Seventh project management meeting for reducing cash transactions in - PowerPoint PPT Presentation

Seventh project management meeting for reducing cash transactions in Kosovo Project management group within the National Payments Council (NPC) 26 June, 2012 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 1.

Content • Approval of minutes from the last meeting (January 30 th 2012); • Updates from Visa and MasterCard • Payment instruments and terminals - Kosovo compared to the countries in Southeastern and Central Europe ( data published by 20 June 2012 ); • Information about the activities of the sub-working group ( including PSD/CBK activities in this regard); • Others 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 . Updates from Visa and MasterCard Visa - Biljana Petrusevska-Trajkovska - "I would like to inform you that we were able to secure a budget of US$ 10,000 to be used next year. The working group in Kosovo concluded at the last meeting that the educational web site is the most interesting solution. I would like to suggest investing the funds in developing a local web site by local resources. Visa can help with providing the content." MasterCard - Cyril Ghanem - "We would be happy to run a project with the banking community in Kosovo, as long as it helps growing our market share in the country. If you have some metrics to share, that would help us in quantifying and sizing the opportunity." CENTRAL BANK OF THE REPUBLIC OF KOSOVO 4.

3 . Instruments and terminals - Kosovo compared to the countries in Southeastern and Central Europe (data published by 20 June 2012) Gjylfidane Kadrijaj, Director Payment Systems Department Central Bank of the Republic of Kosovo CENTRAL BANK OF THE REPUBLIC OF KOSOVO 5.

Comparative table Czech Nr Description Kosovo Albania Turkey Serbia Slovenia Bulgaria Hungary Bosnia Montenegro Croatia Macedonia Republic 1 Population 2.1 3.19 10.54 73.73 7.38 2.05 7.54 9.74 3.77 0.62 4.42 2.06 2 Size (km^2) 10,887 28,748 78,865 783,562 77,474 20,273 110,879 93,028 51,197 13,812 56,594 25,713 3 Density (per km^2) 193 111 134 94 95 101 68 105 74 45 78 80 4 ATM 460 805 4,082 32,462 2,830 1,845 5,792 4,907 1,202 311 3,975 876 5 per 1 million people 219 252 387 440 383 900 768 504 319 502 899 425 6 per 100 km^2 4 3 5 4 4 9 5 5 2 2 7 3 7 POS 7,534 5,126 77,651 1,976,843 58,012 34,167 64,425 84,678 18,589 10,131 100,012 33,435 8 per 1 million people 3,588 1,607 7,367 26,812 7,861 16,667 8,544 8,694 4,931 16,340 22,627 16,231 9 per 100 km^2 69 18 98 252 75 169 58 91 36 73 177 130 10 Credit Cards 74,873 37,893 2,858,390 51,360,809 969,806 1,544,161 978,546 1,230,544 180453 50,897 1,983,188 290,638 11 per 1 million people 35,654 11,879 271,194 696,607 131,410 753,249 129,781 126,339 47,866 82,092 448,685 141,086 12 Debit Cards 548,253 693,958 7,455,017 81,879,926 5,270,241 2,502,526 7,007,157 7,680,693 1480855 303,630 7,062,580 1,098,800 13 per 1 million people 261,073 217,542 707,307 1,110,537 714,125 1,220,744 929,331 788,572 392,800 489,726 1,597,869 533,398 14 E-Banking 68,990 37,138 - - - 701,311 - - 94,339 27,230 1,253,171 306,981 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 6.

ATM Number of ATM terminals per million people in 2011 and 2009 (below) 900 899 768 504 502 440 425 387 383 319 252 219 Slovenia Croatia Bulgaria Hungary Montenegro Turkey Macedonia Czech Serbia Bosnia Albania Kosovo Republic 875.49 814.71 725.60 475.81 473.85 407.84 368.97 359.42 339.96 320.21 234.49 161.43 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 7.

ATM Annual growth of the number of ATM’s in the last 3 years: 50% 41% 22% 17% 15% 15% 11% 9% 9% 9% 9% 9% 8% 7% 7% 5% 5% 5% 5% 5% 4% 4% 5% 4% 4% 3% 3% 2% 2% 2% 1% 1% 1% 1% Slovenia Hungary Czech Turkey Serbia Kosova Albania Bosnia Croatia Macedonia Bulgaria Montenegro -1% Republic -19% 2011 2010 2009 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 8.

POS Number of POS terminals per million people in 2011 and 2009 (below) 26,812 22,627 16,667 16,340 16,231 8,694 8,544 7,861 7,367 4,931 3,588 Turkey Croatia Slovenia Montenegro Macedonia Hungary Bulgaria Serbia Czech Bosnia Kosovo Republic 23,147 19,413 18,000 15,415 11,616 8,002 7,884 7,402 7,082 4,313 2,500 1,383 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 9.

POS Annual growth of the number of POS terminals in the last 3 years 53% 48% 35% 25% 22% 22% 22% 18% 17% 16% 12% 11% 11% 10% 8% 8% 8% 8% 8% 7% 6% 6% 6% 5% 5% 4% 2% 2% 1% 0% 0% Slovenia Hungary Czech Turkey Serbia Kosova Albania Bosnia Croatia Macedonia Bulgaria Montenegro -2% -3% -3% Republic -4% -20% 2011 2010 2009 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 10.

Credit Cards Number of credit cards per million people in 2011 and 2009 (below) 753,249 696,607 448,685 271,194 141,086 131,410 129,781 126,339 82,092 47,866 35,654 11,879 Slovenia Turkey Croatia Czech Macedonia Serbia Bulgaria Hungary Montenegro Bosnia Kosova Albania Republic 593,484 462,584 150,243 146,230 138,556 139,332 91,831 92,457 60,201 15,004 7,546 Albania Kosovo Slovenia Montenegro Macedonia Serbia Bulgaria Czech Hungary Croatia Turkey Republic * The number of credit cards for Slovenia is taken from the web site of Bank of Slovenia. Soon we will have the reasons for the high differences compared to previous years. CENTRAL BANK OF THE REPUBLIC OF KOSOVO 11.

Debit Cards Number of debit cards per million people in 2011 and 2009 (below) 1,597,869 1,220,744 1,110,537 929,331 788,572 714,125 707,307 533,398 489,726 392,800 261,073 217,542 Croatia Slovenia Turkey Bulgaria Hungary Serbia Czech Macedonia Montenegro Bosnia Kosova Albania Republic 1,468,136 1,280,052 879,471 864,464 743,255 725,158 676,402 514,315 500,672 241,619 171,880 Albania Kosovo Macedonia Montenegro Serbia Hungary Czech Turkey Bulgaria Slovenia Croatia Republic CENTRAL BANK OF THE REPUBLIC OF KOSOVO 12.

Total payment cards Number of payment cards per million people in 2011 2,046,554 1,973,994 1,807,144 1,059,112 978,502 914,911 860,513 704,051 571,818 440,665 319,053 229,420 Croatia Slovenia Turkey Bulgaria Czech Hungary Serbia Macedonia Montenegro Bosnia Kosova Shqipëria Republic CENTRAL BANK OF THE REPUBLIC OF KOSOVO 13.

E-Banking accounts Number of E-Banking accounts per million people in 2011 and 2009 (below) 342,103 283,523 149,020 43,919 32,852 25,024 11,642 Slovenia Croatia Macedonia Montenegro Kosova Bosnia Albania 250000 207,921 200000 145,546 150000 100000 50000 29,282 19,488 13,793 4,758 0 Albania Bosnia Kosovo Montenegro Macedonia Croatia CENTRAL BANK OF THE REPUBLIC OF KOSOVO 14.

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 (219), 4 times less than Slovenia and 2 times less than Macedonia; POS : The second fewest POS terminals in the region (3.588) 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 15.

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). CENTRAL BANK OF THE REPUBLIC OF KOSOVO 16.

4. Information about the activities of the sub- working group ( including PSD/CBK activities in this regard) CBK has adopted the amendments of the Direct Debit scheme regarding the signing of the authorization in the bank; Adoption of regulations for the web service for DD; The following companies joined the DD scheme: a) KRM Pastrimi; b) AAC Group LLC; and c) Sigal Life Uniqa Group Austria As per Customs request and discussion with banking sector, the CBK approved and performed change of KOS Giro in color and amount Banks Continued communication between participants in particularly regarding web service for Direct Debit. Communication between banks and companies should be bilateral, CBK will support in technical and legal issues. CENTRAL BANK OF THE REPUBLIC OF KOSOVO 17.

4. Others CENTRAL BANK OF THE REPUBLIC OF KOSOVO 18.

Thank you National Payments Council http://www.bqk-kos.org/?cid=1,59,55 CENTRAL BANK OF THE REPUBLIC OF KOSOVO 19.