Knowledge Centre - Case Study

Bank looks to DDe™ again

National Australia Bank (NAB) is an international financial services group. It operates in the UK through the Clydesdale Bank and Yorkshire Bank. In 2005, NAB wanted to automate processes involved in collecting Direct Debit from its Clydesdale Bank mortgage customers. The bank worked with global payments experts Direct Debit Limited to implement a sophisticated Direct Debit management system, Direct Debit expert™ (DDe™). Tracy Anne Marsland, Business Analyst at NAB, says: "DDe™ made a massive difference. It improved the efficiency of collections; reducing the time and effort that went into managing Direct Debits." In 2008, NAB wanted to offer cash Individual Savings Account (ISA) customers the option to pay by Direct Debit, so it turned to Direct Debit Limited again.

The cash ISA challenge

NAB wanted to implement a system that would automate its Direct Debit processes and integrate with its in-house systems. Most importantly, the bank needed a system that would help it comply with Financial Services Authority (FSA) regulations to stop customers breaching their ISA limit. Marsland says: "The objective was to provide a solution that would encompass some ISA regulations. We had to have a way for the system to say, 'Don’t collect the next Direct Debit because it will breach the FSA regulations'." NAB also wanted a user-friendly system that it could reuse in other areas of the business. Direct Debit Limited's payments experts talked the project through with NAB and devised a project made up of DDe™ and Direct Debit Organiser™ (DDO™). In the final system, DDe™ would manage Direct Debits and DDO™ would automatically schedule data activities.

Integrates with in-house systems

Direct Debit Limited completed the project by creating a link between NAB's systems and DDe™. During the project, the speed and skill of Direct Debit Limited's developers impressed Marsland. "Direct Debit Limited's developers were always easy to work with, very helpful, and knowledgeable," she says. Nine users in the bank access the system through DDe™ Remote User Access™, a browser-based system. "It’s very straightforward," says Marsland. "You could, in theory, sit at home and process Direct Debits. The system's flexible, which is essential because we're in multiple buildings in multiple locations."

Ensures NAB complies with regulations

NAB knew that DDe™ could help it process Direct Debits more efficiently, but now, in addition, the system helps it comply with FSA regulations. Marsland says: "DDe™ really helps us with FSA regulations. It plays an important role in our compliance. If we didn't have this system in place, ensuring customers didn’t oversubscribe would be much more onerous.”

Provides better service for customers

DDe™ makes it easier for NAB to provide its customers with excellent service. One way it does this is by automatically generating Direct Debit letters. "The letters are very popular with users," says Marsland. They streamline the process and reduce manual errors. "Our teams find it easy to administer Direct Debits with DDe™and customers get a better service as a result, because capturing the Direct Debit information is part of the account-opening process. Marsland says: "Offering customers the choice to save by Direct Debit not only makes the account-opening process smoother, it also gives customers the added protection of the Direct Debit guarantee. Overall, it makes it easier for customers to save with us."