iii international conference on “markets for money transfers , bank metals and cash currency”
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III international conference on “Markets for money transfers , bank metals and cash currency” International Money Transfers and Payments system CONTACT – innovations and development Kiev, Ukraine 20 May 2011. Igor A. Efremov Vice President, JS CB RUSSLAVBANK (CJSC) (Russia). - PowerPoint PPT PresentationTRANSCRIPT
III international conference on
“Markets for money transfers,
bank metals and cash currency”
International Money Transfers and Payments system CONTACT
– innovations and development
Kiev, Ukraine
20 May 2011
Igor A. Efremov
Vice President,
JS CB RUSSLAVBANK (CJSC) (Russia)
www.russlavbank.com
www.contact-sys.com
• general banking licence No 1073 dated 05.12.1990.
• being a universal bank, it has all licences issued by the Bank of Russia.
• over 2,100 operating correspondent LORO accounts.
• was twice awarded by Deutsche Bank for the quality of settlements
“USD STP Excellence” (2005-2009) and “EUR STP Excellence” (2009).
• one of the largest participants of SWIFT in Russia, member of the
RosSWIFT Committee.
• participant of SWIFT Workers’ Remittances Users’ Group (WRUG).
• the only Russian bank that is certified to prove compliance with
requirements of SWIFT Worker’s Remittances live services.
• in 1999 established the CONTACT international Money Transfers and
Payments system that is based on the correspondent banks network.
• As at today CONTACT is the oldest and largest in Russia network of
bank outlets which provide the money transfer service.
• The quality management system of the CONTACT Clearing Center fully
conforms to the international standard ISO 9001:2008.
JS CB RUSSLAVBANK (CJSC) is the organiser
and the Clearing Center of the CONTACT
system
Global money transfer marketGlobal money transfer market
Trends in the major financial flows in the world
Money transfers show the most stable dynamics
Source: World Development Indicators (September 2010), Global Economic Monitor, Migration and Remittances Factbook 2010
Foreign direct
investments (FDI)
Indebtedness of natural persons
and investment portfolio
Official Development
Assistance (ODA)
Volume of money
transfers in the world
in billions of USD
Weight of money transfers for Weight of money transfers for economy of developing countrieseconomy of developing countries
Top-10 countries of the world by the volume share of received transfers in GDP
Источник: Migration and Remittances Factbook 2010
% o
f G
DP
, 2
00
9
Money transfers make a notable contribution to the economy of developing countries
Money transfer market Money transfer market – – Servicing institutionsServicing institutions
Banks
Network banks
International banks
Local remittance companies
Mails Mail alliances
International remittance companies
Retail money transfers area
1999 is the first year of CONTACT operation.To date, there are 17 money transfer systems in Russia.
Money transfer systems Money transfer systems – – keys to successkeys to success
$
Cu
stom
er
valu
e o
f p
rod
uct
Geog
rap
hy
of
pre
sen
ce
Inn
ovati
ve
tech
nolo
gie
s
Str
ate
gic
part
ners
Financial success, popularity of the brand
System organising team (business, IT, marketing, attraction, support, settlements)
Keys to success Keys to success ––Customer value of the “Money transfers” Customer value of the “Money transfers”
productproduct
For partnersFor consumers(individuals)Product
features
Product line
Service availability
Registration time
Delivery time
Market tariffs
Participants’ profit
Over 1200 CONTACT payment products
Product line extension
Keys to success Keys to success ––Customer value of the “CONTACT Money transfers” Customer value of the “CONTACT Money transfers”
productproduct
from 199
9
from 2004
from 2007
Cross-border payments
Payments within Russia
Money transfers between
individuals
cash-2-cashcash-2-accountaccount-2-cash
mobile communication and Internet providersloan repaymentelectronic ticketingothers mobile communication and Internet providersloan repaymentcrediting to bank accountsothers
Unified technology platform CONTACT
Product line extension
«CONTACT-ACCOUNT» Money transfers to be credited to accounts
of individuals in any bank of Russia, the USA and Europe
Keys to success Keys to success ––Customer value of the “CONTACT Money transfers” Customer value of the “CONTACT Money transfers”
productproduct
Country
Russia
Transfer currency fast beneficial convenie
nt
USA
European countries*
RUB
USD
EUR
within current banking day
up to 24 hours
up to 24 hours
-indicate the bank code and the customer’s account number
- without commission of intermediary banks
- use of CONTACT’s standard software* Austria, Belgium, Bulgaria, Great Britain, Hungary, Guadeloupe, Germany, Greece, Denmark, Ireland, Spain,
Italy, Cyprus, Lithuania, Luxemburg, Mayotte, Malta, Martinique, Monaco, the Netherlands, Norway, Poland, Portugal, Réunion, Rumania, San-Marino, Saint Pierre and Miquelon, Slovakia, Slovenia, Finland, French Guiana, Czech, Switzerland, Estonia
+ 60 RUB
0.67%0.7%
0.5%
0.5%
Customer’s commissio
n
Your commissio
n
Ecosystem CONTACT
Product line extension
Keys to success Keys to success ––Customer value of the “CONTACT Money transfers” Customer value of the “CONTACT Money transfers”
productproduct
Offices
Distributors
Self-service terminal
s
Offices
Offices
Offices
Agents
Self-service terminal
s
Banks
Payment
agents
Mails
Remittance
companies
Financial settlements
Information flows
Call-Center, consultancy
and investigation
Banks-Loan repayment- account replenishment
Legal entities –non-bank institutions
Clearing Center
Providers
Ind
ivid
ual c
usto
mers
Keys to success Keys to success – – Geography of presenceGeography of presence
The main tasks the organisers of money transfer systems have to tackle:
• Expansion of geography of presence,
• Increase in the market share in the key corridors,
• Condensing the network in the major sendign and receiving countries,
• “Step-by-step availability” of the service.
Keys to success Keys to success ––Geography of Geography of CONTACT CONTACT presencepresence
Number of participating banks Number of bank offices
CONTACT today
countries
RussiaCIS, Georgia,
BalticsNon-CIS states
7,700+ offices550 banks
11,000+ offices180 banks
80,000+ offices90 banks &companies
Russian banks
International banks and
companies
Bank offices in Russia
Bank offices abroad
The largest connections in Q1 2011
Q1 2011 – the network expanded by 36,000+ service offices
Keys to success Keys to success ––Geography of Geography of CONTACT CONTACT presencepresence
countries
PRC
Number of offices
Banks / companies
Spain
Spain
Italy
UAE
Market share in some strategic cross-border transfers corridors (Q4 2010)
to Russia from RussiaИз Европы Из стран БЗ* В Европу В страны БЗ*
Источник: РУССЛАВБАНК, Банк России, 2011
* NA – the near abroad (the CIS countries, the Baltics and Gergia)
Keys to success Keys to success ––Geography of Geography of CONTACT CONTACT presencepresence
from Europe from the NA*
to Europe to the NA*
Source: RUSSLAVBANK, Bank of Russia, 2011
Keys to success Keys to success – – innovative technologiesinnovative technologies
Innovations in the world: from practice to standards
The standartisation is a safe and proven method of enhancing the quality of innovative solutions and reducing their integration costs
Mobile payments
Innovative technologiesOrganisations that elaborate
standards and recommendations
New formats of interbank exchange of transfers of natural persons (Worker’s Remittances)
* Mobey Forum is a non-commercial international organisation aiming to create a stable and prosperous ecosystem of mobile financial services. The organisation unites world leading banks with the total number of customers of over 450 million people as well as providers of mobile payments and leading manufacturers of mobile and payment devices. The participants of Money Forum are such world leading retailing banks as ABN-Amro, Bank of America, BBVA, BNP Paribas, Danske Bank, Deutsche Bank, DnB NOR, Garanti bank, HSBC, ING Bank, la Caixa, Nordea, PostFinance, RBS, UBS, Rabobank.
Keys to success Keys to success – – innovative technologiesinnovative technologies
Step-by-step availability –ATM, self-service terminals
For individual customers – availability of service, variety
of ways to send transfers
For servicing institutions – standartisation and unification of interbank exchange formats
Service availability 24 x 7 x 365 –Internet-banking, Mobile Banking, Mobile payments/transfers
New formats of interbank exchange of transfers – SWIFT Worker’s Remittances
Unified XML message formats transmitted through WEB-service
Single technological platform CONTACT NG Technology – XML-platform that includes:• Web-service;• Front-office software for CONTACT NG banks;• API for integration of all CONTACT services into any ABS, ATM and serf-service terminal software, Internet and mobile banking.
Keys to success Keys to success ––
innovative technologies innovative technologies CONTACTCONTACT
Platform CONTACT NG is the technological base for the CONTACT ecosystem
Providers
CONTACT NG Technology application server
Individual customers
JS CB RUSSLAVBANK (CJSC) –Bank for settlements andthe CONTACT Clearing Center
CONTACT NG Technology integration
platform
CONTACT NG Technology integration
platform
AIS
CO
NTA
CT N
G
(fron
t-offi
ce)
AIS
CO
NTA
CT N
G
(fron
t-offi
ce)
CO
NTA
CT N
G
Tech
nolo
gy
inte
gra
tion
pla
tform
Own software
Own software
Ow
n
softw
are
Distributors’ offices
Remote bankin
g service
s
Self-service
terminals
Ways of sending payments (all-Russia NAFI survey, April 2011)
Keys to success Keys to success – – innovative technologiesinnovative technologies
Remote banking, e-money and bank agents provide the potential for growth
Источник: НАФИ, Апрель 2011
Internet bank
by e-money
From a mobile phone
by card via the Internet
at a store cash-desk
through mobile communication
salons
via mail
POS-terminals
bank outlets
Keys to success Keys to success –– strategic partners strategic partners
Distributors –high street banks and large remittance companies
Strategic partners Benefits for MTSs
Providers –banks and legal entities
Vendors –Banking software developers
Increase in the payment products number, clientele growth
Considerable increase in points-of-customer service
Reduction of costs for system services integration when connecting new participants and supporting the existing ones
Growth of cross-border transfers volume in the Russian Federation in Q1 2003
Keys to success and popularity of the Keys to success and popularity of the CONTACTCONTACT brand brand
Разы
CONTACCONTACTT
All systems
Источник: РУССЛАВБАНК, Банк России, 2010Source: RUSSLAVBANK, Bank of Russia, 2010
The bottom lineThe bottom line
1. The constant product line extension allows the System to attract new customer categories to offices of partner banks.
2. The expansion of geography of presence, increase in the market share in the key corridors, condensing the network in the major sending and receiving countries ensures the steady growth of the volume of CONTACT funds transfers.
3. Implementation of innovative technologies and integration solutions makes the System service much easier accessible to end-users, provides its availability 24 x 7 x 365 and allows to cut costs of executing operations for partner banks.
4. Successful and mutually beneficial cooperation with strategic partners – banks, service providers, software developing companies, remittance companies – gives good grounds for the dynamic growth and rapid technological re-equipment of the System.
RussiaRussia Ukraine transfersUkraine transfers: : positive dynamicspositive dynamics
Annual volume of money transfers from Russia to Ukrainein millions of USD
Источник: РУССЛАВБАНК, Банк России, 2011Source: RUSSLAVBANK, Bank of Russia, 2011
CONTACTOther systems
Q u e s t i o n s ?Q u e s t i o n s ?
Igor A. Efremov
Vice President,
JS CB RUSSLAVBANK (CJSC) (Russia)
www.russlavbank.com
www.contact-sys.com