The challenge

Traditionally, using Singapore’s GIRO system, the direct debit mandate application process is a manually intensive process that takes three to four weeks, as users have to fill out and mail paper forms to their billing organisations. This could be eliminated to create a fully digital, seamless experience by leveraging the eGIRO infrastructure that was launched in Singapore by The Association of Banks in Singapore (ABS) in 2021.

In addition, with the surge in popularity of real-time payments in Singapore, Endowus observed a growing expectation for investors to have the option to top-up their accounts using Fast and Secure Transfers (FAST), Singapore’s 24/7 real-time payment clearing rail. To address this, Endowus and UOB Kay Hian worked to develop a fully automated top-up process that would utilise this payment infrastructure.

The solution

With this goal in mind, Endowus and UOB Kay Hian decided to partner with HSBC to support the real-time funding of investment accounts through HSBC’s real-time direct debit API solution. Firstly, by using eGIRO, investors can now register their real-time direct debit mandates through Endowus’ website or mobile app. The investor nominates a bank account for funds to be debited from. Upon doing so, the eGIRO mandate application is sent via API to the investor’s bank, where it is received and processed instantly. This has reduced the time taken to set up direct debits from weeks to mere minutes. All user data is encrypted, and processes are backed with 2FA (2-Factor Authentication), enhancing security.

Once the setup is complete, funds are debited automatically from the investors’ nominated bank accounts and credited to their investment account with UOB Kay Hian via FAST, significantly reducing the time taken for such settlements from the two days that was traditionally required. Altogether, this has helped to achieve the fully automated investment process that was envisioned.

Additionally, both Endowus and UOB Kay Hian can initiate collection status enquiries via API to receive real-time updates on the status of top-ups, allowing them to better advise investors on status, while achieving a more robust process for reconciliation.

“HSBC's introduction of the FAST direct debit function has transformed our financial operations by reducing the time taken to process transfers from two days to almost instantly. We have now enhanced our clients’ experience, and streamlined our operational processes, which has given us a significant competitive edge. Throughout the implementation, the HSBC team's constant support and prompt responses to our questions were invaluable”

^{Abigail Tan, Head of Operations, Endowus}

“We believe that this project has shown how greater co-operation within the finance industry can help drive better outcomes for consumers. We are delighted to have worked with HSBC to help advance our shared vision of making investing easier and more accessible for all”

^{Edison Chong, Director, Regional Finance & Operations, UOB Kay Hian}

Benefits

• Completely digitised onboarding reduces turnaround time from weeks to mere minutes, improving client experience
• Automated, near-instant settlement of investment account top-ups allows investors to seize time-sensitive opportunities
• Improved straight-through-processing rate of collections to 99%
• Enabled additional popular digital options for account top-ups, differentiating the platform from competitors further
• Automated identification of deposits as account numbers and investor names are reflected on all remittances
• Expedited reconciliation, allowing investors to receive instant notifications on receipt of funds 24/7
• Reduction of errors in reconciliation reduces time spent on resolving discrepancies
• Close collaboration between industry partners to create innovative new consumer experiences

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