CB Bank said the lender is to introduce money transfer service stations known as “mobile agents” in smaller townships of Myanmar.
The service, which allows shopkeepers and other local businesspeople to act as agents for the bank, will help people from rural areas to transfer or receive money easily through the mobile money agents without going to the bank, and the service is available even on bank holidays and after office hours, U Kyaw Lin, CEO of CB Bank, told Myanmar Business Today.
Currently, the bank is planning to place the mobile money agents in over 60,000 locations across the country. They currently have set up 33 agents.
“We do not intend to place each agent in every township in Myanmar. The selection committee will standardise an application process. It is not a deposit system. For an applicant to become an agent he needs to have a bank account for the service and we will proceed with that account,” said U Kyaw Lin.
Mobile money agents need to open a bank account with K100 million or K50 million and the bank will give six percent for the K100 million holder as "agent bonus."
For the service charge, the mobile money agent will charge K150 for every million kyats transferred. Mobile money agents will receive 30 percent of the service charge for the normal money transfer and 50 percent other services, said U Zayar Min Aung, manager of the bank’s Mobile Banking Department.
However, mobile money agent have said that they are facing difficulties as there are many bank branches to transfer money.
“(This system) is very convenient for money transfer. But the problem is there are many banks in Yangon and people mostly use those banks. We usually receive money from rural areas,” said U Than Tun from Future Star Trading Money Changer, which is also licensed as a mobile money agent by CB Bank.
In Rakhine state, money transfer by mobile money agent is convenient but facing difficulties with poor telecommunication and internet service. Many residents do not understand the service, which makes it difficult for the agent to proceed, said mobile money agent U Kyaw San Aye from Mrauk U township in Rakhine state.