1. EDO PSSF - AC PROJECT STATUS
SAFARI into Credit Industry
15 February 2017
Presenter
Riaan de Swardt
Deputy Chairperson: EDO PSSF
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL

2. EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
Background
SARB require the banks and EDO Users to establish an authenticated collections (AC) payment stream in the early debit order environment.
This AC payment stream and implementation, as a minimum, should:
Grant the existing EDO PSSF Members / EDO markets / participants an equal opportunity to migrate to and allow for participation in the AC payment stream;
Meet the requirements of the affected EDO markets consisting of both users and payers;
Ensure that risk is minimized during implementation and the Transition Periods; and
Ensure financial stability in the NPS.
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL

3. Revised AC implementation plan
AC Project Team tabled a revised implementation approach at the SARB composed of the following elements
June 16 to 31 Oct ‘16
01 Nov’16 – end Jun ‘17
1 Jul ‘17 – end Jan‘18
01 Feb’18 – 31 Jan ‘19
01 Feb ‘19 – 30 Oct ‘19 1
Reset phase
Technical delivery phase
Pilot Phase
Ramp-up phase
Migration Phase
AC + EFT
Can shorten 2 3 4 5 1
Phased implementation approach with 5 distinct phases
7 months
7 months
12 months
9 months
Relatively “light” simplification of AC to benefit from practical improvements
Technical update based on revised re-authentication rules and technical gap analysis
Testing reality factored in timeline
Low volume operational pilot phase to stabilise systems and monitor uptake
Gradual uptake of users and volumes with NAEDO fall-back
Possible simpler migration approach 2
Fall-back to NAEDO and AEDO which will run concurrent to AC for a period to mitigate mandate origination and collection risks
AEDO/ NAEDO origination (mandates)
AEDO and NAEDO Collection
AEDO/NAEDO collection with disqualifiers
Current dispute processes for NAEDO
Disqualified criteria for disputes
No new AEDO & NAEDO
AC capability 3
Additional real time non face-to-face solution
Follows a separate development and testing reality than other assets (TT1, TT2, TT3)
Must be sufficiently tested and piloted to be ready for ramp-up
Additional Real Time Non Face to Face Authenticated Solution 4
Gates with key success criteria to ensure delivery in each phase 1 2 3 4
Project Gate 0 criteria
Compliance Gate 1 criteria
Project Gate 2 criteria
Compliance Gate 3 criteria
Compliance Gate 4 criteria 5
Intervention to find additional measures to curb existing debit order abuse
1. Concerted effort by banks to identify and prosecute rogue users from now until pilot commences
31 May 2016
Authenticated Collections SteerCo - Revised Implementation Approach

4. EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
Current status
Risk mitigation - Controlled implementation
Interbank specifications
Technical specification vs. 16 being tested in UAT
User specifications
EDO PSSF member requirements
Data or information requirements
Pilot
Industry pilot scheduled from 1 July 2017
User participation
User could be approached to participate
Dependent on User readiness
Contact Service Provider / Member Association or PSSF to validate legitimacy of request/s
Communication workgroup
Toolkit
Single message to the community
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL

5. EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
Way forward
Nov ’16 – Jun ‘17
Jul ’17 – Jan ‘18
Development updates and Testing
Pilot group: UAT
User development
Internal testing
Feb ’18 – Jan ‘19
Pilot
Pilot group implement
Low volumes to stabilise systems and monitor uptake
User testing
Feb ’19 – Oct ‘19
Ramp up
All Users implement
Users all live
Migration
Migrate existing EDO business to AC
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL

6. EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
More information
Contact your Service Provider
Contact your Member Association
Contact your sponsor bank
Alternatively:-
Johnny Pienaar
EDO PSSF Data Custodian
Angelene van der Walt
Independent Project Manager
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL

7. EDO PSSF AC PROJECT STATUS - CONFIDENTIAL
Thank you!
EDO PSSF AC PROJECT STATUS - CONFIDENTIAL