What is the Remita Direct Debit Integration Feature?
Low loan recovery numbers can be attributed to the fact that users are adding cards on Originate that are associated with non-active or secondary accounts. This means that on debit, we do not have an active source of funds that we can pull from and hence the loan defaults. For this reason, we needed to introduce an additional channel for debit other than leveraging only on cards.
Features
Creation of mandate
Activation of mandate
Manual Mandate Activation
Electrical Mandate Activation
Intended Use
This feature introduces a new additional channel for debits other than leveraging only on cards.
How to use the feature
This feature provides a process for a mandate to be created and activated on originate. The feature is initiated on Loan Approval.
This process can further be divided into two sub-processes namely Electronic Mandate Activation and Manual Mandate Activation.
How the Electronic Mandate Activation works
Step A: Configure Rules on the Admin
For this step, Please contact your Indicina Account Manager for assistance.
For Account Managers Use
Step 1: On admin, navigate to the Use Remita attribute as can be seen below.
Step 2: When you check the use remita checkbox, fill in the merchant's remita credentials. These credentials include:-
Remita API credentials Merchant Id
Remita API Credentials Merchant Token
Remita API Credentials Merchant API Key
Step 3: Still on Admin, check the Requires Remita Mandate attribute
Step 4: Sign in to MP and navigate to the loan product that you would like to enable remita direct debit and opt into late fees.
N/B: Ensure that the late fee type is fixed and the fee frequency is one-off otherwise you will not be able to turn on remita on the loan product.
Step 5: Finally, Still on MP, check the Require Debit Mandate Activation for Loan Disbursal checkbox. Now the feature is enabled and the customer can go ahead and apply for a new loan.
Step B: On Loan Approval, the platform triggers a notification to the customer to log in to their customer portal
Step C: when a customer logs in, the customer is presented with a call to trigger their direct debit mandate activation.
Step D: On opt-in, the customer is presented with a screen to input an OTP. The OTP is sent via SMS to the phone number attached to their bank account.
Step E: The customer validates the OTP.
STEP F: On successful validation, the debit mandate is activated and the loan is disbursed. Customers are notified via email on successful mandate activation.
STEP G: Mandate form is generated and stored as part of application supporting documents.
On failed validation, the customer is allowed to try one more time. If validation still fails, the platform should trigger an error notification and end the process.
On failed mandate activation, the customer is prompted via notification. The platform should allow the applicant to restart the mandate activation process one additional time. If the process fails again, the loan application is declined.
How the Manual Mandate Activation works
Step A: Configure Rules on the Admin
Refer to this step for the electronic mandate. Same steps apply for the configuration.
STEP A: On Loan Approval, the platform triggers a notification to the customer to log into their CP
STEP B: On log in, the customer is presented with a call to trigger their direct debit mandate activation.
STEP C: On opt-in, the customer is presented with a direct debit mandate form which is appended with all their details.
STEP D: The customer is presented with the option to download the mandate form.
STEP E: Platform should inform customers that they are then required to take a mandate to their nearest bank branch to activate over the counter.
STEP F: The loan is only disbursed once the mandate has been activated at the Bank. Customer is notified on successful mandate activation
On failed mandate activation, the customer is prompted via notification. The platform should allow the applicant to restart the mandate activation process one additional time. If the process fails again, the loan application is declined.
On the customer portal, these linked cards are shown under the Settings tab and also displayed as part options on Manual Repayments of loans.
On completion of Repayment, the platform should keep records of all mandates created.
Please view this video that shows the manual mandate activation process.
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