New Method of Money Transfers Must Be Developed
Monday, 30 April, 2007 | 15:34 WIB

Tempo Interactive, Jakarta: The government, as well as banks and telecommunication services companies must develop a money transfer service that does not require a bank account.

With a new service like this, money circulation would be faster and this would speed up economic growth.

Brigit Helms, Financial Sector Head at the International Finance Corporation (IFC), has said that fund transferring service with no bank account needed will be very helpful for people.

“Especially for people on low incomes,” Helmas told Tempo in Jakarta prior to a seminar “Global Trend in Mobile Banking”, Friday (04/27).

She said that millions of Indonesians already own cellular phones, however, perhaps as many as half of them do not have bank accounts.

In fact, by owning a cell phone, people can actually do transactions or transfer money.

David Porteus, Director of Bankable Frontier Associates a mobile banking consultant, confirmed that the new method of money transfer would be safer than SMS banking or internet banking.

In addition, 65 million of Indonesians already have cell phones.

“Therefore, the market potential is also large,” said Porteus.

In order to realize such a plan, said Helms, a regulation was needed to involve telecommunications companies and banks, as well as shops where transactions are made.

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