Absa has awarded a R1 million contract to The E-mail Corporation for the delivery of secure encrypted e-mail statements to Absa's banking clients. The E-mail Corporation was selected over local and international competitors due to the high level of security and user-friendliness of its FinMail system.
"FinMail allows for the secure electronic delivery of Absa's statements and balances without burdening cardholders with complicated technical requirements." says Mike Wright, CEO of The E-mail Corporation. "In addition, our delivery process and technology have been certified by the South African Revenue Services (SARS), which lays to rest any regulatory concerns Absa might have had.
"This new functionality offers customers a convenient and stress-free banking experience," says Alfie Naidoo, Absa Managing Executive, E-Channels. "This is especially beneficial for SME customers who need frequent statements to assist them in managing their cash flow, or customers who need to check if a cheque or debit order has gone off their account."
Absa recognises the importance of multi-channel delivery especially in offering products or services to specific client needs. The introduction of electronic statement delivery is seen as a valuable addition to a client's portfolio of services. Electronic statement delivery also enhances Absa's already strong e-business presence in terms of Absa's Internet Portal and its highly rated Internet Banking platform. Absa expects the service to be very popular in terms of convenience with literally thousands of clients making use of the service from inception.
Electronic statements are the first step towards a paperless environment. Electronic Bill Presentment and Payment (EBPP) is a growing trend in the delivery of tax invoices and statements over the Internet. Major factors in the move towards this paperless billing society are the significant reduction in cost, increased delivery speeds and security.
An added benefit is the unique marketing opportunities that Secure Electronic Document Delivery (SEDD) provides. For many financial institutions, a statement is the most frequent and regular form of communication with customers. However, flyers received in the post are largely wide-ranging, and are not targeted to customers' specific interests and needs. SEDD, on the other hand, allows for profiled marketing messages to be included in each mail.
The introduction of SEDD also results in a reduction in telephonic based customer service due to the self-service nature of the on-line environment. It reduces customer care costs by providing anytime, anywhere access to electronic account management functionality.
Additional benefits include: a reduction in debtors days as a result of a significantly faster bill payment cycle; a decrease in expenses related to payment errors; and the competitive advantage companies gain from enhancing customer loyalty and satisfaction.
Electronic statement delivery will play a crucial role in the future of South African banking, and first movers within this arena will have a highly competitive advantage.
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