With bad debt risk spiralling for energy providers, and growing economic uncertainty for customers, both groups are seeking a new way to settle their energy bills. To address this challenge, technology company Siemens has taken its pioneering Managed Credit solution, and combined it with payment technology from CGI and Open Banking innovator Ordo.
The solution presents a compelling case for a fourth payment option. Building on existing smart metering technology, Managed Credit delivers prepayment energy without the cost, operating credit energy features without the risk.
Now, combined with CGI’s Open Banking solution Ordo, Managed Credit has the potential to transform an energy supplier’s operational cost and credit risk profile, driving cost to serve below direct debit levels without the associated risks.
Nick Jones, Head of Managed Credit at Siemens said: “We are really excited that Managed Credit now utilises technology from CGI and Ordo. Managed Credit is not only used in the UK, but all around the world on smart metering programmes. We are confident that our low cost, low risk technology can create further breakthroughs for challenger energy brands and large legacy suppliers alike. In addition to domestic customers, we feel that microbusiness customers could benefit from this new technology, with user-friendly features like auto top ups and budgeting tools that avoid the risk of disconnection and address cash flow concerns, all still benefitting from low transaction costs for the supplier thanks to Ordo’s Open Banking solution.”
Phil Skinner, CGI UK Director Open Banking Payments commented: “At CGI, many of our clients, especially those issuing large volumes of bills, are looking for better ways to serve their customers, so are considering Request to Pay platforms like Ordo. Ordo provides a cost effective, secure and customer-friendly way of taking payments, particularly when Direct Debit is not appropriate or when payment cards prove expensive and inconvenient for customers due to authentication requirements.”
Read the full announcement from Siemens.