Bank of Maldives (BoM) has announced profits in excess of Rf 20 Million for the first quarter of 2009, while increasing its basic services at the other end.
A close examination at the bank could reveal that, only a very few banks would charge for withdrawals on their own ATM, or have an annual fee for internet banking services. Most of the banks who provide internet banking services, also provide numerous services like account to account transfer, internet payments, bill payments for free. Deposits are done by cash deposit or cheque deposit machines, 24 hours. This is done to reduce the amount of customers acquiring services at their offices everyday. If you have tried to make a deposit or clear a cheque at BoM, one would understand the frustration behind this, and would prefer to do it online, at their own desk given that these services are promoted free.
What the bank can gain from such services given free, is reducing their operational costs via reduction in tellers and cashiers, as less and less number of customers attend the bank to deposit only large sums of cash or special services. Right now the bank is charging Rf 2 per any transaction on an Automated Teller Machine (ATM), and Rf 1800 for internet banking services with account to account transfer services (apparently targeted for businesses alone).
It is true that most Maldivians aren't online folks, but taking a fee on such basic services are inappropriate and kills the future of such services. The Bank can always argue that implementing such services incurr a huge cost, but then it does not neccesarily mean to tax on that same services to cover up its expenditure. While other avenues can be explored, such as reduction in operational costs, the bank has failed to take any such measures indicating their reluctance in providing proper services.
It is extremely difficult to borrow a loan, for the middle class or lower class, while those at the helm of the financial ladder have been enjoying the benefits of the bank in full. While the small loans are sanctioned at a compounding interest of 11%, it is a big burden which people take with lack of choices to make in this sector. It is a fact that the bank has loaned money to the top tycoons of Maldives with a very low interest rates, and at times of financial crisis. This makes it evident, that the agenda behind its operation is not public, nor share holders interests but those of a few and mostly obscure. The directors of this bank have been working hand in hand with several business avenues, which can be deemed as corruption. This was quite clear during the issuance of bank guarantees for most of the resort biddings.
Serious thought has to be given on the ventures and actions of this bank, and their method of operation. If given a choice, I would prefer not make this my bank.
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