Scanning the Future: Authentication, Security, Privacy

1. Iraq- Retail Payments Initiative
Kristopher Haag
Director, Banking and Financial Networks
Task Force for Business and Stability Operations
U.S. Department of Defense
September 29, 2010

2. Iraq Demographics Population 29,000,000
(July 2010 est.)
Median Age 20.6 years
(2007 est.)
Literacy 74%
(2000 est.)
GDP (per capita) $3,800
(2009 est.)
Unemployed/ underemployed 47%
47% (Aug 2009 est.)
Unbanked/underbanked 95%
Mobile network operators 4
GSM subscribers 20 M (69%)

3. The impact of nearly 3 decades of war and
sanctions in Iraq…

4. DoD- Economic Stabilization Task Force
Mission:
Revitalize the Iraqi economy and reduce the rampant unemployment of
the Iraqi population — a significant factor that fuels the insurgency.
 Restore existing productive capacity to the Iraqi economy wherever
possible, across all industrial sectors.
 Leverage monthly cost-of-operations to DoD of $10B, to stimulate
economic growth by any means possible.
 Serve as a catalyst for private investment in Iraq, by linking the
international business community to Iraqi business leaders and
government officials.
Move Iraq from the front page to the business page

5. Integrated Solution
An integrated, Multi-Bank – Multi-Telco infrastructure enables banks to
cooperate on infrastructure and compete on costs & quality of customer service.
Central Bank of Iraq
ATMATM MobileMobilePOSPOS
- Banking Consortium
Third Party Processor
(Outsourcing Vendor)
Past
Integrated
Solution
Focus
of
Effort
Continuation of this path will lead to
further fragmentation and an infra-structure
that is not interoperable. Costs for inefficiencies are
passed to consumer and negatively impact uptake of
banking services.
ATMATM
POSPOS
3PP
Customers
ATMATM
3PP
Customers
MobileMobile
Telco
Customers
Central Bank of Iraq

6. Payment Channel Trade-off
Payment Channel Ranking
ATM POS Mobile Banking
CostFactorsAccess
Implementation
Costs
Device Costs
Maintenance &
Licensing
Physical
Infrastructure Costs
Number of Access
Point for Consumer
Distance Relative to
Channel
High Implementation
Costs
Medium LowHigh
Medium LowHigh
Branch Contingent in High
Density Urban Areas
High
High
Equal to Branch
Density
Medium
Medium
Contingent on Retail
Outlets
Equal to Feasible
Retail Penetration
None
None
Contingent on Mobile
Penetration
Equal to Mobile
Network Coverage
 Large,middle-class economy presents unique opportunity and characteristics for the introduction of
mobile banking
 Introduction of mobile banking in Iraq must be a hybrid model that allows for coexistence with other
developed retail payment channels (POS, ATM)
 Multi-Bank / Multi-Telco