Traditional banking is on the verge of disruption, and those that fail to adapt will vanish within the next decade, warns Brett King, global futurist and author of Bank 4.0. Speaking in Dhaka, King outlined the five eras of banking: from branches and signatures (Banking 1.0), to ATMs (2.0), internet banking (3.0), mobile and embedded finance (4.0), and the upcoming Banking 5.0, powered by artificial intelligence. In this new era, physical branches and even credit cards will lose relevance as AI reshapes banking into instant, contextual digital experiences.
For Bangladesh, where financial inclusion stands at only 40 percent and credit card penetration is low, King sees a unique opportunity to leapfrog into the AI-driven future. Instead of following the traditional credit card path, the country can expand access through mobile platforms like bKash, which already provide wallets and microcredit facilities. A grocery shopper, for example, could receive an instant loan on their phone without ever visiting a branch. “You will not need to go to a bank to get access to credit; that emergency cash will be available instantly,” he explained.
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Globally, the role of bank branches is shrinking. King noted that the world reached “peak branch” by 2015, with closures rising every year since. The fintech revolution, fueled by mobile technology, has enabled non-banks like Paytm in India and bKash in Bangladesh to deliver core banking utilities more efficiently. The numbers highlight this shift: the top 20 fintechs globally now serve about 4 billion customers compared to 2.7 billion served by the top 20 retail banks.
Technology will not only determine the winners but also lower costs dramatically. AI-powered banking will reduce the need for human involvement to near zero, driving delivery costs down and allowing banks to profitably serve the unbanked and underbanked. Latin America’s Nubank and China’s WeBank are examples of fully digital banks operating at a fraction of traditional costs.
Industry experts in Bangladesh echoed these views. Biswas Dhakal, CEO of fintech firm Filps, highlighted grassroots challenges such as micro-SMEs paying disproportionately high interest rates. He suggested AI-enabled marketplaces where multiple banks compete in real time to serve small customers, for example, a Pathao driver receiving instant credit to fuel his bike at the start of the day. Such models would democratise lending, lower interest rates, and integrate banking into daily life.
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But the transformation is not only about technology. King also stressed the existential challenge of climate change, warning that Bangladesh could lose 15 percent of its food production by 2050 due to salinity and flooding. Banks, he said, must focus on financing climate-resilient infrastructure, offering affordable loans to protect livelihoods in vulnerable sectors like agriculture and housing.
Ultimately, King’s message was clear: the next 10 years will define the future of banking. Traditional institutions cannot rely on branches, paperwork, and legacy products. Instead, they must adopt a technology-first mindset, learn from fintech leaders like Alipay, WeBank, Paytm, and bKash, and deliver banking as a seamless digital utility. “By 2035,” King predicted, “all the biggest banks in the world will be technology companies.”