BML launches new USD investment offering, with returns of up to 25%

Bank of Maldives (BML) has launched a new US Dollar Investment offering, enabling customers to earn competitive returns by investing their US dollars, which will be used to support the bank's fee-generating commercial activities while providing attractive returns to investors.

Under the initiative, customers' invested US dollars will be deployed to facilitate the bank's commercial operations, allowing investors to generate returns while contributing to the sustainability of essential banking services.

Information on the daily investment pools, each offering varying rates of return, is available from today through the BML Mobile App and Internet Banking. Both digital platforms have been upgraded to allow customers to complete their investments seamlessly online.

Upon making an investment, customers will receive the equivalent value in Maldivian Rufiyaa (MVR), which will be credited instantly to their account. The profit generated from the investment will then be credited to the customer's MVR account on the following day. Through a range of investment pools, customers can earn returns of up to 25%.

Speaking at the launch ceremony, BML's CEO and Managing Director, Mohamed Shareef underscored that the volume of US dollars sold for debit and credit card transactions relating to overseas purchases and services has increased 3.7-fold over the past five years, reaching an average of USD 39.3 million per month this year.

“During the same period, the number of customers using these services has more than doubled. Today, between 250,000 and 300,000 customers make foreign transactions every month using their MVR cards,” he added.

Shareef cited the primary driver behind this growth has been the rapid increase in cross-border e-commerce among Maldivians.

He detailed that the trend reflects the country's rapid adoption of digital innovation, adding advances in digital payment systems, the expansion of global online marketplaces, and significant improvements in telecommunications and logistics have made international shopping more accessible and affordable than ever before.

“Maldivians have consistently embraced these technological advancements, while the increasing affordability of cross-border shopping has further accelerated this trend,” he added.

Shareef further said the growth also reflects the continued advancement of the Maldivian economy, particularly in digital banking and financial services

"As prosperity increases, Maldivians are increasingly able to participate in the global digital marketplace,” he noted.

Speaking further, Shareef underscored the card business as highly profitable for the bank, adding growth in card transactions directly contributes to the bank’s profitability. Nevertheless, he stressed that the bank’s ability to facilitate these transactions depends its US dollar income and the foreign currency it is able to acquire.

“Over the past 36 months, the Bank has sold approximately USD 1.6 billion to meet personal foreign currency requirements and business transactions, with nearly 60 percent of that amount allocated specifically to card payments,” he emphasized.

He noted that sustaining these volumes of dollar sales become increasingly challenging with growing demand.

"Nevertheless, we do not wish to introduce measures that would disrupt or restrict a service relied upon by such a large segment of our customers. Our objective is to ensure that this service remains sustainable,” he said.

Explaining the rationale behind the new offering, Shareef said the investment model was launched to benefits investors, card users and the Bank alike.

He detailed that by encouraging customers with US dollar income to invest in these high-yield investment pools, the Bank is able to use those invested funds to facilitate e-commerce retail transactions and other fee-generating activities. After deducting operational costs, the resulting income is distributed to investors as returns, he added.

"This allows the Bank to secure the foreign currency needed to meet the essential needs of our customers, including card payments, e-commerce transactions and the import of goods. The result is a sustainable ecosystem that delivers value to investors, customers and the Bank,” he explained.

The launch event featured a live demonstration of the US Dollar Investment offering, giving participants an opportunity to experience the fully digital investment process available through the BML Mobile App and Internet Banking. Following the demonstration, the CEO responded to questions from members of the media and attendees, providing further insight into the significance of the new investment product and its role in supporting the bank's long-term strategy to sustainably meet customers' US dollar requirements.