking is the most effective solution for
developing nations in Africa and much of Asia where a significant portion of the population lacks access
to formal financial services and where several mobile services are emerging to meet their needs. As a
result of Consult Hyperion's involvement in the idea, development, and installation of M-PESA and
other online banking efforts, as well as discussions with a variety of financial authorities from around
the world, this paper examines pertinent topics (Makin, 2019). According to Parvin's (2021)
examination of the traditional banking business model, online banking benefits both the bank and the
customer. She emphasizes this in her attempt to forecast the future of Digital Banking using regression
analysis largely on secondary data, highlighting the unique services that online banking in Bangladesh
offers that are easy for users to receive. She tries to provide some insights and recommendations in this
24
regard that would be helpful for Bangladesh's branchless banking to succeed in the future (Parvin,
2021).
For the realization of Digital Banking, an inclusive financial system is a crucial aspect of economic
growth (Sustainable Development Goals). In emerging economies like Bangladesh, where a
considerable portion of the population still lacks access to primary financial solutions and official
financial institutions, financial inclusion (FI) has become a major problem. Many people still struggle to
obtain primary financial services in this area, particularly women, marginal farmers, unincorporated
businesses, and other socially oppressed minorities. Only 31% of adults hold an account with a
recognized financial institution. However, sustaining inclusive economic growth continues to be a
difficult task. The fact that around 70% of its people still reside in rural regions further exacerbates this.
ICTs and other digitalized instruments are not widely used to provide financial services. Only 6% of
adults with recourse to a bank are debit card holders. In 2019, only 7.5% of people utilized ATMs as
their primary method of withdrawals, as opposed to 78% who used bank tellers. Also considerably
under-banked are rural communities. According to the Obtained From the world poll, just 50% of
persons who reside in rural settings have a checking account. The availability of financial services
continues to be significantly skewed together toward the urban middle- and upper-middle-class people
and formal financial firms are still centered in urban regions. For instance, compared to people residing
in urban regions, rural inhabitants have fewer financial options.

3.3 Literature review on eJanata implementation in Janata Bank financial

inclusion
In 2001, to boost productivity and enhance customer service, the bank developed an automated branch
banking system. The bank took a further step in 2005 and started offering ATM services to its clients.
Their technology has been updated to manage the expansion of the bank and satisfy client requests as a
result of the business volume of the bank increasing over time and customer demands expanding
significantly.
In January 2007, Janata Bank successfully launched online banking services that let customers conduct
transactions via any branch, ATM, phone, SMS, and internet. To deposit or withdraw money, clients no
longer need to open several accounts at various Janata Bank Branches. Customers can now monitor their
account balance through mini-statements and make cash withdrawals from ATMs using internet services
and a Visa Electron (Debit Card) 24 hours a day, seven days a week.
Janata Bank successfully launched Visa Credit Cards to best satisfy its devoted customers, both present
and potential. Today, credit cards can be used in establishments both locally and internationally,
including Bangladesh. Janata Bank is a banking institution that puts its clients first. Janata Bank
maintains its commitment to exceeding customers' rising expectations because it constantly prioritizes
them.
Citation: (Aduda, 2018), (Al-Omoush, 2020), (Sivathanu, 2019), (E. Chuke Nwude1*, 2020), (Deb, 2018)
(Ivatury, 2016)

25
 Chapter-04 Data Analysis and Findings

4.1 Tabular and Graphical Presentation of Data Analysis

I have studied different research paper and observed employee, customer and bank’s perception about
eJanata systems. My concern is analyzing eJanata implementation in Janata Bank financial inclusion. So
I had to develop a questionnaire for collecting relevant data. I interviewed 30 employees. Because of
difficulty to reach online customer, customer reach wasn’t possible for me.

Demography Data:

No. of Respondents Percentage of Respondents

Yes 30 100%
No 0 0%
Total 30 100%

No. of Respondents

Yes
No

100%

Fig-01: self-developed

Interpretation:

Among 30 participants, all are answered yes (100%)

Table 02:

26
 No. of respondents Percentage (%)

1-4 years 18 60%

5-8 years 9 30%
9-12 years 3 10%

Total 30 100%

Figure 02

Increasing Digital-Banking User with Time

19
17
15
13
11
9
7
5
3
1
9-12 years 5-8 years 1-4 years
No. of respondents 3 9 18
Percentage (%) 0.1 0.3 0.6

No. of respondents Linear (No. of respondents)

Percentage (%)

Fig 02: self-Developed

Interpretation 02:

Table no. 2 is for showing increase in eJanata user with time and shows that majority of the eJanata
users are at recent 1-4 years (60%), then 30% of the users are at last 5-8 years and 10% users are at the
past 9-12 years.

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Table 03

Cost (crore) Benefit (crore) Margin

1st 3 Years 50 20.52 -29.48

2nd 3 Years 40 32.15 -7.85

3rd 3 Years 35 58.4 23.4

Cost/Benefit Margin of Digital-Banking in terms of Year

3rd 3 Years

2nd 3 Years
Margin
Benefit (crore)
Cost (crore)

1st 3 Years

-30 -10 10 30 50 70
1st 3 Years 2nd 3 Years 3rd 3 Years
Cost (crore) 50 40 35
Benefit (crore) 20.52 32.15 58.4
Margin -29.48 -7.85 23.4

Fig 03: self-developed

Interpretation 03

Table no. 3 shows the marginal benefit in terms of cost/benefit analysis. Here, in 1 st 3 years, marginal
benefit is -29.48crore (benefit 20.52 - cost 50) crore, in 2 nd 3 years, marginal benefit is -7.85crore
(benefit 32.15 - cost 40) crore, in 3 rd 3 years, marginal benefit is 23.40crore (benefit 58.40 - cost 35)
crore.

Table 4

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 ejanata User Percentage (%)

Housewife 10 10%
Foreigner 23 23%

Service holder 21 21%

Farmer 10 10%
Wage Earner 8 8%
Businessperson 28 28%

eJANATA User
Housewife
Busi- 10%
nessperson
28%

Foreigner
23%

Wage Earner
8%

Farmer
10% Service holder
21%

Fig 04: self-developed

Interpretation 02

29
Table no. 4 is for identifying number of online banking user in different profession. In this figure,
number of Housewife users are 10 (10%), Foreigners are 23 (23%), Service holders are 21 (21%),
Farmers are 10( 10%), Wage Earner s are 8 (8%) and Businesspersons are 28 (28%)

Table 05

No. of respondents Percentage (%)

Yes, almost 23 77%
No, very slowly 2 7%
In the middle 5 16%
Total 30 100%

Janata Bank Moving towards Financial Inclusion

17%

7%
Yes, almost
No, very slowly
In the middle
77%

Fig 05: self-developed

Interpretation 05

This figure stands for how actually Janata Bank moving towards financial inclusion. 77% respondents
answered yes, almost, 17% answered no, very slowly, and 6% answered somewhat in between compared
to others bank.

30
4.2 Findings
In the analysis part, there are several types of problems faced by The Janata Bank PLC. and online
customer. Different types of problems arise at the time of performing eJanata activities. After making an
analysis on problems faced by both Janata Bank PLC and online clients it can be said that:

 Maximum unbanked-people aren’t aware with the online banking because of their educational
lacking. People want to deposit cash by the easiest way to pay like direct cash deposit for their
satisfaction. People are turning towards the eJanata as a good and easiest way but Digital
Banking is in its starting phase for our developing country. So consumers prefer only reputed
and trustworthy banks like Janata Bank as it is backed by Bangladesh Army.
 People prefer to less eJanata charges.
 This clearly comes out from the survey that most of the people come to know about Janata
Bank PLC through professionals and online media.
 According to survey it is cleared that most of the people who do not open bank account said
that the reason is they do not understand that how Banking works.
 Most of the banked People now trust in eJanata of Janata Bank PLC because of their Growth
Efficiency.
 Mostly low to moderate income group people are going to the clients of online banking like
TAP, Trust Money App.

4.3 Discussion
Obviously Janata Bank PLC is doing well in eJanata compared to other commercial bank. As financial
inclusion is their motto, I conclude it from my observation and collected data that their eJanata system
need to upgrade with online deposit scheme, continue good internet connection, provide employee
visible tracking code, develop welcoming front-end website and reduces banking charges for mobile
banking.

31
 Chapter 05: Summary, Conclusion and Recommendation
5.1 Summary
The objective was to analyze the EJanata Implementation of Janata Bank Financial Inclusion. It has been
tried to contract with the relevant employees and take personal interview of them. In this research, there
have been found some positive and negative findings from the official’s responses. A considerable
number of the consumers of the bank want more affordability for their banking engagement. Besides
this, they want to get security of their money what they deposit in the bank. They may become
threatened about the probability of missing their money by the fraudulent of online bank agents. The
bank should be developed in these issues. This will push the bank towards the financial inclusion that is
also related with the “Inclusive Growth Policy” of Bangladesh Government.

5.2 Conclusion
At present eJanata is too much important to the banking sector. Most of the commercial bank provide
more or less same services. For this reason, the competition is increasing day by day between the
banking companies. On the other hand, some new private commercial banks are going to start
businesses in the competent market. Banking business faces more problems than any other financial
businesses in our country. Problems like- trust, educational qualification, support from the government,
Bangladesh Bank authorization, delay in services etc. are the drawbacks of this business. But the
business has prospects also, like other business if this business takes proper steps along with the
government. Nowadays a company cannot establish properly without developing information
technology. People search their desires requirement through Internet. So, banking companies need to
develop technologically to increase both foreign and local

32
5.3 Recommendation
Followings are the recommendations for Janata Bank PLC:

 Reducing centralized decision: Janata Bank’s eJanata sector should reduce centralized decision
wherever possible.
 Increasing positive image: Private commercial banks should try their level best to create positive
and favorable image in the minds of people which means in the minds of their target unbanked
people.
 Open separate Yearly Financial Report for eJanata: Because this will provide the specific
information relevant with eJanata.
 Co-operation with Head Office IT and branch managers: The bank must fully co-operate with
branch managers and customer care.
 Increasing Interest rate: As people want to get more interest, the Bank should increase its interest
rate if possible.

References
Aduda, J. &. (2018). The relationship between Digital Banking and financial performance among commercial
banks in Kenya. Journal of finance and investment analysis, 99-118.

Ahmed, S. S. (2018). Problems and prospects of mobile banking in Bangladesh. Journal of Information
Engineering and Applications, 16-34.

Ali, M. M. (2017). Digital Banking in Bangladesh: potential and constraints. Dhaka Uni. J. Mar, 1-19.

Al-Omoush, K. S.-M.-G. (2020). The impact of social capital and collaborative knowledge creation on e-business
proactiveness and organizational agility in responding to the COVID-19 crisis. Journal of Innovation &
Knowledge, 279-288.

(2021). Annual Report. Bankgladesh: Janata Bank PLC.

Anyasi, F. I. (2017). Mobile phone technology in banking system: Its economic effect. Research Journal of
Information Technology, 1-5.

Azam, M. S. (2022). Diffusion of ICT and SME Performance: the mediating effects of integration and utilisation.
Doctoral dissertation, Curtin University, 55-56.

Deb, S. K. (2018). The dimensions affecting the adoption of mobile banking in Bangladesh. Journal of Banking
and Financial Services, 97-122.
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E. Chuke Nwude1*, N. D. (2020). THE ROLE OF DIGITAL BANKING AS A TOOL TO FINANCIAL
INCLUSION. Noble Academic Publisher, google scholar.

Hasan, A. S. (2020). Adoption of eJanata in Bangladesh: An exploratory study. African journal of business
management, 2718.

Hossain, M. I. (2021). Effects of eJanata adoption on the financial performance of state-owned commercial banks
in Bangladesh. Information Resources Management Journal (IRMJ), 93-112.

Ivatury, G. &. (2016). The early experience with branchless banking. CGAP Focus Note.

Makin, A. J. (2019). Lessons for macroeconomic policy from the Global Financial Crisis. Economic Analysis and
Policy, 13-25.

Melubo, K. D. (2020). Digital Banking and Financial Inclusion of Women Enterprises in Narok County. kenya:
researchgate.

Parvin, A. R. (2021). Prediction of Financial Health of Banking Industry in Bangladesh Using Altman’s Z Score:
A Comparison Between State-Owned Commercial Banks and Private Commercial Banks. In Proceeding
of the International Conference for Bankers and Academics, 335-344.

Siddik, M. N. (2022). Impacts of eJanata on performance of banks in a developing economy: empirical evidence
from Bangladesh. Journal of Business Economics and Management, 1066-1080.

Sivathanu, N. &. (2019). Impact of multi-walled carbon nanotubes with waste fishing net oil on performance,
emission and combustion characteristics of a diesel engine. Environmental Technology.

34
 Appendix A
1) Do you have a Digital Banking system in place at your bank?
(a) Yes (b) No
2) For how many years you are using it?

(a) 1-4 years (b) 5-8 years (c) 9-12 years

3) Who is in charge of putting the eJanata system in place?

(a)Head Office IT (b) Branch IT

4) What are the professions of eJanata users?

(a) Foreigner (b) Service (c) Businessperson
(d) Student (e) Housewife
5) Do the costs associated with utilizing the eJanata are decreasing with time?
(a) Yes (b) No
6) What challenges/difficulties have you encountered while utilizing eJanata system?
(a) Security issues (b) unused system (c) connectivity issues (d) unavailability of
user

7) How eJanata can helps your bank function better?

(a) Reducing time consumption (b) less effort required

(c) Increases customer connectivity

8) What are your plans for eJanata development at your bank?

(a) Develop welcoming front-end (b) Build visible tracking code

(c) Create consciousness among client

9) What are the electronic systems that your bank doesn’t installed yet compared to your field?
(a) MasterCard Software (b) online deposit scheme

35
10) What types of high-quality tools does your organization employ?
(a) Flora Banking (Conventional/Islamic) (b) TAP (c) Trust Money
(d) SWIFT

11) What are the electronic services your bank provides to client?

(a) Online Transfer (b) Tax return document submit (c) E-statement
(d) Cheque book / card activation

12) How did COVID-19 impact on Digital Banking of your bank?

(a) Built E-loyalty (b) increased E-transfer
(c) Facilitated remittance sending (d) helped government purchase

13) Does Janata Bank EJanata actually moves towards Financial Inclusion?

(a) Yes, almost (b) No, very slowly (c) in the middle

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 Appendix B
Internship Certificate

37