A series of 280 small inhabited islands
scattered across the Indian Ocean southwest of India, the Republic
of Maldives has long been starved of formal banking facilities
which are confined primarily to the 17 branches of the country’s
only national bank, the Bank of Maldives.
scattered across the Indian Ocean southwest of India, the Republic
of Maldives has long been starved of formal banking facilities
which are confined primarily to the 17 branches of the country’s
only national bank, the Bank of Maldives.
This is about to change thanks to a bold
initiative, the Mobile Phone Banking Project, launched by the
Maldives Monetary Authority (MMA).
initiative, the Mobile Phone Banking Project, launched by the
Maldives Monetary Authority (MMA).
The MMA has issued a tender for the
implementation of the project that will create a single currency
(Maldivian rufiyaas) payment system which offers a set of mobile
telephone-based accounts.
implementation of the project that will create a single currency
(Maldivian rufiyaas) payment system which offers a set of mobile
telephone-based accounts.
In the tender document the MMA specifies that
the system must be capable of enabling subscribers to transfer
funds to and from bank accounts and to and from telephone-based
accounts. In addition, the project aims to build an enabling
environment and the capacity to support additional mobile phone
banking systems in future.
the system must be capable of enabling subscribers to transfer
funds to and from bank accounts and to and from telephone-based
accounts. In addition, the project aims to build an enabling
environment and the capacity to support additional mobile phone
banking systems in future.
The MMA has received strong backing from two
organisations, international development agency the World Bank and
the Consultative Group to Assist the Poor (CGAP), a microfinance
development consortium of 33 public and private funding
organisations.
organisations, international development agency the World Bank and
the Consultative Group to Assist the Poor (CGAP), a microfinance
development consortium of 33 public and private funding
organisations.
The World Bank has provided a 40 year, $7.7
million credit grant and CGAP funding of $1.5 million. The World
Bank estimates the total cost of the project at $10.55
million.
million credit grant and CGAP funding of $1.5 million. The World
Bank estimates the total cost of the project at $10.55
million.
“Given its highly literate population and high
coverage of the mobile phone network, the country has a great
potential to use technology to overcome the barriers of geography
and low population density to deliver financial services at low
cost across the country,” said World Bank’s country director for
the Maldives, Alastair McKechnie.
coverage of the mobile phone network, the country has a great
potential to use technology to overcome the barriers of geography
and low population density to deliver financial services at low
cost across the country,” said World Bank’s country director for
the Maldives, Alastair McKechnie.
According to the US Central Intelligence Agency
the Maldives’ population is just over 379,000 with the largest
industry, tourism, accounting for 28 percent of its GDP. The
Telecommunications Authority of the Maldives reported that the
country’s three mobile phone service suppliers had a total of
335,762 subscribers at the end of March 2008 compared with about
262,000 two years earlier. The dominant carrier, Dhiraagu, reported
275,000 subscribers at the end of March 2008.
the Maldives’ population is just over 379,000 with the largest
industry, tourism, accounting for 28 percent of its GDP. The
Telecommunications Authority of the Maldives reported that the
country’s three mobile phone service suppliers had a total of
335,762 subscribers at the end of March 2008 compared with about
262,000 two years earlier. The dominant carrier, Dhiraagu, reported
275,000 subscribers at the end of March 2008.
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