Download Iraq - Viewpoint Learning

Iraq- Retail Payments Initiative
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% (Aug 2009 est.)
47%
Unbanked/underbanked
95%
Mobile network operators
GSM subscribers
4
20 M (69%)
The impact of nearly 3 decades of war and
sanctions in Iraq…
DoD- Economic Stabilization Task Force
Mission:
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 Solution
An integrated, Multi-Bank – Multi-Telco infrastructure enables banks to
cooperate on infrastructure and compete on costs & quality of customer service.
Integrated
Solution
Past
Central Bank of Iraq
Central Bank of Iraq
Telco
3PP
3PP
ATM
ATM
Mobile
Customers
Customers
- Banking Consortium
POS
Customers
Third Party Processor
(Outsourcing Vendor)
ATM
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.
POS
Mobile
Focus
of
Effort
Payment Channel Trade-off
Access
Cost Factors
Payment Channel Ranking
ATM
POS
Mobile Banking
Implementation
Costs
High Implementation
High
Costs
Medium
Low
Device Costs
High
Medium
None
Maintenance &
Licensing
High
Medium
Low
Physical
Infrastructure Costs
High
Medium
None
Contingent on Retail
Outlets
Contingent on Mobile
Penetration
Equal to Feasible
Retail Penetration
Equal to Mobile
Network Coverage
Number of Access
Point for Consumer
Branch Contingent in High
Density Urban Areas
Distance Relative to
Channel
Equal to Branch
Density
 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