Background
Founded in 1967, Orbit Housing Association manages 44,000 homes and collects £220 million in rental income annually. Orbit previously operated an in-house Direct Debit system, which had become outdated and inflexible. This raised concerns about its resilience and customer appeal.
The Challenge
In October 2019, Orbit launched the Any Day Direct Debit (ADDD) project. The project included contract negotiations, defining the project scope, and onboarding the new system. The transition was crucial because many customers were moving from Housing Benefit (HB) to Universal Credit (UC). Under UC, customers receive payments directly, becoming ‘self-payers,’ which increases the risk of arrears and potential write-offs.
To manage this risk, Orbit implemented the new service in two phases. The first phase, starting on June 15, 2020, set up new Direct Debits using the allpay solution. The second phase, beginning on July 27, 2020, migrated all existing Direct Debits to allpay. This phase included managing collections, amendments, and cancellations.
Primary Benefits of Anyday Direct Debits (ADDD)
Enhanced Customer Experience:
- The ADDD system allows customers to choose their payment dates. This aligns with UC payment schedules, reducing the likelihood of arrears and helping protect tenancies.
- The ‘My Account’ feature provides additional functionality. Customers can calculate, set up Direct Debits, and review their account status online.
Improved Operational Efficiency:
- The robust ADDD platform reduces risks associated with collections. It enhances Orbit’s service offering compared to other providers.
- The system alleviates pressure on the Income Collections and Recovery (IC&R) team. It automates many tasks, allowing them to focus on performance targets and increasing service demands.
Implementation by allpay
allpay, a third-party expert, was crucial to the project’s success. Using lessons from previous implementations to plan and test rigorously.
Migrating over 15,000 existing Direct Debits to the new platform was critical. Extensive testing ensured a smooth transition.
The result
The full ADDD solution went live on July 27, 2020. After implementation, all existing and new Direct Debits, along with cancellations and amendments, were managed via the allpay solution. This change reduced the workload for the Income Compliance team, particularly during rent reviews, by allowing bulk data uploads for customer notifications.
Joanne Day, Income Collections and Recovery Compliance Manager noted allpay’s comprehensive involvement in the business case preparation and solution review. She highlighted their commitment to both the operational and financial aspects of the project.
Implementing the ADDD solution strengthened Orbit’s partnership with allpay. allpay continues to manage various payment methods for Orbit, enhancing their overall service delivery.