NIBSS 20 th anniversary Outside-in vision of NIBSS From a simple ACH to a full fledge central utility of the Nigerian Payment System 21 st November 2013
NIBSS development stages From Settlement products in 1994 to PTSA in 2012 2010 POS PTSA Switching ACH services and BPO • NCS (Nigeria Central • Payment Terminal Service • Funds Transfer Settlement System launched in 1994. Switcher) launched in 2010 -> Aggregator services launched • ACH services: first initiative related with card / in 2012. • Reliable data channel, effective - Cheques -> Nigeria Automated terminals processing. • NIBSS Instant Payments (NIP) interoperability and ensures Clearing System (NACS) in in 2011 . higher POS availability. 2002. • ATM switching in 2011. • Cheques truncation deployment - Electronic Fund Transfers -> in 2012. NIBSS Electronic Fund Transfer (NEFT) in 2004. - Direct Debits services launched in 2006. 2
NIBSS development stages NIBSS old organization structure Organogram in 2010 Issues • Fragmentation of first line leads to lack of ownership. • Weak strategy, internal control and business development capabilities. • Non-existing Relationship Management and Security Units. • IT oriented. 3
NIBSS development stages New NIBSS organization structure Key developments CEO / MD Risk Management PMO and Compliance Finance & Legal Admin. Financial Business Technology & Development Operations Human (Exec. Director) (Exec. Director) Resources Admin. & Logistics Customer Information Strategy & Product Corporate Technology Application Service Relation. BPO System Marketing Manag. Communic. Infrastr. Integration Operation Manag. Security 4
NIBSS development stages Security Illustrative pictures Physical security Logical security 5
NIBSS development stages PCI-DSS certification DSS DSS COMPLIA COMPLIANT NT 6
NIBSS development stages POS homologation and certification Illustrative pictures Certification Lab • Single user experience • Improved terminals network quality • New terminals models 7
NIBSS development stages Management Information System Illustrative pictures Report generation Databases update Analysis (by the Business (by the IT teams) Development) NIBSS Banks Information Database CBN Time • What is the growth rate of products? Player/Bank Geography • Are there Banks with different behavior? • Are there relevant geographic Channel challenges? business line • Growth driven by new clients/users or by higher volume from existing users? 8
NIBSS development stages Electronic payments increased adoption - NIP December 2011 October 2013 x30 ~64k ~1,909k NIP transactions Source: NIBSS. 9
NIBSS development stages Electronic payments increased adoption - POS terminals December 2011 October 2013 x6 ~5,000 ~31,000 active POS terminals Source: NIBSS. 10
NIBSS development stages Electronic payments increased adoption - POS transactions October 2013 December 2011 x11 ~90k ~1,000k POS transactions Source: NIBSS. 11
International benchmark Nigeria and Angola ÷8 Population ~174 ~21 (Values in millions) GDP ÷2 (2012 - ~270,211 ~115,209 values in millions USD) Monthly x2 ~1.1 ~2.5 POS trx (October 2013 - values in millions) Source: NIBSS, EMIS, United Nations and International Monetary Fund. 12
NIBSS immediate priorities Not exhaustive NIBSS immediate priorities 1 3 Global Terminal Management POS System Bank A • GTMS for ATM Switcher • GTMS for POS Bank B • Virtual POS / payment gateway 2 NCS solution ATM • Services Portal Bank C • Portal for merchants Switcher Bank 4 D Technical Monitoring Payment 5 gateway Corporations Business Activity Monitoring • Internet acquiring (BAM) solution for virtual merchants. 6 Anti-fraud solution 7 IT infrastructure 13
NIBSS immediate priorities 1 New POS terminals technologies - e.g. MPOS and E-POS + + MPOS Application Reader and Pinpad Connectivity E-POS 14
NIBSS immediate priorities 2 ATM network - improve network management • Improve quality control (e.g. certification, homologation, centralized monitoring) • Improve service levels increasing competition in the ATM maintenance market • Develop interbank (systemic) innovation • Promote scale economies by making available central shared platforms 15
NIBSS immediate priorities 3 A Global Terminal Management System (GTMS) • Operating cost POS Global Terminal Management efficiency System (GTMS) • Security improvement compliance • Quality assurance / improve customer satisfaction ATM • Ability to innovate (and renovate) • Better decision- making (more adequately informed) 16
NIBSS immediate priorities 4 Technical monitoring - control PTSPs SLAs Illustrative screens Immediate and accurate information Key benefits • On-line monitoring of terminals components and service status • Problem detection and tracking • Terminal malfunction generates automatic dispatching to service provider (first or second line maintenance) • Network status report generation • Increase terminal network availability and control • Cost reduction of maintenance • PTSP control - improve SLAs 17
NIBSS immediate priorities 5 Business Activity Monitoring (BAM) - follow-up business with real-time information Illustrative screens Major characteristics • Real-time Analysis Real-time business monitoring solution, capable of complex-event processing with large data volumes. • Configurability Fully configurable monitoring capabilities ranging from global status down to individual transaction. • Multiple Angles of Analysis Business level, network operational level. • Historical Data Comparison Real-time comparison with relevant historical data across angles. • Predictive Analytics Real-time prediction of future behavior. • Future Proof Adaptable to evolving business requirements. 18
NIBSS immediate priorities 6 Fight fraud with an industry-wide anti-fraud solution Major characteristics • Real-time fraud monitoring Detect potential fraud incidents by analyzing in a real time mode the transaction records. Collaborative • Configurability anti-fraud system The alerts generation is based on a rule system and comparative behavior analysis. • Multiple Levels of Analysis Restrain the impact and extension of fraud incidents at several levels, e.g. merchants, payment terminals (ATM or POS), cards and transaction types. • Future Proof Continuously feed a knowledge data base on potential fraud incidents. 19
NIBSS immediate priorities 7 Assure basic infrastructure quality / resilience - e.g. Data Centers Illustrative picture Looking forward to the constant improvement of service quality and resilience, NIBSS shall enhance its technology infrastructure to support industry growth. 20
Nigerian Payments Market immediate priorities Business challenges Technological challenges Assure basic infrastructure - e.g. improve connectivity, data centers, power, quality certifications - through an industry program office and specific initiatives Focus on Cashless Nigeria progression, i.e., POS adoption - e.g. promotion, prioritize areas/clusters and merchants, etc. Improve current shared terminal management capabilities - industry certifications, GTMS, stand-in, technical monitoring, business activity monitoring, etc. Develop a cooperative Anti-Fraud solution for the industry (including all payment methods) 21
Questions & Answers Q & A 22
Pedro Hipólito Managing Director pedro.hipolito@sibs-international.com RUA SOEIRO PEREIRA GOMES, LOTE 1 1649-031 LISBOA - PORTUGAL TEL: +351 21 416 93 14 UL. BAGNO 2/180, 3 RD FLOOR 00-112 WARSAW - POLAND TEL: +48 22 119 09 83 MULLINER TOWERS, 3 RD FLOOR, 39 ALFRED REWANE STREET IKOYI-LAGOS - NIGERIA TEL: +234 1 4448 9237 www.sibs-international.com 23
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