Tuesday, May 22, 2012

Mobile Phones Help Growth of Formal Banking in Cambodia

Researchers have been looking into the social impacts of wireless technology allowing Cambodians to transfer money using their mobile phones. Cambodia is now embracing this approach, popular in developing countries where many people don't have access to the formal banking system but do have mobile phones.

Wing is one of the mobile-based banking services now available in Cambodia.

In Cambodia, the abolishing of banks under the Khmer Rouge in the 1970's and traditional preferences for keeping wealth in gold, jewelry and cash, means that formal banking has been slow to grow. But Cambodia is one of the countries taking up this mobile phone money transfer technology. Research suggests the availability of mobile phones to use for banking is driving an increase in Cambodian’s personal savings, small businesses and conventional, brick-and-motor banking.