haag presentation
TRANSCRIPT
Iraq- Retail Payments InitiativeKristopher Haag
Director, Banking and Financial Networks
Task Force for Business and Stability Operations
U.S. Department of Defense
September 29, 2010
Kristopher Haag
Director, Banking and Financial Networks
Task Force for Business and Stability Operations
U.S. Department of Defense
September 29, 2010
Iraq Demographics Population 29,000,000 (July 2010 est.)
Median Age 20.6 years (2007 est.)
Literacy 74% (2000 est.)
GDP (per capita) $3,800 (2009 est.)
Unemployed/ underemployed 47% 47% (Aug 2009 est.)
Unbanked/underbanked 95%
Mobile network operators 4
GSM subscribers 20 M (69%)
The impact of nearly 3 decades of war and sanctions in Iraq…
DoD- Economic Stabilization Task ForceMission: Revitalize the Iraqi economy and reduce the rampant unemployment of
the Iraqi population — a significant factor that fuels the insurgency.
Restore existing productive capacity to the Iraqi economy wherever possible, across all industrial sectors.
Leverage monthly cost-of-operations to DoD of $10B, to stimulate economic growth by any means possible.
Serve as a catalyst for private investment in Iraq, by linking the international business community to Iraqi business leaders and government officials.
Move Iraq from the front page to the business page
Integrated SolutionAn integrated, Multi-Bank – Multi-Telco infrastructure enables banks to cooperate on infrastructure and compete on costs & quality of customer service.
Central Bank of Iraq
ATMATM MobileMobilePOSPOS
- Banking Consortium
Third Party Processor(Outsourcing Vendor)
PastIntegrated Solution
Focus of
Effort
Continuation of this path will lead to further fragmentation and an infra-structure
that is not interoperable. Costs for inefficiencies are passed to consumer and negatively impact uptake of banking services.
ATMATM
POSPOS
3PP
Customers
ATMATM
3PP
Customers
MobileMobile
Telco
Customers
Central Bank of Iraq
Payment Channel Trade-offPayment Channel Ranking
ATM POS Mobile Banking
Cost
Fac
tors
Acc
ess
Implementation Costs
Device Costs
Maintenance & Licensing
Physical Infrastructure Costs
Number of Access Point for Consumer
Distance Relative to Channel
High Implementation Costs Medium LowHigh
Medium LowHigh
Branch Contingent in High Density Urban Areas
High
High
Equal to Branch Density
Medium
Medium
Contingent on Retail Outlets
Equal to Feasible Retail Penetration
None
None
Contingent on Mobile Penetration
Equal to Mobile Network Coverage
Large,middle-class economy presents unique opportunity and characteristics for the introduction of mobile banking
Introduction of mobile banking in Iraq must be a hybrid model that allows for coexistence with other developed retail payment channels (POS, ATM)
Multi-Bank / Multi-Telco
