Challenges

'- Finding alternative means of settlement aside from cash and cheques
- More secure and convenient way of settlement of funds due on the part of both biller and payers
- Electronic application for mandate management and claim processing
- Automated account reconciliation as and when any claims are successfully processed - both Paid and Returned items

Primary target

Which group does your product/service primarily target?

Description of Innovation

FAB has 'digitized' its Direct Debit offering with its own Electronic Direct Debits (eDDS) solution, allowing both billers and payers to manage their DDS process through a full online application. Billers can manage direct debit registrations and claims process, while payers can register their mandates electronically, regardless of where their bank accounts are domiciled. Allows billers to collect amounts due from their customers in a timely and automated manner

Results

'- Increase in the take up of Direct Debits, in terms of moving away from cash and cheque methods
- Improved cash flow forecasting, in terms of the 'predictability' on the part of the biller to schedule when to initiate claims, instead of waiting for their payers on when to settle their bills
- Improved account reconciliation and 'credit monitoring'.
- Ability to extend preferential terms (e.g., discounts, flexible payment terms, etc.) on payers opting for Direct Debits.

Lessons Learnt

Regulatory requirements, market behavior and adaptability should ne considered prior to replicating the initiatives.

Regulatory guidelines and approvals are in place to offer this service to the market