05 October 2023
Tietoevry Banking, a global leader in financial technology solutions, is proud to announce the launch the Maldives Instant Payment System – Favara – by the Maldives Monetary Authority (MMA). As the trusted technology partner for this landmark project, Tietoevry Banking has played a crucial role in designing and developing the infrastructure and systems necessary to implement FAVARA in line with the MMA’s vision.
The Maldives Monetary Authority, recognizing the need for a modern and efficient payment system that aligns with the country's economic growth and digitalization goals, embarked on this ambitious project to provide citizens, residents and businesses with a fast, reliable and secure way to conduct financial transactions. The infrastructure will also lay the foundation for accelerated fintech innovation in the Maldives and opens up for potential cross-border transaction
The Instant Payments solution was launched in late August and enables individuals and businesses to transfer funds instantaneously, 24 hours a day and seven days a week, anywhere in the country. Meanwhile, an innovative Smart Addressing system (Favara ID), implemented alongside Favara, simplifies payments by providing all users with unique and easy-to-remember identifiers such as a mobile number, e-mail address or even National ID number to speed up transactions and reduce error rates.
Both the R2P and Smart Addressing systems are secure and compliant with international standards such as ISO 20022, ensuring seamless and standardized transactions across borders and financial networks. This comprehensive approach to modernizing payments revolutionizes the way money is exchanged, making it faster, more convenient and globally accessible.
MMA governor, Ali Hashim, said: "Our commitment to developing the financial industry in the Maldives drives us to create an equitable landscape that promotes healthy competition and empowers all market participants to deliver exceptional payment services. Our cutting-edge infrastructure, supported by Tietoevry Banking, seamlessly connects banks and payment service providers on a single network, enabling unprecedented collaboration and innovation."
Valdis Janovs, Head of Instant, Retail Payments and Cards at Tietoevry Banking, added: "Our partnership with the MMA has global significance as it highlights that having technology alone is not enough for long-term success. The MMA deserves to be congratulated for their comprehensive strategy, which focuses on infrastructure and delivering value-added services to all system participants, including consumers, banks, and businesses. We are particularly impressed by the care taken by the MMA during the project rollout. They managed needs and built local competence with the clear purpose of improving the overall technical performance of the country's financial system. Additionally, they worked closely with participants to ensure readiness for modern solutions and innovations in inter-bank transaction processing while promoting openness for innovations in the financial ecosystem.”
The new system will enhance financial inclusion in the Maldives by making electronic payments easier to use and widening access to digital payments – whether mobile phone, tablet or laptop. Tietoevry and the MMA expect Instant Payments to pave the way for a second phase of development which will include new Open Banking regulations in the Maldives.
In this upcoming phase of advancement, MMA will introduce a white-label mobile application to cater to the needs of both consumers and businesses. A notable addition will be the MMA Aggregation Services including access to accounts and payment initiation, designed in alignment with prevailing Open Banking regulations. Working in partnership with Tietoevry over the next three to five years, the MMA envisages a comprehensive centralized Instant Payment ecosystem that will escalate electronic payments and digital banking thanks to the development of instant payments and smart addressing.
For more information, please contact:
Tietoevry Newsdesk, news@tietoevry.com, +358 40 5704072
Press release by MMA: https://www.mma.gov.mv/#/news/PR-2023-5181(english).html
Tietoevry Banking is the market leading financial software platform and services partner in the Nordics. We deliver a modular, pre-integrated banking as a service solution, as well as market leading software for core, payments, credit, cards, financial fraud and wealth. With unmatched scale, expertise and specialization, we drive the industry forward by enabling financial institutions to become more agile and efficient, accelerating their digital transformation journey. www.tietoevry.com/payments
The Maldives Monetary Authority (MMA) is the central bank of the Maldives and the main regulator of the financial sector in the country. Established in 1981, the MMA derives its scope, regulatory powers and mandate from the MMA Act (1981). Its primary functions are to issue currency, regulate the availability of Maldivian rufiyaa (MVR), promote its stability, manage licenses, supervise and regulate institutions in the financial sector, formulate and implement monetary policy and advise the government on issues relating to the economy and financial systems. The MMA is a member of the Alliance for Financial Inclusion and is active in developing financial inclusion policy. www.mma.gov.mv