In Myanmar, buying cars and homes with gunny sacks utter of cash
Banks have even received deposits of S$Ten million in bills, in a country where most still choose cash in forearm over credit. But could mobile wallets switch all that?
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YANGON: At banks in Myanmar, it’s not unusual to see people lugging fat and mighty gunny sacks into the lobby.
Once inwards, they’ll split open the sacks, and out will pour cash. To process the deposit, bank tellers have to count and check every note – no puny feat when each gunny sack can hold as much as two hundred fifty million kyats (S$250,000).
Their largest note is worth Ten,000 kyat (S$Ten).
The adage that ‘cash is king’ is never more true than in Myanmar, where “people typically use cash for large transactions such as buying a car or even an apartment”, said Mr David Wang, deputy managing director of AYA Bank.
ATM cards are uncommon here, and credit cards are usually issued to those from middle-income and the higher-income. “Myanmar is predominantly a cash-based society. One big challenge is that there’s no credit bureau here. So it’s very difficult to ascertain the credit standing of a customer,” he said.
While the government has been attempting to stir towards more cashless transactions – a credit bureau is in the pipeline, Mr Wang says – for now, people still lug cash around.
Mr Wang said he has had customers, especially those who own businesses, deposit as much as ten billion kyat (S$Ten million) in cash with the bank.
Observe: The old-school way of depositing money (1:38)
He said that banks in Myanmar typically have cash holdings of inbetween five per cent and ten per cent – significantly more than Singapore banks with less than one per cent of cash-on-hand.
But could switch be in the wind? Mobile invasion in Myanmar has risen from fifteen per cent to about eighty per cent in just three years, and some are telling that mobile banking and payments is the way to go – possibly even before a credit bureau is established.
Compared to the hassle of needing to determine credit standings for credit card issuance, mobile banking only requires one to have a basic Internet connection to be able to make cashless payments.
“There is immense chance in the mobile wallet segment. But it is still at a very early stage where a lot of challenges still remain. It also depends on how the country evolves as time goes by,” Mr Wang said.
The programme Money Mind goes to Myanmar in a special gig on its economy and investment climate, this Saturday, June Ten, at Ten.30pm SG/HK.
In Myanmar, buying cars and homes with gunny sacks utter of cash – Channel NewsAsia
In Myanmar, buying cars and homes with gunny sacks total of cash
Banks have even received deposits of S$Ten million in bills, in a country where most still choose cash in mitt over credit. But could mobile wallets switch all that?
- Share on Facebook
YANGON: At banks in Myanmar, it’s not unusual to see people lugging gigantic and mighty gunny sacks into the lobby.
Once inwards, they’ll split open the sacks, and out will pour cash. To process the deposit, bank tellers have to count and check every note – no petite feat when each gunny sack can hold as much as two hundred fifty million kyats (S$250,000).
Their largest note is worth Ten,000 kyat (S$Ten).
The adage that ‘cash is king’ is never more true than in Myanmar, where “people typically use cash for large transactions such as buying a car or even an apartment”, said Mr David Wang, deputy managing director of AYA Bank.
ATM cards are uncommon here, and credit cards are usually issued to those from middle-income and the higher-income. “Myanmar is predominantly a cash-based society. One big challenge is that there’s no credit bureau here. So it’s very difficult to ascertain the credit standing of a customer,” he said.
While the government has been attempting to budge towards more cashless transactions – a credit bureau is in the pipeline, Mr Wang says – for now, people still lug cash around.
Mr Wang said he has had customers, especially those who own businesses, deposit as much as ten billion kyat (S$Ten million) in cash with the bank.
Observe: The old-school way of depositing money (1:38)
He said that banks in Myanmar typically have cash holdings of inbetween five per cent and ten per cent – significantly more than Singapore banks with less than one per cent of cash-on-hand.
But could switch be in the wind? Mobile invasion in Myanmar has risen from fifteen per cent to about eighty per cent in just three years, and some are telling that mobile banking and payments is the way to go – possibly even before a credit bureau is established.
Compared to the hassle of needing to determine credit standings for credit card issuance, mobile banking only requires one to have a basic Internet connection to be able to make cashless payments.
“There is immense chance in the mobile wallet segment. But it is still at a very early stage where a lot of challenges still remain. It also depends on how the country evolves as time goes by,” Mr Wang said.
The programme Money Mind goes to Myanmar in a special scene on its economy and investment climate, this Saturday, June Ten, at Ten.30pm SG/HK.
In Myanmar, buying cars and homes with gunny sacks utter of cash – Channel NewsAsia
In Myanmar, buying cars and homes with gunny sacks utter of cash
Banks have even received deposits of S$Ten million in bills, in a country where most still choose cash in mitt over credit. But could mobile wallets switch all that?
- Share on Facebook
YANGON: At banks in Myanmar, it’s not unusual to see people lugging yam-sized and intense gunny sacks into the lobby.
Once inwards, they’ll split open the sacks, and out will pour cash. To process the deposit, bank tellers have to count and check every note – no petite feat when each gunny sack can hold as much as two hundred fifty million kyats (S$250,000).
Their largest note is worth Ten,000 kyat (S$Ten).
The adage that ‘cash is king’ is never more true than in Myanmar, where “people typically use cash for large transactions such as buying a car or even an apartment”, said Mr David Wang, deputy managing director of AYA Bank.
ATM cards are uncommon here, and credit cards are usually issued to those from middle-income and the higher-income. “Myanmar is predominantly a cash-based society. One big challenge is that there’s no credit bureau here. So it’s very difficult to ascertain the credit standing of a customer,” he said.
While the government has been attempting to stir towards more cashless transactions – a credit bureau is in the pipeline, Mr Wang says – for now, people still lug cash around.
Mr Wang said he has had customers, especially those who own businesses, deposit as much as ten billion kyat (S$Ten million) in cash with the bank.
Witness: The old-school way of depositing money (1:38)
He said that banks in Myanmar typically have cash holdings of inbetween five per cent and ten per cent – significantly more than Singapore banks with less than one per cent of cash-on-hand.
But could switch be in the wind? Mobile invasion in Myanmar has risen from fifteen per cent to about eighty per cent in just three years, and some are telling that mobile banking and payments is the way to go – possibly even before a credit bureau is established.
Compared to the hassle of needing to determine credit standings for credit card issuance, mobile banking only requires one to have a basic Internet connection to be able to make cashless payments.
“There is immense chance in the mobile wallet segment. But it is still at a very early stage where a lot of challenges still remain. It also depends on how the country evolves as time goes by,” Mr Wang said.
The programme Money Mind goes to Myanmar in a special scene on its economy and investment climate, this Saturday, June Ten, at Ten.30pm SG/HK.
In Myanmar, buying cars and homes with gunny sacks total of cash – Channel NewsAsia
In Myanmar, buying cars and homes with gunny sacks utter of cash
Banks have even received deposits of S$Ten million in bills, in a country where most still choose cash in mitt over credit. But could mobile wallets switch all that?
- Share on Facebook
YANGON: At banks in Myanmar, it’s not unusual to see people lugging thick and strenuous gunny sacks into the lobby.
Once inwards, they’ll split open the sacks, and out will pour cash. To process the deposit, bank tellers have to count and check every note – no puny feat when each gunny sack can hold as much as two hundred fifty million kyats (S$250,000).
Their largest note is worth Ten,000 kyat (S$Ten).
The adage that ‘cash is king’ is never more true than in Myanmar, where “people typically use cash for large transactions such as buying a car or even an apartment”, said Mr David Wang, deputy managing director of AYA Bank.
ATM cards are uncommon here, and credit cards are usually issued to those from middle-income and the higher-income. “Myanmar is predominantly a cash-based society. One big challenge is that there’s no credit bureau here. So it’s very difficult to ascertain the credit standing of a customer,” he said.
While the government has been attempting to budge towards more cashless transactions – a credit bureau is in the pipeline, Mr Wang says – for now, people still lug cash around.
Mr Wang said he has had customers, especially those who own businesses, deposit as much as ten billion kyat (S$Ten million) in cash with the bank.
Witness: The old-school way of depositing money (1:38)
He said that banks in Myanmar typically have cash holdings of inbetween five per cent and ten per cent – significantly more than Singapore banks with less than one per cent of cash-on-hand.
But could switch be in the wind? Mobile invasion in Myanmar has risen from fifteen per cent to about eighty per cent in just three years, and some are telling that mobile banking and payments is the way to go – possibly even before a credit bureau is established.
Compared to the hassle of needing to determine credit standings for credit card issuance, mobile banking only requires one to have a basic Internet connection to be able to make cashless payments.
“There is immense chance in the mobile wallet segment. But it is still at a very early stage where a lot of challenges still remain. It also depends on how the country evolves as time goes by,” Mr Wang said.
The programme Money Mind goes to Myanmar in a special scene on its economy and investment climate, this Saturday, June Ten, at Ten.30pm SG/HK.