Tietoevry Banking acted as the technology partner for the landmark project, playing a crucial role in the design and development of the infrastructure and systems required to implement Favara in line with the MMA’s vision.
Recognising the need for a modern and efficient payment system aligned with the country's economic growth and digitalisation goals, the Maldives Monetary Authority embarked on this project to provide citizens, residents, and businesses with a fast, reliable, and secure way to conduct financial transactions. The infrastructure is also set to lay the foundation for expedited fintech innovation in the region and open the potential for cross-border transactions.
Launched in late August, the instant payments solution enables individuals and businesses alike to transfer funds instantaneously, 24/7, anywhere in the country. Simultaneously, a Smart Addressing system (Favara ID), implemented alongside Favara, helps simplify payments by offering all users unique and easy-to-remember identifiers of the likes of a mobile number, e-mail address or National ID number to expedite transactions and reduce error rates. Both the R2P and Smart Addressing systems are secure and compliant with international standards like ISO 20022, ensuring simplified and standardised transactions across borders and financial networks. This extensive approach to modernising payments is believed to revolutionise how money is exchanged, making it increasingly fast, convenient, and globally accessible.
The system is set to enhance financial inclusion in the Maldives by simplifying electronic payments and expanding access to digital payments, whether mobile phone, tablet, or laptop. What is more, the companies expect instant payments to further the way for a second development phase which is going to include new Open Banking regulation in the region.
In this upcoming advancement, MMA will introduce a white-label mobile app to address the needs of consumers and businesses alike. One notable addition is to be the MMA Aggregation Services including access to accounts and payment initiation, designed in alignment with prevailing Open Banking regulations. In partnership with Tietoevry over the following three to five years, the MMA envisions an extensive centralised instant payment ecosystem set to further electronic payments and digital banking due to the development of instant payments and smart addressing.
MMA officials said that their commitment to developing the financial industry in the Maldives drives them to create an equitable landscape that promotes healthy competition and empowers all market participants to deliver payment services. Per their statement, the body’s advanced infrastructure, supported by Tietoevry Banking, connects banks and payment service providers on a single network seamlessly, enabling collaboration and innovation.
More to this point, Tietoevry Banking representatives advised that the partnership with the MMA is globally significant, as it showcases that having technology alone is not enough for long-term success. MMA’s strategy focuses on infrastructure and delivering value-added services to all system participants, including consumers, banks, and businesses, and they managed needs and built local competence during the project rollout with the aim of improving the overall technical performance of the country’s financial system. What is more, the spokesperson added that the MMA cooperated closely with participants to ensure readiness for modern solutions and innovations in inter-bank transaction processing while promoting openness for advancements in the financial ecosystem.
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