The International Finance Corporation (IFC), the private sector arm of the World Bank Group, together with Bank Sinar Harapan Bali, a subsidiary of the Indonesian Bank Mandiri, and AXIS, an Indonesian mobile phone service provider, have launched a mobile-banking project in an effort to establish low-cost banking that will help expand access to basic financial services.
The mobile-banking pilot project is expected to encourage more people to open bank accounts for the first time by making opening and maintaining an account via mobile phones easy for Indonesians who currently have no access to financial services.
The project will be carried out over 16 months, with an initial focus on building awareness and trust in electronic transactions. In a second step, Bank Sinar Harapan Bali will introduce the use of mobile phones and other mobile devices for banking transactions.
The amount to be invested in the project has not been made public yet.
About The International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ‘collectively determine its policies, and approve investments.’ In fiscal year 2009, its new investments totaled USD 14.5 billion.
About Bank Mandiri:
Bank Mandiri was formed in 1998 as part of the government of Indonesia’s bank restructuring program. In 1999, four state-owned banks – Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindo – were amalgamated into Bank Mandiri. Bank Mandiri provides financial services to private and state-owned businesses and individuals, including microentrepreneurs. As of 2009 Bank Mandiri reported total assets of IDR 319 trillion (USD 35.1 billion) and 956 domestic branch offices.
By Matthew Fox, Research Assistant
Sources and Additional Resources
The International Finance Corporation (IFC): Press Release 6 September 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/E95E806770CD441685257797004CA3AA?OpenDocument
MicroCapital Universe: International Finance Corporation (IFC):https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
MicroCapital Universe: Bank Mandiri: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Mandiri
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/tiki-index.php
Similar Posts:
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: KEPFIC Member Pension Funds Invest $61m in Acorn Holdings, Kenya Mortgage Refinance Company (KMRC) to Boost Affordable Housing
- MICROCAPITAL BRIEF: China Mobile’s Zong Unveils PayMax Payment Service in Pakistan
- MICROCAPITAL BRIEF: M-Kopa Raises $250m to Expand Financing of Mobile Phones, Solar Equipment in Africa
- MICROCAPITAL BRIEF: IsDB, La Poste Tunisienne to Replicate Digital Financial Services via Postal Service in Djibouti
