A Utility Bill Payments Solution
by
ABS
Automated Business Services | Private Limited
Time to modernize
Most banks and other organizations like NADRA are devising new
procedures to simplify and automate the Utility Bill payment system:
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NADRA has set up kiosks with money accepting machines
Banks are advising customers to use ATM machines
Banks have started accepting bills from their clients for account debits
Banks are also advocating use of their call centers for bill payments
All these above mechanisms are a good move forward, but each has its
limitation in that an action is required on the part of the consumer each
time and it is time consuming. Also each option requires instant
account debit.
As a result, their use by the general public is very limited and they
continue to suffer the hardship of standing in lines in the open to make
bill payments. This they must do or else face disconnection.
Our Proposal is also based on account debit but with a
difference….it is automatic and consumers are not involved, thus
they are free from this hassle.
ABS Background
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ABS, is an IT Enabled Solutions Provider and was founded in 1993
The company was the brainchild of IT specialists committed to
modernization of the country’s IT infrastructure (in particular, within the
Payment Systems space)
Some achievements of ABS include:
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ABS conceived, developed and implemented the Automated Clearing
House (NiFT), which is now in 12 cities
ABS developed several ACH solutions like Same Day Clearing and Intercity
Clearing which have been launched on the NiFT platform
ABS developed the Secure Internet Message Exchange (SIMEX) solution
for banks and large enterprise, connecting all of Pakistan on a secure IP
platform
ABS principals were instrumental in bringing the International Payment
System SWIFT into Pakistan
ABS has developed an electronic remittance system for use by end
consumers to remit funds to Pakistan (this will be launched in conjunction
with banks)
Utility Bills Payment Solution
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ABS has developed a system of Auto Debits for the bill payment &
settlement function which can be replicated all over the country to
cover all urban areas
This system, when rolled out, will make utility bills payment an
automatic feature, thus relieving consumers of hardships and
colossal time consumptions
Collecting banks can offer an additional platform to customers to
pay utility bills (free of charge). Banks will save from operating
collection windows.
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Daily collections & reporting through the system will result in
automatic and efficient reconciliations for the Utility companies
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The system allows each bank to provide this service to its own
customers
The Auto Debit System
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Using ABS-configured ISP’s internet network and our
secure messaging system we are able to communicate
with any end point (bank branch in this case) securely.
Bank branches do not get internet access but only
mail accounts for secure communications.
Since each bank will be servicing its own customers only an
acceptance letter must be obtained by each bank from its
customers to allow auto debits to account for such payment
Details of each consumer regarding bank branch account
will be captured on a bank/branch PC through software
provided by ABS. This information will be passed on to the
ABS servers for processing.
DL
DL
The Auto Debit walk-through
At the Utility Company level:
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Utility company will print and send bills to consumers as at present
Simultaneously utility companies will send electronically the bill details to ABS
ABS system will add each consumer’s bank branch account detail to electronic
bill and sort the entire bill file on due date, bank, branch, account number order.
Thus the file will be in ascending due date order
At the Bank/Branch level:
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For each due date ABS will prepare a debit list for each bank branch
On each relevant due date ABS will auto check the bank branch PC by polling
and then transmit the debit list to relevant branch PC
Branch staff will perform debit on accounts as per list, or in online branches this
function can be integrated with the ABS system
Debits & Default lists will be completed by branch staff. Complete totals of
collection and defaults will automatically be generated by system for onward
distribution
When complete, branch staff will initiate ‘send’ and the entire list with totals will
automatically be transmitted to the ABS servers.
Branch staff can then transfer the total collections to the utility company main
account as per branch procedure
Safeguards
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Disputes
Complaints made for incorrect billing will
block the Auto Debit process until
resolution.
Consumer Opt Outs
Consumer informs his branch and the auto
debit is blocked.
Bill Capping
The Auto Debit can Cap the maximum
allowable limit on each bill based on a %
of average billing.
Reports
• ABS will check that all debit lists have been duly
completed and returned
• ABS will then sort received files in bank/branch order
and prepare complete report of collections and defaults
in bank branch order of each bank in the system
• Reports will be sent to the banks as well as the utility
company and an electronic default list to utility company
computer and billing dept for incorporating arrears for
next month’s bill
• Collection and default information will be fully reconciled
automatically and there will be no need for further
reconciliations
Benefits to Consumers
Consumers will be the greatest
beneficiaries as they will not need to
come to the bank or remember to pay
their bills on time.
Payments will be made automatically
unless a dispute is registered.
Benefits to Banks
• Banks will be able to provide all their
customers a new and efficient Utility Bill
Payment solution free of charge
• As auto debit customers increase in numbers
the bank collection windows will eventually be
closed saving colossal sums of money for
operating collection windows
• Banks will continue to charge the same
collection charges from utility companies on
each debit as per SBP arrangements.
Benefits to Utility Companies
• As all collections will be auto reconciled
they will not need to spend huge
amounts in reconciliation as at present
• The statements received each day being
fully reconciled bank payments can be
immediate, thus improving their cash
flow positions
ISP NETWORK
Sample: Debit instruction list to
branches
Back
Sample Report of collection from bank
branches
Amount collected from each branch as per following list
HBL
S.No
Branch Code
Branch Name
Total Amount Collected
Date: 28/6/2006
Total Amount Returned
1
0024
D H Society
569,663
45,325
2
0015
Kharadar
788,965
25,411
3
0041
Patel Para
458,896
50,212
4
0051
Mauri Pur Village
255,478
2,522
5
0587
Landhi Korangi
586,694
54,472
6
0785
D H A Branch
744,585
14,000
7
1240
Karimabad
254,474
23,554
8
1008
Hydri
457,775
7,455
9
0524
F B Area
223,654
25,445
10
0452
New Karachi
474,473
41,001
11
0658
Nazimabad
855,625
25,447
12
1058
Gulshan e Iqbal
1,025,478
45,000
6,695,760
359,844
TOTAL
Rs.
Sample Report of collection from bank
branches
Amount collected from each branch as per following list
Date: 28/6/2006
National Bank Limited
S.No
Branch Code
Branch Name
Total Amount Collected
Total Amount Returned
1
0024
D H Society
569,663
45,325
2
0015
Kharadar
788,965
25,411
3
0041
Patel Para
458,896
50,212
4
0051
Mauri Pur Village
255,478
2,522
5
0587
Landhi Korangi
586,694
54,472
6
0785
D H A Branch
744,585
14,000
7
1240
Karimabad
254,474
23,554
8
1008
Hydri
457,775
7,455
9
0524
F B Area
223,654
25,445
10
0452
New Karachi
474,473
41,001
11
0658
Nazimabad
855,625
25,447
12
1058
Gulshan e Iqbal
1,025,478
45,000
6,695,760
359,844
TOTAL
Rs.
Sample Report of collection from bank branches
Amount collected from each branch as per following list
Date: 28/6/2006
United Bank Limited
S.No
Branch Code
Branch Name
Total Amount Collected
Total Amount Returned
1
0024
D H Society
569,663
45,325
2
0015
Kharadar
788,965
25,411
3
0041
Patel Para
458,896
50,212
4
0051
Mauri Pur Village
255,478
2,522
5
0587
Landhi Korangi
586,694
54,472
6
0785
D H A Branch
744,585
14,000
7
1240
Karimabad
254,474
23,554
8
1008
Hydri
457,775
7,455
9
0524
F B Area
223,654
25,445
10
0452
New Karachi
474,473
41,001
11
0658
Nazimabad
855,625
25,447
12
1058
Gulshan e Iqbal
1,025,478
45,000
6,695,760
359,844
TOTAL
Rs.
Sample Report of collection from bank branches
Amount collected from each branch as per following list
28/6/2006
Date:
MCB Bank Limited
S.No
Branch Code
Branch Name
Total Amount Collected
Total Amount Returned
1
0024
D H Society
569,663
45,325
2
0015
Kharadar
788,965
25,411
3
0041
Patel Para
458,896
50,212
4
0051
Mauri Pur Village
255,478
2,522
5
0587
Landhi Korangi
586,694
54,472
6
0785
D H A Branch
744,585
14,000
7
1240
Karimabad
254,474
23,554
8
1008
Hydri
457,775
7,455
9
0524
F B Area
223,654
25,445
10
0452
New Karachi
474,473
41,001
11
0658
Nazimabad
855625
25,447
12
1058
Gulshan e Iqbal
1,025,478
45,000
6,695,760
359,844
TOTAL
Rs.
Total Bank Collections
Sample Report
S. No
Bank
Date: 28/6/2006
Amount
1
Habib Bank Ltd
Rs. 6,695,760
2
MCB Bank
Rs. 6,695,760
3
United Bank Limited
Rs. 6,695,760
4
National Bank of Pakistan
Rs. 6,695,760
Total
Rs. 26,783,040
ABS
24/1, 7th Gizri Lane, Phase IV, DHA
Karachi 75500, Pakistan
P: 538-8572, 589-1608 | F: 588-7246 | E: netbank@cyber.net.pk
www.my-abs.com