Transcript Document

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
www.russlavbank.com
www.contact-sys.com
Igor A. Efremov
Vice President,
JS CB RUSSLAVBANK (CJSC) (Russia)
JS CB RUSSLAVBANK (CJSC) is the organiser and the
Clearing Center of the CONTACT system
•
•
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.
Global money transfer market
Trends in the major financial flows in the world
in billions of USD
Foreign direct
investments
(FDI)
Indebtedness of natural persons
and investment portfolio
Volume of
money
transfers in
the world
Official
Development
Assistance (ODA)
Source: World Development Indicators (September 2010), Global Economic Monitor, Migration and Remittances Factbook 2010
Money transfers show the most stable dynamics
Weight of money transfers for economy
of developing countries
% of GDP, 2009
Top-10 countries of the world by the volume share of received transfers in GDP
Источник: Migration and Remittances Factbook 2010
Money transfers make a notable contribution to the economy of developing countries
Money transfer market –
Servicing institutions
Retail money transfers area
Local
remittance
companies
Banks
Network banks
International
remittance
companies
International banks
Mails
Mail alliances
1999 is the first year of CONTACT operation.
To date, there are 17 money transfer systems in Russia.
Money transfer systems – keys to success
$
System organising team
(business, IT, marketing, attraction, support, settlements)
Strategic partners
Innovative
technologies
Geography of
presence
Customer value of
product
Financial success, popularity of the brand
Keys to success –
Customer value of the “Money transfers” product
Product features
Product line
Service availability
Registration time
Delivery time
Market tariffs
Participants’ profit
For consumers
(individuals)
For partners
Keys to success –
Customer value of the “CONTACT Money transfers” product
Product line extension
from
1999
from
2004
from
2007
Money transfers
between
individuals
cash-2-cash
cash-2-account
account-2-cash
Payments
within Russia
mobile communication and Internet providers
loan repayment
electronic ticketing
others
Cross-border
payments
mobile communication and Internet providers
loan repayment
crediting to bank accounts
others
Over 1200 CONTACT payment products
Keys to success –
Customer value of the “CONTACT Money transfers” product
Product line extension
«CONTACT-ACCOUNT»
Money transfers to be credited to accounts
of individuals in any bank of Russia, the USA and Europe
Country
Transfer
currency
beneficial
fast
Customer’s
commission
within current
banking day
0.7%
Your
commission
0.67%
-indicate the bank
code and the
customer’s account
number
- without commission
of intermediary banks
Russia
RUB
USA
USD
up to 24
hours
0.5%
EUR
up to 24
hours
0.5%
European
countries
*
convenient
+ 60 RUB
- 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
Unified technology platform CONTACT
Keys to success –
Customer value of the “CONTACT Money transfers” product
Product line extension
Distributors
Clearing
Center
Providers
Offices
Individual customers
Selfservice
terminals
Banks
-Loan repayment
- account replenishment
Offices
Selfservice
terminals
Offices
Offices
Agents
Banks
Payment
agents
Financial
settlements
Information
flows
Mails
Remittance
companies
Call-Center,
consultancy and
investigation
Ecosystem CONTACT
Legal entities –
non-bank institutions
Keys to success – Geography 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 –
Geography of CONTACT presence
Number of participating banks
Number of bank offices
Russian banks
Bank offices in Russia
International banks and companies
Bank offices abroad
CONTACT today
Russia
7,700+ offices
550 banks
CIS, Georgia, Baltics
11,000+ offices
180 banks
countries
Non-CIS states
80,000+ offices
90 banks &companies
Keys to success –
Geography of CONTACT presence
The largest connections in Q1 2011
Banks / companies
countries
Number of
offices
PRC
Spain
Spain
Italy
UAE
Q1 2011 – the network expanded by 36,000+ service offices
Keys to success –
Geography of CONTACT presence
Market share in some strategic cross-border transfers
corridors (Q4 2010)
to Russia
from
Europe
Из Европы
from Russia
from
the БЗ*
NA*
Из
стран
Europe
ВtoЕвропу
the NA*
В to
страны
БЗ*
Источник: РУССЛАВБАНК, Банк России, 2011
Source: RUSSLAVBANK, Bank of Russia, 2011
* NA – the near abroad (the CIS countries, the Baltics and Gergia)
Keys to success – innovative technologies
Innovations in the world: from practice to standards
Innovative technologies
Organisations that elaborate
standards and recommendations
Mobile payments
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.
The standartisation is a safe and proven method of enhancing the
quality of innovative solutions and reducing their integration costs
Keys to success – innovative technologies
For individual customers –
availability of service, variety of
ways to send transfers
Step-by-step availability –
ATM, self-service terminals
Service availability 24 x 7 x 365 –
Internet-banking, Mobile Banking,
Mobile payments/transfers
For servicing institutions –
standartisation and unification of
interbank exchange formats
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 –
innovative technologies CONTACT
Platform CONTACT NG is the technological base for the CONTACT ecosystem
JS CB RUSSLAVBANK (CJSC) –
Bank for settlements and
the CONTACT Clearing Center
CONTACT NG Technology application server
Distributors’
offices
Remote
banking
services
Individual customers
Self-service
terminals
Providers
Own software
Own software
integration platform
Own software
CONTACT NG Technology
Technology
integration
platform
(front-office)
Technology
integration
platform
CONTACT NG
AIS CONTACT NG
(front-office)
AIS CONTACT NG
CONTACT NG
Keys to success – innovative technologies
Ways of sending payments (all-Russia NAFI survey, April 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
Источник: НАФИ, Апрель 2011
Remote banking, e-money and bank agents provide the potential for growth
Keys to success – strategic partners
Strategic partners
Benefits for MTSs
Distributors –
high street banks and large
remittance companies
Considerable increase in pointsof-customer service
Providers –
banks and legal entities
Increase in the payment products
number, clientele growth
Vendors –
Banking software developers
Reduction of costs for system services
integration when connecting new
participants and supporting the
existing ones
Keys to success and popularity of the CONTACT brand
Разы
Growth of cross-border transfers volume in the Russian
Federation in Q1 2003
CONTACT
All systems
Источник: РУССЛАВБАНК, Банк России, 2010
Source: RUSSLAVBANK, Bank of Russia, 2010
The 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.
Russia Ukraine transfers: positive dynamics
in millions of USD
Annual volume of money transfers from Russia to Ukraine
CONTACT
Other systems
Источник:
РУССЛАВБАНК,
Банк
России,2011
2011
Source: RUSSLAVBANK,
Bank
of Russia,
Questions?
www.russlavbank.com
www.contact-sys.com
Igor A. Efremov
Vice President,
JS CB RUSSLAVBANK (CJSC) (Russia)