The Palestine Monetary Authority (PMA) has successfully started up the new technology infrastructure for interbank payments created by the SIA-SSB Group through its Perago subsidiary.
In the first four-month period, the system processed the totality of transactions, with an overall counter value of 14.4 billion US dollars, equivalent to 216% of Palestine's GDP.
Thanks to its innovative multi-currency functions, this is the first platform at global level able to manage simultaneously the four different currencies legally recognized in Palestine today: the Euro, US Dollar, Israeli Shekel and Jordanian Dinar.
Additionally, the system architecture already includes all the functions for the processing of the domestic currency, even though they have not yet been enabled in the system awaiting the establishment of a sovereign independent State of Palestine when PMA becomes a fully-pledged Central Bank.
Through the RTGS (Real-Time Gross Settlement) system with integrated retail payments clearing functions, this is the first implementation in the world of a market solution capable of processing the settlement of both gross interbank payments and retail payments; a solution envisaged by the World Bank's Payments Systems Development Group and piloted by Perago (SIA-SSB Group) in Palestine.
The integration of these two requirements complies with the recent guidelines issued by the World Bank, aimed at promoting the development of a single platform for the clearing and settlement of interbank payments within national economies characterized by limited exchange volumes (the so-called ATS, Automated Transfer System).
The platform developed by the SIA-SSB Group, thanks to the advanced features of the Perago:rtgs solution, is able to fully automate and manage in real time the flow of payments exchanged between all the banks. At present, there are 20 banks (10 of which are foreign) operating in the Palestinian territories through a network of over 210 branches. The infrastructure allows a daily average of around 10,000 payments.
The start-up of the new interbank payments system is a fundamental step for Palestine, as it represents a tangible contribution towards the modernization of the local banking system. The new technology infrastructure, in fact, enables more efficient management of payments clearing and settlement, while at the same time guaranteeing a solid and secure platform for the development of the financial services sector to the benefit of the entire Palestinian business community.
"The project carried out for the Palestine Monetary Authority by Perago is for us a particular and twofold reason to be proud" - commented Massimo Arrighetti, CEO of SIA-SSB.- "On one hand, the Group confirms its technological excellence also in the Central Institutions sector thanks to a multi-currency payments processing system that is unrivalled at global level. On the other hand, it further extends our international presence, in line with the growth strategy set out in the new 2011-2013 strategic plan which aims at the consolidation of SIA-SSB's position as a market-leading technology provider".
"The creation of the new interbank payments system is part of the PMA's plan to transform itself into a full-fledged central bank and is one of the key pillars in developing the transmission mechanisms in the Palestinian economy," Jihad Alwazir, the governor of the Palestine Monetary Authority (PMA), said. "Having a secure and modern financial infrastructure will enable the efficient clearing and settlement of payments within the banking system in Palestine, and will encourage the further development of the financial services industry to the benefit of the Palestinian economy."