EMV standard implementation risks and challenges in Iranian banks

EMV standard Implementation in Iranian Banks Risks & Challenges

In order to successfully migrate to EMV system of payment/transactions, the Iranian banks must be able to consider a series of factors that are all crucial to the successfully rolling out of the banking technology across the entire nation. An analysis of the extant literature as well as the various research outcomes coupled with Iranian unique and troubled financial system calls for extra caution and procedures to be adopted. The following are recommenced in order to successfully adopt and implement EMV in the Iranian banks.

Incorporation of strategic thinking into the process

As pointed out earlier in this paper. It is important to involve key strategies in the implementation of the EMV migration process so as to ensure that the available resources are adequately utilized while ensuring that a smooth transition period is achieved.

The need for more education

The process of upgrading the existing facilities to the meet the EMV standards is never easy unless adequate understanding of the functionality and capabilities of the infrastructure is comprehended. This therefore means that the education must be treated as a prerequisite in the process of EMV migration. There is a need for educating the internal support teams as well as training them on how to use the EMV technology (Chase,2010).The Iranian banks must therefore fully understand all the steps that are necessary to ensure that the EMV technology is rolled out successfully across the entire nation without any form of errors and delays that can be attributed to the lack of proper knowledge of the system's operation.

There are several organizations that are operating in Asian pacific region that can aid the Iranian banks in successfully migrating to the EMV infrastructure. These are vendors and training organizations such as Gemalto (Al Bawaba,2010).It is important to ensure that the organization that is appointed to spearhead the rolling out of the EMV technology ensures that the knowledge on how to use EMV technology. While equipped with the right technology as well as the appropriate justification for business and a concise definition of all the requirements, the Iranian banks can then forge their way forward with the adoption of EMV.It is worth noting that the process of migrating to EMV is not an easy one. This is because it requires a multi-thronged approach as a result of the various dynamic variable that are always in play in the Iranian somehow unstable banking system. The long-term goals of the EMV migration exercise however what is important is. This is true even from the mere fact that projects that involve infrastructure are not usually known for giving or rather providing quick returns.

A thorough and comprehensive analysis of the Operational Impact of EMV implementation

In order to mitigate the various threats faced by the Iranian banks while implementing the EMV standards, it is necessary to conduct a thorough and comprehensive analysis of the impact that such a move would have on the general operation of the Iranian banks as well as their internal processes (OVCMarketing, 2010). The internal processes are to be reviewed in terms of the operational and business aspects. The review will ensure that all of the changes to the organization's internal process are appropriately addressed as a move targeting the overall implementation of the plan. Such a move is expected to impart positive momentum on customer service strategy which is equally important under the new EMV environment. The move would then facilitate the dynamics necessary for the training of the staff as well as the communications between the customers as well as the merchants. This is coupled with a succinct definition of roles as well as responsibilities of the various banks' branches for the process of EMV roll out and the ever necessary requirement of programme support.

The main areas to be addressed are:

The impact that the introduction of EMV would have on the operations of the existing cards and infrastructure

The effects of EMV implementation on the processes and operations of dispute resolution

The effects of EMV migration on the customer service processes as well as procedures

The need for various rigorous marketing and promotion operations aimed at supporting the newly acquired EMV programmes

A precise outline and definitions of the various roles as well as responsibilities of the various Bank Branches and other necessary distribution channels.

The impact of EMV implementation on the merchants and the need for merchant training

The training of customers, staff as well as merchants

The handling of various legal agreements such as the changes in the existing merchant agreements, internal procedures as well as cardholder terms of usage.

The compliance and coordination with the various international card payment associations

Further research

Further research on EMV should be dedicated on how it can be integrated with other payment technologies and transactions such as CPN with the aim of improving the security of transactions conducted across several banks.

Conclusion

EMV technology is an important milestone in the global financial sector as it helps to reduce various investment and transactional risks such as fraud.Its implemetaion is however a nightmare for various financial institutions.It must however be remembered that since it involves an extensive infrastructural upgrade and acquisition, its benefits are long-term and might not be seen within a short time after its implementation.