A Utility Bill Payments SolutionA Utility Bill Payments Solution

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ABSABS

Automated Business Services | Private LimitedAutomated Business Services | Private Limited

Time to modernizeTime to modernizeMost banks and other organizations like NADRA are devising new Most banks and other organizations like NADRA are devising new procedures to simplify and automate the Utility Bill payment system:procedures to simplify and automate the Utility Bill payment system:

NADRA has set up kiosks with money accepting machinesNADRA has set up kiosks with money accepting machines Banks are advising customers to use ATM machines Banks are advising customers to use ATM machines Banks have started accepting bills from their clients for account debitsBanks have started accepting bills from their clients for account debits Banks are also advocating use of their call centers for bill paymentsBanks are also advocating use of their call centers for bill payments

All these above mechanisms are a good move forward, but each has its 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 limitation in that an action is required on the part of the consumer each time and it is time consuming. time and it is time consuming. Also each option requires instant Also each option requires instant account debit. account debit.

As a result, their use by the general public is very limited and they 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 continue to suffer the hardship of standing in lines in the open to make bill payments. This they must do or else face disconnection.bill payments. This they must do or else face disconnection.

Our Proposal is also based on account debit but with a Our Proposal is also based on account debit but with a difference….it is automatic and consumers are not involved, difference….it is automatic and consumers are not involved, thus they are free from this hassle.thus they are free from this hassle.

ABS BackgroundABS Background ABS, is an IT Enabled Solutions Provider and was founded in 1993ABS, is an IT Enabled Solutions Provider and was founded in 1993 The company was the brainchild of IT specialists committed to The company was the brainchild of IT specialists committed to

modernization of the country’s IT infrastructure (in particular, within the modernization of the country’s IT infrastructure (in particular, within the Payment Systems space)Payment Systems space)

Some achievements of ABS include:Some achievements of ABS include:

ABS conceived, developed and implemented the Automated Clearing ABS conceived, developed and implemented the Automated Clearing House (NiFT), which is now in 12 citiesHouse (NiFT), which is now in 12 cities

ABS developed several ACH solutions like Same Day Clearing and Intercity ABS developed several ACH solutions like Same Day Clearing and Intercity Clearing which have been launched on the NiFT platformClearing which have been launched on the NiFT platform

ABS developed the Secure Internet Message Exchange (SIMEX) solution for ABS developed the Secure Internet Message Exchange (SIMEX) solution for banks and large enterprise, connecting all of Pakistan on a secure IP banks and large enterprise, connecting all of Pakistan on a secure IP platformplatform

ABS principals were instrumental in bringing the International Payment ABS principals were instrumental in bringing the International Payment System SWIFT into PakistanSystem SWIFT into Pakistan

ABS has developed an electronic remittance system for use by end ABS has developed an electronic remittance system for use by end consumers to remit funds to Pakistan (this will be launched in conjunction consumers to remit funds to Pakistan (this will be launched in conjunction with banks)with banks)

Utility Bills Payment SolutionUtility Bills Payment Solution ABS has developed a system of Auto Debits for the bill payment & ABS has developed a system of Auto Debits for the bill payment &

settlement function which can be replicated all over the country to settlement function which can be replicated all over the country to cover all urban areascover all urban areas

This system, when rolled out, will make utility bills payment an This system, when rolled out, will make utility bills payment an automatic feature, thus relieving consumers of hardships and automatic feature, thus relieving consumers of hardships and colossal time consumptionscolossal time consumptions

Collecting banks can offer an additional platform to customers to Collecting banks can offer an additional platform to customers to pay utility bills (free of charge). Banks will save from operating pay utility bills (free of charge). Banks will save from operating collection windows.collection windows.

Daily collections & reporting through the system will result in Daily collections & reporting through the system will result in automatic and efficient reconciliations for the Utility companiesautomatic and efficient reconciliations for the Utility companies

The system allows each bank to provide this service to its own The system allows each bank to provide this service to its own customerscustomers

The Auto Debit SystemThe Auto Debit System Using ABS-configured ISP’s internet network and our Using ABS-configured ISP’s internet network and our

securesecure messaging system we are able to communicate messaging system we are able to communicate with any end point (bank branch in this case) securely. with any end point (bank branch in this case) securely.

Bank branches do not get internet access but only Bank branches do not get internet access but only mail accounts for secure communications.mail accounts for secure communications.

Since each bank will be servicing its own customers only an Since each bank will be servicing its own customers only an acceptance letteracceptance letter must be obtained by each bank from its must be obtained by each bank from its customers to allow auto debits to account for such paymentcustomers to allow auto debits to account for such payment

Details of each consumer regarding bank branch account Details of each consumer regarding bank branch account will be captured on a bank/branch PC through software will be captured on a bank/branch PC through software provided by ABS. This information will be passed on to the provided by ABS. This information will be passed on to the ABS servers for processing.ABS servers for processing.

DLD L

The Auto Debit walk-throughThe Auto Debit walk-through

At the Utility Company level:At the Utility Company level:

• Utility company will print and send bills to consumers as at presentUtility company will print and send bills to consumers as at present• Simultaneously utility companies will send electronically the bill details to ABSSimultaneously utility companies will send electronically the bill details to ABS• ABS system will add each consumer’s bank branch account detail to electronic 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. bill and sort the entire bill file on due date, bank, branch, account number order. Thus the file will be in ascending due date orderThus the file will be in ascending due date order

At the Bank/Branch level:At the Bank/Branch level:

• For each due date ABS will prepare a debit list for each bank branch 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 On each relevant due date ABS will auto check the bank branch PC by polling

and then transmit the debit list to relevant branch PCand then transmit the debit list to relevant branch PC• Branch staff will perform debit on accounts as per list, or in online branches this Branch staff will perform debit on accounts as per list, or in online branches this

function can be integrated with the ABS systemfunction can be integrated with the ABS system• Debits & Default lists will be completed by branch staff. Complete totals of Debits & Default lists will be completed by branch staff. Complete totals of

collection and defaults will automatically be generated by system for onward collection and defaults will automatically be generated by system for onward distributiondistribution

• When complete, branch staff will initiate ‘send’ and the entire list with totals will When complete, branch staff will initiate ‘send’ and the entire list with totals will automatically be transmitted to the ABS servers.automatically be transmitted to the ABS servers.

• Branch staff can then transfer the total collections to the utility company main Branch staff can then transfer the total collections to the utility company main account as per branch procedureaccount as per branch procedure

SafeguardsSafeguards DisputesDisputes

Complaints made for incorrect billing will Complaints made for incorrect billing will block the Auto Debit process until block the Auto Debit process until resolution.resolution.

Consumer Opt OutsConsumer Opt OutsConsumer informs his branch and the auto Consumer informs his branch and the auto debit is blocked.debit is blocked.

Bill CappingBill CappingThe Auto Debit can Cap the maximum The Auto Debit can Cap the maximum allowable limit on each bill based on a % of allowable limit on each bill based on a % of average billing.average billing.

ReportsReports

• ABS will check that all debit lists have been duly ABS will check that all debit lists have been duly completed and returnedcompleted and returned

• ABS will then sort received files in bank/branch order ABS will then sort received files in bank/branch order and prepare complete report of collections and defaults and prepare complete report of collections and defaults in bank branch order of each bank in the systemin bank branch order of each bank in the system

• Reports will be sent to the banks as well as the utility Reports will be sent to the banks as well as the utility company and an electronic default list to utility company company and an electronic default list to utility company computer and billing dept for incorporating arrears for computer and billing dept for incorporating arrears for next month’s billnext month’s bill

• Collection and default information will be fully reconciled Collection and default information will be fully reconciled automatically and there will be no need for further automatically and there will be no need for further reconciliationsreconciliations

Benefits to ConsumersBenefits to Consumers

Consumers will be the greatestConsumers will be the greatest

beneficiaries as they will not need tobeneficiaries as they will not need to

come to the bank or remember to paycome to the bank or remember to pay

their bills on time. their bills on time.

Payments will be made automaticallyPayments will be made automatically

unless a dispute is registered.unless a dispute is registered.

Benefits to BanksBenefits to Banks

• Banks will be able to provide all their Banks will be able to provide all their customers a new and efficient Utility Bill customers a new and efficient Utility Bill Payment solution free of chargePayment solution free of charge

• As auto debit customers increase in numbers As auto debit customers increase in numbers the bank collection windows will eventually be the bank collection windows will eventually be closed saving colossal sums of money for closed saving colossal sums of money for operating collection windowsoperating collection windows

• Banks will continue to charge the same Banks will continue to charge the same collection charges from utility companies on collection charges from utility companies on each debit as per SBP arrangements.each debit as per SBP arrangements.

Benefits to Utility CompaniesBenefits to Utility Companies

• As all collections will be auto reconciled As all collections will be auto reconciled they will not need to spend huge they will not need to spend huge amounts in reconciliation as at presentamounts in reconciliation as at present

• The statements received each day being The statements received each day being fully reconciled bank payments can be fully reconciled bank payments can be immediate, thus improving their cash immediate, thus improving their cash flow positionsflow positions

ISP NETWORK

Sample: Sample: Debit instruction list to Debit instruction list to branchesbranches

Back

Sample Report of collection from bank Sample Report of collection from bank branchesbranches

Amount collected from each branch as per following list Date: 28/6/2006Amount collected from each branch as per following list Date: 28/6/2006 HBL HBL

S.NoS.No Branch CodeBranch Code Branch NameBranch Name Total Amount CollectedTotal Amount Collected Total Amount ReturnedTotal Amount Returned

11 00240024 D H SocietyD H Society 569,663569,663 45,32545,325

22 00150015 Kharadar Kharadar 788,965788,965 25,41125,411

33 00410041 Patel ParaPatel Para 458,896458,896 50,21250,212

44 00510051 Mauri Pur VillageMauri Pur Village 255,478255,478 2,5222,522

55 05870587 Landhi KorangiLandhi Korangi 586,694586,694 54,47254,472

66 07850785 D H A BranchD H A Branch 744,585744,585 14,00014,000

77 12401240 KarimabadKarimabad 254,474254,474 23,55423,554

88 10081008 HydriHydri 457,775457,775 7,4557,455

99 05240524 F B AreaF B Area 223,654223,654 25,44525,445

1010 04520452 New KarachiNew Karachi 474,473474,473 41,00141,001

1111 06580658 NazimabadNazimabad 855,625855,625 25,44725,447

1212 10581058 Gulshan e IqbalGulshan e Iqbal 1,025,4781,025,478 45,00045,000

              

      TOTAL Rs.TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

Sample Report of collection from bank Sample Report of collection from bank branchesbranches

Amount collected from each branch as per following list Date: 28/6/2006Amount collected from each branch as per following list Date: 28/6/2006

National Bank LimitedNational Bank Limited

S.NoS.No Branch CodeBranch Code Branch NameBranch Name Total Amount CollectedTotal Amount Collected Total Amount ReturnedTotal Amount Returned

11 00240024 D H SocietyD H Society 569,663569,663 45,32545,325

22 00150015 Kharadar Kharadar 788,965788,965 25,41125,411

33 00410041 Patel ParaPatel Para 458,896458,896 50,21250,212

44 00510051 Mauri Pur VillageMauri Pur Village 255,478255,478 2,5222,522

55 05870587 Landhi KorangiLandhi Korangi 586,694586,694 54,47254,472

66 07850785 D H A BranchD H A Branch 744,585744,585 14,00014,000

77 12401240 KarimabadKarimabad 254,474254,474 23,55423,554

88 10081008 HydriHydri 457,775457,775 7,4557,455

99 05240524 F B AreaF B Area 223,654223,654 25,44525,445

1010 04520452 New KarachiNew Karachi 474,473474,473 41,00141,001

1111 06580658 NazimabadNazimabad 855,625855,625 25,44725,447

1212 10581058 Gulshan e IqbalGulshan e Iqbal 1,025,4781,025,478 45,00045,000

              

      TOTAL Rs.TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

Sample Report of collection from bank branchesSample Report of collection from bank branches

Amount collected from each branch as per following list Date: 28/6/2006Amount collected from each branch as per following list Date: 28/6/2006

United Bank LimitedUnited Bank Limited

S.NoS.No Branch CodeBranch Code Branch NameBranch Name Total Amount CollectedTotal Amount Collected Total Amount ReturnedTotal Amount Returned

11 00240024 D H SocietyD H Society 569,663569,663 45,32545,325

22 00150015 Kharadar Kharadar 788,965788,965 25,41125,411

33 00410041 Patel ParaPatel Para 458,896458,896 50,21250,212

44 00510051 Mauri Pur VillageMauri Pur Village 255,478255,478 2,5222,522

55 05870587 Landhi KorangiLandhi Korangi 586,694586,694 54,47254,472

66 07850785 D H A BranchD H A Branch 744,585744,585 14,00014,000

77 12401240 KarimabadKarimabad 254,474254,474 23,55423,554

88 10081008 HydriHydri 457,775457,775 7,4557,455

99 05240524 F B AreaF B Area 223,654223,654 25,44525,445

1010 04520452 New KarachiNew Karachi 474,473474,473 41,00141,001

1111 06580658 NazimabadNazimabad 855,625855,625 25,44725,447

1212 10581058 Gulshan e IqbalGulshan e Iqbal 1,025,4781,025,478 45,00045,000

              

      TOTAL Rs.TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

Sample Report of collection from bank branchesSample Report of collection from bank branches

Amount collected from each branch as per following listAmount collected from each branch as per following list Date: Date: 28/6/200628/6/2006

MCB Bank LimitedMCB Bank Limited

S.NoS.No Branch CodeBranch Code Branch NameBranch Name Total Amount CollectedTotal Amount Collected Total Amount ReturnedTotal Amount Returned

11 00240024 D H SocietyD H Society 569,663569,663 45,32545,325

22 00150015 Kharadar Kharadar 788,965788,965 25,41125,411

33 00410041 Patel ParaPatel Para 458,896458,896 50,21250,212

44 00510051 Mauri Pur VillageMauri Pur Village 255,478255,478 2,5222,522

55 05870587 Landhi KorangiLandhi Korangi 586,694586,694 54,47254,472

66 07850785 D H A BranchD H A Branch 744,585744,585 14,00014,000

77 12401240 KarimabadKarimabad 254,474254,474 23,55423,554

88 10081008 HydriHydri 457,775457,775 7,4557,455

99 05240524 F B AreaF B Area 223,654223,654 25,44525,445

1010 04520452 New KarachiNew Karachi 474,473474,473 41,00141,001

1111 06580658 NazimabadNazimabad 855625855625 25,44725,447

1212 10581058 Gulshan e IqbalGulshan e Iqbal 1,025,4781,025,478 45,00045,000

              

      TOTAL Rs.TOTAL Rs. 6,695,760 6,695,760 359,844 359,844

Total Bank CollectionsTotal Bank Collections Sample Report Date: 28/6/2006Sample Report Date: 28/6/2006

S. NoS. No Bank Bank AmountAmount

11 Habib Bank LtdHabib Bank Ltd Rs. 6,695,760Rs. 6,695,760

22 MCB BankMCB Bank Rs. 6,695,760Rs. 6,695,760

33 United Bank LimitedUnited Bank Limited Rs. 6,695,760Rs. 6,695,760

44 National Bank of PakistanNational Bank of Pakistan Rs. 6,695,760Rs. 6,695,760

Rs. 26,783,040Total

ABSABS

24/1, 724/1, 7thth Gizri Lane, Phase IV, DHA Gizri Lane, Phase IV, DHAKarachi 75500, PakistanKarachi 75500, Pakistan

P: 538-8572, 589-1608 | F: 588-7246 | E: P: 538-8572, 589-1608 | F: 588-7246 | E: netbank@cyber.net.pknetbank@cyber.net.pk

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