SADC PAYMENTS INTEGRATION: OUR JOURNEY COMMENCES

Transcription

1 SADC PAYMENTS INTEGRATION: OUR JOURNEY COMMENCES IN THIS ISSUE Chairman s Welcome 1 A note from the Head of Secretariat 2 SADCBA mandate 3 Approach to Project Implementation 4 Do you know your IPL? 5 Progress thus far 6 CHAIRMAN S WELCOME The SADC Banking Association (SADCBA) is pleased to circulate this inaugural newsletter to the interbank community in the region. It is the beginning of a series of newsletters that will update the community on the SADC- BA s participation in the SADC Committee of Central Bank Governors (CCBG s) Payments Project. The Executive of the Association view this project as being both strategic and necessary for the advancement of banking in SADC. IT S ALL SYSTEMS GO AT THE SECRETARIAT As a member of and Secretariat for the SADCBA, the Banking Association SA is responsible for executing the SADCBA Payment Project. To effectively discharge the mandate provided by the CCBG we continue to work with our members to create the necessary governance frameworks, roles, and structures for the project. This newsletter provides insights on these aspects. Funding has been secured and resources retained to implement the project. Furthermore, a portal has been created to facilitate interaction and decision making. We are confident that these facilities will enable critical participation of all members to enable the SADCBA to implement a successful initiative. SADCBA MANDATE In support of regional financial integration, the CCBG s Payment subcommittee (PAYSYS) through the SADCBA, is providing commercial banks in SADC with the opportunity to inform the development of financial market infrastructure to support inter and intra-regional trade. Being in the cooperative (non-competitive) space, the focus of the SADCBA s interventions are defining payments instruments, business rules, and messaging standards in in the interbank space. We are keen that our efforts to harmonise translate to improved customer service, cost reductions, and efficiencies in the cross border payment environment. PAYSYS has given the SADCBA a specific mandate in the creation of a single SADC payments systems area in the region. The mandate is to: Set and implement regional standards Establish which payments instruments are appropriate Development of the regional instruments Promote the development of interoperable systems

2 APPROACH TO PROJECT IMPLEMENTATION For those readers not close to the SADC Payments Project the SADCBA identified 10 payment streams that needed to be worked on in the project. The payment streams are as follows: High Value Payments which are normally effected through a Real Time Gross Settlement System (RTGS) The cash leg of stock market trades, i.e. the P of the DVP in the delivery vs payment process The cash settlements of other financial market transactions such as Money Market instruments, Bond Market trades, inter-bank foreign exchange deals etc. Low value payments (normally processed in bulk) electronic funds transfer credits Direct debit (collections) in support of utility bill payments etc. ATM cross-border cash withdrawals Credit/debit cards issued to SADC card holders and used within SADC Cheques. A needs assessment for cross border purposes Bulk ordering and repatriation of bank notes Low value urgent transfers in support of person-toperson type transactions as well as other commercial type payments. Participating Associations have nominated In Country Payments Leaders (IPL) to coordinate activities in their respective countries. IPL s are accountable for project execution in each county and are responsible for developing the necessary governance frameworks to support project implementation. In addition to coordinating activities in each respective country, IPL s also lead an individual SADC payment stream. The IPL S have been very proactive in sourcing payment experts in their countries to sit on the payment stream work groups. Each country is encouraged to establish whatever forums they individually believe are necessary in country in order to ensure appropriate communication and decision making. Where existing structures are in place within a country they should be aligned with or be included. IPLS are encouraged to ensure that representation on the work streams and within in country is as wide spread as possible and that all banks in their respective countries are given an opportunity to participate. The diagram below provides a possible organizational structure countries could adopt: Work stream group meetings take place at least 4 times a year so as to ensure that all aspects relating to the payment streams are covered. IPL meetings are also held at least twice a year to deal with matters of a general nature and to ensure any matters that need to be escalated are dealt with appropriately.

3 DO YOU KNOW YOUR IPL? IPL s are the key contact points for project related queries in each country. SADCBA s IPL s are; IPL for Botswana Isang Itumeleng Linchwe Projects Manager Operations Stanbic Botswana SADC-BA P2P Work Stream Leader IPL for Swaziland Leonard S. Dlamini Nedbank Swaziland Limited Head of Operations SADC-BA Financial Markets Work Stream Leader IPL for Democratic Republic of Congo Christian Kamanzi Muhindo Executive Board Director RAWBANK DRC SADC-BA Cheque Work Stream Leader IPL for Lesotho Mohau David Masia Head of Operations Standard Lesotho Bank SADC-BA EFT Credit Work Stream Leader IPL for Zambia David Chewe CEO Banker s Association of Zambia SADC-BA ATM Work Stream Leader IPL for Zimbabwe Sijabuliso Thabani Biyam Chairman of Agribank SADC-BA CARD Workstream Leader IPL for Mozambique Camal Ussmane Daude Director de Gestao de Risco (Head of Risk) Standard Bank SA-Mocambique SADC-BA DVP Work Stream Leader IPL for Namibia Albert Mutonga Matongela First National Bank Namibia Limited Manager National Payments SADC-BA HVP Work Stream Leader IPL for Republic of South Africa Ghita Erling FNB Product Head for Global Transactional Services First National Bank Limited SADC-BA EFT Debit Work Stream Leader PROGRESS THUS FAR PROGRESS TO DATE Since officially launching the project in 2010, a considerable amount of time, money and effort have gone into progressing activities on the part of the SADC Banking Association. ROLES AND MANDATE A number of meetings have been held with the Committee of Central bank Governors Payments System sub-committee team in order to obtain the mandate for the SADC BA and clarify roles and responsibilities. At subsequent meetings the CCBG team have been provided with updates on progress and have been alerted to certain requirements the SADC BA members need in order to ensure appropriate commitment etc. In general terms it has been agreed that the CCBG will take care of all inter-bank settlement issues as well as all regulatory issues that will affect this project.

4 The SADC BA has the mandate to develop the necessary payment instruments SADC wide and to interface with the CCBG settlement infrastructure. FUNDING AND RESOURCING The specifics about funding and resourcing of the project are highlighted elsewhere in this publication. The SADC BA itself has put in place a small coordinating team and they have arranged the first wave of payment stream working group meetings. These were 2 day meetings and each work group was taken through the high level aspects of the project. The discussions then focussed on the likely activities each work group will need to deal with in order to meet the mandate provided by the CCBG.The groups evaluated and then signed off on their agreed terms of reference (TORS). Each group was given appropriate research topics to tackle before the second wave of meetings. The work groups are currently also considering the most appropriate business models for their respective streams and will be expected to provide guidance on the most appropriate direction the SADC BA should take when next they meet. PLANNING, WEBSITE PREPARATION AND DOCUMENTATION PRODUCTION The SADC BA coordinating team has organized the various work stream meetings that were based on an internal project road map that has been shared with the CCBG team. These meetings were supported by appropriate presentations and documentation prepared by the coordinating team. A portal has been developed on the SADC BA Website for IPLS and work stream members to access for their respective documents etc. MEETINGS WITH VARIOUS STAKEHOLDERS Besides the meetings with the CCBG team the SADC BA coordinating team have held meetings with many of the stakeholders depicted below in the diagram. These meetings were arranged in order to obtain guidance, commitment, clarification or to provide updates etc. Country visits have also been made to non-participating SADC countries in order to get engagement from them. So far it seems these meetings are bearing fruit. Mauritius will not be participating on this project at this stage.

5 ADOPTION OF ISO STANDARDS The SADC BA has agreed to adopt international standards wherever possible to ensure standardization of processes and interoperability within the region. To this end considerable time and effort has been spent on getting all SADC countries registered as observer members of the ISO technical committee responsible for financial standards, i.e. ISO TC 68. COMMUNICATION STRATEGY Each work group identified key stakeholders who should be informed about this project. The SADC BA has put together a suitable strategy to address all parties concerned (which includes the production of this newsletter) and has commenced auctioning the plan. CONFERENCE PRESENTATIONS Due to the high level of interest in this project the SADC BA has been invited to participate in and present at a number of relevant industry conferences YOUR SUPPORT TEAM AT THE SADCBA UPCOMING ACTIVITIES Second round of SADCBA work stream sessions: October 10th-19th 2011, RSA Juliet Kairuki Arthur Cousins SADCBA Board meeting: November 1st, 2011, RSA SADCBA meeting with PAYSYS: October 6th, 2011, RSA Lungi Mbambo Pat Adams Queries: pata@sadcbanking.org lungim@sadcbanking.org In the next edition, the focus will be on the High Value Payments Work Stream and related activities.