EDO PSSF - AC PROJECT
STATUS
SAFARI into Credit Industry
15 February 2017
Presenter
Riaan de Swardt
Deputy Chairperson: EDO PSSF
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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Background
• SARB require the banks and EDO Users to establish an authenticated
collections (AC) payment stream in the early debit order environment.
• This AC payment stream and implementation, as a minimum, should:
– Grant the existing EDO PSSF Members / EDO markets / participants an equal
opportunity to migrate to and allow for participation in the AC payment stream;
– Meet the requirements of the affected EDO markets consisting of both users and
payers;
– Ensure that risk is minimized during implementation and the Transition Periods;
and
– Ensure financial stability in the NPS.
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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Revised AC implementation plan
AC Project Team tabled a revised implementation approach at the SARB composed of the following elements
June 16 to 31
Oct ‘16
Reset
phase
1
2
1
Phased implementation
approach with 5 distinct
phases
2
1 Jul ‘17 – end Jan‘18
01 Nov’16 – end Jun ‘17
3
Technical
delivery
phase
Relatively “light”
simplification of AC to
benefit from practical
improvements
Technical update based on
revised re-authentication
rules and technical gap
analysis
4
Pilot
Phase
7 months
7 months
Testing reality
factored in timeline
01 Feb ‘19 – 30 Oct ‘19
01 Feb’18 – 31 Jan ‘19
5
Ramp-up
phase
9 months
12 months
Low volume operational
pilot phase to stabilise
systems and monitor
uptake
Migration
Phase
Gradual uptake of users and
volumes with NAEDO fall-back
AC + EFT
Can shorten
Possible simpler migration
approach
AEDO/ NAEDO origination (mandates)
Fall-back to NAEDO and
AEDO which will run
concurrent to AC for a
period to mitigate
mandate origination and
collection risks
AEDO and NAEDO Collection
AEDO/NAEDO collection with disqualifiers
Current dispute processes for NAEDO
Disqualified criteria for disputes
No new AEDO & NAEDO
AC capability
3
4
5
Additional real time non
face-to-face solution
Gates with key success
criteria to ensure delivery
in each phase
Intervention to find
additional measures to
curb existing debit order
abuse
•
Additional Real Time Non Face to Face Authenticated Solution
1
0
Project Gate 0 criteria
Compliance Gate 1
criteria
•
Follows a separate development and testing
reality than other assets (TT1, TT2, TT3)
Must be sufficiently tested and piloted to be ready
for ramp-up
2
Project Gate 2
criteria
4
3
Compliance Gate 3 criteria
Compliance Gate 4
criteria
1. Concerted effort by banks to identify and prosecute
rogue users from now until pilot commences
3
31 May 2016
Authenticated Collections SteerCo - Revised Implementation Approach
Current status
• Risk mitigation - Controlled implementation
• Interbank specifications
– Technical specification vs. 16 being tested in UAT
• User specifications
• EDO PSSF member requirements
– Data or information requirements
– Pilot
• Industry pilot scheduled from 1 July 2017
• User participation
– User could be approached to participate
– Dependent on User readiness
– Contact Service Provider / Member Association or PSSF to validate legitimacy of request/s
• Communication workgroup
– Toolkit
– Single message to the community
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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Way forward
Nov ’16 – Jun ‘17
Development
updates and
Testing
• Pilot group: UAT
• User development
• Internal testing
Jul ’17 – Jan ‘18
Feb ’18 – Jan ‘19
Pilot
• Pilot group implement
• Low volumes to
stabilise systems and
monitor uptake
• User testing
Ramp up
• All Users implement
• Users all live
Feb ’19 – Oct ‘19
Migration
• Migrate existing EDO
business to AC
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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More information
Contact your Service Provider
Contact your Member Association
Contact your sponsor bank
Alternatively:Johnny Pienaar
EDO PSSF Data Custodian
082 496 4601
[email protected]
Angelene van der Walt
Independent Project Manager
072 829 4253
[email protected]
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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Thank you!
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
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