SciDev.Net

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The Maldives has launched a groundbreaking system that will enable its citizens to bank using mobile phones.

The country's banks have been gathered together under an umbrella system to avoid the need for residents to travel from remote parts of the nation for their banking. The Maldives' 250 inhabited islands are spread out across the Indian Ocean, meaning it's not always easy to find a local branch.

'M-banking' will be established with a US$7.7 million loan granted by the World Bank in April this year.

The system will work via phone calls, as the nation's mobile network does not support text messaging.

But concerns have been raised, including whether mobile banking ought to be prioritised over more basic concerns such as health and education.

Link to full article in BBC Online