The country entered the era of mobile-banking Thursday in a remarkable technological leap in the financial sector after a private bank launched the service in collaboration with two mobile phone operators.

Bangladesh Bank governor Dr. Atiur Rahman opened the service by depositing and withdrawing money at two mobile phone outlets in the capital, hailing it as a “milestone” event and a key to ensure “financial inclusion” in the country.

Banking sector’s technology leader Dutch Bangla Bank Limited launched service in association with cell-phone operators, Banglalink and CityCell.

“Introduction of this technology can really eradicate poverty in the country. Undoubtedly, it is a milestone event in the modernisation of our banking sector,” said Dr. Atiur Rahman.

The governor said the new service will reach banking services to the doorstep of the country’s poorest people and villagers who can not afford to open accounts and are deliberately left out of the mainstream financial system.

“Our banking sector is mostly urban-based. This service will help bring millions of rural people into banking service net,” he said, adding the new service is “easy, creative, cost-effective and secured”.

Mobile-banking provides financial services like cash-in, cash-out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement through mobile technology devices. Any mobile set can be used to enjoy the service.

“This is an actual online banking service through which a client can access to all kinds of banking services such as deposit, cash withdrawal, shopping and utility bill payment, remittance delivery, and balance inquiry,” Dr. Atiur Rahman said.

The governor said that the central bank has a five-year strategy for banking sector’s development, and financial inclusion — a term broadly means bringing all communities under banking sector — is one of its top priorities.

“Mobile-banking will help people access to banking service anytime and anywhere in the country. It will boost rural economy and national output by scaling up money circulation in villages. Every mobile phone can become a mini-bank,” he said.

Dr. Atiur Rahman said the mobile-banking can revolutionise Bangladesh’s financial institutions if at least 50 per cent of the country’s 70 million cell-phone subscribers are brought under the new service.

Bangladesh Bank has so far given approval to 10 private banks to introduce mobile-banking nationwide, with the DBBL — the leader in ATM services — being the first to come up with this service.

BB executive director Dasgupta Asim Kumar, DBBL Executive Chairman Syem Ahmed, Banglalink Chief Executive Officer Ahmed Abou Doma, CityCell Chief Operating Officer David Lee, DBBL managing director KS Tabrez and BTRC commissioner Monirul Alam also spoke on the occasion.

Banglalink CEO Ahmed Abou Doma said partnership is the most significant step in banking and financial sector.

“Mobile banking is a major step in the history of the country’s financial sector and Banglalink is proud to be a partner in this novel effort,” he said.

CityCell Chief Operating Officer David Lee said the new service would help transform the country’s traditional banking into modern banking. “I’m sure it will benefit the people of Bangladesh.”

Executive Chairman of the DBBL Syem Ahmed thanked the two mobile companies for helping launch the service as quickly as possible.

“Mobile-banking will lay the bridge between banks and mobile operators. It will bring new creativity to banking services,” he said.

At present subscribers of any mobile operator will be able to do banking transactions through the bank nominated retailers of Banglalink and CityCell. Clients won’t need to open traditional accounts at the DBBL to access the mobile phone service.

A person can open a mobile account paying only Tk 10 at Banglalink or CityCell outlets submitting some documents.