Implementation of Instant Payment System at OTP Bank Moldova
OTP Bank (Republic of Moldova) is one of the key players in the Moldovan financial market. Since 2019, the bank has been part of OTP Group, which is one of the leaders in the financial market of Central and Eastern Europe. The bank ranks third in the banking system by assets, has 51 branches, three institutions located throughout the country, where more than 800 employees work, serving approximately 167,500 customers.
CHALLENGE
The project to implement instant payments at OTP Bank Moldova is part of a larger initiative launched by the National Bank of Moldova (NBM). As part of the Concept for the Development of the Payment Sphere in the Republic of Moldova, the NBM approved a project to modernize the automated interbank payment system (AIPS) and implement instant payments. This initiative aligns with global trends in financial technology, characterized by openness to progress and regular modernization of payment infrastructure.
The implementation of the instant payment system at OTP Bank Moldova with a solution from CS was supposed to provide the ability to make instant transfers between individual accounts in the national currency (lei) using only the recipient’s phone number.
Key requirements for the instant payment system included:
- 24/7/365 availability
- Payment processing speed up to 5 seconds
- Ability to make transfers to user accounts of any bank in the country
- Secure exchange of details using a phone number
SOLUTION
To implement the project, CS developed a comprehensive solution that included several stages:
- Transitioning the Core Banking System B2 (CBS B2) to 24/7 mode. This ensured constant system availability for users and external systems.
- Integration of CBS B2 with the national banking system Central Alias Service (CAS). CAS is a system that stores information about counterparties, their aliases, and accounts. Each alias is linked to a customer’s account and their bank account. This allows customers to use an easy-to-remember identifier (e.g., mobile phone number) instead of a full set of banking details.
- Integration of CBS B2 with the National Bank of Moldova for receiving and sending Instant Payments, as well as for working with Request To Pay. This functionality allows not only to instantly send payments but also to request a payment to be executed.
It is important to note that CAS operates in a centralized mode, storing all necessary account information (IBAN, customer’s full name) in the National Bank of Moldova.
RESULTS
On March 12, 2024, the instant payment system was successfully launched in the banks of the Republic of Moldova, including OTP Bank. The implementation of this system brought a number of significant benefits:
- Ability to make instant transfers between individual accounts at any time of the day
- Simplification of the money transfer process by using a phone number instead of full banking details
- Increased speed and convenience of banking operations for customers
- Strengthening OTP Bank’s position as an innovative financial institution in Moldova
Natalia Semenchenko, CS analyst:
Thanks to the implementation of instant payments, the process of sending and receiving funds within the Republic of Moldova takes just seconds, regardless of the time of sending, the bank of the sender and recipient. Currently, instant payments are available only between individuals; implementation of interaction with legal entities will be carried out taking into account the further plans of the NBM.
The successful implementation of this project not only improved the quality of customer service at OTP Bank but also made a significant contribution to the modernization of the entire banking system of Moldova. This opens up new opportunities for the further development of financial technologies in the country and increasing the accessibility of banking services for the population.
