While traditional spending remains robust, the rise of digital tools and installment facilities is fundamentally changing how consumers manage their finances. Mashrur Arefin, Managing Director & CEO of City Bank, discusses the bank’s pioneering role in facilitating this national transition.

The Daily Star (TDS): How do you expect consumer spending to behave this Eid-ul-Adha?

Mashrur Arefin (MA): We anticipate strong growth despite inflationary pressures. A significant trend this year is the momentum in high-ticket electronics, such as refrigerators and freezers, driven by Qurbani meat preservation needs. Consumers are increasingly upgrading household products during festive periods, supported by installment facilities (EMI) and digital payment options that help spread out costs. Beyond fashion and travel, these higher-ticket purchases are becoming a major contributor to seasonal card spending.

TDS: Is Bangladesh truly moving toward a cashless Eid economy?

MA: Yes, we are transitioning toward a more “cash-lite” economy. Customers now choose digital payments for everything from fashion to livestock due to enhanced convenience and security. The expansion of digital acceptance across both large retailers and small merchants, alongside the comfort younger consumers feel with banking apps and QR codes, is accelerating this shift. Digital banking is no longer just an alternative; it is becoming the primary choice for festive transactions.

TDS: How are banks supporting SMEs and informal businesses during this peak season?

MA: Eid is a critical period for SMEs, particularly those in the electronics, logistics, and livestock sectors. Many generate a substantial share of their annual sales now. Banks support them through working capital facilities and merchant acquiring solutions like QR payment acceptance. By empowering small businesses with digital tools and short-term liquidity, we help them manage seasonal inventory spikes and meet changing consumer preferences.

TDS: What advice would you give consumers regarding financial safety?

MA: With the rise in transaction volumes, caution is paramount. Customers must avoid sharing OTPs, PINs, or CVV numbers and should only transact through trusted websites. Monitoring account activity and enabling instant alerts are essential habits. We encourage customers to plan their spending responsibly, especially when utilizing installment facilities for larger purchases.

TDS: Looking ahead, what is the future of festive spending?

MA: We expect a shift from impulsive cash spending toward planned digital purchases backed by loyalty benefits and personalized financial solutions. Banks must continue investing in digital infrastructure and cybersecurity to meet these evolving consumer expectations.