Academy of Strategic Management Journal Volume 18, Issue 6, 2019 1 1939-6104-18-6-466 A STRATEGIC ANALYSIS ON THE USER ACCEPTANCE, CHALLENGES AND PROSPECT OF INTERNET BANKING IN BANGLADESH Md. Rayhanul Islam, Daffodil International University Shahana Kabir, Daffodil International University Rozina Akter, Daffodil International University Umme Kulsum, Daffodil International University Md. Roufuzzaman, Bir Uttam Shaheed Samad School & College Nurul Mohammad Zayed, Daffodil International University ABSTRACT A good number of people use internet banking while some other people are reluctant to use it. This study tries to show the user acceptance, existing challenges as well as its prospects in Bangladesh and thus tries to present the scenario of Internet banking. Collected primary data were analyzed by using SPSS and MS Excel. Spearman coefficient of correlation and Cross-tabulation were calculated to analyze the relationship between variables. The study finds that majority of the internet baking users are satisfied with internet banking. The study concluded that internet banking has a good prospect for which the concerned authority’s steps are strongly recommended. Keywords: Internet Banking, User Acceptance, Forged Transaction, Prospect of Internet Banking, Bangladesh. INTRODUCTION Banking service has become inevitable for everyone and especially business organizations cannot think of even a single moment without banking service. Without the banking a service the business transactions are less reliable and in some cases transactions through bank have been made mandatory by law. This type of laws or the policies are made to protect the business interest and to reduce the fraudulent in business dealings. The banking system is gradually changing and currently internet banking has become popular all over the world. The traditional banking system is time consuming as well as it is risky also to make banking transactions physically in branch. Internet banking allows making transactions from home or office. Transitional period in the banking sector of Bangladesh has been passing through since it’s shifting from the traditional banking system to the online banking system. Presently the growth of internet banking (IB) is on the increase globally including in Bangladesh. Both private and government banks are going online now considering the demand and necessity of fast banking. Internet banking enables customers to make online transactions. This technology based banking system has some drawbacks like chance of fraud and forged transactions. All the bank customers do not have necessary technology support and above all some people have negative mindset towards internet banking. However in a developing country with a growing economy and big number of population internet banking has good prospect. The success of internet