UPU WORLD CEO FORUM AMSTERDAM 2019

FINAL REPORT

TABLE OF CONTENTS

MESSAGE FROM THE DIRECTOR GENERAL 5

EXECUTIVE SUMMARY 7 SPEAKERS 11

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS 25

Session 1: Blockchain start-ups with postal services Session 2: New postal services for an ageing population Session 3: New postal services for the young

MESSAGE FROM THE DIRECTOR GENERAL

The fourth UPU World CEO Forum was The second session dealt with the issue I would like to thank UKI Media, which held in Amsterdam, Netherlands, on of new postal services for an ageing gave special support to the forum this year, 30 September 2019. The theme of the 2019 population. Four speakers, representing and the leaders who made the journey to gathering was “new business models in the postal operators of Lithuania, South Amsterdam to participate in this important an age of change”. Africa, Ukraine and Nigeria shared their event in the UPU calendar. strategies for catering to older customers. Following productive events in previous Though the demographic transition is more I hope this report proves useful as a years in Paris, Moscow and Istanbul, the advanced in Europe and North America, concise record of the fourth UPU World 2019 forum continued to build on the two-thirds of the world’s older people live CEO Forum for participants and all other momentum of exchanging ideas. The event in developing regions. UPU members alike. We are all aware programme, speaker biographies and key that we need to compete in the areas takeaways are all presented in this report. The final panel looked at the younger end of e-commerce and financial and digital of the market, and the ways in which the services if we are to thrive in the future. This gathering of postal decision-makers postal sector can address the needs of the The forum allowed us to address the came just a few days after the dramatic increasingly demanding youth segment. urgent issue of developing new business events of the Extraordinary Congress The CEOs of Botswana Post, Serpost (Peru), models in this competitive sector. Thank in Geneva, during which challenging An Post (Ireland) and La Poste Djibouti you for your participation. questions about the future of the terminal contributed to this discussion. dues system were finally resolved, giving Bishar A. Hussein the UPU a new lease of life. The forum was rounded off with a closing Director General speech by the UPU Deputy Director of the UPU International Bureau The Amsterdam forum began with a General and a dinner at which one final session on blockchain start-ups with postal speaker, the Chairman of the UPU Council services. Speakers from the Croatian, of Administration and Director General of Turkish, Tunisian and Egyptian Posts the Turkish Post, addressed the CEOs. discussed how they had considered and applied blockchain innovations in the Throughout the day, there were international postal sector. Two experts opportunities for top executives of the on blockchain then addressed the CEOs, postal industry to network and pose outlining their vision for the role that the questions on the panel topics. This face-to- UPU and its members would play in the face interaction is a much-valued benefit of fourth industrial revolution. our annual CEO Forum. EXECUTIVE SUMMARY The 2019 edition of the UPU World During the 2018 edition of the UPU Blockchain is gathering momentum CEO Forum took place in Amsterdam, World CEO Forum, a two-day event and has the potential to address Netherlands, on 30 September, ahead held in Turkey, CEOs discussed the barriers to financial inclusion and of the three-day Parcel+Post Expo. global dynamics that affect the postal improve cybersecurity and digital This was the fourth time that postal sector. Participants also deliberated identity. It is part of a shift towards a leaders had come together for an on the ideal postal portfolio for new financial system, one of 10 tipping annual exchange of ideas. meeting customer expectations, and points for the global postal sector examined the public service role of identified by the UPU. Before the wider industry – including postal operators. couriers, e-fulfilment companies, Traditional banking may have entered cross-border shoppers and delivery The focus of the 2019 gathering was an irreversible decline. It is facing companies – descended on the RAI the advent of blockchain, and the competition from the alternative Amsterdam Convention Centre, the best ways to reach two very different financial systems offered by Internet attending CEOs were given time to demographic groups: older and platforms, such as peer-to-peer discuss their own roles and priorities younger people. A common thread lending, and the emergence of new in a collaborative setting. running through all three topics was players, as well as digital currencies. the digital divide. The day began with Participants discussed how postal The forum, entitled “New business an interactive interview with UPU operators that offer financial services models in an age of change”, was Director General Bishar A. Hussein. must position themselves in this new well attended, bringing together financial order. representatives from more than Mr Hussein took the opportunity 7 40 countries, three-quarters of whom to recap the successful but hard- According to the World Bank, came from outside Europe. Africa and won outcome of the Extraordinary two-thirds of the 1.7 billion unbanked the Middle East were well represented Congress in Geneva just a few days adults worldwide have access to and there were participants from earlier, and he reminded participants mobile phones, making mobile as far afield as Brazil, Fiji, Malaysia that wider reform of the Union was payment services facilitated by and Peru. essential, given that Posts hold less blockchain a major opportunity than 30% of the global delivery for Posts. This report presents the forum market. programme, speakers and key The key takeaway from this discussion takeaways from the three topics The topic of the morning session was that postal operators, with their discussed on the day. The forum was “Blockchain start-ups with trusted brands and vast networks, are also provided postal leaders with postal services”. In addition to the uniquely positioned to exploit the full the opportunity to network between contribution of postal CEOs, who potential of blockchain. Swift action is programme events. reported on their blockchain activities, needed. Now is the time to create a the discussion included input global postal blockchain application from two expert guest speakers – as a consortium. Mr Moses Ma, Managing Partner of FutureLab Blockchain Lab, and Dr Christian Jaag, Founder and Counsel with Swiss Economics. EXECUTIVE SUMMARY Despite not being experts on The ideal solution would marry A number of Posts, including Japan blockchain, postal operators are technological innovation with Post and La Poste (France), have under pressure to learn and move customer satisfaction. Some of the introduced home visits for older quickly. An increasingly popular idea is Posts presenting at the 2019 forum, people who live alone, a service which to have start-ups develop innovations especially those that had become is greatly appreciated by absent family that postal operators can then apply profitable again, felt that they were members. There is ample opportunity to their business processes. striking this delicate balance. to expand this service, along with deliveries of food and medicine. Worldwide cooperation between UPU The two afternoon panels picked Mobile post office teams are ideally members is essential. Moses Ma made up the discussion on demographics, placed to provide tailored services the point that the UPU could form the looking at how to respond to the such as these to customers’ doors. ideal “trust anchor” because it inspires needs and characteristics of two Amidst resistance to rural post office more confidence than Facebook, specific segments of the population – closures, supplementing the physical governments or banks. Christian Jaag older and younger people. postal network with mobile teams said it was in the UPU’s interest to would be a worthwhile pilot project. create its own blockchain rather than In the session “New postal services for Mobile team trials run by Ukrposhta rely on an existing system. an ageing population”, participants (Ukraine) have already proven heard from countries with very successful. Several speakers remarked that different demographic profiles, from these are challenging times for Lithuania, where over-65s account The award-winning Address postal operators worldwide. While for 23% of the population, to Nigeria, Verification System rolled out by 8 younger customers expect high- where they represent only 3%. But Nigeria’s NIPOST has particularly level digital and mobile services with life expectancy improving in benefited older people in rural areas, from all businesses, including Posts, developing countries, the older where road networks are inadequate many older customers are resistant population is growing steadily. and addresses can be difficult to to change and reject new models for register. Older customers who verify interacting with postal operators. This Posts are not only socially obligated their addresses using a mobile phone is against the backdrop of continued but also commercially motivated to improve their access to services and pressure from governments for Posts serve older customers, who represent hence their economic inclusion. to fulfil their public service mission. untapped potential. Moreover, As noted in previous discussions, the because older people face more public service mission generally takes barriers than other customer groups – precedence over the commercial including health problems and limited imperative, with Posts called upon to budgets and transport options – they play a special role in social cohesion stand to benefit most from postal and infrastructure – and not just in services. This is especially true in areas rural areas. with high emigration, where older people rely on the parcels and money that they receive from younger relatives working in other parts of the country or abroad. Panellists agreed that catering for Posts can also play an educational UPU Deputy Director General Pascal this demographic was challenging role, boosting financial literacy among Clivaz was upbeat in his closing because it called for cheap and widely younger people. Those who obtain remarks after the panel sessions. available services. In addition, as older personal financial advice from the He reminded participants that the people tended to resist change and Post are more likely to opt for its organization was continuously innovation, it could take them longer financial products. In this way, the working on sector-wide development, to get used to new technologies. Post can meet its social and economic measured by its Integrated Index for While older generations are still obligations while also attracting Postal Development. He shared the thinking in analogue terms, new business. organization’s goals for next cycle: to generations are digitally minded and become a forum, to boost its product have different ideas about what makes Mobile apps for financial services and service offering, and to act as a a service or product valuable. are the most effective way to reach knowledge centre for the sector. “We younger people, who are generally are on the right track,” he said. The needs and preferences of comfortable with self-service and the world’s youth are shaping expect to be able to run their lives In Abidjan next August, the 27th UPU developments in various industries, from their phones. Being able to Congress will be invited to approve with technology, sustainable purchase postage labels online and the Union’s strategic plan for 2021– development and innovation at the send parcels and returns 24/7 is 2024, to be known as the Abidjan forefront. In the session on “New becoming common. Postal Strategy. Preparing that postal services for the young”, postal strategy will involve analyzing the risks CEOs examined the ways in which For younger customers to consider and opportunities faced by postal 9 the postal sector can respond to the the Post a good match, image and operators and the role of the UPU needs of an increasingly demanding branding are important. These in supporting them. The 2019 UPU target group. customers want to align themselves World CEO Forum made an important with brands that share their values. contribution to that process. In terms of partnerships, Botswana Ideally, the company should look and Post has found it useful to team up feel contemporary in its design, as with popular chain stores to expand well as having clear commitments its physical network. Locating kiosks to sustainability and innovation. For that provide a full suite of postal example, An Post (Ireland), which services in places where young rebranded earlier this year, has a people shop is one way of gaining sustainability charter that covers access to that particular audience. climate action, decent work and sustainable cities and communities. The aim is to deliver the nation’s post in a fully sustainable way using green vehicles, producing zero emissions throughout the country by 2030.

EXECUTIVE SUMMARY

SPEAKERS BISHAR A. HUSSEIN Director General of the UPU International Bureau

Bishar Abdirahman Hussein was first a loss-making to a profitable and elected Director General of the UPU self-sustaining postal enterprise. International Bureau at the 25th Universal Postal Congress in Doha in October 2012 In 2002, he was appointed ambassador and received a second mandate during of Kenya to the United Arab Emirates, the 26th Congress in Istanbul. covering the Gulf Region, for a six-year period. Mr Hussein is vastly experienced in UPU and postal matters. He chaired He holds a Bachelor of Arts degree the UPU Council of Administration for the (Honours) in political science and 2008–2012 cycle, having been designated sociology from the University of Nairobi. by the Government of Kenya to chair Throughout his 28 years of public service, th Mr Hussein has attended many courses 12 the 24 UPU Congress, held in Geneva in 2008. and seminars in postal management, human resources, finance, administration In September 2010, he successfully and diplomacy. chaired the UPU Strategy Conference in Nairobi. The conference provided a forum for discussion of important global issues affecting the postal sector and paved the way for the development of the Doha Postal Strategy.

Mr Hussein began his postal career with the Kenya Posts and Telecommunications Corporation, which he joined in 1984 as a management trainee. He rose through the ranks and, in 1999, became the first Postmaster General of the Postal Corporation of Kenya, which he led from PASCAL CLIVAZ Deputy Director General of the UPU International Bureau

Pascal Clivaz has been Deputy Director He began his postal career at Swiss Post General of the UPU International Bureau as a scientific adviser responsible for since January 2013, having been elected finance and strategy, before rising to to the position on 10 October 2012, at the become director of international affairs 25th Universal Postal Congress in Doha, and a member of the Swiss operator’s Qatar. He was re-elected at the 26th management team. He led the Swiss Congress in Istanbul in 2016. delegation at the UPU Council of Administration and Postal Operations Until his election, he was Director of Council sessions between 2000 and 2004. Finance and Strategy at the International Bureau, which he joined in 2005. 13 Mr Clivaz, a Swiss citizen from the alpine canton of Valais, has 19 years’ experience working in the postal sector and the UPU. A law graduate, he has held numerous roles in both private and public organizations, as well as at the European Commission in Brussels.

SPEAKERS IVAN ČULO President of the Board, HP – Croatian Post Inc.

Ivan Čulo joined Croatian Post in 1997 and Mr Čulo obtained his formal higher has been involved in all the company’s education while working at Croatian processes and operations over the past 22 Post, enrolling in the Faculty of Transport years. He was steadily promoted through and Traffic Sciences in Zagreb in 1997. the ranks, from the position of postal traffic Having attained a master’s degree in operator to his current role of CEO, which transport and traffic engineering in 2004, he has held since 2017. As a member he continued with his education and was of Croatian Post’s top management for awarded a master’s in economics after more than a decade, he has been directly com-pleting a specialized postgraduate involved in the company’s strategic programme at the Faculty of Economics in business operations. Although his expertise Rijeka in 2010. is aligned to the company’s core business, he has also been actively involved in other strategic projects.

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İSMAIL KÖSE CEO of the Turkish Post Technology Subsidiary

İsmail Köse graduated with honours Mr Köse subsequently returned to Turkey in computer science and engineering at to work as a Project and Cyber Security Frankfurt University of Applied Sciences. Manager in TEI and HAVELSAN. After He held a range of managerial positions starting as an advisor to the Director in Germany and the UK, including Project General at Turkish Post (PTT), he became Manager with the Hessen Province a board member and General Director of Ministry of Education from 2003 to 2006, PTT Information Technologies Corp on IT Director for various companies from behalf of PTT. 2005 to 2008 and Technology Adviser for Deutsche Bank and Commerzbank on behalf of Logica from 2008 to 2012. Between 2012 and 2014, he was Deputy Director General of IGMG for Saudi Arabia. JAWHER FERJAOUI President and CEO of Tunisia Post

Jawher Ferjaoui has 24 years’ experience to the communications ministry to take in the information and communication up the position of Director General of technology sector. He holds an Companies, Statistics and Development. engineering degree in telecommunications From 2015 to 2018, he was President with a specialism in information technology and Director General of the Tunisian and networks. He held various senior Internet Agency, during which time he positions in Tunisia’s ministries of public oversaw the launch of a cloud enabler health and social affairs up to 2007. and the transformation of the agency Mr Ferjaoui then spent two years as into a wholesale provider. Mr Ferjaoui was Director General of the Digital Economy appointed CEO and Chairman of Tunisia within the Ministry of Technology and Post in May 2018. Communication, followed by a further two years as Chief of Staff at the Ministry until 2010. From there, he became Director General of the National Centre for Information Technology before returning 15

ESSAM EL SAGHIR Chairman of Egypt Post

In the Middle East and North Africa, Essam and control standards, as well as reducing El Saghir is considered a prominent expert operational costs. in developing and automating postal Mr El Saghir has participated in several and logistical services. In 2015, he was strategic projects for developing postal appointed Chairman of Egypt Post, where systems in many countries worldwide, he is responsible for leading the Post’s such as Denmark, Germany, India, Ireland, transformation. Mr El Saghir is known for Japan, Switzerland and the UK. He is a his visionary development strategy. He board member of Post for Investment, has led projects that have taken the Post Post for Systems and Post for Delivery. He from a loss of 450 million EGP to net profit holds several regional and international of 4 billion EGP over the past two years. certificates in information technology His mandate also includes developing and electronic systems design and advanced smart government e-services development. that meet the highest quality

SPEAKERS SESSION 1 MOSES MA Managing Partner, FutureLab Blockchain Lab

Moses Ma is an innovation consultant the concept of eMarkets. Currently, he who works with senior executives at global manages the FutureLab Blockchain Lab, companies and organizations to help them where he oversees a number of exciting become more agile and innovative. He has blockchain and quantum computing been praised as a technology visionary projects, including exploring the possibility in Time Magazine and the New York of a global postal blockchain consortium Times. Over the years, he has been at the with the UPU. forefront of many exciting technological Mr Ma trained as a scientist and received a developments: he was a hit video game Bachelor of Science degree in physics from designer who invented the category of Caltech in 1979. networked games, and also transformed an uncapitalized software start-up into the 97th largest, seventh-fastest growing and 11th most profitable such outfit in the country. During his time at the CommerceNet thinktank, he invented 16 CHRISTIAN JAAG Founder and Counsel with Swiss Economics

Christian Jaag is co-founder and Counsel is a member of the scientific committee of at Swiss Economics, a consultancy firm. the Florence Competition Programme at He has worked extensively on economic the European University Institute. consulting assignments for a range Born in 1976, Christian Jaag was educated of corporate and public sector clients at the University of St Gallen, ESCP Europe across regulated industries such as Post, and the Study Center Gerzensee (lic. oec. telecommunications, transport and energy. HSG, 2001; PhD in economics and finance, Dr Jaag specializes in providing advice 2006). He spent time as a visiting scholar in relation to regulation, competition in the economics department of Rutgers economics, industry frameworks, pricing University. and quantitative management. He is the author of numerous academic He is also a lecturer in economics and and applied articles on public economics, management at the Swiss Federal Institute industrial organization, regulatory of Technology in Lausanne. In addition, he economics and law and economics. 17

SPEAKERS SESSION 1 ASTA SUNGAILIENĖ CEO, Lithuania Post

Asta Sungailienė was appointed CEO (managing the SEB Bank Private Banking of Lietuvos Pastas by the state postal and Operations departments in Vilnius and company’s management board in February also heading up the Reconciliation Unit 2018. She is the first woman to lead the for General and Static Data in Riga). From company. Born in 1971, she completed a 2014 to 2016, she worked for the Private bachelor in business administration and Equity Investment and Corporate Strategic management (1993) and a master’s degree Management Board of investment in finance and banking (1997) at Vytautas company Ad Ventum. Magnus University. Over the past 20 years, Ms Sungailienė has worked at AB Vilniaus Bankas and UAB VB Rizikos kapitalo valdymas (now SEB Venture Capital), and held various managerial positions at SEB Bank

18 LINDIWE KWELE Acting Group CEO, South African Post Office

Lindiwe Kwele was appointed Chief the Business Support Unit at the eThekwini Operating Officer of the Post Office in June Metropolitan Municipality. 2017 and is currently the acting Group She holds an MBA from the University CEO. of Wales and has successfully completed She was Deputy City Manager for the City the Gordon Institute of Business Science’s of Tshwane Metropolitan Municipality from Executive Leadership Programme and January 2012, and acted as City Manager the Municipal Finance Management from August 2016 until she was appointed Programme at the University of Pretoria. at the Post Office. The City of Tshwane She also has a B Admin degree (majoring employs 25,000 people. in economics and public administration) from the University of Durban-Westville From December 2008 until her (now UKZN). appointment in Tshwane, she was CEO of the Joburg Tourism Company. She was also CEO of Durban Africa and head of OLEKSANDR PERTSOVSKYI Chief Operating Officer, Ukraine Post

A graduate of Kyiv University (Ukraine) with a workforce of more than 73,000. and Brandeis University (United States), Mr Pertsovskyi was appointed the Mr Pertsovskyi spent seven years with the company’s Chief Operating Officer. world’s largest logistics company, Deutsche Since that time, the state entity has Post DHL Group. He drove operational become a joint stock company with an transformation and new business launch independent board, achieved 21% annual projects across China, Germany, Japan, revenue growth, and gone from posting Malaysia, Oman, Singapore, the United losses to turning a profit in Q1 2019. Kingdom and the United States, among other markets. In 2016, at the invitation of the government, Mr Pertsovskyi returned to his native Ukraine to drive the transformation of Ukrposhta (Ukraine Post), one of the country’s largest state-owned enterprises

19 ADEBISI ADEGBUYI CEO, Nigeria Post

Mr Adegbuyi is an accomplished lawyer solution to the addressing challenges in and businessman who was appointed the country won an award during the 2018 Postmaster General/CEO of Nigeria Post in World Summit on the Information Society 2016. A strong advocate of public-private in Geneva, Switzerland. initiatives in government, Mr Adegbuyi Mr Adegbuyi is committed to extending holds an LL.B (Hons.) and a master’s financial services to the banked, under- degree in law, specializing in secured credit banked and unbanked members of public transition and international economic law, in the rural areas of Nigeria and beyond from the University of Lagos, Nigeria. the national borders through NIPOST post In his tenure as CEO, Mr Adegbuyi has transfer and NIPOST agency banking. overseen the introduction of significant To this end, he has pursued a strategic innovations and new products, including partnership with banks and financial the Digital Addressing System and the service providers. Address Verification System. This pragmatic

SPEAKERS SESSION 2 20 CORNELIUS WYNTER RAMATLHAKWANE CEO, BotswanaPost

Mr Ramatlhakwane has managed to turn In these roles, he has demonstrated his BotswanaPost from a loss-making to a capacity for strategic leadership, customer profitable company since his appointment experience, sales management and as its CEO in 2016. marketing and communications solutions. He has also gained valuable experience at Under his leadership, the traditional Cresta, SeaFood Wholesalers and Deloitte nationally focused post office has been & Touche. transformed into a service provider. Prior to his current position, he was Head of Mr Ramatlhakwane holds an MSc Business Development at BotswanaPost. in Strategic Management from the He has extensive experience in the financial University of Derby, United Kingdom and and hospitality sectors. a Certificate in Management Studies from the Management College of Southern Mr Ramatlhakwane has held a range of Africa, and has completed the Executive positions at Standard Chartered Bank, Development Programme at the University including Head of National Sales, Head of of Stellenbosch. Service Quality and Head of Marketing. 21

GERARDO FREIBERG PUENTE CEO, Serpost S.A. (Peru)

Mr Freiberg Puente holds an MBA from Mr Freiberg Puente is skilled in redefining ESAN Graduate School of Business and a businesses, turning around negative degree in industrial engineering from the results and consolidating organizations University of Lima. He has over 30 years’ by applying continuous improvement experience in several businesses, including methods, as well as organizational logistics, banking and entertainment. integration geared to reinforcing internal and external links.

SPEAKERS SESSION 3 DAVID MCREDMOND Group CEO, An Post (Ireland)

David McRedmond was appointed Chief A native of Dublin, Mr McRedmond Executive Officer of An Post in October holds a master’s degree in modern Irish 2016. He was previously CEO of TV3, history from University College Dublin. where he transformed the company into He completed the Top Management a major Irish broadcaster, concluding with Programme at the Cabinet Office, UK, and its sale to Liberty Global in December the Advanced Management Programme at 2015. Prior to this, Mr McRedmond was INSEAD. He is the non-executive Chairman the Commercial Director of Eircom and the of Eir, Ireland’s leading telecoms company, Managing Director of Eircom Enterprises. a director of Premier Lotteries Ireland and His early career was as a retail industry a fellow of the Royal Society of Arts. executive in the UK and USA, where he held senior roles such as Operations Director of Waterstones, Managing Director of WH Smith Travel Retail and CEO of WH Smith Inc.

BAHNAN ALI MAIDAL CEO, La Poste Djibouti

Mr Bahnan Ali Maidal has been the Mr Maidal previously worked with the Director General of Djibouti Post since Ministry of Posts and Telecommunications 2014. During this time, he has focused as a technical adviser. In addition, on giving a young and dynamic image he served in the Djibouti army as a to the Post. He has led the push towards communications officer. He holds a technological optimization to launch master’s degree in communication, Djibouti Post’s entry into the world of strategy and media from the School e-commerce and other postal segments. of Advanced International and Political Studies (HEIP Paris), studied law and economics at the University of Clermont- Ferrand in France and speaks five languages. SPEAKERS SESSION 3

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS SESSION 1: only channel to the unbanked and The record-keeping technology that undocumented people of the world gave us bitcoin potentially has a BLOCKCHAIN was via the Post, and that blockchain myriad of other applications related to START-UPS WITH was the key to bridging the digital data storage, from property sales, to divide. stops in a supply chain, to votes in an POSTAL SERVICES election. Postal operators are not experts in The importance of digitalization blockchain but need to learn and Before the experts were invited to the global economy cannot be move quickly. There are several to speak on the subject, the UPU overstated, which is why the Universal possible routes to innovation in this members present spoke about their Postal Union has made digital area. An increasingly popular idea is practical experience of blockchain. transformation a priority. The UPU to have start-ups develop innovations has a key role to play in generating that postal operators can then apply Ivan Čulo, CEO of Croatian Post, told industry momentum for new to their business processes. the forum that it was time to leave technologies, financial services and behind conservative business models digitalization. In this session, speakers from Croatia and to develop new services for Post, Egypt Post and Turkish Post citizens. His newly profitable entity As new digital technologies discussed how they had considered or was investing in technology and had proliferate, every aspect of economic applied blockchain innovations in the successfully trialled a cryptocurrency and social behaviour is affected, international postal sector, including service for tourists in Zadar in the from trade to financial services to the through partnerships with start-ups. summer, he said. It now planned to 26 delivery of public services. develop this into a post office-based The concept of blockchain can be service for the country’s resident Blockchain and cryptographic hard to grasp. It is defined as a population. technologies are the latest tools that distributed, decentralized, public businesses can use to adapt and ledger, but this reveals little about He explained that Croatian Post was innovate more rapidly than ever. the scope of the technology. Simply trying to learn from the best practices Postal operators, with their trusted put, the ‘block’ is a piece of digital of other designated operators brands and vast networks, are information and the ‘chain’ is the that were making forays into the uniquely positioned to exploit the full public database in which it is stored. blockchain industry. One of the issues potential of blockchain. Transparency The advantage of blockchain is that that the Post was experiencing was and trust are key pillars for both the it allows digital information to be the involvement of the government, Post and blockchain. recorded and distributed without which knew little about the subject. being edited. This makes it a highly Mr Čulo said that the company If Posts take the right steps now, they secure way of recording data. The fact was thinking of hiring blockchain could find themselves in a stronger that the blocks include unchangeable experts with a view to more quickly position than e-commerce giants time stamps also makes it ideal for implementing the technology. like Amazon, Facebook and Google, use in trusted transactions, including Moses Ma told the first panel at authentication. the CEO Forum. Mr Ma held the view that that the best and possibly Next, the forum heard from Ismail Essam El Saghir, Chairman of Egypt When Moses Ma took the floor, he Köse, CEO of PTT Technology, the Post, also expressed support for a praised Egypt, Croatia and Turkey technology subsidiary set up by single unified platform across the for their work, describing it as Turkish Post to provide services for the UPU. “We should have a new UPU spectacular. However, he appealed for postal operator, such as a blockchain- committee for one single blockchain coordination across the sector. “The based digital stamp, and for telecom platform,” he said. biggest issue is that if they don’t have companies and other external clients. access to international players, they Egypt Post has made impressive may implement a regional solution Turkish Post is one of the biggest progress with blockchain, notably that will have to be globalized later payment service providers in the with a newly opened logistics centre on. There are currently about a country. It has three technology at Cairo Airport, which is designed to hundred different blockchain identity universities and also works with small be a regional consolidation centre for systems to choose from,” he said. start-ups, investing in their innovative Africa. The blockchain-based hub will projects. speed up customs and handling. Mr Ma said Posts and the UPU could form the ideal “trust anchor” because “We want to establish a blockchain In addition, Egypt Post has issued nine they inspired more confidence than hub in Istanbul to jointly develop million payment cards in the space Facebook, governments or banks. It blockchain solutions for different of a year and rolled out a mobile would seem that the universal service industries”, Mr Köse said. The app, both based on blockchain. agreement, now more than a century operator has concentrated expertise The operator is investing heavily in old, has paid off in terms of branding. in technology parks and research blockchain technology. 27 centres and is sharing its knowledge When Mr Ma asked the audience with businesses across the country. Mr El Saghir also spoke about the about the main barriers preventing transformation that Egypt Post has postal services from adopting The Post introduced crypto stamps undergone, from a loss-making to a blockchain, one participant said in order to establish a cryptochain profit-making entity within one year. that it could be difficult to convince exchange market and its own unique This was achieved by introducing governments to embrace that cryptocurrency. The stamps should profit-sharing and financial incentives technology if they were sceptical of help to maintain interest in philately, for post office staff and delivery cryptocurrencies. Mr Ma said that especially among younger people. workers. Post office staff get a 10% it was important to find the right Turkish Post also has a mobile profit share when a branch turns a experts to do the convincing. payment application, PTTcell, which profit. This boosted staff motivation customers can use to transfer money and encouraged half of all Egyptian “Digital currency has as much digitally. post offices to open until 20.00 to win power as paper currency. It is the more customers and increase revenue next big thing. But it can’t be Looking further ahead, Mr Köse said without incurring additional costs. run by revolutionaries. It has to that Turkey wanted to help establish be a merger and a collaboration “worldwide blockchain cooperation” between revolutionaries and between UPU members. central banks.”

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS Mr Ma stressed that time was of the In a previous UPU interview, “I think the sweet spot is in the essence. Rather than just catching up Mr Ma said it was essential for Posts middle, where a few or a certain with what is happening elsewhere, to collaborate with mobile telephone number of trusted participants Posts should be aiming to leapfrog companies to reach the final one come together to create their own the competition. “The goal is to billion people on the other side of blockchain, their own consensus. And actually look better than everybody the digital divide. Because Posts I think that’s where the opportunity else and to do it really quickly. To do have honoured the universal service for postal operators really lies. Not to this, you need to use the power of agreement for centuries, they have an rely on an existing blockchain but to your collaboration.” unparalleled ability to bridge the last create your own as members of the mile to the unbanked. UPU.” Blockchain is going to create a revolution that is bigger than the “Imagine if Posts could not Now is the time for a global postal web, he said. He described the only connect people to the tools blockchain application, he said. phase we have now entered as the they needed to access modern Consortiums are forming all over the full expression of the information digital financial services – mobile world so now really is the time to act. revolution. phones – but also develop If you want to have blockchain-based those financial services services, you need a blockchain to According to Mr Ma, Posts should themselves using blockchain rely on, and that should be a postal now fast-track killer app pilots that and cryptocurrency technologies one. they could all share, splitting the costs and bring them to areas that are and using a uniform platform. still unreached by traditional Mr Jaag gave an example from 28 financial institutions.” the Swiss market, where there is With more than 600,000 post offices not a sector-specific but a national worldwide, postal operators have an Christian Jaag struck a more cautious blockchain. Swiss Post and Swisscom, enormous retail network that gives tone in his contribution. He said a major telecoms provider, have them an advantage over Google, Posts were right to be afraid because formed a consortium to make Amazon and Facebook. “It may look the trust placed in their brand Swiss blockchain a new kind of like you need blockchain but the could become decentralized. “The infrastructure that Swiss companies reality is that the blockchain needs question is how can we leverage the can rely on to do business. the Post in order to solve the last-mile trust that we have in the blockchain problem.” ecosystem?” He then made the point that there was no need to try to shoehorn Posts should not be intimidated He went on to explain that there blockchain into every area of postal by blockchain, because if it is used is a broad range of blockchain business. It was just a technology properly, it simplifies everything, in technologies, from radically and could only be deemed useful if it terms of both workflow processes decentralized to purely private. The served a purpose. “Look for situations and user experiences, he said. two extremes are costly and the where you have interaction between UPU has an important role to play in a certain number of parties, where finding the middle ground. those parties may not trust each other fully and there’s a process involved that can be automated,” he said, adding that an important role SESSION 2: NEW Postal operators need to be mindful for postal operators could be issuing of the age profile of their customer tokens for digital goods. POSTAL SERVICES base. In countries with an ageing FOR AN AGEING population, this means making Overall, the message from all the sure services remain accessible and speakers was that Posts needed to POPULATION adapted to older customers. break free of their comfort zones to keep pace with rapidly changing ways A fundamental demographic change During this discussion, postal leaders of doing business, and to remain is taking place worldwide and cannot from Lithuania, Nigeria, South Africa competitive in the market. be ignored. By 2050, for the first time and Ukraine explored the effects of in history, there will be more older ageing populations on their national The UPU is the industry platform for people worldwide (aged 60 years economies and explained the ways standards, technology and effective and over) than children under 15 in which their organizations had trade negotiations. The developments years, according to the projections developed new solutions tailored to in Geneva in September 2019 affirmed of the United Nations Department the needs of this group. the role and relevance of the Union. of Economic and Social Affairs. This has significant implications for public Participants heard about pilot projects The transformational potential of policy and all economic actors, for mobile postal services, home-visit blockchain should not be overlooked. including postal operators. services and new ways to reach the The goal of the UPU is to foster close unbanked, including a nationwide cooperation across the industry, The United Nations Principles for digital address verification system. 29 generating momentum for new Older Persons state that they should technologies, financial services and remain integrated in society and Lindiwe Kwele, Acting Group CEO digitalization. participate actively in the formulation of the South African Post Office, and implementation of policies that spoke about some of the common Much has been achieved in the directly affect their well-being. problems associated with old age. area of blockchain and there is no There are currently 3.2 million older shortage of ideas. If postal operators In this session, participants heard people living in South Africa, and that seize the opportunity for cooperation, from countries with different number is set to double by 2050. drawing on their combined resources demographic profiles, from Lithuania, – including transactions, data, where over-65s account for 23% of Older people are disproportionately contacts, manpower and expertise – the population, to Nigeria, where living in underserved areas, left then they will become a key player in they represent only 3%. While the behind by the younger generation blockchain usage. demographic shift is much more who migrate for work, Ms Kwele pronounced in industrialized nations, said. They may have limited access the ageing revolution has also begun to transport. It is likely that they will in developing countries, with the older have to survive on a low income. population segment growing steadily. They are more likely to suffer from health problems and to have a lack of recreation in their daily lives.

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS To combat this sense of neglect, the market. Lithuania is an ageing society, The mobile postman, in contact with South African Post Office has, among in the middle range in Europe. and monitored by the call centre, other things, tried to increase financial Between 2008 and 2019, the share has everything he needs to respond inclusion by distributing social grants of the population aged over 65 to different types of call: a vehicle, and assigning rural addresses. One in increased by 2.6%. The equivalent a tablet and app, scales for pickup 10 branches also delivers medicine for rate for Germany was 1.3% and for services and a Bluetooth printer. This chronic conditions. Poland 3.6%. makes it easier for senior customers with restricted mobility to use postal The social grant distribution service Taking a longer-term view, the services, Ms Sungailienė said. “It is reaches more than 800,000 old age demographic shift is striking. In 1990, about bringing digital to the older social service beneficiaries either at around one in ten people in Lithuania generation. However, it is also good a post office or through the Post’s were over 65. This year it is almost business.” mobile rural payment services. one in four. Emigration has played a role in this change. The picture is similar in Ukraine, Owing to the high number of migrant where the Post is seeking imaginative workers in South Africa, the parcel While older customers represented solutions to the challenge of door-to-door service and counter- great potential, there were two things serving older people, as the forum to-counter service are widely used to bear in mind, Ms Sungailienė said. participants heard from Oleksandr by the older population. Children Their budgets are limited, so services Pertsovskyi, Chief Operating Officer of of elderly parents send parcels via have to be inexpensive. And they are Ukraine Post. the South African Post Office’s parcel resistant to change, so they can take business to their family members time to get used to new technologies. Mr Pertsovskyi agreed that mobile 30 in rural communities. The money post offices were the future of order service also makes a significant The kinds of service that could nationwide coverage. Almost half contribution to economic inclusion. be expanded to older customers of the Ukrainian population (47%) include interactions with a social is unbanked and 10 million people Ms Kwele mentioned two pioneering dimension, such as a visiting service. out of a population of 37 million live projects developed in other countries: But there is also potential for home in localities with fewer than 2,000 La Poste France launched the food deliveries, in collaboration with inhabitants. “Watch my parents” service in 2018 support organizations, and on-call to respond to the challenges posed medication deliveries. This calls An interesting feature of the Ukrainian by a lonely, ageing population and for new models designed around postal market is that four million declining mail volumes; and Japan customers’ needs. retirees depend on cash pensions Post Co. started providing a similar delivered by Ukrposhta. The pension “Watch Over” service in 2017. The This expansion of services to older delivery service is projected to lose South African Post Office was currently customers also fits well with the 37 million EUR in 2019. This is against looking into launching such a service ongoing move from the traditional the backdrop of shrinking rural on its own market. model to the mobile model of postal business and high maintenance services, whereby the mobile postman costs for rural post offices. Asta Sungailienė, CEO of Lithuania or woman comes to your location at Post, gave an overview of the a time to suit you and with services challenges facing the Lithuanian tailored to you. Balancing the social obligation is the time to visit earlier in the day, “Where digital adoption is high, new difficult where it can feasibly lead to generally pensioners, value this innovations inevitably emerge. That’s bankruptcy, Mr Pertsovskyi said. The opportunity to save on payments. why the launch of DAS/AVS by the challenge was to educate people Nigerian Postal Service, for example, and to persuade them to receive The scheme resulted in a substantial has turned every smartphone user their pensions differently. Overall, the reduction of queues and an into a formal postal address tracker, alternative and most viable service improvement in the quality of service enabling the ageing population to be model was mobile post offices. in the two regions where it was tested. captured in the address database for It was expanded to 17 regions in easy flow of postal services.” Ukrposhta chose to pilot the concept October 2019. of mobile post offices in the Chernihiv This digital addressing innovation is region, which comprises 1,465 villages The final speaker of the panel on sorely needed. Street addresses work served by 600 stationary post offices new postal services for an ageing well where they exist; however, some and 130 mobile crews. population was Mr Adebisi Adegbuyi, localities consist of poorly named or CEO of Nigeria Post. Nigeria receives numbered streets, or no streets at all. Mobile crews have four-wheel-drive the largest volume of remittances This is something that affects older vehicles and are able to work offline of any African country. Money from people too. in remote areas without Internet relatives abroad is worth 23 billion coverage. The three crew members dollars to the Nigerian economy. Postal operators face many provide postal, financial and retail Much of this money goes to elderly challenges in the next 10 years, services. relatives and is handled by the Post. Ms Kwele reminded fellow CEOs. While profitability is declining owing 31 The pilot was initially unpopular and Since life expectancy is due to to a reduction in conventional postal met with resistance from local and increase in the coming years, the volumes, Posts must diversify their national politicians, who campaigned population will become bigger and product offerings and reposition to prevent it from going ahead. older. Responding to the complex themselves. They need to participate However, Ukrposhta pushed the needs of an ageing population will fully in the fourth industrial revolution project through and it is currently have significant social and economic and partner with shareholders in the being scaled up to cover a further implications for both families and delivery of government services. four regions. the government. Faced with such pressures, Posts must Ukrposhta also launched a “payment NIPOST received an award at the not lose sight of their responsibility to happy hours” promotional campaign, World Summit on the Information continue serving the most vulnerable which aims to reduce queues in post Society, held in Geneva in March members of society, many of whom offices during peak hours and at the 2018, for its Digital Address System are elderly. This discussion should same time help older customers (DAS)/Address Verification System – help to keep ideas flowing and to save money. The Post offers a a centralized digital platform whose motivation high. 50% discount in commission on all up-to-date database of physical payments (including utility payments) addresses and occupants is helping to for customers who visit post offices bridge the gaps in Nigeria’s national before 15.00. Customers who have financial inclusion strategy.

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS SESSION 3: NEW actively engaged in the workforce, Botswana Post has provided much for unless they are unemployed. this market segment in the four years POSTAL SERVICES Generation Z refers to young people that Mr Ramatlhakwane has been born after the early 2000s who have CEO. Progress has been made with FOR THE YOUNG not yet reached adulthood. People both the physical network and digital in this group have the technological platforms. Common sense tells us that young acumen to browse for products people are the future, but they online but most do not make online Since the postal network is are also the present, and as postal purchases directly. They have a major indisputably the biggest channel operators, we have to cater for them influence on their parents’ spending in any country, and especially on here and now. choices. the African market, Botswana Post decided that bricks and mortar would The global population remains very Cornelius Wynter Ramatlhakwane, be the core competitive edge of the young, with 42% of people under the CEO of Botswana Post, kicked off the post office. age of 25 years, according the World discussion with a description of the Bank. While populations are declining youthful culture of the organization However, rather than build more post or reaching a plateau in most regions, he leads. “We are a young institution offices, the Post took the approach they are increasing in South Asia and in terms of human capital. More than of growing its distribution channels sub-Saharan Africa, where some 60% 70% of my workforce is under the through smart partnerships that also of people are under 25 years of age. age of 30.” At the age of 52 years, help to reach younger people. It did Mr Ramatlhakwane is the oldest this by installing postal kiosks in some The needs and preferences of person in the executive team. of the country’s biggest chain stores, 32 the world’s youth are shaping offering a full suite of postal services. developments in various industries, He spoke about the traits of younger This was to make sure that young with technology, sustainable customers, whom he described customers who entered those stores development and innovation at the as selective and impulsive. They could conveniently access postal forefront. In this session, postal CEOs are driven by convenience and services. examined the ways in which the postal expect unbridled access to products sector can respond to the needs of an and services. In many cases, they Botswana Post launched the increasingly demanding target group. would prefer the product to come PosoMoney app earlier this year. to them. In addition, they prefer PosoMoney is a mobile wallet service It is worth noting some of the groups personalization, services tailored to that works on any phone and any into which younger people are their own needs. Mr Ramatlhakwane mobile network. With it, users can commonly subcategorized. In the also made the point that younger perform a number of different media in particular, people aged people are a diverse group. What transactions, including depositing 18–34 years are often referred to they have in common is that they and withdrawing cash, sending as millennials or Generation Y. They are digital natives, very comfortable and receiving money from other are generally computer literate and with multi-tasking. They also require mobile customers, paying utility bills, interact with businesses on social constant feed-back. “Communication topping up credit for any phone, and media. They tend to be either mobility is key,” he said, for the purchasing goods from PosoMoney studying towards qualifications or generation who consider it cool to Merchants. be smart. It also provides would-be and As part of its new direction, the Stamps are another good way of established entrepreneurs with the postal operator also announced two attracting interest from younger opportunity to enter into partnerships new sub-brands: An Post Money, customers. “We are inspiring a new with BotswanaPost as PosoMoney which brings together its various generation of stamp lovers and Merchants or PosoMoney Agents. personal finance services, and An Post revolutionizing mail-sending through This could be of particular interest to Commerce, a business-to-business a modern stamp programme.” younger people. brand providing e-commerce and mailing services. An Post’s stamp programme spans Changes taking place at Ireland’s all ages. Music- and sport-themed newly-profitable An Post are also The brand purpose of An Post is “to stamps in particular have resonated expected to appeal to younger act for the common good, to improve with the younger audience. The latest customers. Group CEO David quality of life now and for generations music-themed stamps feature Phil McRedmond told the forum about to come.” Lynott and Thin Lizzy, The Cranberries ongoing rebranding efforts. and U2. Stamps featuring sporting In line with this ethos, it is following a heroes like the 2018 World Rugby The new colour and logo adopted sustainability charter, which includes Manager of the Year and Player of by the Post are supposed to climate action (introducing new the Year (Joe Schmidt and Johnny communicate a change in identity zero-emission green machines), Sexton respectively) have proved very from passive to decisive, from decent work, sustainable cities and popular. predictable to contemporary, communities. The aim is to deliver the progressive and innovative, and from nation’s post in a fully sustainable way, All of these efforts are working, with the only choice to the preferred producing zero emissions in Dublin by younger people now more likely to 33 choice. An Post has progressed the end of this year and in the rest the use An Post and market penetration from being a mail company that country by 2030. scores in this age group significantly does parcels to an expert in financial ahead of the norm. services and e-commerce. It has An Post has developed various postal oriented its business to customers of services for the youth market, offering Young customers are destined the future, who live their lives online, customers convenience, choice and to remain centre-stage for postal are socially conscious and make control. These include Address Pal, operators. The challenge will be to the most of their time, resources, providing surrogate addresses for stay relevant and project an attractive careers and lives – customers who people who are homeless, online image that satisfies young people’s want things on their own terms. self-serve and parcel lockers that are desire for convenience, novelty and a Such customers are looking to align accessible 24/7. better world. themselves with brands that share their values, Mr McRedmond said. “Customers will be able to self-serve, buying postage labels online and sending parcels and returns 24/7 with our new state-of-the-art post offices, online self-serve and parcel lockers.”

SUMMARY OF DISCUSSIONS AND KEY TAKEAWAYS

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