Hoshang Siwaily

Author : Hoshang Siwaily Date: 09/12/2023

Introduction: Embarking on the journey of implementing a Core Banking System in the Kurdistan Regional Government (KRG) of Iraq was no small feat. As the Project Manager, I navigated through the complexities of this monumental task, requiring strategic planning and innovative solutions. In this blog, we will delve into the challenges faced and the successful measures taken to revolutionize banking operations in the region.

Project Background: With 84 commercial bank branches spread across Erbil, Duhok, and Sulymani, the manual, stand-alone banking operations posted significant challenges such as communication gaps, lack of transparency, slow processes, errors, and fraud. Recognizing these issues, the Ministry of Finance, under the KRG strategy, initiated a mission in 2018 to implement a Core Banking System, connecting all branches to the head office, Minara Bank. The primary objectives were to enhance productivity, reduce manual errors, increase transparency, enable e-payments, and facilitate seamless transactions for customers through electronic cards.

Challenges: The project encountered substantial challenges, primarily stemming from the lack of sufficient IT infrastructure in the KRG region. These challenges included limited access to a stable power supply and internet connectivity, shortages in computer hardware, skilled workers, high costs, and legal considerations. Overcoming these obstacles demanded a meticulous and informed decision-making process.

Key Tasks: To establish a robust IT backbone, a start-from-scratch approach was necessary. The following key tasks were undertaken:

- Core Banking Application (ICBS): An Integrated Computerized Banking System Application (ICBS) was procured and customized by a professional banking sector team to align with Iraq's requirements.

- Hardware: The management team meticulously evaluated hardware options to best suit the objectives and the selected Banking Software Application (ICBS). The approved hardware equipment was then procured.

-Datacentre: A dedicated data center, equipped with a raised floor, under-floor ACC units, under-floor cabling, and efficient interconnectivity, was designed and constructed at an agreed location.

- IT Infrastructure: A private, secure, and reliable network infrastructure connecting all banks to the data center was established. This involved laying 360 kilometers of Fiber Optic backbone network infrastructure.

- Unskilled Employee Training: Recognizing the challenge of 8000 unskilled employees adapting to the complex Core Banking Application (ICBS), the Ministry of Finance invested in training and upskilling programs. This proactive approach aimed to ensure that employees possessed the necessary competencies for a successful deployment, mitigating potential delays, errors, and inefficiencies.

Conclusion: The successful implementation of the Core Banking System in the KRG region stands as a testament to strategic planning, resilience, and proactive problem-solving. By addressing challenges head-on and investing in the necessary infrastructure and training, the project not only revolutionized banking operations but also paved the way for a more efficient and transparent financial ecosystem in Kurdistan.