ahmed naseer : financial inclusion within the maldives keynote speech by mr ahmed naseer, governor of the maldives monetary authority, at the 35th asian bankers association general meeting and conference, hosted by the bank of maldives, male, 16 november 2018. * * * asian bankers association chairman, mr. daniel wu ; managing director and ceo of the bank of maldives mr. andrew healy ; distinguished experts and participants ; assalaamu alaikum, and a very good morning to you all. it gives me great pleasure to have this opportunity to speak at the 35th asian bankers association general meeting and conference. i am very pleased to be here today, in this unique gathering, bringing together industry players and financial experts from every corner of the asia region. in fact, the theme of this conference speaks to the heart of the imminent challenges that central banks are facing today : how will the digital revolution transform the economic and financial landscape? how can we gain the potential socio - economic benefits of the financial technology or fintech, while mitigating possible risks? ladies and gentlemen, while innovations in the financial sector are not new phenomena, the speed and broad consequences of these innovations have drawn our attention in recent times. the rapid improvements in computer technology such as quantum computing, innovations in cryptography, big data, artificial intelligence and the increased use of mobile phones have taken the traditional banking industry to a whole new level. it has enabled financial institutions to be in the financial lives of their customers at any time, any place, using any device or channel. in a nutshell, financial services are at our finger tips. in a few years from now, it is possible that the millennials and future generations will not see the need to step inside a bank during their lifetime. fintech has not only reshaped customer experience. it has paved the way for achieving financial inclusion, especially for a geographically dispersed country like the maldives, to break geographical barriers and reach underserved populations within the islands. with the nation - wide telecommunication coverage and high mobile penetration in the country, these innovative payment solutions have the potential to reduce cash usage and achieve financial inclusion in the country. at the end of last year, we reached an important milestone in advancing financial inclusion within the maldives. both telecommunications service providers now deliver easy and secure access to mobile payment services across the country. as a result, we have seen a significant increase in the volume and value of transactions being processed through mobile wallets. this mainly stemmed from the increased extent of the

##ence and deliver significant fiscal and foreign exchange savings. achieving the target requires around 1. 3 billion dollars to upgrade power infrastructure, of which only 13 % has been pledged by donors so far. small island developing states ( sids ) like the maldives call on international financial 1 / 3 bis - central bankers'speeches institutions to provide easier and affordable climate finance for adaptation and mitigation on the principles of a just energy transition. while the imf's resilience and sustainability fund and the world bank's record 42. 6 billion dollars in fiscal year 2024 in climate finance are commendable. more is needed, especially for climate vulnerable sids. additionally, we must innovatively rethink and implement strategies to mobilize private sector investments. secondly, debt sustainability. over two - thirds of emerging markets and developing economies are at high risk of debt distress. while the global sovereign debt roundtable has encouraged collaboration, more action is needed. debt sustainability analysis must better account for country context, and the ongoing review of the debt sustainability framework for low - income countries should look at the specific needs of sids. the imf, world bank, and mdbs should take bold steps to support countries in debt distress. mdbs can also create tools like debt - for - climate swaps, exchanging debt relief for climate adaptation investments. finally, structural reforms. we must strengthen the productive and state capacities of emerging and developing economies. the bretton woods institutions should focus more on job creation, equal opportunities, economic diversification, and the impact of refugee flows. similarly, structural reforms must be socially acceptable, ensuring benefits are widely shared. over the past year, the imf and world bank have undertaken significant initiatives to support our members. the completion of the 16th general review of quotas, the ida21 replenishment, and discussions on quota realignment and strengthening world bank group's financing will help ensure that these institutions remain adequately resourced. at the same time, let us not lose sight of the importance of providing adequate access and representation to the countries which need mdb support the most, as well as ensuring evenhanded treatment across the membership. the review of the imf's poverty reduction and growth trust, charges and surcharge policy together with the world bank's ida21 replenishment demonstrate support for our most vulnerable nations. as i reflect on the discussions i have had during these annual meetings, one theme has emerged strongly : the critical need for multi