SIX state-owned banks are asked to use locally made banking software when the banks of the neighboring country India are using 100% domestic Core Banking Software (CBS). More than half of Bangladesh’s banks still rely on foreign software. The Financial Institutions Division (FID) under the Ministry of Finance thinks that this situation will have to be reversed and it will save foreign exchange, create employment opportunities and ensure security.
The FID has asked the six state-owned banks – Sonali, Agrani, Janata, Rupali, BASIC, and BDBL – to use local software. Out of 60 banks in the country, 28 are currently using domestic CBS. It is alleged some of the state-owned banks siphoned off funds in the name of using the foreign software. Sonali Bank said that they have so far spent Tk 126.27 crore for licensing and maintenance. According to Janata Bank, they have spent Tk 161.53 crore to purchase and maintain Titoventure from the Swiss-based Temens Company. The foreign software companies and their local partners are too desperate to get the million-dollar jobs. The Agrani bank also obtained a license from Temens in 2006, renewed again in 2016 till 2026. They have spent Tk 165.23 crore on software licenses and Tk 7.5 crore on maintenance. The total expenditure stood at Tk 263.63 crore, which is the highest among the state-owned banks. The bank has spent Tk 21.37 lakh crore. The bank wants the type of service to be uniform. For this, an initiative should be taken to create CBS under the supervision of the Ministry of Finance and Bangladesh Bank.
According to the Bangladesh Association of Software and Information Services (BASIS), the country’s software sector generates Tk 100 crore a year. Lead Corporation, Flora Systems, Millennium Software, Infinity Software, Southtech, IRA Infotech are the local banking software firms. The biggest danger of using foreign software is the risk of data smuggling. There is always the fear that someone is stealing information by inserting malware. Use of domestic core banking software, create employment and prevent foreign exchange waste.
