Expert for FinTech Solutions in Public Finance Management in Montenegro

As one of the most innovative approaches in the world of payments and banking, FinTech encompasses a wide range of applications and business models, ranging from mobile banking and insurance to cryptocurrencies, investment applications, as well as government systems of public finance management. FinTech has experienced great growth after the economic crisis, as barriers to entry into this field have been significantly reduced along with higher inflows of investment capital and the development of new technologies. One of the driving factors is that many traditional banks are proponents and adopters of new technology, actively investing in fintech start-ups and through the digitization of services providing digitally minded customers with efficiency, accountability, and reliability. On the other hand, governments are trying to use financial digital tools and mechanisms to track contributions and the needs of citizens, especially in public benefit payments such as social benefits and health insurance. Countries are investing more and more to make these systems functional, but this primarily requires reliable information to benchmark the scene and solid ground on which to base policy. Government needs to have a clear picture of global trends in tracking of public benefits, as well as understanding of how they can use FinTech solutions in this regard. 

Given that the process of digital transformation in Montenegro is ongoing, the Government has begun to define plans and programs for the improvement of technologies, digital services, and tools in the public finance management. In the forthcoming period, Government plans to consider the opportunities by using FinTech solutions, especially blockchain, in the public benefit payment system, to create or modify benefit payments policy based on insight into the preferences of citizens and the businesses. A blockchain-based public financial management system, provides primarily data protection, reduces opportunities for fraud and abuse, while increasing transparency, trust and accountability. In a blockchain-based public benefit payment model, resources are shared through a distributed ledger secured by cryptography. This structure eliminates a single point of failure and inherently protects sensitive data of citizens and government. So, in addition to enabling decentralized data storage, blockchain also guarantees their confidentiality and timeliness. Information about any element of the public benefit payment system can be directed to the target user without the possibility that anyone’s intervention could affect such a process. Also, the most significant contribution of blockchain technology is the inability to change data, so once recorded data do not have the ability to change, and any errors in the record can be corrected only by re-writing in the next record, but both transactions remain recorded in the blockchain.

Governments normally know a lot about individuals and organizations because of all the data they collect. Because this information exists in agency and department silos, however, it is often not used to the fullest possible extent. Agencies that provide social services typically have little or no direct access to information about interactions that a client may have had with other public authorities. And collecting such information can be a painstaking effort, requiring lots of time and legwork. From a technical perspective, there is no good reason for keeping data in silos. With some effort, many governments could create central repositories or enterprise systems for sharing information across agencies. A critical sticking point, however, is security—like their counterparts in the private sector, public agencies cannot, under any circumstances, make sensitive data accessible indiscriminately. What’s required is an environment in which data can easily be shared across systems but in which individuals and organizations can take back ownership of their data and control the flow of personal information—who sees it, what they see, and when. 

Therefore, if the Government initiate the introduction of blockchain and similar FinTech solutions to track public benefit payments, it is necessary to investigate capacities, opportunities, and risks to intensify the development and progress in this field. Transformation in the financial sector should be accompanied by the provision of FinTech space as well as the development of a flexible and risk based regulatory approach to FinTech technologies.

Objectives of the assignment:

The objective of the assignment is to determine the opportunities, potential and risks of introducing FinTech solutions, primarily blockchain technology, in the system of tracking public benefit payments such as social benefits and health insurance. Also, it is important to analyse other opportunities of using FinTech solutions for the improvement of transparency and efficiency of public finance management. The consultant will be responsible to create a national roadmap that will include the directions of development, recommendations on an implementable strategy and define activities to achieve results and assess the impact of development of FinTech solutions in public finance management system in Montenegro. 

Job content:

Under the direct supervision of UNDP Project Manager and under the guidance of UNDP Governance Team Leader and the Ministry of Finance and Social Welfare, the consultant will perform the following tasks:

• Present a detail action plan and methodology for the development of FinTech tools and mechanisms to improve public finance management system in Montenegro 
• Conduct the assessment of the possibility of introducing FinTech solutions in the public finance management system, especially in function of public benefit payments, considering the available technology, infrastructure, institutional and human capacities, as well as regulatory framework, especially considering privacy policies
• Develop a feasibility study and scenarios for the introduction of the FinTech solutions, especially blockchain, in tracking (receiving and spending) public benefit payments and identify opportunities and risks for the Government and claimants
• Develop the methodology for the identification and selection of blockchain providers that can offer cutting-edge products but are stable enough to see projects through to implementation
• Develop a national Road map for the introduction of the FinTech solutions (blockchain) in public benefit payment system in Montenegro:

1. Prepare a guidance to Government and blockchain-technology providers on technical standards and interoperability norms
2. Showcase the best practices and case studies from the region and the world of using blockchain in tracking public benefit payments and building capabilities across government bodies 
3. Provide key findings and recommendations for the development of FinTech solutions in public finance management system in Montenegro which is conducive for achieving the SDGs
4. Identify key partners and stakeholders that could support Government in the development of public benefit payment blockchain tracking system
5. List key steps for achieving the digital transformation of public finance management system in Montenegro

• Present the draft analysis, recommendations and legal and regulatory implications of blockchain to Government, UNDP and other key stakeholders to validate the findings
• Prepare Final report on all activities undertaken under this assignment provided, highlighting main results achieved.

Deliverables:

It is expected from the consultant to coordinate and implement above mentioned tasks, in order to deliver:

• Action plan and methodology for the development of FinTech solutions to improve public finance management system in Montenegro 
• Assessment of the ecosystem for the development of FinTech solutions in public finance management, especially in function of public benefit payments
• Feasibility study and scenarios for the introduction of the FinTech solutions, especially blockchain, in tracking public benefit payments with identified opportunities and risks for the Government and claimants
• Methodology for the identification and selection of blockchain providers for this purpose 
• National Road map for the introduction of the FinTech solutions (blockchain) in public benefit payment system in Montenegro 
• Presentation of analysis, recommendations, and legal and regulatory implications of blockchain to Government, UNDP and other key stakeholders
• Final report on all activities undertaken under this assignment provided, highlighting main results achieved.

Timing and reporting: 
The consultant will work under direct supervision of the UNDP Project Manager and under the guidance of UNDP governance Team Leader and Ministry of Finance and Social Welfare. The consultant will be responsible to prepare the Final report on all activities undertaken under this assignment provided, and it should contain sufficient detail and information that would allow for the appraisal of the effectiveness to date of the assignment’s activities.    

Time duration and travel:
The local consultant will be engaged 30 days in the period from November 29, 2021 to January 20, 2022. The consultant will work online with anticipated 10 days in Podgorica and in close cooperation with the Ministry of Finance and Social Welfare. The travel costs and Daily Living Subsistence Allowance costs should be included in the lump sum figure.

• Demonstrates integrity by modelling the UN’s values and ethical standards;
• Promotes the vision, mission and strategic goals of UN/UNDP;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Ability to lead strategic planning, results-based management and reporting;
• Builds strong relationships with clients, focuses on impact and result for the client and responds positively to feedback;
• Consistently approaches work with energy and a positive, constructive attitude;
• Excellent communication skills, facility in working with teams and capacity to compose clear and readable narrative reports;
• Demonstrates ability to manage complexities and work under pressure, as well as conflict resolution skills;
• Excellent organizational and time management skills;
• Knowledge Management and Learning;
• Shares knowledge and experience; 
• Actively works towards continuing personal learning, acts on learning plan and applies newly acquired skills; 
• Ability to perform a variety of standard tasks related to Results Management, including collecting of documentation, data entering, preparation of revisions, filling, provision of information; 
• Ability to provide input to business processes re-engineering, implementation of new systems;
• Excellent inter-personal and communication skills; 
• Ability to work independently and in a team.

Education:

• University degree in Economics/Finance/ICT or related

Experience:

• Minimum ten years of working experience in the relevant field
• Proven Expertise in Fintech policy and regulatory issues
• Proven Expertise in the development of blockchain solutions for the public administration
• Experience in the development of blockchain in public finance management will be considered an advantage
• Deep and demonstrable research and/or practical experience in FinTech, especially blockchain, including analysis of technology, financial infrastructure, and regulation
• Experience of conducting landscaping exercises preferably within the Fintech sector, or other related sectors
• Extensive and proven track record demonstrating understanding of the public finance in Montenegro will be considered as an advantage 
• At least two assessments/research conducted for Fintech solutions development in different countries
• Experience in working with public sector, especially with the departments responsible for public finance management
• Knowledge regarding trends in digital transformation topics will be considered as an advantage 

Language:

• Excellent command of spoken and written English language.

Criteria for selection:

Combined Scoring method will be used. When using this weighted scoring method, the award of the contract should be made to the individual consultant whose offer has been evaluated and determined as: (i) responsive, compliant, acceptable, and (ii) having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

• Technical criteria weight – 70% (Background and education 10%; Relevant previous experience 20%; Substantial knowledge/Required competencies 30%; Required language 10%);
• Financial criteria weight – 30%.

Only offerors obtaining a minimum 490 points for technical criteria will be considered for the financial evaluation. For more information on procurement methodology for Individual Contractors, please refer to Procurement Notice.

Application procedure:

Interested applicants are requested to submit their applications by November 25, 2021 by using the Apply now button. The application should contain CV or P11 that can be downloaded at https://www.me.undp.org/content/montenegro/en/home/jobs.html. Please note that UNDP jobsite system allows only one uploading of application document, so please make sure that you merge all your documents into a single file.

Only the short-listed applicants will be contacted and requested to submit a letter of interest including a price quotation indicating the lump sum (in EUR) requested for the work envisaged in the section “Description of Responsibilities”.