Importance of information Technology in the 20 Economic Development of Bangladesh

A nation's standard of living is the most significant indicator of national economic performance. And economic growth (GDP growth) is considered the most powerful engine for generating long term increases in standard of living. In the modern world's economy, technology is a key factor that has a vital impact upon economic growth. Basically, investment in technology contributes to overall capital deepening. The greater use of technology may help firms and industries lessen their costs, enhance their productivity and increase their overall efficiency. Nevertheless, greater use of information and communication technology may contribute to network effects, such as lower transaction costs, higher productivity of knowledge of workers of more rapid innovation which will boost the overall production of the country's GDP.

Use of information and technology in the banking sector may result in dramatically positive change. Information and technology allows the banks to effectively cater to the needs of the consumers by strengthening internal control systems which are backed by the effective communications mechanisms. The wide spread use of smart cards, ATMs, mobile banking, electronic banking, telephone banking, twenty four hours service, the overall quality of services, expanded portfolio of products and services, better customer relationship management with the use of advanced tools and variety of products has enabled banks to better serve their customers with the advent of information and technology. Thus information technology brings about economic development of Bangladesh.