Maldives Monetary Authority
Name of project: Maldives Monetary Authority
Project partner: Maldives Monetary Authority, Government of Maldives
Country: Maldives
Coverage: Targeting all Maldivians, with a focus on remote islands
Date began: April 2008
Technology used: Mobile channels
Services: National interoperable mobile banking system
Clients: Targeting all 310,000 Maldivians |
About the project
The Maldives project aims to “leapfrog” traditional payments development patterns by building an interoperable payments infrastructure reaching all segments of the population through the use of banking agents and mobile technologies.
The key first step is setting up a central payment systems infrastructure – real-time gross settlement (RTGS) and automated clearing house (ACH) system, an ATM/ EFTPOS (automated teller machine/electronic funds transfer at point of sale) switch, and a payments regulatory framework. An interoperable mobile payments system (MPS) completes the national payments infrastructure, linking banks and GSM operators. This is being done concurrently with efforts to develop the agent network for which CGAP will provide technical assistance. CGAP has also undertaken a financial access survey to better understand the financial needs and preferences of low-income population segments, and to encourage third parties such as merchants and utility companies to use the payments infrastructure in place of cash, which at present is widely used even for relatively high value transactions.
Each MPS account is a bank account, and can be accessed through the MPS, the Switch (for accounts on which cards have been issued), and the ACH – enabling salary payments, for example, to be made direct to the MPS account using direct credit. MPS accounts are held within the MPS, at a “virtual branch” of the participating bank at which the float is held (nominated by the subscriber on registration). Non-MPS accounts on which a debit or ATM card has been issued can be linked to the MPS account, enabling real-time transfers between the MPS account and the linked account in either direction. Phone-to-phone transfers will also be executed in real-time, regardless of whether the two MPS accounts are held at the same or different banks, and regardless of the GSM network used by each phone. Agents will also be non-exclusive to a single bank and will be free to work with multiple service providers.
Adoption is likely to be driven by convenience and security for subscribers: access to MPS accounts is available anytime, anywhere (GSM coverage in the Maldives is effectively 100% of the inhabited geography), and value held in an MPS account is more secure than cash.
Underpinning the entire interoperable payments system is a set of regulations currently being drafted. The regulations address payment systems, financial transaction reporting (including anti-money laundering measures), banking agency, and consumer protection).
Status of project
A vendor (Montran) is already implementing the system, with Fundamo subcontracted to provide the interoperable platform. It is expected that mobile telephone accounts will be available by September 2010 with the rest of the system put in place between then and early 2011. CGAP and the World Bank have delivered and discussed in detail all necessary draft regulations. The main remaining challenges are to establish an agent network that can work on behalf of all the banks and to build a volume of transactions that make the system profitable in a small economy with a tiny population.
Commercial launch is expected by September 2010.
For more information please write to us at technology@cgap.org.
|
