Throughout this week, representatives from the National Bank of Ukraine have actively participated in the First International conference on “Innovation and Banking Information Technology Security”.

In the course of the conference, Director of the NBU Information Security Department Dmytro Lukyanov outlined the main areas of focus and objectives of the NBU Information Security Strategic Development Program for the period up to 2020.

“In pursuing the objectives of the program in the respective areas, it is expected that the necessary prerequisites for the development of banking information security will have been created by 2020, which would ensure its forward looking and sustainable development, whereas adverse impacts would pose no threats to information security,” he said. The objectives set out in the program are expected to be implemented internally (at the National Bank of Ukraine) and externally (at the Ukrainian banks).

At an external level, the objectives have been set as follows: to establish a legal framework for building information security based on the domestic and EU information security standards, to improve and streamline the methods for exercising control over the information security situation, to improve communication channels with the Ukrainian banking system to build an effective “feedback” and ensure that banks are provided with information security facilities.

In her speech, Deputy Director of the NBU Payment Systems Department Olena Makhaieva pointed out that one of the strategic areas of activities of the regulator is to shift from registration-based approaches applied by the regulator in respect of payment systems and their participants to a risk-based methodology for payment systems oversight.

“The aim of the payment system oversight function is to ensure the sound and efficient operation of payment systems for the benefit of their users– individuals, businesses and the state, – she said. – The National Bank of Ukraine applies best international practices and standards, including the Principles for financial market infrastructures established by the Bank for International Settlements and the Technical Committee of the   International Organization of Securities Commissions”.

According to her, guided by the consistency principle, the regulator applies international standards and requirements to all the systemically important payment systems operating in Ukraine, including those that have been created by the central bank. The System of Electronic Payments run by the National Bank of Ukraine, which is classified as systemically important payment system by volumes and types of transactions, will soon be tested to check whether it meets the international standards. The next step to be taken is to conduct diagnostic studies for those private-sector payment systems that fall into the category of socially important payment systems operating in Ukraine.

The conference participants devoted much attention to the development of the Ukrainian national payment system. Director of the NBU Retail Payments Department Serhii Shatskyi briefed the participants about the current state in the NSMEP development and its crucial developments that have recently occurred.

According to him, a network of POS terminals and ATMs accepting upgraded cards is expanding fast across Ukraine. In the past six months, we have managed to expand the network of both ATMs and POS terminals accepting NSMEP cards to such an extent so that it accounts for 80% of the entire acquiring network operating in Ukraine.

Serhii Shatskyi informed the conference participants that the testing of concontactless payments using NSMEP-based cards had proved successful. He also showed the test results to the participants.    The regulator intends to carry out NSMEP rebranding and launch р2р-transfers and full-fledged e-commerce and mobile payments.

The roundtable discussions which provoked vivid discussions among the participants were held as part of the conference. The transparency and product content of an upgraded NSMEP were discussed by the conference participants and an interactive model showing commercial banks’ expenses on servicing NSMEP cards as compared with other card payment systems operating in Ukraine was demonstrated to the participants. In the course of the roundtable discussion focused on the information security management, the participants considered in detail the development areas of information security in the Ukrainian banking system. A robust discussion demonstrated that the domestic banks’ participation in the formation of future ISMS proves to be the most efficient and quality vehicle for delivering the prerequisites necessary to enhance its maturity and efficiency.

For reference

The First International Conference on “Innovation and Banking Information Technology Security” is being held in Yaremcha on September 14-18, 2015.

The main aim of the conference is to develop Ukraine’s banking system, introduce innovative IT and payment technologies and ensure their information security.

The conference is organized under the auspices of the Independent Association of the Ukrainian banks.

The National Bank of Ukraine also backed holding this conference, in which representatives from the departments of payment systems, retail payments and information security participated.