A sweeping government initiative to install Automated Teller Machines on every inhabited island is reshaping access to financial services and accelerating the integration of funds into the formal banking system, according to Mohamed Shareef, Chief Executive Officer of Bank of Maldives (BML).
The programme, launched under the directive of President Dr Mohamed Muizzu, is designed to ensure that all residents, regardless of island population, have access to essential banking services. During President Muizzu’s visit to Baa Atoll, Shareef told PSM News that the bank had been instructed to install ATMs in 103 additional islands before the end of the year. “This is a very important and large project,” Shareef said.
The expansion is intended to eliminate longstanding barriers faced by island communities, many of whom previously incurred significant costs and travel burdens to access basic banking services. With the new infrastructure in place, residents are now able to conduct transactions such as withdrawals, deposits and transfers directly from their home islands, according to Shareef. The accompanying digital upgrades also allow users to initiate account openings and loan applications remotely, he added.
Shareef observed a shift in banking behaviour, noting a rise in deposits from newly operational ATMs. “From the islands, we are observing an increased volume of funds being deposited into bank accounts,” he said. “This addresses the previous challenge where funds, including those from businesses in these islands, frequently remained unbanked. Similarly, a significant amount of cash was retained within households.”
He attributed the increase to growing confidence in the accessibility of funds. “As individuals gain confidence in the immediate accessibility of their funds, both for withdrawal and deposit, the rate of money being deposited from these islands has substantially increased,” he said. “Consequently, this influx is fostering tangible economic progress. The integration of these funds into the formal banking system will further facilitate other crucial banking activities, particularly the provision of loans.”
Since January, BML has inaugurated 44 new ATMs, expanding its network to more than 250 nationwide.