SilverBridge reinvents Stangen debit order environment

In a strategic move designed to improve the collection of monthly premiums and the customer experience, Stangen partnered with SilverBridge for the development of a new debit order solution that would be integrated into the Exergy policy administration environment of the niche life insurer.

“We were reliant on an alternative debit order premium collection system but started encountering several challenges with it. For example, manual intervention was necessary on some aspects that not only impacted on the integrity of the data, but also resulted in the non-collection of some premiums. Additionally, there were technical constraints in terms of file structures and layouts,” says William Harris, COO at Stangen.

Another consideration was around the use of Debicheck that requires financial institutions to comply with certain regulations when dealing with a debit order premium instruction. This resulted in Stangen investigating more effective ways of managing its debit orders.

Stangen has a good relationship with SilverBridge with the Exergy implementation and reached out to the organisation to develop a new debit order solution. The core SilverBridge development and client teams worked closely with the Stangen representatives to make sure the new debit order functionality would address all their unique requirements.

As part of the project, SilverBridge used a re-iterative process during design and testing. This resulted in the development of a more streamlined and effective debit order collection process that could be implemented at Stangen.

“Given our knowledge of the customer’s environment and their requirements of integrating the debit order process with Exergy, our team came up with an innovative solution that would support two different collection systems,” says Wouter Mathlener, Implementation Consultant at SilverBridge.

The first is developed around the Naedo principle. This sees the system periodically striking the relevant bank account on the collection date. The debit will take place as soon as funds are available. If the funds are not available on this first strike, the account will automatically be struck until such time that funds are available. The second system is built on the ‘same day collection’ principle. This is where premiums are collected only on the specified instruction date with no other date permitted.

“As part of our work with Stangen, we implemented a comprehensive data checking facility to ensure the integrity of the data would not be compromised as was the case with the previous, manual-driven environment. Using our solution, Stangen was able to streamline its premium collection process and secure the tracking and reconciliation of its data,” adds SilverBridge’s Mathlener.

Stangen’s Harris says the SilverBridge solution provides the insurer with a platform for growth.

“As a result of our new debit order environment, we have been seeing improved business efficiencies. And with debit orders now being processed as instructed by our clients, their experience has also improved due to us eliminating any missed premium collection dates. Furthermore, Stangen now has a platform to implement Debicheck,” says Harris.

Move to cloud crucial for business response to COVID-19

The current lockdown is testing the ability of business to adapt quickly to changing market conditions. Companies that have embraced more digital ways of working have been far less impacted. Several slower respondents are turning their focus away from only the cost benefits of cloud-based solutions to the agility and responsiveness that they now require. The more connected businesses are those that will survive.

Several years ago, SilverBridge identified the cloud as a key business driver for the financial services industry and therefore also for its own business. It has formed an integral part of its strategy of providing the industry with solutions for modernisation and digitalisation. With Microsoft being a strategic partner for many years, it made sense for SilverBridge to align with their strategy and work closely with them to enable their joint clients.

“We implemented our first cloud-based client project on Microsoft Azure in 2015. This was a few years before the datacentres were available in South Africa and at a time when most financial services companies were still very cautious and sceptical about the cloud. Since then we have worked closely with Microsoft to move more of our solutions to Azure and enable our clients to not only modernise their core line of business systems but also unlock the benefits of digitalising their processes. We now deliver a complete cloud-based digital suite of products to our clients,” says Lee Kuyper, COO at SilverBridge.

Using the SilverBridge Exergy policy administration system on the Microsoft Azure cloud significantly contributes to the ability of its clients to modernise their core insurance system – the heart of their operations. It enables them to scale according to their customer requirements and be more agile in embracing digital technologies to deliver value. This cloud-based approach means an insurer can respond more efficiently to a changing business environment.

At a time when engaging with customers and staff is moving from physical to online, it is important to identify how best to apply digitalisation in a practical and people-centric way. Intermediaries, for example, can effectively onboard customers digitally and access critical information from any physical location. This involves replacing the previously physical processes of application and fulfilment with a completely digital experience.

“Those insurers who have already begun their digital transformation would have already put the necessary measures in place to enable staff to operate remotely. We can see that our clients who have partnered with us in using our cloud-based digital solutions still have complete access irrespective of the user’s physical location, ensuring the business can function as normal.”

However, those insurers who have been unable or unwilling to make the move to the cloud and who have been reliant on their own physical infrastructure to manage and engage customers will struggle to effectively do business during the lockdown.

“SilverBridge is now working closely with those customers who still have on-premise deployments to try and fast track a move to the cloud. This will not only modernise the way they work but will also accelerate the digitalisation of their businesses, something which every business would anyway have to do at some point in the future.” adds Kuyper.

However, security must form part of this as employees access critical systems, with sensitive customer information, remotely. Microsoft has already invested over $1 billion in developing security solutions for the Azure cloud, one of the key reasons that SilverBridge has chosen to partner with Microsoft in this regard. They have also largely addressed any regulatory and data protection concerns that businesses might have. If any concerns remain, they have the expert resources to assist clients to effectively deal with them.

The lockdown is giving insurers no choice but to think differently about how business can be done. This includes adopting a more digital and modern approach to prove value in a very uncertain climate.

“Post the pandemic, the world and business in general will be completely different. Companies across industry sectors will embrace online solutions to improve efficiencies and deliver value faster. The next few weeks will see cynics testing a digital way of working and realising that this is the future of industry. People understand this on a conceptual level but need to move past the expected and perceived barriers that exist. They need to start working with the practical elements of modernisation and digitalisation, while dealing with these barriers as they arise.”

Something positive that will come out of the current crisis, is that more businesses will embrace the cloud and digital transformation in more direct, practical, and beneficial ways.

About SilverBridge
SilverBridge has 25 years’ experience as a leading provider of software solutions in the financial services industry. Their experience includes working with over 60 customers across 16 African countries. SilverBridge’s digital suite allows financial services companies the opportunity to respond quickly to changing markets. With customers throughout Africa, SilverBridge has the knowledge, experience, and technology capabilities to help its clients do better business.

SilverBridge supports AirBuy in driving fintech innovation

SilverBridge and innovative fintech Airbuy have entered the second year of an enterprise development programme, highlighting how the technology solutions provider can assist start-ups in unlocking additional value by providing them with the relevant expertise to navigate the complexities surrounding the financial services industry.

“At the time, SilverBridge interviewed numerous start-ups to identify one that provided them with a good cultural fit from an enterprise development perspective. Airbuy stood out from others due to the passion and commitment of the founders, and how focused they were at realising their idea. They also wanted to make a difference in their communities which is something SilverBridge feels quite strongly about,” says Ruth Wotela, People Wellness Executive at SilverBridge.

The Airbuy payment gateway allows e-commerce sites to accept payments without customers needing to provide their banking details. For the end user, this entails using only their mobile number to set up and complete a transaction.

“Given the increasing connectedness of people thanks to the ubiquity of smartphones, we identified a huge gap in the market. Mobile penetration is significant not only in this country, but throughout the continent. It therefore made sense to harness the power of the mobile phone allowing us to create the opportunity for all South Africans to buy online and also experience the product accessibility and convenience benefits on offer. Of course, Airbuy not only ensures increased accessibility, it also caters for those users who are sceptical about the security of saving their credit card details on e-commerce sites. Airbuy has developed a proudly South African solution to cater for those requirements,” says Njabulo Makhathini, co-founder and head of business development at Airbuy.

SilverBridge supports Airbuy with office resources in a shared environment as well as access to several experts in different areas that include marketing, IT, HR, compliance, and business.

“We identified individuals at the company to provide Airbuy with guidance and mentor the team in different ways. It is not a case of changing their vision but supporting them and encouraging the business to grow. We are supporting them and empowering them to do what they want through not only access to our experts but also our network of partners,” says Wotela.

Tshepang Kobo, co-founder and CEO of Airbuy, believes SilverBridge gave them the structure required to think more strategically about their goals.

“Before, we were very free flowing. But working with SilverBridge made us realise there are certain elements to consider and being cognisant of their long-term impact on the business,” says Kobo.

“Even though we are passionate about our idea, we learnt very quickly in the journey that starting a fintech is not the same as doing, for example, a delivery app. There are significant legal and regulatory elements that must be in place. SilverBridge helped us every step of the way and enabled us to grow quicker than we anticipated and scale our systems accordingly,” adds Makhathini.

He points out that the biggest lesson is that a start-up does not necessarily require funding but the right expertise.

“It is easy to spend funds in the wrong way. It is more about getting the right resources and making less mistakes on spending money inefficiently.”

For Kobo, the SilverBridge relationship brought with it a lot of stability.

“Previously, we used to meet at coffee shops or worked at various incubators for a few weeks at a time. This was a very volatile approach but SilverBridge gave us a safe environment to work from.”

As to be expected, Airbuy dealt with setup-related issues in 2019, but now it is focused on scaling up. It plans to expand into another country by 2024 but will remain reliant on SilverBridge consulting throughout the process.

“Even though we might not be working from their offices by then, we will always use them from a consulting perspective. They have vast experience in scaling solutions across Africa which is extremely valuable for us as we focus on growing Airbuy,” adds Makhathini.

According to SilverBridge’s Wotela, the relationship is very flexible.

“SilverBridge is there to support Airbuy. We believe in what they are doing and hope they continue with the innovative work for years to come. Our support is focused on assisting them as they navigate through their business developments,” concludes Wotela.

About SilverBridge

SilverBridge has over 24 years’ experience as a leading provider of insurance software solutions in the African financial services industry. Our experience includes working with over 60 customers across 16 African countries. SilverBridge’s digital insurance suite allows financial services companies the opportunity to respond quickly to changing markets. With customers throughout Africa, SilverBridge has the knowledge, experience, and technology capabilities to help its clients do better business.

Understanding disruption in insurance

Disruption is a term used increasingly often in a digital environment. But what does it mean for insurers looking to differentiate themselves from the rise of agile insurtechs and fintechs? Jaco Swanepoel, founder and CEO of SilverBridge, examines the impact of disruption in insurance.

Disruption refers to a process that breaks or interrupts the normal course of action or the continuation of some activity. And when it comes to defining it in a digital context, it talks to the use of technology to shake-up an industry with ground-breaking new products and processes. Sometimes, it can even result in the creation of an entirely new industry segment.

For example, think about how mobile devices have disrupted the television industry. Some people have become so comfortable to stream video content to their mobile phones and tablets, that many millennials prefer these over big screen televisions. This has resulted in TV manufacturers being ‘forced’ to become more innovative in how they package screens and displays.

“Of course, in insurance, this involves more than just hardware, software, and the bits and bytes of what is happening around us. Meaningful digital transformation requires combining technology with powerful ideas that was not possible before and thereby creating new opportunities,” says Swanepoel.

In practice

At their core, insurers focus on meeting customer expectations to manage their risks. In a digital world, people want increasingly more intuitive, user-friendly options to fit into their real-time lifestyles. Whether that is 24-hour access to relevant information to manage their risk or use mobile apps to submit and resolve claims that are processed automatically with no agent interference, the ways insurers deal with people and manage the business have changed.

Research has shown by introducing automation, an insurer can reduce the cost of a claims journey by as much as 30%. Considering how tight budgets have become and the importance by finding subtle ways of improving the customer journey, this is a significant number. Furthermore, the reduction in size of devices have turned mobile phones into what can be considered portable computers.”

This means insurers (and consumers) can harness new opportunities to reinvent what has come before. An entirely new ecosystem is emerging that is driven by digital customer engagement. No longer do insurers have to exclusively rely on agents for user interaction. They can leverage mobile apps to provide a continually evolving set of products and services catering for more innovative ways of analysing customer data and market trends.”

People first

Much, if not all, of this is centred around a people-centric design. Customers want ease of use and want insurance to become a significantly more intuitive experience.

“So, even though technology is making all this possible, it only enables insurers to embrace disruption. It should never be the be-all and end-all of everything. The person remains at the core of the insurance experience.”

Another example is how some insurers rely on automation for the customer sign up process. By simply providing basic information, a user can have immediate access to full personal cover and submit photos of their insured items from an insurance app. From quotes to claims, the bulk of the insurance journey becomes automated thanks to better data analysis and artificial intelligence that deliver a more efficient way of customising products on a per user basis,” adds Swanepoel.

However, Swanepoel advises that the insurance approach must remain cognisant of identifying new opportunities instead of simply overhauling traditional processes.

“It is all about taking digital disruption and making it concrete and measurable in the hearts and minds of people. The customer should experience this as an improvement and not as a shock unless it is a positive one. It must demonstrate returns to all stakeholders and not just be technology for its own sake. Only then will companies be empowered to start reinventing how they manage insurance,” concludes Swanepoel.

About SilverBridge

SilverBridge has over 24 years’ experience as a leading provider of insurance software solutions in the African financial services industry. Our experience includes working with over 60 customers across 16 African countries. SilverBridge’s digital insurance suite allows financial services companies the opportunity to respond quickly to changing markets. With customers throughout Africa, SilverBridge has the knowledge, experience, and technology capabilities to help its clients do better business.