reducing cash transactions in Kosovo Project management group within - PowerPoint PPT Presentation

Fifth project management meeting for reducing cash transactions in Kosovo Project management group within the National Payments Council (NPC) 14 December, 2011 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 1.

Content • Approval of minutes from the last meeting (September 21 st, 2011); • Information and short presentation from the working group within the project management team for the reduction of cash payments (Akile, Boryana and Edmond) • Information / Presentation regarding MasterCard • Payment instruments and terminals - Kosovo compared to the countries in Southeastern and Central Europe (short presentation) • Next steps – conclusions CENTRAL BANK OF THE REPUBLIC OF KOSOVO 2.

1. Approval of minutes from the last meeting Mr. Robert Wright CENTRAL BANK OF THE REPUBLIC OF KOSOVO 3.

2. Information/ presentation from the working group CENTRAL BANK OF THE REPUBLIC OF KOSOVO 4.

3. Information/presentation regarding MasterCard About Master Card Bill Payments ( attach 1: for more information the presentations with 24 slides ) Mr. Robert Wright CENTRAL BANK OF THE REPUBLIC OF KOSOVO 5.

3. Information/presentation regarding MasterCard About VISA’S financial literacy programs - A Global View ( attach 2: for general information the presentations with 23 slides) Mr. Robert Wright CENTRAL BANK OF THE REPUBLIC OF KOSOVO 6.

4. Presentation: Payment instruments and terminals - Kosovo compared to the countries in Southeastern and Central Europe Gjylfidane Kadrijaj, Director Interbank Payment Systems Directorate Central Bank of the Republic of Kosovo CENTRAL BANK OF THE REPUBLIC OF KOSOVO 7.

Comparative table Czech Description Kosovo Slovenia Hungary Turkey Serbia Bulgaria Albania Bosnia Croatia Macedonia Montenegro Republic Population 2.1 2.05 10.02 10.51 73.3 7.38 7.54 3.19 3.77 0.62 4.42 2.06 (in million) ATM 415 1.814 4.843 3.742 27.649 2.857 5.718 771 1.098 - 3.794 869 POS 6.194 35.622 78.441 96.958 1.823.530 57.459 60.762 4.903 17.834 - 92.690 31.491 Credit 37.922 122.638 1.367.928 1.587889 46.956.124 936.008 992.428 27.300 - - 1.990.395 303.158 Cards Debit Cards 480.659 2.742.470 7.553.209 7.888.879 69.916.462 5.211.929 6.623.423 667.548 - - 6.846.034 1.048.180 Total Cards 518.581 2.865.108 8.921.137 9.476.768 116.872.586 6.147.937 7.615.851 694.848 1.663.466 - 8.836.429 1.351.338 E-Banking 55.292 - - - - - - 27.368 67.802 - 989.862 211.599 Accounts (per 1,000,000 people in 2010) Czech Description Kosovo Slovenia Hungary Turkey Serbia Bulgaria Albania Bosnia Montenegro Croatia Macedonia Republic ATM 198 885 483 356 377 387 758 242 291 - 858 442 POS 2.950 17.377 7.828 9.225 24.878 7.786 8.059 1.537 4.731 - 20.971 15.287 Credit 18.058 59.823 136.520 151.084 640.602 126.830 131.622 8.558 - - 450.316 147.164 Cards Debit Cards 228.885 1.337.790 753.813 750.607 953.840 706.223 878.438 209.263 - - 1.548.876 508.825 Total Cards 246.943 1.379.614 890.333 901.691 1.594.442 833.054 1.010.060 217.821 449.195 - 1.999.192 655.989 E-Banking 26.330 - - - - - - 8.579 17.985 - 223.951 107.572 Accounts BANKA QENDRORE E REPUBLIKËS SË KOSOVËS 8.

ATM Number of ATM terminals per 1,000,000 people in 2010 1000 885 900 858 800 758 700 600 483 500 422 387 377 400 356 291 300 242 198 200 100 0 Kosova Sllovenia Hungaria Republika Turkia Serbia Bullgaria Shqipëria Bosnia Kroacia Maqedonia Çeke * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 9.

ATM Annual growth of the number of ATMs in the last 3 years: 0.6 55% 50% 48% 0.5 44% 41% 0.4 37% 35% 0.3 22% 20% 2010 0.2 17% 15% 15% 13% 2009 12% 9% 9% 9% 8% 8% 7% 0.1 7% 2008 5% 5% 5% 5% 5% 5% 4% 4% 3% 3% 2% 2% 1% 0 -0.1 -0.2 -19% -0.3 * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 10.

POS Number of POS terminals per 1,000,000 people in 2010 30000 24,878 25000 20,971 20000 17,377 15,287 15000 9,225 10000 8,059 7,828 7,786 4,731 5000 2,950 1,537 0 Kosovo Albania Czech Turkey Serbia Slovenia Bulgaria Hungary Bosnia Croatia Macedonia Republic * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 11.

POS Annual growth of the number of POS terminals in the last 3 years: 0.7 63% 61% 59% 0.6 53% 48% 0.5 0.4 35% 34% 0.3 25% 22% 18% 2010 17% 0.2 13% 13% 12% 12% 11% 2009 11% 11% 10% 10% 8% 8% 7% 0.1 6% 6% 5% 5% 2008 2% 2% 0% 0% 0 -2% -3% -3% -0.1 -0.2 -0.3 -27% -0.4 * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 12.

Credit Cards Number of credit cards per 1,000,000 people in 2010 700 640.602 600 500 450.316 400 300 200 151.084 147.164 136.52 131.622 126.83 100 59.823 18.058 8.558 0 Kosovo Slovenia Hungary Czech Turkey Serbia Bulgaria Albania Croatia Macedonia Republic * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 13.

Debit Cards Number of debit cards per 1,000,000 people in 2010 1800000 1,548,876 1600000 1,337,790 1400000 1200000 953,840 1000000 878,438 750,607 753,813 800000 706,223 600000 508,825 400000 228,885 209,263 200000 0 Kosovo Albania Czech Turkey Serbia Slovenia Bulgaria Hungary Croatia Macedonia Republic * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 14.

Total payment cards Number of payment cards (both debit and credit) per 1,000,000 people in 2010 2500000 1,999,192 2000000 1,594,442 1500000 1,397,614 1,010,060 1000000 901,691 890,333 833,054 655,989 449,195 500000 246,943 217,821 0 Slovenia Hungary Czech Turkey Serbia Kosovo Bulgaria Albania Bosnia Croatia Macedonia Republic * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 15.

E-Banking accounts Number of E-Banking accounts per 1,000,000 people in 2010 250000 223950 200000 150000 107572 100000 50000 26329 17984 8579 0 Albania Bosnia Kosovo Macedonia Croatia * The data is taken from the central banks and other regulatory authorities CENTRAL BANK OF THE REPUBLIC OF KOSOVO 16.

Conclusions (1) • Kosovo started ‘developing’ its banking sector and payments infrastructure from scratch after the war in ’99, much later than the countries in the South-eastern and Central Europe. • The terminal infrastructure (ATM and POS) is growing at a faster rate than the average growth in the region. However, currently in terms of terminals per 1 million people, Kosovo has: – ATM : The fewest ATMS’s in the region ( 198), 4 times less than Slovenia and 2 times less than Macedonia – POS : The second fewest POS terminals in the region (2,950) • The number of payment cards is increasing, however Kosovo still lacks behind other countries in South eastern and Central Europe. Kosovo is ahead of only Albania regarding the number of payment cards per 1 million people. CENTRAL BANK OF THE REPUBLIC OF KOSOVO 17.

Conclusions (2) • Even the number of installed POS terminals in Kosovo is somewhat misleading, as many retail outlets have POS terminals from several banks. The installation of multiple terminals in a single outlet is necessary because there is no national electronic interbank card switch and clearing house and thus no special domestic interoperability arrangement between different banks’ networks (it should also be noted that the same applies to ATMs). The installation of multiple ATM terminals in a single spot, near the NEWBORN sign. CENTRAL BANK OF THE REPUBLIC OF KOSOVO 18.

Conclusions (3) • Lack of domestically-arranged interoperability or interconnection of card networks in Kosovo causes inefficiency. • CBK in collaboration with commercial banks and other stakeholders have prepared the Strategy for the development of National Payment System, which also deals with small value payments (pillar 3). The overall objective is to provide the economy with a broad range of safe and efficient payment services*. * The strategy is published in CBK official web site at: http://www.bqk-kos.org/?cid=2,59,306 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 19.

4. Questions, requests and proposals CENTRAL BANK OF THE REPUBLIC OF KOSOVO 20.

Thank you National Payments Council http://www.bqk-kos.org/?cid=1,59,55 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 21.