Retail Payment Systems
In the OIC Member Countries
103
3. Commitment to financial inclusion through an innovative retail payment (for instance,
mobile banking) should be encouraged. Each government must devise easier procedures
for testing new approach and technology. Interoperability should also be encouraged as
well as open network in order to remove the bottleneck and ensure reliability of the
system.
4. Government payments can play an important role. Leveraging and integrating on existing
payment network, arrangements, and products are necessary in order to achieve the
objectives. Government must also encourage diversification of retail payment services by
taking into account specific country’s environment and the kinds of products offered.
5. An integrated database system should be established to provide transparency of credit
data. Government must focus on the fragmented, standalone, or non-existent credit
bureaus that making it difficult for banks and other financial institutions. Standards and
practices in credit data management must be developed. Credit worthiness should also be
examined and, at a national level, there must be payment data available to credit bureau
services.
6. It is important for OIC Member Countries to set up a consultancy body to help the
governments, and in particular the central banks, in the OIC Member Countries in order to
monitor, evaluate, and provide appropriate policy recommendations.
6.4 Conclusions
The following conclusions have been reached:
1. There is a very wide range of systems currently employed, with no consensus as to best
practices. The contrasting contexts explain a great deal about these differences, but there
remains a great deal that can be learned and shared from our analysis of the most effective
retail payment systems currently deployed.
2. There is rapid growth in the use of advanced retail payment systems in countries under
study. However, growth is imbalanced, often for reasons of inappropriate blockages and
inefficiencies in deployment. Banking reforms in Turkey at the end of the 20th century not
only coincided with the defeat of galloping inflation, they also allowed for widespread
dissemination of credit cards and laid the foundation for Turkey to become a significant
role model in the OIC for competitive banking innovation.
3. Some countries employ state of the art technologies in the operation of retail payment
systems that are well integrated into the underlying infrastructure of payment systems
nationally and internationally. There are many lessons that can be learned from these