SAP provided a solution prototype on a blockchain for pension reform of the Russian Federation

2018

SAP provided a solution prototype on a blockchain for pension reform of the Russian Federation

In April, 2018 submitted to SAP CIS the prototype/concept of the solution based on technology of a blockchain which could be used to the sphere of management of the individual pension capital (IPC) in the non-state pension funds (NSPF) within the future pension reform in Russia.

The prototype was developed by SAP CIS together with the partner - Eksikyyushn company as the answer to requirement of the Association of Non-state Pension Funds (ANSPF) which advances use of a blockchain in the IPK system.

The idea of application of a blockchain in this case is in that the client could interact with NPF without intermediaries: through a personal account to obtain information on the charges and an account balance, to change service provider, an interest rate, to manage the account status and to use other functions.

Prototype of a personal account of the client

Технически было бы возможно реализовать авторизацию пользователя в личный кабинет ИПК через UNIFIED IDENTIFICATION AND AUTHENTICATION SYSTEM or the portal of state services, note in SAP CIS

The main intermediary in a chain of interaction of participants of IPK whom the blockchain could replace here according to earlier introduced draft of the concept of reform, is the so-called central administrator. On this function are considered, including, the Pension fund and the Central Bank of the Russian Federation, however at the legislative level this function as of April, 2018 so far to anybody is not assigned, as well as the concept is not approved.

From the technical point of view, the concept provided to SAP includes network of NPF, each of which is a node a blockchain, Mikhail Loginov, the head of the center of examination for solutions for the financial industry of SAP CIS explained TAdviser. As soon as on one of nodes new transaction appears, it is checked for reliability by all participants, and if is recognized reliable, then it is noted at all participants, and it is already impossible to cancel, delete or change it.

The solution could be implemented based on SAP Cloud Platform using SAP Leonardo Blockchain in the Russian DPC of SAP, note in the company. The SAP component of Leonardo Blockchain is intended to facilitate formation, management and monitoring of all a blockchain network.

According to the draft of the report on results of public consultations of ANPF with the IT companies prepared earlier to association a number of offers on development of prototypes from the party and some other players of the market, including IBM and Croc arrived. But as a result by 2nd quarter 2018 creation of prototypes was reached by matter only in SAP and also in the ANPF joint project and VEB.

ANPF jointly in VEB developed an IC prototype based on blockchain technology. Market participants support use of a blockchain as it will allow to avoid additional costs from the market, so, profitability of management of pension savings will increase. Within creation of IPK use of advanced technologies will promote the fastest implementation of this concept, - the president of ANPF Sergey Belyakov noted in a conversation with TAdviser.

Added to associations that did not cooperate with other developers yet. As far as the SAP solution could be in the long term interesting to implementation in practice, in ANPF did not begin to specify.

Adoption of the concept of pension reform according to the scenario IPK was actively discussed in 2017, but afterwards discussion calmed down. As of the end of March, 2018, according to the Deputy Minister of Finance Alexey Moiseyev, the bill of IPK still was improved, and after completions should be entered to the government.

How afterwards it will be possible to implement IPK on a blockchain, depends on where the normative legislation as a result will turn: whether she will assume obligatory presence of the intermediary between participants of a chain of IPK or will allow use of alternative options of interaction between them.

2017

Development of a prototype of a system on a blockchain ANPF and VEB

In June, 2017 within ANPF signed the consortium agreement with VEB. In its framework partners intended to develop the project "Implementation of technology of the decentralized distributed database (blockchain) in NPF and a possibility of its application when implementing the concept of IPK".

The purpose of the joint project – the analysis of applicability of blockchain technologies in activity of NPF, assessment of technology and cost efficiency of this technology, terms of its development and deployment in commercial operation.

As a result of cooperation of ANPF together with VEB developed the IT solution prototype on accounting of transactions in IPK, said in the activities report ANPF for 2017. In a prototype according to scenarios accounting of transitions of the insured persons, change of a rate and provider (NPF) in the reference decentralized register is emulated. The solution was going to be presented as IPK alternative to creation of the central administrator.

IBM, Croc and SAP are ready to develop the solution on a blockchain for NPF

In February, 2017 ANPF announced the beginning of consultations with the companies and experts in the field of IT whenever possible uses of technologies based on a blockchain within the system of the individual pension capital.

TAdviser studied the draft of the report on the results of public consultations prepared in June, 2017. In it it is specified that to ANPF a number of offers on development of prototypes based on the available platforms arrived. There was a circle of the IT companies and representatives of banking sector ready to participate in project implementation on development of special software and its implementation. This circle includes such companies as IBM, Croc, SAP, National settlement depositary, Otkrytiye Bank, Qiwi, Acronicle, Ambiseyf, "Predprotsessing" and some other.

On the generalized expert evaluation of these companies, the cost of development of special software will be about 150 million rubles, time for development of a prototype and carrying out a pilot project – about one year, and total time on software development and transition to trial operation – two years, estimates are given in the report of ANPF.

Authors of the report note that the non-state pension funds entering into ANPF are ready to finance development and annual costs for functioning, completion and service maintenance of network a blockchain.

2016

Premises of use of a blockchain in the pension system

In 2016 the Ministry of Finance and the Central Bank of the Russian Federation developed the concept of new pension reform in Russia - the individual pension capital (IPC). The concept of IPK assumes that citizens will enter to an investment part of the state pension up to 6% of the salary in NPF. With the advent of the IPK mechanism an old accumulative system, as envisioned by regulators, should pass into the IPK program.

It was initially planned that a new system will earn in 2019. However its discussion clogged and as of spring of 2018 even the concept was not approved yet by the government.

One of the main links of the individual pension capital is the central administrator acting as the intermediary who would undertake all functions of the personified accounting of data on clients of NPF and their savings. Expenses on creation of new structure in the market were estimated at the amount not less than 10 billion rubles. Players of the market also expressed opinion that these expenses in can lay down on shoulders of NPF, and finally — their clients.

Proceeding from it, ANPF suggested to develop a system based on a blockchain as an alternative to the central administrator, expensive for funds.