The Head of NSPK: on the Day of Tomorrow, there are no Physical Payment Products, but a Message Transfer System

8 June 2018

The Head of NSPK Vladimir Komlev delivered a speech at the Roundtable "The Digital Transformation of the Financial Sector: Challenges and Opportunities", which has been held today in St. Petersburg as part of the International Financial Congress.

Financial landscape is changing rapidly. Financial organizations are busy with digital transformation of their internal processes and business models, which brings them to developing and introducing new technologies on their own, as well as to partnering with IT companies. Digitalization requires developing and introducing platform solutions, including remote identification, instant payments, marketplace platforms for financial products and services.

Vladimir Komlev broached his opinion on development of the payment sector in our country. In his speech, CEO of NSPK laid emphasis on the key changes occurred in the Russian financial market in recent years.

Vladimir Komlev noted, "In our country only in the past few years, cards from the cash withdrawal product have become a product for everyday use. They will be in the market for a long time as a convenient and popular product, but development will shift into digitalization. However, the point is that the perception paradigm of the card acceptance network as a heavy and inert structure that is difficult to replace has changed. Today, digital technologies demonstrate that not only the card can be used as such by waving it to the terminal, but payment details can be transferred in some way or other. We just need to invent the way to make such transactions secure. A QR code, remotely loadable applications have appeared; POS-terminals are no longer needed if there is the Internet, and deployment of the payment product acceptance network becomes pretty simple. Nevertheless, on the day of tomorrow, there are no physical payment products, but a message transfer system. The instant payments system is the trend that broke the current payment paradigm, and it was formed around the ability to work with big data. A user can identify him/herself by any information, even by a phone number not added to the account number in any way, but the technology enables to understand in online mode who he/she is, where he/she wants to transfer money, and make this transfer."

Olga Skorobogatova, First Deputy Governor, Bank of Russia, moderated the Roundtable.

 The following speakers attended this event:

 · Olga Dergunova, Deputy President and Chairman of the Management Board, VTB Bank
 · Dmitry Rudenko, President, Chairman of the Management Board, Post Bank
 · Sergey Solonin, Chief Executive Officer, Qiwi
 · Lev Khasis, First Deputy Chairman of the Executive Board, Sberbank
 · Max Hauser, Partner, Managing Director, The Boston Consulting Group