Getting Government closer to the people

Presented by:Charles Ifedi

Director, Payment Solutions & VAS

Outline

2 The Developing Landscape

3 Current interaction with government

1 Delivering Government’s primary responsibilities

4 Implementation Strategy

5 About Interswitch

1Delivering Government’s primary responsibilities

Government responsibility include the provision of basic amenities for the citizens &

residents of its country / state.

These basic amenities include:• Infrastructure e.g. Water, Waste & Refuse Disposal, Electricity• Education• Transport• Housing• Healthcare• Security

The Government is able to perform its functions through the effective administration

and collections of revenue, taxes due from citizens/residents of the country/state.

Government’s primary responsibilities..

Uniquely Identify each Resident

Collect Taxes & IGR and provide benefits

Automated Systems

• Loss of Revenue• Pilfering

• Under-declaration

• Conversion & diversion of revenues

• Suppression by collecting agents

• Record Keeping• Inability to track previous

payments

• Disparate systems used for collections

• Challenges with Unique I.D• “Ghost” Workers / Citizens /

Beneficiaries

• Duplication of Users Identity

• Cumbersome Processes• Voluminous Paperwork

• Painful/Slow reconciliation processes

• Enhance capacity to generate revenue

• Transparency in Governance & Government processes

• Effective economic resource management

• Simplify administration of social services

• Optimize resource utilization

• Better Access to social (government) services

• Reliability of infrastructure

• Increased Skilled Employment Opportunities

Manual Processes

VS

2 The Developing Landscape

In order to reduce the volume of cash in circulation and reduce the risk of going

about with cash, several electronic payment systems and channels have been

provided which are accessed via a smartcard and have lead to the rise of e-

payment in Nigeria.

ATM

WEB

MOBILE

KIOSK

POS

CITIZENS ADOPTION OF E-GOVERNMENT IN NIGERIA

Ch

ann

els

to D

rive

Tra

nsa

ctio

ns

CBN Annual report 2006, 2007, 2008, 2009 and 2010 (Annual report)- Level of

adoption of e-payment system by value (billion)

CITIZENS ADOPTION OF E-PAYMENT IN NIGERIA

Channels 2006 2007 2008 20092010 (half-

Year)

ATM 18.91 41.28 143.30 285.87 405.87

WEB 3.51 7.10 5.70 7.30 47.60

MOBILE 0.00 0.04 0.17 0.71 10.30

POS 0.09 0.95 0.01 0.01 5.40

Insufficient/low presence of E-Payment Channels at various service points requested by Citizens (Hospitals, Transport etc)

Several closed systems with different cards for different purposes (e.g. Voters Card, National ID card, State ID cards, Health Card etc.) which are not adding any tangible value to the citizens / residents

Several failed attempts to deliver projects in this area (e.g. National ID cards)

Inability of Government to deliver on its promises and responsibilities to the people

Lack of the needed know-how in utilizing various E-Payment services and associated infrastructure by majority of the Citizenry

Inadequate IT infrastructure to drive e-payment in Nigeria.

Fear of fraud by most of the population

Inadequate support from Government…largely private sector led

REASONS FOR LACK OF CONFIDENCE ON THE E-GOVERNMENT IN NIGERIA

TECHNOLOGY SOLUTIONS THAT GOVERNMENTS MUST ADOPT

• Revenue Collections at bank branches and other channels

• Online Revenue Collection

Multi-Channel Revenue Collections

• Revenue collections at markets and other remote locations using offline and online technologies

Remote Revenue Collections

• Delivering Health Care services to citizens• Partnerships with HMOs

Citizens Health Management

• Efficient employee management, thereby eliminating leakages (due to ghost workers)

Personnel Management solutions

• Automated disbursement of social benefits to deserving citizens / residentsBenefits Administration

• Buses and Taxis automated fare collectionMass Transportation

systems

• Ability to uniquely identify citizens in order to interact with them appropriately

Citizens Identity Management

GOVERNMENT

Automation of Payroll Administration & Salary

Payment

Automation of Tax Administration System &

Revenue Mobilization

Automation of Mass Transit transportation

System

Automation of Access to health services.

HealthCare

Management

Socia

l Benefit T

ransfers

Identity M

anagement

3 rd party system & application

It has become pertinent for government to invest in technology to drive governance

& administration of its various processes & systems

The developing landscape..

3 Solutions that Government can adopt

TECHNOLOGY SOLUTIONS THAT GOVERNMENTS SHOULD ADOPT

•PAYDirect•Quickteller

Multi-Channel Revenue Collections

•Offline PAYDirect•POS

Remote Revenue Collections

•SmartHealth•InsureDirect

Citizens Health Management

•PayrollPersonnel Management solutions

•AUTOPAYBenefits Administration and Payment

•SmartmoveMass Transportation systems

•Smart ID•SmartGov

Citizens Identity Management

Our Business with State Governments:• Revenue Collections

• Bank Branch, Online & Mobile

• 27 State Governments, FIRS

• Automated Payroll and Contractor Payments

Growth in early years

Peak by the 3rd & 4th

years.

Expansion of IGR

+N149bn monthly

+N1.8tr in the last 12 mth

Current interaction with government..

Annual collections of over $5.4 bn through PAYDirect

All 20 Banks in Nigeria use InterSwitch’s PAYDirect for revenue collections

4,100 bank branches have online real-time access

Over 100 businesses and government agencies

The largest government collectors (FIRS and Customs) rely on PAYDirect

Government Electricity, Water and Telecommunications companies rely on PAYDirect

24,317 bank, government and corporate users nationwide

Over 10,000 ATMs nationwide

Over 75,000 POS terminals nationwide

Statistics

4 Implementation Strategy

The approach for implementing the e-Government projects is to phase the project for proper

project management and also to be able to deliver on quick wins for the state.

There is also the urgent need to automate certain processes in the various MDA’s in the state

to enable seamless integration to the Identity management system.

Implementation

PHASE DESCRIPTION DURATION

1 Automate inefficient processes 3 - 6 Months

2 Enrollment and initial integration 6 –12 Months

3 Integration of 3rd party solutions to the identity mgt system

3 - 6 Months

4 Pilot/Go-live 3 - 6 Months

Implementation Approach• Automation of Salary payment for the civil servants and Local government staff• Payroll deployment for the civil servants and Local government staff• Multi channel revenue collection• Collection automation for other government agencies outside the regular IGR .• Building 3rd –Party System for other MDA’s ,Schools and hospitals.

1 – Automate inefficient processes

• Commencement of enrollment of citizens• Smart cards Production• Integration of identity mgt system to both the state collection and payment

solution

2 – Enrollment & Initial Integration

• Completion of the general enrollment exercise• Integration of identity management solution to Enterprise health solution• Integration of identity management solution to transport solution• Integration of identity management solution to other social services systems

3 – Integration of Identity mgt

solution to 3rd Party solutions.

• Pilot stage for the usage of smart card to be validate for controlled health care• Pilot stage for the usage of smart cards on transport system validators• Go Live on reading of Smart card against the validators at various contact points

4 – Pilot/GO Live

This phrase will entail identifying quick-wins and automating processes that require urgent

automation. This will allow for easy integration to the identity management system.

This also involves putting in place 3rd-Party system that will be integrated seamlessly to the

Identity Management system for controlled access to social services

Phase 1 – Automate inefficient processes

Collection

Revenue automation in other government agencies

Introduction of multi-channel revenue collection .

Enrolment commences in phrase 2 with the enrolment centres equipped with enrolment

stations and deployed in all the parts of the state. The enrolment is done in partnership with

Identity partners whose technical competences is sourced from citizens within the state. This is

to ensure the following:

• We create employment within the state.

• Build the technical competence and capacity within the state to manage the project going

forward.

• Ensure that there is adequate manpower within the state to enrol the entire citizen in the

shortest possible time as the IDP will equipped with the needed tools for enrolment

• Building and empowering small and medium enterprise within the state.

Phase 2 – Enrolment and initial integration

This phase also marks the commencement of smart cards production for the enrolled citizens

and the initial scoping of the various 3rd party systems to be integrated to the identity

management system.

This phase is critical and a major milestone in determining certain parameters that will be

used as referenced fields for integration between the various 3rd party systems to be integrated

to the identity management system.

Phase 2 – Enrolment and initial integration

Commencement of enrollment Production of Smart Card for enrolled citizens

Commence scoping and integration of identity management system to 3rd Party applications.

Based on the scoping and intial integration between the 3rd Party system and the identity

management system done in phase 2, phase 3 is the actual integration between the these

systems.

The key parameters and reference parameters would have already been agreed between the

various systems in phase 2. So phase 3 will be the actual integration with the 3rd- party system

and identity management system.

Phase 3 – Integration of Identity mgt solution to 3rd Party solutions

Identity Management System

Ministry of Education back end system

Internal revenue service

Department of transport back-end

system

Ministry of health back end system

Phase 4 will be the pilot stage and eventual Go-Live where the various integration between the

3rd-party systems , back-end systems and the identity management systems are validated

across the various touch point using produced smart cards.

Certain test will be carried out with individuals in government to ascertain that the integration

to the identity management system and controlled access to certain services can be validated

against the smart cards produced for the respective citizens.

Phase 4 – GO LIVE

Ch

ann

els

to D

rive

Tra

nsa

ctio

ns

&

Identity management system

MDA’s 3r

d party applications

E-Payment backbone

5 About Interswitch

26

InterSwitch Limited is an independent, private sector led electronic transaction switching and payment processing entity

that provides the associated message broker solutions for financial transactions, collaborative commerce,

telecommunications value-added services and e-billing

OUR PROFILE

OWNERSHIP STRUCTURE

S a m e C o m p a n y , S a m e F o c u s , N e w P a n A f r i c a n V i s i o n

BANKS

OTHER INVESTORS

Providing secure integrated payment solutions, transaction switching and processing services for 20 out of 20 Nigerian

Banks

Mortgage and Microfinance Banks

Some of our Clients in Nigeria

Government Institutions and State Governments

Corporates & Conglomerates

Educational Institutions (Universities and Secondary Schools)

Gambia

Ghana

Sierra Leone Commercial

Bank

Cote D’ Ivoire

Customers Across Africa

-- Largest and Fastest Growing Switching & Payment Network in West & East African Region

-- Largest System Integrator in E-Payment Services in Nigeria

-- Largest System Integration of Banking Applications in the Postilion World

-- No.1 Payment Devices Deployer in Nigeria (8000+ ATMs, 13000+ POS, 11+million Cards)

-- No.1 transaction processing e-payment network in West & Central Africa (80+ million transactions per

month)

-- Real-time online payment processing infrastructure in Nigeria

-- Over 4 trillion Naira value in transaction processed per annum

Local Knowledge & World Class Competencies

Our Global Partners

Recognition

Gold Medal for the visionary use of technology to promote positive social

change

2004

Outstanding Achievement Award - 2008Reseller of The Year - 2010

2008 and 2010

2009

Partner of The Year (AMEA)

2008

ePayment Company of The Year

Fastest Growing & Most Innovative Company in Emerging Markets

2008

Thank You

Contact Details

Charles Ifedi

Director, Payment Solutions & VASAddress: 1648c Oko-Awo Street, Victoria Island, Lagos

SwitchBoard: +234 1 6283888 ext: 1400

Email: cifedi@interswitchng.com

Mobile: +234 802 319 5828