Insurers and Utilities

Reduce the percentage of declined direct debit orders and save money and time.

Insurers, telecom companies and utility companies all face the same challenge: collecting money from thousands of customers – or even millions – every month. Usually, this is done through a standing direct debit order that ensures hassle-free money transfer every month.

But there is always the risk that your direct debit order is processed just as your customer has no funds, or that he or she does a reverse payment. Executing the direct debit again is costly, and cancelling the direct debit and forcing the customer to do a bank transfer means waiting even longer for your money. Through open banking, there are two alternatives.

  1. A recurring PIS order. Payment Initiation Services (PIS) allows you to initiate a recurring bank transfer or standing order on behalf of your customers, to be processed on the day your customer chooses – for instance, a day or two after payday. The customer only has to confirm the payment, for an experience that’s equally as hassle-free as a regular standing debit order.
  2. AIS + PIS. For customers with irregular paydays, a combination of Account Information Services (AIS) and PIS might be the better fit. With AIS, customers can grant you access to their transaction data and bank balance. Then, you simply initiate the payment through PIS when their available funds rise above a certain threshold each month. AIS requests re-authorisation every 3 months, so customers know they are always in control.

Benefits for customers

Open Banking makes paying invoices fast and easy.

For monthly invoices, the flexibility of open banking can save your customers time and effort. Going from seeing the pre-populated invoice to the complete payment only takes a few clicks. With automated payment, customers can enjoy continued use of your service without having to remember to pay their monthly bills by hand.

For the best service, you could even offer your customers a complete overview of all their accounts, so they can select exactly which account they want to pay from this month.

Benefits for large companies that provide ongoing services

  • Receive your money on time. Avoid delays in receiving your monthly fees by timing your direct debit well.
  • Save time and effort. By ensuring that the money transfer happens on the best day, you reduce the administration costs that come with declined direct debits.
  • Retain customers. Avoid the chance that a declined direct debit order snowballs into losing a customer. With PIS, you get better timing and trust, for better customer relations.

Together, PIS and AIS lead to better, more streamlined revenue management for companies with a large, ongoing customer base. Make life easier for yourself and your customers.

What YTS can do for insurers, telecom companies and utilities

The YTS API gives insurers, telecom companies and utility companies a simple, flexible and secure way to time their direct debit orders or invoice a customer via PIS. It can handle both PIS, to transfer the monthly fees, and AIS, to help you determine the best time to bill your customers. The YTS API is built with bank-level security and the technology to scale as necessary.

Find out how our API can transform your business

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