Singapore: A new nationwide eGIRO service was launched on Monday (November 8), fully digitizing the current paper-based GIRO process and allowing applications to be processed within minutes.
GIRO was first introduced in 1984 as an electronic direct debit mechanism that allows individuals to set up regular bill payments from their bank accounts. These can be personal income tax, mobile phone bills, seasonal parking fees, tuition fees, etc.
Currently, the application process is manual and takes an average of three weeks. Deputy Prime Minister Heng Swee Keat said when launching a new plan at Singapore Fintech Festival x Singapore Innovation Technology Week 2021 that if further clarification is needed, it may take as long as six weeks.
On average, Singapore has about 1 million GIRO applications each year.
The Singapore Banking Association (ABS) stated in another press release that the new eGIRO service is built on “API (application programming interface) and cloud-based architecture, which will allow the solution to quickly scale to suit all needs” . Banking and billing organizations in Singapore”.
It added that in the initial phase, eight major banks and 13 billing organizations will gradually provide eGIRO.
These banks are DBS Bank, OCBC Bank, UOB, Bank of China, HSBC, Industrial and Commercial Bank of China, Maybank, and Standard Chartered Bank.
Billing organizations come from different business units, such as the Central Provident Fund Board, Housing Development Board, GrabPay, Singtel Dash and Etiqa Insurance Singapore.
The association stated that ABS is seeking to expand the list of banks and billing organizations in the subsequent stages of eGIRO’s services.
“With the new eGIRO service, the creation and cancellation of GIRO orders will be automated, and the turnaround time will be significantly reduced from approximately three weeks to just a few minutes,” said Ong-Ang Ai Boon, ABS Director.
“It will also reduce the consumption of paper documents by approximately 2 million per year, thereby minimizing errors caused by human intervention.”
New digital services will not replace paper applications for the time being.
“There is no plan to immediately stop the paper application form because we still need to check the different situations of citizens,” Mr. Ng Peng Khim, head of eGIRO’s technical workflow, told reporters at the briefing.
“Some of them are more willing to digitize through online banking and mobile banking, and some may continue to use paper forms to apply for GIRO. We will study this at a later stage.”
The Monetary Authority of Singapore stated that this new service marks an important step towards a more inclusive digital economy in Singapore.
Its Chief Financial Technology Officer Sopnendu Mohanty said: “This is in line with our vision to promote interoperable solutions and seamless digital services to reach more people and businesses at lower costs and greater convenience.
“Individuals and businesses in Singapore will continue to benefit from digital efforts and partnerships between regulators and industry participants. eGIRO can pave the way for the industry to explore innovative payment models, such as automatic e-wallet recharges in the future.”
