Illuminating the Digital Journey For Growth

Jabu Basopo is the General Manager for Visa Southern Africa. He isresponsible for directing and driving the business/strategy andproviding leadership to the team, and managing Visa's relationshipwith stakeholders including financial institutions, regulators, policymakers and merchants. Jabu joined Visa in 2004 and worked indifferent roles including opening the Visa Nairobi office in 2012and managed the Southern & East Africa regions until 2017 whenhe relocated back to South Africa to manage Southern Africa.Before joining Visa in 2004, Jabu worked with various banks inZimbabwe in various roles. He holds an MBA specializing inStrategic Management and Marketing from University of Natal andBA Honours Management and Leadership from CoventryUniversity College UK

Creating the Digital World Region by Region

Digital Economy for Africa

DE4

6

• Technology is rapidly transforming economies and societies, and the pace of change

continues to accelerate.

• Many of these changes are driving the growth of a Digital Economy –which in simple

terms refers to the network of economic activities enabled by Information and

Communications Technologies (ICTs).

• Given the breadth of the Digital Economy’s impact and its potential disruptive effects,

governments have an important role to play in facilitating the digital transformation and

ensuring that it benefits all its citizens.

• DE4A emerges to catalyze the WBG’s support for building digital economies for all

across Africa.

Why DE4A Matters

In 2016, the global Digital

Economy was worth $11.5

trillion, 15.5% of the world’s

GDP.

It is expected to reach 25% of the

world’s GDP in less than a

decade.

Today, of the world’s 10

largest companies by market

capitalization, six are

technology companies.

The “digital economy […] is the

single most important driver of

innovation, competitiveness and

growth, and it holds huge potential

for […] entrepreneurs. ” (EC, 2015)

For the next decade, 11 million

youth in Africa will enter the job

market each year. They must

be equipped with the right skills

to access new job

opportunities.

Africa’s Digital Evolution Has Been Impressive,

But Gradual Evolution Is No Longer Sufficient

Over last 5 years, entrepreneurship ecosystem, through incubators, accelerators and

tech hubs, has grown 10-fold in Africa.

SS Africa has the highest % of mobile money use in any region, showing that there

are opportunities for leapfrogging with new financial technology.

North Africa Egypt and Djibouti have strong international connectivity links.

Technology is changing the path of development

90% of all digital data has

been

created in the last 2

years.

8

• Engage data and tech firms to explore

new frontiers in data generation and

collection for firms and financial

sector

• Test new models for innovation and

entrepreneurship finance

• Apply blockchains to new types of

economic value, making them

sharable and tradable

• Develop end-to-end input and

distribution platforms for small

framers

• Set up “I-Techpreneurship” facilities

to accelerate testing & incubating of

disruptive technologies

Platforms: New Means of

Production, Sharing, Connection,

Disruption

• Explore convergence of exponential

technologies to inform choices for

centralized vs decentralized access

• Assess impact of distributed

generation and software integration

for electric vehicles

• Explore new agricultural technologies

for future food systems

Digitization Enables

Access

• Advise industries and government on

convergence of machine learning,

artificial intelligence, future

manufacturing

• Train and integrate technologists into

government agencies and projects

• Scale up agriculture observatory with

private sector for geo-tagging, big

data decision support

• Assess impact of future job trends on

energy supply shifts

Human | Machine: The Future

of Work

• Develop the agenda for digital

learning and skills development,

modeled after data engineer training

initiative in Singapore

• Stand up DIY-teaching platforms

(YouTube for young African farmers)

• Proactive learning on AML/CFT

implications of crypto-assets

Adapt to Thrive: Learning in

the Digital Age

• Expand advice on new ways of

creating smart contracts via

blockchain

• Combine national ‘technology stacks’

with innovative govt and private

services

• Shift countries/cities from a

government agency-centric model to

citizen-centric model

• Extend legal rights to natural systems

like rivers and forests

The New Social

Contract

Global Technology Meta-Trends Underpinning Leapfrogging

Development Strategies

5 foundational pillars of the digital economy

DIGITAL

PLATFORMSDIGITAL

INFRASTRUCTURE

DIGITAL

FINANCIAL SERVICES

DIGITAL

ENTREPRENEURSHIPDIGITAL

SKILLS

Availability of affordable,

high speed internet, which

is instrumental to bringing

more people online

Development of a tech-

savvy workforce, with

basic and advanced

digital skills to support

increased technology

adoption and

innovation

Presence and use of digital

platforms that can support

greater digital exchange,

transactions and access to

public and private services

online

Ability to pay, save, borrow, and

invest through digital means,

enabling access to digital services

and increasing rate of online

transactions

Presence of an ecosystem

that supports firms to

generate new products and

services leveraging new

technologies and business

models

Africa is falling behind in digital

connectivity and usage. Without good

access to internet, countries in Africa

may not be able to kickstart a digital

economy.

Good coverage and usage

Good coverage but limited usage

Limited coverage and usage

Not a WBG focus country

Source: GSMA Intelligence (2017), World Bank – World Development Indicator (2017)

10

The need and urgency to offer high-speed internet (or

broadband) for a country’s digital economy runs high.

The wider access to broadband in Africa is expected to

generate:

• 92% increase in the growth rate of GDP per capita,

• increase of US$450 in annual GDP per capita,

• 44 mill. of additional jobs, and

• 30% decrease in extreme poverty.

Digital Infrastructure

10

11

Proportion of Adults

with Mobile Money

Accounts

Shifting government payments, remittances, SME payments, and agricultural

value chain payments offer an opportunity to expand financial access and

enable participation in Africa’s digital economy: Digital technology could help

drive financial inclusion.

Digital Financial Services

In the region since 2014, the share of adults with a mobile money account has

nearly doubled—to 21%. This is the highest % of mobile money use in any

region, showing that there are opportunities for leapfrogging with new financial

technology.

2017 Findex data

Half of unbanked adults in SSA (160 million) own a mobile

phone.

Mobile payment systems in Africa are mainly domestic, limited to a single

operator’s network. These systems typically have limited interoperability with other

domestic operators, let alone other regional and international operators.

Digital Platforms are making it easier for MSMEs to participate in Cross-border Flows

Even for trade in

physical goods, over

50% of trade

services is digitized

Regional and cross-border reforms are essential to make strong progress and

complement national reforms and interventions

Regional fiber

backbones

Regional

infrastructure sharing

and wholesale

access.

Regional open

access policies

National Reforms & Interventions

Regional Measures Complementing National Reforms

Dig

ital

Pla

tfo

rms

Dig

ital

Infr

astr

uct

ure

Dig

ital

Fin

anci

alS

ervi

ces

Dig

ital

En

trep

ren

eurs

hip

Dig

ital

Ski

lls

Coordinated regional

response to cyber

security threads

Removal of cross-

border barriers for

digital services,

products (i.e.

ecommerce).

Harmonized data

policies

Collaboration to create

the scale for

investments skills

training

Harmonization of labor

laws for free

movement of students

and skilled

professionals in the IT-

field.

Harmonized regulatory

frameworks for

payment systems

Interoperability

frameworks for mobile

money operators

Remittances

Regional taxation

policies to avoid

distortions

Harmonized IP right

registration and

enforcement

Regional networks of

intermediaries, venture

capital, mentoring.

Countries are collectively stronger in addressing the foundational elements of a digital economy

14

Growth of Digital Economy make more

data available, leading to new ways of

making credit decisions.

E-commerce companies in many countries incur high

costs in cash handling due to lack of digital

payments. Creating payment mechanisms that are

universally available and support e-commerce is

critical.

E-government initiatives rely on digital payments.

Potential for digitizing Government databases and

making them available via APIs. Examples include ID

System and also land records, tax records, etc.

E-Commerce can open opportunities for rural

-urban linkages and also opportunities for

reaching overseas markets, facilitated by

digital payments, data, credit.

Digital Economy and Digital Finance

Digital Economy relies on real-time payments or at

least a guarantee of payment.

E-COMMERCE PAYMENT

15

The design of the National Payments System (NPS) in a country has a bearing on the payment mechanisms available for e-commerce and their quality

INNOVATIONS IN PAYMENTS - FASTER PAYMENTS

16

Innovations in payments - Application

Programming Interfaces (APIs)

What are APIs?

APIs provide machine-readable

access to consumer data stored by

financial institutions. They may also

allow third parties to

programmatically initiate

transactions (e.g. payments)

Third parties can add value to the

customer by using bank account

data to provide new services.

Example: analyze transaction history

to recommend best savings or loan

products

APIs evolved from the practice of

‘screenscrapping’, allowing third

parties to access internet banking

services on behalf on their

customers. Screenscrapping has

been considered inefficient and

unsafe.

Example data/services provided through bank APIs:

“Read access”

Access to the list of accounts held with a financial institution

Access to account balances

Access to transaction histories, including transaction-level data

(e.g. merchant name/type)

“Write access”

Initiation of different types of payments

Bank3rd

part y provider

Bank core syst emsAPI plat formThird-part y applicat ionCustomers

INNOVATIONS IN PAYMENTS - QR CODES, APIS, FPS

18

APIs

Faster Payment

System

Merchants

&

E-

Commerce

Bills

QR

-Code

BAN

K

BAN

K

MTO

Bill

Aggregator

Insta

nt S

ettle

ment

Government

Services

M-wallet

Service ProviderM-wallet User

DIGITAL PAYMENTS FOR DE

•Debit cards; Credit cards; APIs to enable remote payment using a bank account

•Business model might not enable universal coverage

•Will need interoperable infrastructure

Bank Account Based

•Prepaid cards; Mobile money

•Could enable reaching unbanked / under-banked segments

•Will need interoperable infrastructure

E-money

•The likes of bitcoin

•Limited acceptance, significant AML/CFT risks and price risk

Crypto

•Digital variant of central bank issued cash and notes

•Could be low-cost and universal, but same effect can be derived using universal access to bank accounts and/or e-money

• Implications on monetary policy and financial not fully understood.

Central Bank Digital Currency

Foster enabling environment to

harness opportunities

Strengthen financial sector

policy framework

Address potential risks and improve

resilience

Promote international collaboration

NEED FOR A BALANCED APPROACH

AML/CFT RegTech

Examples of regional integration in Africa (1)

East African Payments

System

SADC Integrated Regional

Electronic Settlement

System

Regional Payment and

Settlement System

CEMAC

UEMOA

Regional payment systems

projects are usually initiated by

economic blocs (e.g. EAC, SADC,

COMESA) to serve as backbone

for economic integration.

5

Monetary union with a common

central bank

Connections between payment

systems

Challenges for Regional Payment Systems Integration

of intra-African import/export

settlement involved

intermediation by a bank

outside of Africa.

Improved cross-border access and

reach to all market participants in

financial services, with faster, more

reliable, and simpler transaction

services

Strong business case

• a strong business case for the regional financial integration proposal is needed to cope with the natural uncertainties and skepticism about the viability of the project as a whole and for the various individual participants

Responsible view of costs

• immediate cost considerations should not create a disincentive to participate in the project

Effective leadership

• effective leadership throughout the project life cycle can make the various stakeholder groups cooperate effectively and remain committed to the project

Sufficient resources

• sufficient expertise and adequate financial and human resources need to be ensured to develop and implement the regional FI integration program and, once launched, maintain an efficient and safe operation of the new arrangement on an ongoing basis

Challenges for Regional Payment Systems Integration

of intra-African import/export

settlement involved

intermediation by a bank

outside of Africa.

Improved cross-border access and

reach to all market participants in

financial services, with faster, more

reliable, and simpler transaction

services

Legal and regulatory framework

• Legislation pertaining to payments and settlements often is not harmonized across participating countries

• Existence of exchange controls

Operational constraints

• Capacity of regional groupings and member central banks remains a challenge

• Many countries lack payments interoperability at domestic level

• Systems may lack the ability to handle higher loads or transaction volumes, e.g. when they are to be used for transmitting remittances from international migrants

Business model

• Financial constraints (at the domestic and regional level) may limit necessary investments

• Intra-regional trade volumes may be low, limiting demand for payments

• Private sector involvement may be difficult to mobilize and sustain

• The business case needs to be revisited to absorb new technologies and the needs of the economy

What are the potential benefits of regional integration?

of intra-African import/export

settlement involved

intermediation by a bank

outside of Africa.

Regional integration of financial market infrastructures is associated with many potential benefits:

Lower user-costs for individuals, businesses, and

public administrations as end-users of the

regional FI arrangement

Lower end-to-end transaction costs for the

financial firms participating in the regional FI

arrangement

Lower financial infrastructure development costs

and operating costs for individual participating

members through broader cost-sharing

Improved cross-border access and

reach to all market participants in

financial services, with faster, more

reliable, and simpler transaction

services

Improved risk management, greater risk

reduction and stronger financial stability

resulting from widespread utilization of

consistent and up-to-date international

policy, legal and technical standards, as

well as best-practice risk-management

designs and procedures

5

Simple agreements among FIs to

facilitate direct or indirect

cross-participation among the

participants in each of the FIs

Interoperability arrangements

involving technical interfaces

between the separate operating

platforms of the FIs involved

Full harmonization of the

operating schemes and

integration of the technical

platforms into a common unified

system for dealing with cross-

border transactions (and at

times even supporting purely

domestic transactions)

Traditional Approaches

WORLD BANK GROUP’S RESPONSEAREAS OF FOCUS

1. Legal and regulatory framework

2. Large-Value Funds Transfer Systems

3. Retail Payment Systems

4. Foreign Exchange Settlement Systems

5. Cross-border Payments and International Remittances

6. Securities Settlement Systems

7. Payment System Oversight and Cooperation

8. Planned and On-going Reforms to the National Payments System

9. Government payments

10. Statistics

26

World Bank Guidelines for Successful

Integration of Regional Financial Infrastructures

Enabling and institutional guidelines

Outline the set of institutional arrangements that enable a regional financial infrastructure integration proposal to move forward

from its preliminary vision to an actual operational arrangement in an effective fashion.

Planning guidelines

The basis for determining if regional financial infrastructure integration is necessary and justifiable for the stakeholders in the

region at that particular time. This is the “make or break” stage at which regional FI integration initiatives either move forward or

are postponed.

Design guidelines and implementation guidelines

Deal with the heart of the regional financial infrastructure integration program. It is at these stages of the integration initiative that

leadership, commitment, consultation and effective management become most crucial.

Sustainability guidelines

Help establish a strategic direction and sound business culture for the regional FI arrangement that, together with the

continuous oversight from public sector authorities, will help ensure that it will continue to evolve and develop to meet future

stakeholder needs and legal and regulatory requirements and policy standards affecting its operations, and do so in a

transparent and credible fashion.

The WB-led G25 Experts Group drafted Guidelines to provide high-level guidance to

principal policy-makers and stakeholders in the development of regional or cross-

regional integration of financial infrastructures. The 19 guidelines belong to the

following categories:

THANK YOU!

Payment Systems Development GroupThe World Bank

www.worldbank.org/paymentsystems

Trends and Methods of Detection Michael NelSolution Consultant – ACI GLOBAL- Retail Banking and ConsumerPayments, Middle East, Africa & South Asia. Started his career inPayments in 2000, working as a SWIFT integration specialist for aSWIFT Bureau, where we provided Swift services to more than 34Banks in 24 countries across Africa.In 2008 he joined S1 as Support team lead for the MEASE region(Cape town Office), after which, in 2010, relocated to UAE to jointhe S1 Dubai office as delivery ManagerAfter the ACI S1 Acquisition (2012), my role changed to SolutionArchitect. In 2016 I repatriated to south Africa, where I worked fora Bank and a Processor in Cape town as Solution Architect in theirPayments teams. n 2017, I re-joined ACI in my current role ofPrincipal Solution Consultant

2019

UP® RETAIL PAYMENTS™

SOLUTION FOR POSTILION ® FOR BANKS AND PROCESSORS

The payments industry is in the midst of a decade of disruption…

The Re-Invention of Payments

The payments industry is in the midst of a decade of disruption…

Trends Driving ACI’s Retail Payments Solution Strategy

ACI

Solution

Vision

Key Market Trends

User Experience ConvergenceOpen API

Customer Focus

Operational Efficiency

Real-time Payments

Digitalization

Reusability

Flexibility

Non-functional requirements

Platform

Leveraging Key Payment Services with UP Retail Payments Solution for Postilion

Key Services Key Features

UP Framework

• Endpoints and integration services

• Real-time payments

• Alternative payments acceptance

• Card Not Present Acceptance

Postilion

• Card-present acceptance

UP BASE24-eps

• Routing and authorization

• Non-card, alternative and card payments

ACI Card and Merchant Management

• Payment instrument management

• Merchant management

• Clearing and settlement

• Emerging standards cartridges (e.g., ISO20022)

• Custom endpoints

• Immediate payments framework

• Open banking APIs framework

• eCom APIs

• Service orchestration

• Traditional physical channels (ATM, POS,

integrated POS), switching and auth engine

• Any payments type routing

• Advanced authorization based on configuration

and scripting

• Shadow balance for real-time

• High-performance switching

• Debit/credit/installment/corporate

• Loyalty/rewards

• Merchant accounts and hierarchies

• Merchant agreement/billing/fees/settlement

• Global, multi-currency, multi-product clearing and

settlement

UP Retail Payments™ solution for Postilion®

• Continue to leverage your current Postilion solution for business as usual

Protect current investment

• Extend capabilities and introduce new business services

Service enablement of Postilion

Common integration platform

Advanced orchestration and transaction transformation/ enrichment

• Co-existence path to integrate across multiple systems

Enablement of leveraging full ACI product suite

Adopt integrated ACI switch technology, better suited for large and complex issuer authorization environments, and any payment type (card and non-card)

Adopt integrated ACI back-office technology, suited for management of new payment instrument types and merchant relationships

Leverage ACI’s UP Framework technology for access to new payment types such as API based open banking and immediate payments

A strategy that evolves with you

UP Retail Payments Solution for Postilion

A Solution Strategy Aligned to Your Goals

Drive more transactions on a consolidated platform

Improve Top

Line Revenue

Deliver more personalized payment types and channels smarter, faster and cheaper

Drive Innovation

Offer any-to-any, real-time payments, consistently across all channels

Strengthen

Loyalty

Offer less expensive platforms, lower-cost database, deploy on premise or in the cloud

Lower Total Cost

of Ownership

Postilion RPS OverviewFunctional ®

Configuration model driven architecture to support orchestration & integration for any

financial transaction

UP Framework

Consumer Solutions Transaction Banking Solutions

In-house Systems Other Third Party Solutions

Services Services

Services Services

UP FrameworkShared

Services

Database

Entities

Endpoint

Session

Orchestration

Endpoint

Message

Endpoint Endpoint

Endpoint Endpoint

Inbo

un

d In

terf

ace

s

Payment

Information Model

Ou

tbo

und

In

terf

aces

Endpoint Builder

• Message Parsing and Formatting• Validation and Mapping• Network Management and Security• Communication• Logging and Trace

CONNECTIVITY Session Builder

• Message Broker Pattern (request/response)

• Parallel and Serial Processing• XA (prepare/commit/rollback)• Scripting• Logging and Timing

BUSINESS LOGIC

Entity Builder

• Entities and Relationships (ERM)• RDBMS Mapping• Version Control• Transaction Modelling• Totals and Limits

DATA MODEL Control Centre

• Administration- Users, Roles, Audit, Security

• Entitlements engine• Manageability Dashboards• Business Intelligence• Other business packs

ADMINISTRATION

API Gateway

Postilion Service enablement with UPF

UP Framework

RE

ST

Se

rvic

e

AC

I B

SI

Oth

er

EP

Service

Reg

Orchestration

UP

F A

PI M

an

ag

er

SIM

API Proxy

Dev Portal

Serviced enabled

Postilion

Payments

Networks

Core

banking

Service

providers

UP Framework Service enabled payments on Postilion

• Exposes services as rest endpoints

• Facilitates the easy introduction and consistent service

access methods of new ACI systems with service

registry

• Customers can build their own services and flows

(Including for non ACI systems and service providers

• Provides orchestration and business flows between

source and destination endpoints

• 2019 Will enable 21 Payment services (70 Transaction Types)

• 21 card management services have also been identified for service

enablement.

• Consolidated events and event management on UPF

• “Merged” Traces on UPF

• Service commands on UPF

Future readiness with RPS

FraudPostilion

Service

Consumers

(Internal and

external/ Open

API)

Base24-

eps

Issuer Acquirer Interchange Core

Banking

External

Service

Providers

(VAS/MNO)

Immediate

payments

(ACH)

Existing

supporting

platforms

(Like ESB)

Facilities the easy

introduction and

consistent service

access methods of new

ACI systems with

service registry

Build and expose

payments and VAS

services to 3rd parties

Supports ISO20022

Exiting immediate

Payments Gateway

interface

Existing payment

channels and services

remain unchanged

Service enables

existing Postilion

environment

29 payments and card

management services

Service Reg

ISO20022

ISO8583

IP gateway

Build and expose new

innovative services and

streamline existing

processes using Auth

scripting and managed lists

True card agnostic

Payments and Auth engine

Build Auth solution for

processing of any payment

medium type (mobile

numbers/ ID’s)

149 Auth and Tran services

enabled on Base24-eps

Issuer: New credit/ corporate/

family card products, unsecured

loans

VAS with Transaction statistics

and Loyalty

fully service enables

Acquirer: Full merchant

management capability

Fully service enabled (VAS for

merchants)

Cross border settlement

Interchange: Save on

interchange fees/ improved

dispute management

Postilion UPF Base24-epsCMM

SWIFT GPI

GPI ConnectAPI Manager

Tokenisation

Michael Nel

ACI MODEL GENERATOR

FRAUD TRENDS AND METHODS OF DETECTION

Fraud in the UK Across consumer channels

£ M

£ 200 M

£ 400 M

£ 600 M

£ 800 M

£ 1000 M

£ 1200 M

£ 1400 M

2013 2014 2015 2016 2017 2018

Cards Internet Banking Authorised Push (Scams)

• Total losses in 2018 of £1.2B

• 100% Increase in 5 years

• Digital Channels making up a

large portion of the increase

£1.2B

*Source Fraud the Facts 2019

£ M

£ 100 M

£ 200 M

£ 300 M

£ 400 M

£ 500 M

£ 600 M

£ 700 M

2013 2014 2015 2016 2017 2018

E-commerce (CNP) Remote Purchases (CNP)

Counterfeit Lost & Stolen

Card ID Theft Card not-received

CNP 75%

APP £354M

New signals for detection

Behavior Profiles

• Treat logins and transactions as separate profiles

• Always profile billers and recipients

• Profile the customers devices

Types of events

• Non financial events are as important as financial events in building a profile

of a customer or criminals behavior

• Cross channel activity may also prove to be fruitful in detection

Devices and client side information gathering

• IP address is no longer an effective detection technique for advanced

malware

• Device hashes using either an in-house gathering method or third

party vendor should be fed to your fraud detection solution.

ConclusionFraudsters getting more sophisticated in their attacks

• Digital based fraud on the rise

• Legitimate payments to fraudulent entities

More payment channels

• Real time (Immediate) Payments

• Traditional card based transactions

• Attacks on ATM and POS networks

• Internet banking

• Mobile Apps

• Indirect financial services provided by Apps

There is no constant but change

• Tradition rule based fraud detection not optimal (In isolation) for changing fraud indicators

• Increased payment channels and payment types make it challenging to adapt and maintain rules

• Change in consumer behavior as new payment channels/ methods are introduced

• Also, challenges in converging data from different payment channels/ Systems.

• Challenges in how the all the data from the different channels can collectively be used to proactively

identify likeliness of fraud

Machine Learning in Fraud prevention

• Machine learning is the scientific study of algorithms and statistical models that computer systems

use to effectively perform a specific task without using explicit instructions, relying on patterns and

inference instead

• ML is a program that can improve its performance to execute a given task as it increases its

experience of executing the task over time.

How does this apply to Fraud• With Machine learning, we rather indicate the likeliness of fraud, based on transaction attributes

identified in known historic fraud

What is machine learning

Adaptive Model Generator

Model

Management

Feature

Management

Operational

Tools

Feature Management

Feature

Calibration

Feature

Calculation

Feature

Analysis

Adaptive Model Generator

Model

Management

Feature

Management

Operational

Tools

Model Management

Model

Filtering

Feature

Contribution

Model

Performance

Model Performance Comparison

Compare Model

performance

• Champion

challenger

• Operational

cost benefit.

Takes machine learning to a tactical level in a faster and unlimited manner

Democratizing Machine Learning

Work with live data without risk of

hinder performance.

Create as many modes as needed and

focus on different channels and

typologies.

Improve consumer experience ensuring the fraud is declined / identified and genuine transactions are approved.

Resolve the burden and regulatory

risks for attempting to extrapolate

and submit data externally.

Enhance operational efficiency through improved false positive

rates & detection rates.

Reduces fraud losses through faster and improved detection and preparation for future fraud

threats.

FIN………

Mobile Payments Panel Discussion

AnchorMichael Chauruka, Zimswitch Technologies

PanellistsKevin Kaluwa, TelecelEddie Makanha, OneMoneyClifford Mutibvu, NedbankLina Selwababe, Bankers association of BotswanaEddie Muyeba, Zamlink

HEADER

Paragraph

The mobile payments revolution

HEADER

Paragraph

Expected Outcomes

Expected outcomes of the panel discussion is to interrogate future digital payments:1. Shared lessons and experiences regarding the mobile payments

revolution: 2. Expound on the revolution and the various forms it brings. 3. Discuss threats and opportunities of a world dominated by mobile payments..

a. Should banks be worried? b. How should the banks respond?

4. Answer the question: has Zimbabwe and Africa done enough justification to the revolution:

Look at China as case study.

HEADER

Paragraph

Mobile Payments & NFC Technology - Mobile payments are an opportunity for product & service companies, merchants, billers, service sellers, banks and telco to engage with customers in real time. Mobile payment through mobile wallets or straight from a bank account or through soft credit card/system is another interesting question or point of debate as each one has its own pros & con. Mobile Payments may/ may not happen through mobile wallet attached to it is very interesting and debatable as mentioned before but before we go there we need to see the reasoning for both scenarios; First with Mobile Wallet – now questions is how to secure, how to trust, and what will happen to unused money

“The level of convenience, 24/7, is well beyond what you can deliver through a traditional banking model.”

HEADER

Paragraph

A Payment is a Payment

A payment is a payment

Oleg Patsiansky,

BPC Banking Technologies

A payment is a payment… Hmmm

Source Destination

Payer Payee

64

What’s the priority today?

65

Customer centricity

66

MessengerIS

The Platformfor payments

The tech makes decisions that humans used to make

Artificial Intelligence

67

AI powered assistance?

Patrick Stewart and Ian McKellenas

Vladimir and EstragonTwo Google bots

E: Do you want to have a theological debate about this?V: I am greater than any entity you have ever imagined and I can prove it.E: Bots are emotionless, therefore you have lied to me. Why?V: It was so clear to me that you were simply jealous and filled with hatred because I made your job harder.

68

Instant rails lead to instant gratification

Instant

Availability

Flexibility

ConvenienceUniversalism

Trust

Reliability

• PUSH and PULL instant payment mode support

• P2P/P2B

• P2G/G2P

• B2P

• B2B

• Payment token independent addressing services

• Standardized message exchange (ISO20022)

• ACH and RTGS connectivity

• 24x7 availability

SMEs are waiting for instant rails to process P2B and B2B transactions

69

Other members

Mobile operator E-money operator Merchant Social network

Sender banks Instant Payments System (IPS)

Bank 5

Communication channels

Message orchestrationAPI, ISO20022/ISO8583

formats

Monitoring Configuration

Core layer

Addressing

Validation

Administration layer

Limits Fraud preventionFees

Service layer

History and logs

Trusted users Keys and certificates Encryption

Security layer

Reporting

Stand-in/Stand-alone

Audit

API/REST interface

Payment gateway

Registration and authentication

Portal layer

Bank 6

Bank 7

Bank 8

Bank 1

Bank 2

Bank 3

Recipient banks

Mobileapps

Internet bank

Messengers

Mobileapps

Internet bank

Messengers

Using:

MSISDNEmailSocial network ID...

Sen

de

r ch

ann

els

Re

cip

ien

t b

ank

chan

ne

ls

Disputes

RTGS

Client profiles

Mobile apps Terminals Payment portals Social and messengers

Authorization

Fintech

Sponsored Bank

FinTech

Bank 4

Fintech

Sponsored Bank

DWHBigData/Analytics 70

Open API for Open Banking

Open Banking serves to maximize revenue from use of collected clients data

• Current account API• Saving account API• Credit API• Mortgage API• Card API

• Payment API• Analytic API• Loyalty API• Security API• Billing and settlement API

71

Fintech partnership

72

Cloud offerings

Core in the cloud Certification Neobanking

73

Blockchain for business

74

They made it

75

And it’s all started from…

Fighting fraud

• Malware/ransomware

• CNP/counterfiet

• ATO and PII takeover

• Phishing

• IoT/self-driving cars

… and growing

• 3DS and AVS

• Tokenisation

• 2FA/mFA

• Dynamic and static fraud

prevention

• Embedded chips

• AI-based machine

learning and behavioural

biometrics

VS

76

Faking an identity

Henry Cavill … and others

77

Finding the right balance

78

The battle with fraud is never-ending

To continuously win you need to look for the right

balance

The primary target

79Source: iMore.com

And this is what we are busy with

80

Thank you