A. BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) for implementation of the Strengthening Fiscal and Financial Stability (SFFS) project. The Financial Regulatory Commission (FRC) is a beneficiary of the Project and is implementing activities under sub-component #C4. The main objective of the Sub-component is strengthening the institutional capacity of the FRC. 

The Commission was established on 25 January 2006; as a supervisory authority under the Law on the Legal Status of the Commission approved by the Parliament of Mongolia in 2005. In 2020, the Mongolian Long-Term Development Strategy - Vision 2050 was approved by Parliament. The Strategy states that 'we will establish a multi-pillared and open, financial system linked to the international financial market' between 2021 and 2030. The initiative is to be accomplished by building a smart financial market that meets the requirements of international technologies and standards.  

In the past, digitalization and infrastructure improvements have been implemented by the Government. For example, E-Mongolian National Programme, National Programme for Integrated Registration System, ‘National e-Government Programme’ etc. Currently, the State Policy on Information in 2017-2025, Communication and Telecommunication Development in 2018-2020, and the Three Pillars Development Policy and the National e-Government Programme are being implemented according to the government's digital transition policy.

According to Mongolia's Vision 2050, the financial sector is required to support to the economy based on electronic technology, and the development of multilateral financial services and participate in the global financial sector by making Mongolia’s financial markets internationally competitive. In order to implement Vision 2050, government agencies will digitize existing mechanical operations, and create conditions for direct and indirect cooperation with other government agencies. 

The Law on Virtual Property Service Providers, the Law on Public Information, the Law on the Protection of Personal Information, the Law on Regulation of Monetary Credit, the Law on Electronic Signatures, and the Law on Cyber Security were approved in December 2021. Approval of the laws shows e-transition is an important need in the financial sector. In addition, Parliament approved an amendment to the Banking Law, committing commercial banks to open up and offer their shares to the public in 2021. The largest commercial banks in the market (for technology-based services) need to be regulated by the Commission; overseeing their operations as public listed banks. This confirms that for the Commission technological innovation is necessary. 

The private sector operating in the financial sector is investing heavily in technological innovation beyond the Commission's oversight and regulatory framework bringing Fintech services to market. New technology-based services and platforms (such as virtual assets, cryptocurrencies, coins, tokens, and domestic and international e-exchanges) continue to emerge due to growing market demand.

Currently, the Commission is using the E-Licensing system (Designed to receive applications and requests for license and other permits from regulated entities etc.), FINA, the KHUR system (enterprise resource planning (ERP), government information exchange) and risk assessment systems. However, within the framework of the goal of digitalization, the first major task is to develop and introduce a system with wider opportunities; based on Big Data technology and replacing the FINA system (which receives and processes financial statements from regulatory agencies). This reform will require significant investment, and it is important that the investment is effective. 

For these reasons, initially, the Commission needs to digitalize its operations and financial institutions, they are directly regulated by the Commission. In turn, it will facilitate cooperation (electronically) with other government agencies. 

Based on the above, the Commission is seeking to hire an experienced national consultant (team leader) to provide technical assistance to develop a draft Digital transition programme for the Commission, along with programme roadmap and a schematic model within the framework of the National digital transition programme. 

The Commission is expecting the future to develop a big data/cloud-based information technology towards a RegTech in the fintech environment. RegTech solutions enable fast, accurate and automated regulatory compliant solutions with flexible, future-proof solutions to easily comply with standards. 

B. OBJECTIVE OF THE ASSIGNMENT

The overall objective of this assignment is to provide support to the Commission, to develop a draft digital transition programme for the Commission along with a programme roadmap, and a schematic model, within the framework of the National Digital Transition programme. 

C. SCOPE OF THE WORK

The consultant as a team leader will manage the day-to-day activities of the team and have the overall responsibility for the final outputs. The tasks of the Consultant include, but are not limited to: 

Task 1. Pre-drafting technical recommendation 

1. Inception report along with a Contract implementation plan; 

2. Hold meetings and lead discussions with the Commission and other stakeholders; 

3. Conduct a review on international best practices, including internationally recognized information technology management and standards related to the Programme; 

4. Lead and conduct a review on the current legal framework for digitalization (personal data, e-signature, e-identification, e-evidence, KYC, etc.); 

5. Lead and conduct a review on the Commission’s mid-term Strategic plan and governance, public administration etc. related to launch the Digital transition programme; 

6. Review an assessment of status of the Commission’s technical capability (technical and personnel resources, acquisition of new technologies, current level IT – software/hardware etc.) in the following areas (prepared by team member): 

    6.1. Database assessment / Meta database structure

    6.2. Equipment resources and indicators;

    6.3. Information security and privacy and resilience; 

    6.4. Current systems/applications in use, compatibility for IT development to the full digitalization of services; 

    6.5. Interagency collaboration of government services in electronic form;

    6.6. Commission’s personnel capacities, culture and skills. 

Task 2. Preparation of technical recommendation 

7. Prepare recommendation/s based on the current status assessment; 

8. Review a preliminary Digital transition programme (with cost estimation) prepared by the team member and present it to the Commission for comments; 

9. Review and finalise a programme roadmap for transition and present it to the Commission for comments; 

10. Review a draft schematic model (set of pictures or graphs that represent a programme working model) and present the final model to the Commission for comments; 

11. Perform other related duties as assigned/requested. 

D. DELIVERABLES

The Consultant shall prepare and present the following deliverables to the Commission.

1. Contract implementation plan; 
2. Report on international best practices and current legal framework for digitalization;
3. Report on current status assessment;
4. Recommendation/s on the Digital transition programme for the Commission based on results of Task 1.3-1.6; 
5. Report on strategy and governance, public administration and change management related to launch the Digital transition programme; 
6. Final version of programme roadmap for the Commission’s Digital transition programme; 
7. Final version of schematic model;
8. Final version of Digital transition programme;
9. Final report including final recommendation/s on the Digital transition programme for the Commission.

E. CONSULTANT’S QUALIFICATIONS AND SELECTION CRITERIA

Education: Should have a background profession of BS/BA honors in IT engineering (software development, coding, system admin and analysis etc.), a postgraduate or higher degree preferably in IT engineering with specialization system architecture and design, and other alternative fields of Business development, Business administration, Project management with specialization in business modelling, 

Experience: The Consultant should have at least 10 years relevant professional experience; especially business development, software development and systems architecture and design. Previous experience in a similar consultancy works/projects working with partnership of government or government agencies as a lead will be an advantage. 

Language Skills: The Consultant shall be fluent in Mongolian and English (written and spoken).

Other Skills:

• Excellent interpersonal skills with ability to mentor - effectively and collaboratively - within workplace;
• The Consultant shall exhibit the highest standards of professional behaviour and personal integrity. The ability to work unsupervised is essential;
• Proficient in PC-based applications and data management, with excellent web research and navigation skills; 
• Be able to develop documentation;
• Ethical (confidentiality of information, governance and privacy).

F. SUPERVISION AND REPORTING 

The Consultant will report directly to the Director of the Commission’s International Cooperation Department and work under direct day-to-day supervision of the Head of the Information Technology Division. The following reporting requirements apply: 

1. A contract implementation plan including a concise description of activities, timelines and deliverables of the ToR shall be prepared by the Consultant within three (3) working days of commencement of the consultancy service; 
2. Progress Reports: monthly, once the contract has been signed, describing accomplishments and progress, and to be accompanied by the developed materials; 
3. Final Report: not later than 10 working days after the contract is completed, should be sent in electronic format to the Commission. 

G. CONTRACT DURATION 

The Consultant is expected to commence work in May 2022, where the consultancy service term is four (4) months. The Consultant is expected to work off-site during the consultancy period. 

Payments will be released upon satisfactory completion of all deliverables according to the following schedule: 

• Deliverables 1-3: 30% of total contract amount;  
• Deliverables 4-6: 30% of total contract amount;
• Deliverables 7-9: 40% of total contract amount.

H. INSTITUTIONAL ARRANGEMENTS 

The Consultant will work under the direct supervision of the Director of the International Cooperation Department and will report directly to the Director of the International Cooperation Department through the coordinating consultant of the component. The Consultant will work closely with the Information Technology Division. The Commission will provide office space. The Consultant will have access all necessary data and information which the Commission can provide.

If you possess the above qualifications, please submit the following documents via email to procurement_sgm@sffs.mn:

1. Cover letter indicating why she/he considers her/himself suitable for the position.

2. Detailed CV highlighting relevant skills/experience.

3. Copy of diplomas or certificates; and,

4. Two (2) reference letters from previous last two employers no later than 15:00 PM, May 20, 2022.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms.Oyunyam.M, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement_sgm@sffs.mn

70120582