Cash and Banking Review Project

1
Cash and Banking Review Project Presentation to
Epayments Seminar for Government 7 September
2000 Ryan Geddes Manager, Legal Services
FLM Department of Treasury and Finance
2
Design Objectives - Cash and Banking Review

• Objectives
• Open Systems
• Integrated/Electronic Banking System
• - simplified banking arrangements
• Governments Online policy
• New/Niche Service Providers
• Electronic tender
• Seamless Implementation

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Design - Electronic Business Cash Banking
Government Outputs Budget Sector
Public Ledger and Central Agencies
Departmental Accounting
Revenue
Expenditure

• Human Services
• Justice
• DTF/SRO/VCGA
• Infrastrc/VicRoads

• Commonwlth
• Educat, NRE
• Parliam, AG
• Premiers

• Salaries
• Suppliers
• Service Providers
• Transfer Payments

Cash Management
Receipts
Payments
E-Commerce
E-Business
Bank
Bank Service and Transaction Mgmt
Value Transfer
Value Transfer
Single Acct for Govt OR Single Acct for Dept

• EFT
• cards
• cheq
• cash

• internet
• electronic
• Maxi
• teleph
• mail
• counter

• EFT
• cards
• cheq
• cash

• internet
• electronic
• teleph
• mail

TCV
Outer Budget Balances
Information Flows
Financial Market
Fund Flows
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Contract Management Contract Management and
Partnership Development

• Governments Online policy (24 hours/7 days)
• - Suite of Options - maxi or non-maxi (IVR
  Internet)
• - Departments can choose most suitable
  channel to met Online policy depending on
  functionality and cost.
• Westpac/Bank of Melbourne
• 3 year contract (September 2002)
• DTF/BOM work with departments and agencies
  in implementing
• online/electronic banking requirements
  (IVR/Internet/BPay etc)

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Government Online and Banking - Merchant Acquirer
Fee
maxi
non maxi
IVR
IVR
Ph 123456
Ph 132723
Internet
Internet
maxi
www.maxi.com.au
www.vic.gov.au
1.22
Price per transaction
Kiosk
on application
Kiosk pinpad (card present)
BPAY
1.05
0.94 0.71
Note IVR and Internet Card not present Kiosk
Card present PIN
per transaction
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Contract Management - Challenges

• Revenue collection strategy
• Fee capping for credit card payments -
  interchange fee
• Government policy on discounts for electronic
  payments
• Cost of implementing Governments Online
  policy
• - practical constraints and solutions - eg
  shopping trolley
• Cards versus EFT for Intra Government
  transactions
• Opening up the payment system will result in
  new payment options/providers
• Internet banking
• Dovetailing with E-Commerce project.

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Contract

• Whole of government contract which provides
  for agencies to participate by
• signing a notice of participation
• Saves time and expense of multiple individual
  tenders
• State manages high level over-arching
  contractual relationship
• Day-to-day relationship is directly between
  agency and Bank
• Dispute resolution process escalates from
  local to State level
• Partnership development takes advantage of new
  technologies in the
• electronic banking environment

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