Mobile banking services are on average 19% cheaper than services from traditional banks, according to a new research conducted by the Consultative Group to Assist the Poor (CGAP). It has found that the lower the transaction value, the cheaper mobile banking is in comparison with formal banks. At a transactional value of $23, branchless banking is on average 38% cheaper than commercial banks, the report found. Mobile banking is also 54% cheaper than informal options for money transfer, said the report. Many challenges face financial institutions looking to develop mobile money management capabilities.
Sending money home has become easier and faster as two banks and a mobile operator yesterday launched a cellphone-based remittance transfer system. The joint move by Eastern Bank, Dhaka Bank and mobile operator Banglalink will allow the remittance receivers to cash in a day instead of three days to one month through different existing channels. The new service styled ‘Mobile Wallet’, which will also serve the unbanked population at no cost, got a shape after Bangladesh Bank (The central bank) gave a go-ahead to the move a few months ago. Presently more than 90 percent of the population in Bangladesh does not have access to regular banking facilities. Read more.