The Interledger Community 🌱: Thitsaworks

Interoperable Instant Payments Platform for Credit Union Sector in Mexico — Progress Grant Report

Nyein Thiri Han — Mon, 01 Jul 2024 08:17:05 +0000

Image 1: ThitsaWorks' technical team at a retreat in Bangkok

Project Description

ThitsaWorks, in collaboration with the Mexican Association of Credit Unions of the Social Sector (AMUCSS) and The People's Clearinghouse (PCH), is implementing an inclusive and instant payments network at the subnational level for credit union members across Mexico. This project builds upon ThitsaWorks' initial Research and Development Phase of ThitsaNet, an innovative payment network designed for the unbanked and underbanked in Myanmar.

ThitsaNet consists of two key components:

Thitsa Payment Portal: This portal connects microfinance institutions lacking core banking systems or API capabilities to a real-time payment platform, serving as a bridge to interoperability.
ThitsaX Connector: A network of interconnected Interledger connectors that enable cross-ledger transactions. Leveraging the Interledger Protocol, these ThitsaX nodes route and process payments across different payment systems, facilitating the transfer of value between diverse ledgers and networks.

This innovative approach, initially developed for Myanmar, is now being adapted and expanded for the Mexican credit union sector, demonstrating the versatility and scalability of the ThitsaNet concept.

For more detailed information on the initial phase of ThitsaNet, please refer to our previous reports.

Project Scope and Objectives

The primary focus of this project is to implement a comprehensive, real-time payment network at the subnational level for credit union members across Mexico, in collaboration with AMUCSS and PCH. The key objectives include:

Deploy a payment hub for AMUCSS and support the integration of community banks with this hub.
Customize and deploy the Thitsa Payment Portal (TPP) to meet the specific requirements of Mexican credit unions without back-end systems to integrate into instant payment networks.
Expand TPP capabilities to include account-to-account payments, tailored to the needs of community banks in Mexico.
Enable instant domestic payments within Mexico and prepare for future cross-border remittances through interoperability with the Rafiki Payments Platform via a Cross Network Provider (CNP).

New Development

ThitsaWorks is pleased to report significant progress in expanding the application of ThitsaNet beyond its initial scope. In addition to our ongoing work with the People's Clearinghouse for deploying the payment hub and customizing the Thitsa Payment Portal in Mexico, we are now embarking on an exciting new venture in South East Asia.

We are thrilled to announce that we are working with a mobile money provider and three microfinance institutions (MFIs) to initiate a pilot. This pilot aims to digitize microfinance loan repayments and disbursements, marking a significant step towards financial inclusion in the region.

The key objectives of this pilot include:

Development and deployment of ThitsaX Connectors, which will act as intermediaries to enable secure and seamless transactions across diverse payment networks.
Integration between the mobile financial services provider and participating MFIs.
Demonstration of the feasibility and benefits of digitizing loan repayments and disbursements for microfinance clients.

This initiative leverages the ThitsaX Connector component of ThitsaNet, showcasing its versatility and potential for creating an inclusive and efficient financial ecosystem. By bridging the gap between mobile money services and microfinance institutions, we aim to enhance financial accessibility and reduce transaction costs for underserved populations.

This pilot represents a significant milestone in our journey to expand the reach and impact of ThitsaNet, contributing to our vision of creating more inclusive financial systems across diverse markets.

Project Update

ThitsaWorks has made significant progress in implementing an inclusive and instant payments network for credit unions in Mexico. Key milestones and challenges include:

Deployment of Payment Infrastructure:

Successfully deployed a payment hub in People's Clearinghouse's hosting environment.
Conducted a Design Workshop with PCH and Interledger Foundation to finalize the hub's design, which extended the timeline by a few weeks but ensured alignment with stakeholder needs.
Provided comprehensive documentation and training to the PCH team, facilitating knowledge transfer and capacity building.

Figrue 1: System architecture of payment system updated based on agreed design decison

Thitsa Payment Portal (TPP) Development:

Adapting TPP for Account-to-Account payment use case, tailored for domestic transactions between Mexican community banks.
Integration with the payment hub in the development environment is complete, with plans to link to the PCH staging environment pending approval.
Scheduled completion of this crucial functionality by July, marking a significant milestone in the project.

Figure 2: Account-to-Account transfer use case for community banks in Mexico

Environment Setup and Cost Optimization:

Established a staging environment on PCH's server.
Proposed an innovative cost-saving measure through automatic server hibernation during inactive periods, demonstrating our commitment to efficient resource utilization.

DFSP Onboarding and Integration:

Initiated discussions for onboarding two Digital Financial Service Providers (DFSPs) through core connectors and one via TPP.
Collaborating with PCH to integrate the core banking system with the hub.
Planned onboarding of SMB Contigo Microfinance for end-to-end transaction testing.

Challenges:

The project experienced slight delays in deploying the hub and TPP due to extended design decision-making and customization requirements.
The ongoing cost analysis for the proposed server hibernation approach has created a dependency for integration testing of the Thitsa Payment Portal (TPP). Currently, the staging environment is on hold until cost details are finalized, which has temporarily delayed the integration testing process.

Despite these challenges, the project remains on track to significantly enhance financial inclusion across Mexico's credit union sector. The ThitsaWorks team's adaptability, focus on stakeholder collaboration, and close cooperation with the PCH team have been crucial in navigating these hurdles while maintaining progress towards our objectives.

Key Activities & Outputs

We are pleased to report the following progress on key activities in supporting PCH to implement an inclusive and instant payments network.
Infrastructure Setup:

Deployed and configured a production-grade Mojaloop Hub in People's Clearinghouse's (PCH) hosting environment. (Completed)
Implemented Operational Systems/Modules for streamlined end-to-end testing. (Completed)
Designed and developed Alias Oracle (Alias Directory) for Account Lookup Service (ALS). (Completed)

Thitsa Payment Portal (TPP) Development:

Customization of TPP for Account-to-Account payment use case. (In progress, expected completion in July)
Identified necessary fields for account-to-account template based on Mexican regulatory standards. (Completed)
Conducted integration testing between TPP and the hub in the testing environment. (Completed)

System Integration and Testing:

Error message mapping. (Completed)
Collaborating with PCH to integrate IsisPlus CBS APIs with Lightweight Core Connector (LCC) for system demonstration. (In progress)

Capacity Building:

Conducted Hub Deployment Training, TPP Overview, and Operational Knowledge Sharing sessions. (Completed)

DFSP Onboarding:

Working closely with the PCH team for DFSP selection. (One DFSP identified)
Initiated integration with IsisPlus CBS, owned by Red Oaxaca. (In progress)
Plan to onboard SMB Contigo Microfinance for transaction demonstrations. (Planned)
Ongoing discussions with SINEFI CBS for potential involvement. (In progress)

Stakeholder Engagement:

PCH consulting with AMUCSS stakeholders on TPP use case and potential DFSP candidates. (In progress)

System Architecture:

Updated system architecture based on agreed design decisions. (Completed)

We continue to adapt our approach based on stakeholder feedback and technical requirements, ensuring the project meets the needs of credit union members across Mexico.

Image 2: ThitsaWorks' technical team at technical deep dive for ThitsaNet

Project Impact & Target Audience(s)

This project aims to create a significant impact on financial inclusion in Mexico, primarily targeting members (clients) of the Mexican Association of Credit Unions of the Social Sector A.C. (AMUCSS). The focus is on improving financial services in rural areas, where access to modern banking infrastructure is often limited.

The target audience encompasses a diverse range of individuals, including:

Rural communities across Mexico
People of different genders, ethnicities, and colors
Individuals with disabilities
Marginalized groups previously underserved by traditional financial institutions

By implementing an inclusive and instant payments network at the subnational level, this project aligns with the Interledger Foundation's mission to create a more inclusive financial system. The payment platform, once operational, will enable:

Faster and more efficient transactions between credit union members
Increased access to financial services for underserved populations
Greater financial autonomy for rural communities

The project supports the Interledger Foundation's goals by:

Utilizing open-source technology (Thitsa Payment Portal) to facilitate interoperability
Enhancing cross-ledger transactions through the use of Interledger Protocol
Promoting financial inclusion by connecting institutions without advanced core banking systems to real-time payment platforms

As the payment platform goes live, it will significantly enhance financial inclusion across Mexico, providing previously underserved communities with access to modern, efficient financial services. This initiative represents a crucial step towards creating a more equitable financial ecosystem in the country.

Monitoring & Project Evaluation

ThitsaWorks employs a comprehensive approach to monitor and manage project activities:

Project Management: We use Trello's Kanban Board to manage and visualize project-related tasks, ensuring clear tracking of progress and deadlines.
Communication Channels: Slack and email serve as our primary communication channels, facilitating quick and efficient information exchange among team members and stakeholders.
Regular Check-ins: Weekly meetings between ThitsaWorks and People's Clearinghouse (PCH) management teams provide visibility on ongoing activities and allow for timely input and guidance.
Collaborative Workstreams: ThitsaWorks and PCH teams meet under various workstreams as needed, sometimes on a daily basis, to address specific project aspects.

Despite these measures, the project experienced slight delays in deploying the hub and Thitsa Payment Portal. Extra time was required to finalize design decisions and customize the portal for the new Account-to-Account payment use case. The project's progress also depends on the consultation with stakeholders regarding the use case, which is being led by the PCH Team. However, we are on track to complete the implementation of this new scenario and onboard a Digital Financial Service Provider (DFSP) by the end of the project.

Progress highlights include:

Initiation of integration with LCC and IsisPlus, with transaction demonstrations expected by August.
Development of necessary APIs by IsisPlus for both payer and payee sides, including a user interface for community banks.
Ongoing integration of the middleware layer.
Capacity-building sessions for the PCH team to ensure knowledge transfer throughout the process.

Moving forward, we will continue to leverage our project management tools and communication strategies to mitigate risks and ensure timely completion of project milestones.

Communications and Marketing

ThitsaWorks, with support from the Interledger Foundation's Communications and Program Teams, has announced the project and collaboration with People's Clearinghouse (PCH) on social media. [LinkedIn: https://www.linkedin.com/posts/thitsaworks_interledger-foundation-grant-awarded-to-thitsaworks-activity-7207214383708459009-ntyj]. We invite you to engage with our LinkedIn post to help amplify the message. In partnership with PCH, we plan to present the project at the Interledger Summit 2024.

We are proud to be part of this journey and eager to share it with a wider audience. We recently met with the Interledger Foundation's Communications Team and Channel V Media to share our story. We are committed to providing project updates at various events to keep the community informed and foster collaboration.

What’s Next?

In the remaining months, in partnership with PCH, we plan to:

Complete TPP implementation with Acount-to-Account payment use case.
Onboard one DFSP through TPP and two more through middleware layer integration.
Support PCH in technical improvements based on Cross Network Provider and SPEI integration requirements.
Conduct end-to-end transaction tests with SMB Contigo Microfinance after integration.

Community Support

ThitsaWorks is actively engaging with the Interledger community:

Sharing project updates and progress through various channels.
Planning to participate in the Interledger Summit 2024 to present the project and implementation status.
Seeking community feedback once TPP is released as open source.

We are eager to meet community members, share conversations, and learn their stories at the Interledger Summit 2024. Last year's experience at the Summit was truly inspiring and motivating, as we learned about innovative developments within the community.

Additional Comments

ThitsaWorks is expanding the application of ThitsaNet beyond its initial scope in Mexico. The company has initiated a pilot project in South East Asia, collaborating with a mobile money provider and three microfinance institutions (MFIs). This pilot aims to digitize microfinance loan repayments and disbursements, focusing on financial inclusion in the region.

Key objectives of the pilot include:

Developing and deploying ThitsaX Connectors for secure transactions across diverse payment networks.
Integrating mobile financial services with participating MFIs.
Demonstrating the benefits of digitizing loan processes for microfinance clients.

This initiative showcases the versatility of the ThitsaX Connector component and its potential for creating inclusive financial ecosystems. By connecting mobile money services with microfinance institutions, ThitsaWorks aims to enhance financial accessibility and reduce transaction costs for underserved populations.

This pilot marks a significant milestone in ThitsaWorks' journey to expand ThitsaNet's reach and impact, contributing to their vision of creating more inclusive financial systems across diverse markets.

We would like to express our sincere gratitude to the Interledger Foundation for providing us with this opportunity to be part of this transformative journey in creating more inclusive financial systems globally.

Relevant Links/Resources (optional)

Website: www.thitsaworks.com
LinkedIn: www.linkedin.com/company/thitsaworks/
Mail: info@thitsaworks.com
Facebook: https://www.facebook.com/Thitsaworks?mibextid=LQQJ4d
Twitter: https://twitter.com/thitsaworks?t=jTSukYU2D6in-P1tzYyh6g&s=09

Impact on Increasing Interledger Nodes — ILF Grant Final Report

Nyein Thiri Han — Fri, 30 Jun 2023 05:06:44 +0000

Brief Project Description

ThitsaWorks is a registered FinTech company that provides digital payment and data analytics solutions for financial institutions to analyze data needed to run effective operations and manage risks. ThitsaWorks is Myanmar's leading technology solution provider for microfinance institutions (MFIs).

In this project, we aim to build an inclusive payment network for the unbanked and underbanked in Myanmar. In the previous progress report, we talked about ThitsaWorks’ Thitsa Payment Portal which connects microfinance institutions without core banking system or API capabilities to a real-time payment platform making the portal the bridge to interoperability. Well, in this final report, we have so many updates to share with you as our project evolved from the portal to an innovative inclusive payment network, namely ThitsaNet, utilizing Interledger Protocol and Mojaloop technologies.

Project Update

The innovative inclusive payment network, ThitsaNet, consists of two main components. The first component, called Thitsa Payment Portal, connects to an interoperable payment platform designed for financial institutions operating with offline systems. Leveraging Mojaloop's open-source software built upon the Interledger Protocol (ILP), the interoperable payment platform facilitates the integration of mobile wallets with MFI core banking systems. By adopting Mojaloop's blueprint, ThitsaWorks aims to overcome past barriers such as technical complexity, time constraints, and high costs associated with developing interoperable payment models. Check out the progress report here to see the details of Thitsa Payment Portal.

The second component of the platform is an Interledger Network consisting of interconnected Interledger connectors known as ThitsaX. These ThitsaX connectors will collaborate to enable cross-ledger transactions. Leveraging the Interledger Protocol, these nodes will route and process payments across different payment systems, facilitating the transfer of value between diverse ledgers and networks.

ThitsaX connectors facilitate secure and seamless transactions across diverse ledgers and payment networks in an interconnected network of Interledger connectors. These connectors act as intermediaries, enabling the routing of payments between different financial systems or ledgers. By establishing a decentralized network, ThitsaX ensures interoperability, allowing transactions to occur seamlessly across various systems. This promotes enhanced connectivity and accessibility in the financial ecosystem, resulting in faster, more efficient, and cost-effective cross-border transactions.

ILP ensures the security of transactions by utilizing cryptographic techniques, enabling encrypted communication and ensuring the integrity and confidentiality of the payment data transmitted between ThitsaX connectors.

System Architecture of ThitsaNet

Project Impact & Target Audience(s)

Impact on Increasing Interledger Nodes

ThitsaNet will play a crucial role in increasing the number of Interledger nodes within the payment ecosystem, thereby expanding its reach and promoting financial inclusion. By enabling more participants to join the instant payment system, ThitsaNet facilitates the growth of the network, creating a ripple effect that leads to increased efficiency in the computing and networking system.

The concept of nodes in ThitsaNet can be likened to branches of a network, where each node represents a participant or entity within the payment ecosystem. As the number of nodes increases, the network becomes more interconnected, allowing for faster and more efficient transfer of payments. This translates into enhanced transactional speed, reduced settlement times, and improved overall payment experience for users.

In a nutshell, ThitsaNet’s ability to increase the number of nodes within the instant payment system is instrumental in expanding participation, enhancing the efficiency of computing and networking systems, and ultimately enabling seamless, instant payments for a wide range of users. By leveraging the power of ILP and embracing the economy of scale, ThitsaNet paves the way for a more inclusive and interconnected financial landscape. The immediate target audience will be MFIs and their users in Myanmar.

Progress on Objectives, Key Activities

Thitsa Payment Portal: We have developed a prototype of Thitsa Payment Portal powered by Mojaloop technology, and we have tested it with the collaboration of 2 microfinance institutions. Watch the video for the prototype demonstration.

Upon their feedback, we have collected pain points and improved the prototype in terms of settlement, repayment transaction information, and user information checking. We have set a time for the settlement; streamlined the repayment recording process; enabled user information checking for repayment. These MFIs have made a few suggestions for additional features, and we will continue to work on upgrading the portal until it becomes commercial. As for more details, check out the website.

We introduced Thitsa Payment Portal at PI-21 Mojaloop Community Meeting in March this year and elaborated a bit on how MFIs can overcome the gap and the costly budget in implementing a core banking system. Watch here for the abstract from the meeting.

ThitsaX: This is where we start to evolve in ThitsaNet. Back in the progress report, we mentioned that we would add a cross-border use case in Thitsa Payment Portal with Rafiki as the settlement. Nevertheless, after intensive sessions with the whole team discussing on the cross-border transactions, we have come up with a blueprint to design ThitsaX, Interledger connectors, dedicated to enhanced connectivity and accessibility in the financial ecosystem, resulting in faster, more efficient, and cost-effective cross-border transactions.

Business Engagement: The financial projections of Thitsa Payment Portal have been evaluated for 3 years. In the initial year of launch, we anticipate the onboarding of 14 microfinance institutions (MFIs), all of whom will contribute through onboarding registration fees. As we progress into the second and third years, a quarterly increase of 2 new MFIs joining Thitsa Payment Portal is expected, reflecting the expanding adoption and growing confidence in our platform. The addressable market in Myanmar is 2.2 million clients from 35 MFIs but Thitsa Payment Portal will not be restricted to domestic market only. It is applicable to any market where a real-time payment platform is in operation. In fact, Thitsa Payment Portal will be one of the connectors in ThitsaNet connecting with Interledger connectors. Based on our financial model, the Portal is expected to break even within a year after its launch. The projections for ThitsaX Connector will be incorporated into the business plan in the future, as the development and implementation progress.

Communications and Marketing

We will actively reach out to the Mojaloop and Interledger communities, ensuring our continued efforts to promote real-time payment switch technology solutions. Thitsa Payment Portal will be introduced as a complementary offering, further enhancing our engagement with these communities. The positive feedback from two MFIs that tested the product has already generated buzz within the MFI community in Myanmar. Once ThitsaWorks' real-time payment switch becomes operational, Thitsa Payment Portal will be launched at full scale, possibly even before mid-2024.

With a focus on ThitsaX connectors, our audience includes individuals worldwide involved in inclusive payment networks driven by open-source technologies. We will introduce the concept of ThitsaX, which facilitates the connection of Interledger nodes and enhances the efficiency of cross-border transactions through the Interledger Protocol.

What’s Next?

So, What’s next? We will continue to enhance the features in Thitsa Payment Portal by upgrading the prototype and will test the portal with real-time data of participants in ThitsaWorks’ real-time payment switch. We’re already thrilled and preparing to pitch for commercial deals in both domestic and regional markets.

Our whole team is excited to build ThitsaX connectors in ThitsaNet which will be a breakthrough in cross-border payment transactions. The purpose of incorporating the Interledger Protocol (ILP) is to enable more participants to seamlessly connect and transact within the instant payment system. ILP serves as the bridge that brings together different financial institutions, wallets, banks, and mobile payment solutions, fostering interoperability and facilitating seamless transfers across various platforms.

By incorporating ILP into ThitsaNet, ThitsaWorks ensures that P2P transactions between Digital Financial Service Providers (DFSPs) are executed securely, efficiently, and cost-effectively. The utilization of ILP provides a standardized, interoperable framework that fosters trust and enables the seamless movement of funds within the ThitsaNet. As ILP continues to evolve and new versions are released, ThitsaWorks remains committed to staying up to date with the latest advancements, ensuring that ThitsaNet leverages the full potential of ILP to deliver a robust and transformative digital payment experience for MFIs and users within the Myanmar financial ecosystem.

Naturally, the cost of establishing the ThitsaNet Inclusive Payment Network is substantial, and the required time and human resources are vast. The tentative timeline for MVP development is set to one year and we are ready to start working on it. Along with the development, we will ensure regulatory compliance to ensure the ThitsaNet prototype complies with relevant regulations, standards, and security measures.

Community Support

We are eager to collaborate with community members who share an interest in ThitsaNet, and we invite them to join us on this exciting journey. If you are involved in building an inclusive payment network and have financial institutions within your ecosystem that require core banking systems and API capabilities, the Thitsa Payment Portal is perfectly suited for your needs. We welcome suggestions for the development of Interledger connectors and the integration of nodes across diverse payment systems.

We are delighted to announce that we have signed a memorandum of understanding [(MOU)] with The People's Clearinghouse, a fellow grantee, to join forces and collaborate on their remarkable initiative aimed at delivering efficient cross-border remittance services to rural communities in Mexico.

Additional Comments

We extend our heartfelt gratitude to the Interledger Foundation and the entire community for their invaluable support throughout the research and development phase, which has culminated in the creation of the design and roadmap for ThitsaNet. In order to gather feedback and gain insights from the community, we will present our work during one of the community calls. We are eagerly looking forward to the launch of ThitsaNet, as it will enable us to assist millions of unbanked and underbanked individuals in Myanmar.

Relevant Links/Resources

ThitsaWorks Website: https://www.thitsaworks.com/
Thitsa Payment Portal Website: https://www.thitsaworks.com/paymentportal
ThitsaWorks LinkedIn: https://www.linkedin.com/company/thitsaworks/
ThitsaWorks Facebook: https://www.facebook.com/Thitsaworks?mibextid=LQQJ4d

Thitsa Payment Portal — Grant Progress Report

Nyein Thiri Han — Tue, 16 May 2023 13:29:51 +0000

Brief Project Description

Greetings from ThitsaWorks!

ThitsaWorks is leveraging the Mojaloop technology to develop the first ever interoperable real-time payment platform in Myanmar that enables microfinance institutions (MFIs) and their borrowers to disburse and repay loans using any wallets, banks, or payment solutions. Mojaloop, an open-source platform built on the Interledger Protocol, facilitates the settlement of digital payments among multiple MNOs, commercial banks, or a central bank, regardless of their network variations.

This shared and open platform is designed to make it easier and more cost-effective for financial institutions to transact with each other, thereby promoting financial inclusion in Myanmar, and increasing additional financial nodes into the Interledger Network. While we wait for the final regulatory approval for this real-time payment switch, we turn our attention to a growing need for MFIs in connecting to a real-time payment switch.

Project Update

We are thrilled to share the progress of our work dedicated to enabling microfinance institutions (MFIs) and its borrowers in Myanmar accessible to a Mojaloop enabled interoperable real-time payment switch.

ThitsaWorks has researched and designed an innovative solution to address the needs of microfinance institutions (MFIs) that lack an API-capable core banking system (CBS). Our proposed solution, Thitsa Payment Portal, is a cutting-edge product designed to meet this unique challenge faced by such institutions. The main purpose of Thitsa Payment Portal is to serve as a middleware layer for MFIs without the API capabilities with a core banking system or without core banking system to connect to the interoperable real-time payment platform built on the Interledger Protocol.

One advantage is that we won't be subjected to regulatory requirements from the Central Bank of Myanmar for the creation of this portal. It will serve as a middleware, facilitating the upload and download of bulk payment data by connecting to the interoperable payment switch. The primary legal framework for KYC (Know Your Customer) in Myanmar is established by the Central Bank of Myanmar. However, only financial institutions and designated non-financial businesses and professions (DNFBPs) are required to conduct customer due diligence (CDD) measures to verify the identity of their customers and assess the risks associated with them. Since ThitsaWorks is neither a financial institution nor a DNFBP, all KYC and CDD requirements will be met by the MFIs utilizing the TPP (Thitsa Payment Portal).

The biggest struggle we have had is collecting micro data regarding the number of MFIs who lack core systems and API capabilities and the specific details of them. Some of them would prefer enclosing their data close to themselves instead of sharing with us. In this regard, we had to refer to the secondary data unless ThitsaWorks had found them in internal research.

Architecture of Thitsa Payment Portal

Project Impact & Target Audience(s)

Banking services are limited in rural areas of Myanmar whereas the uptake of other formal non-bank products has doubled largely driven by credit from MFIs and Cooperatives in 2018 compared to 2013. Only 22% of rural population has access to financial services while it is 29% for urban population.

However, urban population in Myanmar is found to be triple where nearly half of the population will be under national poverty line. (People’s Pulse Survey, UNDP, 2021). The need to serve the unbanked and the underbanked has become more urgent than ever for the last 10 years.

We recognize the need to strike a balance between profitability and social performance. We do so by establishing a continuous feedback loop with the MFIs so that we can continually tailor the product and service to our clients’ needs. We are always mindful of the need for transparency, service quality, and fair pricing to retain their trust. Only by treating all in a respectful way can we continue to optimize the value chain and lower cost for those in the BOP (Bottom of Pyramid).

In a nutshell, our target audience will be MFIs and its borrowers, and This solution will unlock economic growth in the sector that needs it the most. It will serve more than 2 million unbanked and underbanked in Myanmar in the short term with the potential of serving 13 million in the long term. A large number of them will be women.

Progress on Objectives, Key Activities

Our main objective is to build a bridge for microfinance institutions (MFIs) that lack core systems and/or API capabilities to connect to a Mojaloop enabled payment switch. This will unlock economic growth in the sector that needs it most. This will serve more than 2 million unbanked and underbanked in Myanmar immediately and the country’s potential market of 13 million in the future.

Market Analysis: To start off, we did a market analysis in Myanmar’s microfinance sector to draw out the needs of MFIs and to see the value we can add to the sector and its end users. Being the largest FinTech in the country, we have a network of clients – the MFIs that we are serving. While working on the real-time payment switch, we met with them and discussed what can be done to involve all the MFIs in the interoperability which will move us forward by means of financial inclusion. Our study shows that more than 80% of 180+ MFIs, serving 2 million out of the total borrowers 5 million, lack Core Banking System (CBS) and/or Application Programming Interface (API). This excludes them from joining the interoperable open payment platform.

Product Development: We came down to developing Thitsa Payment Portal which will enable the MFIs and its borrowers to connect to real-time payment switches. Our Business Analysis team worked on the system design after talking to some MFIs who gave us ideas on what their needs are. We took into consideration the process of how most MFIs are saving data. Some of them are still using paperwork, some of them are using Microsoft Excel, and some of them are using a core system with API capabilities. Taking these into account, we designed a system where they can simply upload a file to disburse loans and receive messages when loan repayments are made through mobile wallets. We have designed a wireframe to develop a minimal viable product.

Business Plan: Thitsa Payment Portal will be equipped with the basic features of core banking systems which allow uploading and downloading the required data for bulk payments such as repayment and disbursement use cases. Out of 180+ MFIs in Myanmar, more than 100 MFIs do not have a Core Banking System. About 20% of them use a Core Banking System and some of them do not have an API.

Using TPP, the number of MFIs which can join a real-time payment switch will increase enormously since they can join it with modest fees compared to the cost of installing a core banking system. This middleware solution will serve more than 80% of the 181 existing MFIs in Myanmar allowing indirect participation of small financial institutions to effectively increase transaction volumes in an inclusive and sustainable way. Thitsa Payment Portal will enable 181 microfinance institutions in Myanmar, serving five million clients with approximately three million women, access to financial services.

Our target audience will encompass more than 80% of MFIs in Myanmar, which collectively serve more than 2 million borrowers.

Addressable market of Thitsa Payment Portal

Communications and Marketing

Thitsa Payment Portal is a data-transferred web-based portal powered by Mojaloop technology for financial institutions to connect real-time payment networks to perform digital payments without the necessity of acquiring a core banking system. We have been introducing the concept of Thitsa Payment Portal when we onboard clients onto the real-time payment switch. The need to create the portal itself came when we started onboarding the clients. Every MFI who learned about our initiative were very happy that there will be a portal on its way which connects them to the platform if they did not have an API enabled core system or if they chose to connect through a middleware instead of using their CBS for their convenience.

As we continue marketing the payment switch among MFIs, Thitsa Payment Portal will be introduced as an accompanying offering. The target audience of the portal is approximately 150 MFIs who do not have API capable core systems with end users of about 2 million borrowers. Once the payment switch is regulated, the portal will be onboarding more than 100 MFIs with an addressable market of 2.2 million. The news has already been spread with word-of-mouth referral. We have designed the system of the portal and once it is fully developed, it will be available to be tested.

Given the need for an interoperable payment switch in many emerging countries, may it be Asia or Africa, we will continue to dedicate our work towards financial inclusion – mainly by means of building interoperable payment platforms. When we operate different projects around the world, Thitsa Payment Portal will be included as an integrated component as our comprehensive package. We aim to expand the market for Thitsa Payment Portal to become a connector to Mojaloop enabled payment networks around the world.

What’s Next?

What is left for us to do is we will collaborate with a few MFIs to test the feasibility of the portal in order to collect feedback and reiterate the development process until satisfactory. As we go along, we will continue to update the business plan so that the portal can be sustainable given any situation, may it be a political or economic crisis.

Moreover, we will prepare to test the portal with real-time data and add another use case, which would be a cross border use case by integrating the portal with Rafiki as a settlement, for Phase 2. For that, we will keep you updated in the final report. After careful real-time testing and upgrading, we aim to launch the product by mid-2024.

Community Support

We have been studying Rafiki and other ILP components in search of ways to integrate them with our portal. Community calls have been really helpful in filling knowledge gaps for us.

Relevant Links/Resources

Website: https://www.thitsaworks.com/
LinkedIn: https://www.linkedin.com/company/thitsaworks/
Facebook: https://www.facebook.com/Thitsaworks?mibextid=LQQJ4d