At the head of GIM-UEMOA from its inception, there are 13 years, Blaise Ahouantchédé, keeps his success low-key. Backbone of what is today a successful regional integration electronic payments in the WAEMU, Benin quadra does not like the limelight. By receiving us in Dakar at the «studious» headquarter of the regional organization, he had to make concession with himself and get out of this ivory tower that the French writer Honoré de Balzac described as «the loneliness of inventor». Free from political or ideological chapel (except African integration), Mr. Ahouantchédé believes that electronic banking is a powerful accelerator of financial inclusion. Exclusive.
What are the main steps of the project of regional integration electronic payment?
At blasting off, there was the political will of the Heads of State, the Council of Ministers of the West African Monetary Union (WAMU) promoted by the Central Bank of West African States (BCEAO), to modernize systems and means of payment. Electronic payment, commonly called «MONETIQUE-UEMOA», is a third component of this reform alongside “STAR-UEMOA” and “SICA-UEMOA”. All those programs are managed by the Central Bank through a private approach to governance to involve stakeholders ( that is to say banks) in the governance of the project.
The Interbank Electronic Banking Group (GIM-UEMOA) is baptized in Abidjan on September 2002 with the signing of the first Memorandum of interbank agreement between the founders (banks) to whom I must give a merited tribute.
This original protocol, the result of a consensus among stakeholders under the auspices of the BCEAO, clearly indicated the project guidelines regarding governance but also it’s technical and operational sides. This resulted in the establishment of two legally distinct bodies but complementary vocation: GIM-UEMOA governance body established in 2003 and CTMI-UEMOA technical arm of the organization, which was founded in 2005. The two groups were reconciled in 2010 for a better rationalization of resources. Since, GIM-UEMOA experiencing significant progress both in terms of interbanking, interoperability and compensation electronic payment transactions processed by the platform.
How to define yourself these three elements that you have mentioned and that recur in the jargon of electronic payment in general and of GIM-UEMOA in particular?
The interbanking is primarily based on a legal construction that includes interoperability that is purely technical and the set of rules / standards that determine the exchange of financial flows between the players involved in the ecosystem. The rights and obligations of members are defined through legal documents which set the system’s governance.
Thus, interbank pricing issues, transaction acquisition, litigation management, brand promotion and acceptance of cards are managed as part of interbanking and to some extent, given the evolution of payments world with the arrival of new players, through interoperability agreements.
For example, all the GIM-UEMOA members must accept on their infrastructure (ATM and POS), all approved cards by the group. This is the case of the BICIS, CBAO Attijariwafa Bank, Société Générale or Orabank, etc. According to banking arrangements, any member bank of the GIM-UEMOA, while being free to issue bank cards based on its commercial strategy, however, is required to accept on its ATM and POS infrastructure, all cards authorized by the group: this is the essence of interoperability / interbanking that leads ultimately to the compensation. This is one of the main tasks of GIM-UEMOA and this is why the Central Bank which ultimately guarantees the security of payment systems in the WAEMU zone, pays special attention in terms of controlling systemic risk and protecting consumers who may be exposed.
What is the legal security offered to customers, users of GIM-UEMOA network?
When a customer makes an interbank transaction at the bank machines interconnected GIM network, transactions are not repudiable. The customer is secure from end to end. GIM-UEMOA had to put in place a legal framework that regulates the flow of trade (authorization), clearing operations, litigation management, interbank pricing and acceptance of cards on participants. This is a unique platform, the most integrated in the world, managing the entire value chain of interbank transactions wether they are interoperable cards, internet, or mobile. Deployed solutions cover the routing functions, clearing and settlement.
In add, there are several value-added solutions developed by GIM-UEMOA to banks in the framework of relations B to B to enable them to have all the services offered to their clients. This include access to MasterCard or Visa network services partners who can bring complementary regional GIM-UEMOA offer.
We have for example, in our different offers, a platform dedicated to the banks to enable them to issue prepaid cards and payment platform online and mobile financial services. This is made in order to facilitate the proposal of services and value for the benefit of bank customers and, thus,succeeding in the financial inclusion that is the purpose of the regional electronic payments.
We often feel that there is a clear rivalry between GIM-UEMOA and Visa or MasterCard?
I reassure you on this point. These are GIM UEMOA partners. Initially in the approach of the project of regional electronic banking, there was a need for people in the WAEMU zone, the middle class and low-income groups, to have a product that allows them to gradually reduce the use of cash and increase means of payment in their transactions.
Therefore, we developed a card at GIM-UEMOA label which, I admit, is identified with the institution’s name but, after all, remains a means of payment. Alongside this acceptance mark GIM-UEMOA, the other must exist and have their place. Visa, MasterCard, American Express must circulate in our area. It is as I said, to create an effective acceptance network accepts any payment whatever the origin. Moreover, we have excellent relations with these transmitters to the point that they have agreed to co-brand and cards issued by banks in this context, in their use in the UEMOA zone are are processed by the GIM and cleared transactions in local currency FCFA.
Many cardholders complain that Visa and MasterCard continue to offset their transactions in dollars?
Listen, there is a salutary decision of the WAMU Ministers dated 29 September 2015 which requires all actors entitled to offset in local currency FCFA. This is an important decision that confirms what GIM-UEMOA is already doing since 2007, starting year of the operational part of our business. In this regard, we have a little over 8 years of experience in the clearing of interbank transactions in local currency, a mission that has also been entrusted to us several years ago by the BCEAO, which, given the risks, had the desire to control an aspect of the chain that is not without risks in the macroeconomic balances. This is the place to salute the foresight of political and monetary authorities and, through them, good vision of the Governor of the Central Bank for the establishment of a number of instruments and mechanisms on the one hand to facilitate financial inclusion and access to banking services and, secondly, to strengthen the economic and financial integration and the development of our States.
After 13 years in business, what overall conclusions can we make of GIM-UEMOA?
Today, GIM-UEMOA has a network of 3,500 ATMs and 2,500 POS interconnected with, according to the latest statistics, more than 3.5 million in regional function GIM cards in circulation. In 2015, the network recorded nearly 6 million transactions processed and compensated for a volume of electronic banking financial flows of around 500 billion FCFA.
Our network include 110 interconnected banks with microfinance institutions, electronic money institutions and some postal companies, reflecting an expanded interoperability with all stakeholders both banking and non-banking provided by the BCEAO to issue the payment or electronic money. As you see, the figures speak for themselves. After more than ten years of existence, the GIM succeeded because of course the support of the Central Bank and the banking community, its primary mission is to provide the area with a regional interbank system secure electronic payment which covers 8 countries .
The path has not been easy, I admit because it took down a concerted approach in the construction of the interbank cooperation around GIM favoring consensus. The strength of GIM-UEMOA, despite some misunderstandings about our positioning is to have succeeded in uniting all banking groups, financial and non-banks in the model in place and it is unique. Moreover, we encourage that this system benefits the states and peoples of our Union and Africa because all the studies show that the adoption of digital and electronic payments brings growth which can range from 1 to 3% of GDP.
The digital transformation in economies Is at the heart of the strategies of all countries of the world.
Clearly, in a world where electronic payments has grown significantly with the arrival of new players who are manufacturers and mobile operators, the GAFA (Google, Apple, Amazon and Facebook) and FinTech it was important that the GIM can be projected for the future by ensuring the sustainability of its model while preserving the gains. Recognizing the emergence of new paradigms in payment methods with strong challenges of technological innovation, GIM has to think about its future bearing in mind always financial inclusion and banking services, support of financing our economies. The platform offered by GIM can be a catalyst for future access to lower cost of the most remote populations to inclusive financial services but also serve for the efficient collection of domestic savings needed to fund our states. Regarding immediate prospects, we recorded the top of our agenda, a ten-year strategic study to enlighten us and enable actors to GIM can be projected more for a stronger GIM-UEMOA service States and peoples of the WAEMU or ECOWAS and Africa.
When is therefore an electronic payment integration between UEMOA, the CEMAC and other ensembles such as ECOWAS and the Maghreb?
This is an excellent question. I am one of the schools that think GIM-UEMOA should not be limited to a single region. We must enroll in a dynamic African market will be 2.5 billion people by 2050. Unlike models issuers Visa and MasterCard, which are top-down models, I believe, and this is only me, that countries and regions should maintain their sovereignty in the choice of systems and means of payment in terms of their vision. We need to encourage exchanges between areas.
We must look into this form of convergence and integration, the means to ensure that consumers meet there and earn it. It is incomprehensible that an electronic payment transaction made between Central Africa and West Africa, two sub-zones FCFA, requires conversion and the intervention of a third party. Technology, ahead of regulations, enables us to make a qualitative leap. If we do not, we will undergo. The different forms of electronic money as Bitcoins transcend borders. If we want a strong market, we must integrate these new paradigms.
The advent of regional vocation payment systems facilitate cross-border trade. But the persistence of our regulatory boundaries rather favors multinationals that become de facto, the «mugglers» in our areas. Africa must take charge of its economy in all its dimensions to succeed the challenge of integration. ECOWAS with 300 million people is a market free movement of persons, goods but should be Aldo A Market frère for the means of payment (we tend to forget) to complete the integration of West Africa.
