THE EVOLUTION OF THE RETAIL PAYMENT SYSTEMS IN PERU Central Bank of - PowerPoint PPT Presentation

THE EVOLUTION OF THE RETAIL PAYMENT SYSTEMS IN PERU Central Bank of Reserve of Peru October 2010

MACROECONOMIC STABILITY Sustained growth, low inflation and debt reduction Macroeconomic figures 2010 1/ 2005 2006 2007 2008 2009 Junio Population (in thousands) 27 811 28 151 28 482 28 807 29 132 29 741 Real GPD (variation %) 6,8 7,7 8,9 9,8 0,9 10,1 GPD (nominal, in millions of USD) 79 397 92 439 107 328 127 643 127 153 141 414 GPD per capita (in USD) 2 855 3 284 3 768 4 431 4 365 4 755 Exchange rate vs. USD 3,43 3,20 3,00 3,14 2,89 2,79 Anual inflation 1,4 1,1 3,9 6,7 0,2 2,4 Public debt (Percentage GPD) 37,7 33,0 29,7 24,0 26,6 23,5 1 / Tipo de cambio e inflación al 30 de setiembre de 2010. Al final del año 2

LOW BANKARIZATION Increasing but still low level of bankarization Monetization coefficient and y Preference for Currency Peru Chile Costa Rica Colombia 2008 2009 2008 2009 2008 2009 2008 2009 Monet. Coef. 30,3 31,2 98,9 95,0 51,9 55,3 38,5 39,1 Pref. for 29,2 29,3 4,6 5,3 12,5 12,0 14,4 14,5 currency 3

BANKING CONCENTRATION The three principal banks keep the 80% of the system transferable* deposits 0,86 0,85 0,84 0,83 0,82 0,81 0,80 0,79 0,78 0,77 0,76 2005 2006 2007 2008 2009 Jun-2010 Ago-2010 Ratio de concentración en MN Ratio de concentración en ME (* )Visible Deposits+ Saving deposits 4

INTERBANK PAYMENTS SYSTEM OF LOW VALUE Are cleared through the CCE: • Checks: The settlement of a check was reduced from D+2 (and from15 days in provinces) to D+1, so that the users dispose of cash in less time. • Credit Transfers: Ordinary transferences, debt payments of credit card, payrolls, suppliers payment in general and from the government. • Operations in MN and ME . 5

EVOLUCIÓN DE LOS PAGOS DE BAJO VALOR The total payments grew 59% in value and 25% in volume. The credit transfers grew enormously PAYMENTS CLEARED BY THE CCE 2010 Var % Anual 2005 2006 2007 2008 2009 Anualizado (2005 - 2010) Checks - Value (S/. millions) 106 202 127 537 143 158 148 238 135 255 152 383 43,5 % - Volume (in thousands) 7 917 8 111 8 399 8 752 8 200 8 189 3,4 % Transferencias de Crédito - Value (S/. millions) 3 718 5 896 7 728 10 610 14 799 22 753 512,0 % - Volume (in thousands) 488 803 1 123 1 413 1 760 2 354 382,7 % Total - Value (S/. millions) 109 920 133 434 150 887 158 848 150 054 175 137 59,3 % - Volume (in thousands) 8 404 8 913 9 522 10 166 9 960 10 543 25,4 % 6

TAMAÑO RELATIVAMENTE PEQUEÑO The size of the low value payments in comparisson to the GPD is even smaller compared to other countries of the region. Pagos Interbancarios de Bajo Valor vs PBI (Datos al 2009 para Chile, Colombia, Costa Rica y al 2010 para Perú) Chile Colombia Costa Rica Perú (MM Pesos) (MM Pesos) (MM Colonos) (MM Nuevos Soles) 1) PBI 91 517,6 504 668,4 16 799,1 406 998,0 a. Checks* 386 415 393 223 10 150 152 383 b. Credit Transfers - 100 568 5 919 22 753 c. Direct Debits - - 954 - 2) TOTAL (a+b+c) 386 415 493 791 17 023 175 136 Ratio 2/1 4,2 1,0 1,0 0,4 * Para el caso de Chile el dato de cheques corresponde al 2008 7

INFRASTRUCTURE DEVELOPMENT OF PAYMENT CHANNELS The financial sector has significantly increased its payments infrastructure. Has been strengthening the use of their own Websites for Non-face to face payments. Channels Infrastructure and Payment Ways 2010 2005 2006 2007 2008 2009 julio Automatic cashiers 1 678 2 036 2 578 3 278 3 648 3 895 Correspondent cashiers n.d. 1 658 2 623 4 3 5 69 6 801 Debit cards 3 968 883 4 774 635 5 746 512 7 484 704 7 733 370 8 428 100 Credit cards 3 876 646 4 664 982 5 254 729 6 088 981 6 044 221 6 118 276 Bank offices 890 963 1 115 1 468 1 5 1 479 8

GROWING INTERBANK PAYMENTS The concentration and development of the infrastructure have implied a big growth of the interbank payments : in 2010 they have 3,5 times the volume of December 2005. 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Ene-05 Abr-05 Jul-05 Oct-05 Ene-06 Abr-06 Jul-06 Oct-06 Ene-07 Abr-07 Jul-07 Oct-07 Ene-08 Abr-08 Jul-08 Oct-08 Ene-09 Abr-09 Jul-09 Oct-09 Ene-10 Jul-10 Abr-10 Transferencias de Crédito vía CCE Pagos Intrabancarios 9

POSITIVE EFFECTS OF THE CCE AND THE E-TRANSFERENCES • Individuals and enterprises : Use of electronical instruments that are secure, well-timed and efficients, without the need of cash. • Peruvian Government : Replacement of checks, reduction of operative expenses and automatization processes. • Financial Sector : Augmentation of the services range, increase in fee income, reduction of operative costs in bank branches. 10

ACTIONS TO PROMOTE THE PAYMENT SYSTEMS • Payment System Act : provides legal certainty for development of safe and efficient systems and under free competition • Promotion and coordination: BCR and financial institutions are working on standardization, promotion and coordination. • Act for the payment of salaries in bank accounts: will promote the use of the financial system and its services. • Act project of the e-money: it was proposed a law to regulate the use of electronic money and the companies that issue. 11

TENDENCIAS FUTURAS • Higher bankarization • Growth of the credit transfers • Integration of the non banking micro-finance institutions to the clearing process • Enhanced internet banking • Electronic money as a way of financial inclusion • Development of new products: payments button 12

THE EVOLUTION OF THE LOW VALUE PAYMENT SYSTEMS IN PERU Central Bank of Reserve of Peru October 2010