Following this announcement, the new RM6301 Open Banking Dynamic Purchasing System (DPS) is set to enable the public sector to access a complete suite of Open Banking solutions, as well as account-to-account (A2A) payments under one agreement, for the first time.
These products and services were developed in order to allow for read-only financial data to be shared between banks, financial institutions, and third-party solution providers. They are expected to offer access to quicker, cheaper, and more accurate banking tools versus conventional payment acceptance options, such as debit cards and others. By negating fees incurred by traditional debit card transactions, it is believed that the RM6301 Open Banking Dynamic Purchasing System will have the possibility to optimise the manner in which firms achieve savings of 70% or 80%.
According to the information provided in the press release, the services that are offered under the agreement will also be enabled to reduce the volume of fraudulent or in-error payments made throughout the public sector, after confirming or denying the identity of account holders. This process will unlock the overall ability of Open Banking to reduce and stop fraudulent activities from happening, including benefit claims or false taxes.
The RM6301 Open Banking Dynamic Purchasing System (DPS) is set to offer customers 3 types of solutions to the public sector. Included in this list are the digital payment services, which will allow customers and users to make or receive payments digitally, without the need for bank cards, confirmation of payee tools, which will provide users with checking products on names or accounts in order to verify individuals and/or organisations, as well as account information solutions, which will be used to supply account information, with clients’ consent. This will represent a part of the processes, such as fraud identification procedures, income verification, and identity confirmation.
Through this DPS product, users and customers will have access to new applications and features as new use cases arise, with suppliers and providers being enabled to join at any time over its 8-year duration in a secure and efficient manner.
The flexible agreement will focus on the company’s commitment to providing value and security to its clients and customers, as well as to open up opportunities for a diverse spectrum of suppliers in an ever-emerging market. Included in the set of benefits provided with the new agreement is the possibility to allow users for more accurate understanding of personal financial circumstances, which will enable a more precise assessment of means. At the same time, the product will make it easier for small and medium-sized enterprises (SMEs) to become suppliers.
In addition, it will also enable vulnerable members of society to receive vital payments in a faster and more secure manner, as well as remove many of the delays that were associated with traditional transaction methods across the public sector, allowing payments to be made and received in real time. The DPS structures will also provide suppliers with the possibility to meet the needs, preferences, and demands of their customers on an ongoing basis.
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