MALDIVES: COMPLIANCE CHALLENGES IN DIGITAL BANKING
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A High-Level Roundtable on Digital Development in Maldives
The World Bank Group and the Ministry of Economic Development recently hosted a High-Level Roundtable on Digital Development in Maldives, which aimed to explore how digital technologies can be used for green, resilient, and inclusive growth in the post-COVID era.
Challenges in Digitization
Limited Broadband Connectivity
Maldives has made significant strides in promoting digital technologies, with over 60% of its population using the internet. However, legal, regulatory and policy constraints hinder accelerated digitisation. One of the key challenges is the limited and costly broadband connectivity in many homes, particularly in the outer islands.
- Resolve spatial gaps in access to affordable, secure, and reliable high-speed connections
- Ensure equal access to digital opportunities for all Maldivians
Regulatory Loopholes
Increasing coordination of digital government efforts, resolving legislative and regulatory loopholes, and building capacities and skills are necessary to cultivate a digital-savvy population.
- Implement important regulations relating to electronic transactions, privacy and data protection, and cybersecurity
- Adopt a national broadband strategy to enhance digital development in the country
Enhancing Digital Development
Cybersecurity Law
The creation of a more secure environment for digital transactions through implementing important regulations relating to electronic transactions, privacy and data protection, and cybersecurity is also essential. A cybersecurity law would enable the Maldives to respond to cyber-attacks, categorise vital infrastructure components and assets vulnerable to such attacks, and assure the availability of technologies and specialists to prevent and recover from them.
Digital Skills
To guarantee that no Maldivian is left behind in the digital transformation process, a wide range of actions are required to enhance the institutional, policy, legal, and regulatory frameworks connected to digital development, as well as to boost digital skills. Strengthening the underlying digital foundations that support digital businesses, including the ICT sector, would assist the Maldives in capitalising on the potential of digital technologies to build economic resilience.
Digital Economy Opportunities
Economic Resilience
The World Bank Group’s Vice President for South Asia, Hartwig Schafer, highlighted the importance of digital development in the post-COVID era, stating that “digital technologies are specifically important for the services-led economy of Maldives. They can support geographic decentralisation, economic diversification, and decarbonisation.”
Net-Zero Target
Maldives can achieve its net-zero target by 2030 with the help of digital technologies. Digital innovations can also promote a more sustainable, green economy by generating new paths to employment and growth for the country.
Decarbonization
The adoption of digital technologies has the potential to support decarbonisation efforts in Maldives, reducing greenhouse gas emissions and promoting a more sustainable future.
By addressing these challenges and opportunities, Maldives can leverage digital technologies to drive inclusive and sustainable development, ensuring that no one is left behind in the digital transformation process.