User Guide: Recova Direct Debit Integration Feature
- Ivy Nzioka (Unlicensed)
What is the Recova Direct Debit Integration Feature?
Low loan recovery rates can be attributed to users adding cards on Originate that are linked to inactive or secondary accounts. This means that on debit, we don't have an active source of funds from which to draw, and the loan defaults. As a result, we needed to add another debit channel in addition to relying solely on cards.
Features
Mandate Creation
Mandate Consent
Mandate Activation
Intended Use
This feature adds a new collection channel in addition to cards.
High level explanation of how the feature works
Once the merchant has configured the feature for use in a loan category and an application has been approved, the mandate is created. Recova now configures everything that involves deducting a specified sum from a customer account over a specified period of time. However, before this can happen, the customer must agree to have their account debited when their repayment is due. Once consent is given, the mandate becomes active. When the repayment becomes due, Recova will debit the customer's account.
Recova however has two main repayment two main repayment models
Recova Repayment Models
Recova Collection
Based on the repayment schedule you submit to our system at the point of creating the direct debit mandate, the Recova system proactively initiate repayment from the beneficiary repayment account on the due dates until the loan is completely repaid.
Recova Recovery
The Recova system goes into recovery mode for delinquent loans, passed due dates loans and lost loans. The recovery mode targets all account linked to the loan beneficiary BVN to attempt to recover the defaulting amount.
How to use the Recova Feature
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 Requires Recova attribute as can be seen below.
Step 2: When you check the Requires Recova checkbox, fill in the merchant's Recova API Credential token
Step 3: Sign in to MP and navigate to the loan category that you would like to enable Recova direct debit.
NB: Please note that you need to enable Recova from the loan attributes
Step 4: Upon Loan Approval, the platform sends a notification to the user, requesting consent for their debit mandate. This notification is sent to the customer via SMS and email. When a customer logs into CP without providing consent, they are presented with a banner requesting consent so that their mandate can be activated.
Step 5: After receiving consent, the debit mandate is activated and the loan is disbursed. Recova will now automatically debit the customer's account when a loan repayment is due.
All actions are recorded on the mandate history tab as can be seen below.
Frequently Asked Questions (FAQs)
Is partial debit available with Recova Direct Debit?
No it is not possible to make partial debit on Recova
2. How many times would Recova attempt to debit the customer’s account in a day?
Ignite attempts to debit three times in a day so this means we issue a debit instruction to Recova on Ignite thrice a day. When we issue a debit instruction, it's then up to Recova to keep attempting debit on the account until it's successful and they notify us.
3. Can the customer disable the direct debit mandate on their account and if they do will the merchant be notified?
No currently we’ve not worked on being able to cancel a mandate but we will soon.
4. If the merchant adjusts the loan amount and tenor after the mandate has been generated, will it be reflected in the Recova mandate
Currently no. We will work on this once edit repayment schedule is completed
5. Which banks does Recova allows for mandate activation?
Recova currently supports 8 banks. These include:
1. Fcmb
2. Sterling
3. Providus
4. Wema
5. Access
6. Fidelity
7. Union
8. Polaris