Government as a driving force to spread existing innovative solutions for public funds administration at regional and local level

Transcription

1 Government as a driving force to spread existing innovative solutions for public funds administration at regional and local level Aivars Draudiņš Director of Public Services Department Ministry of Environmental Protection and Regional Development Republic of Latvia

2 Approaches for government public fund administration Benefit administration by merchants. Benefit administration by government institutions. Benefit administration using contactless bank cards. 2

3 Benefit administration by merchants Entitles the benefit Resident The authorities Pays for a subsidized ticket (less than the regular fare) Transport company 3

4 Benefit administration by government institutions Entitles the benefit Reimburse for customer s benefit Resident Covers the customer s benefit The authorities Pays for a ticket (regular fare) Transport company 4

5 Existing issues in public funds distribution Necessity of precise, efficient and fast electronic way for payment. Mistakes in distribution of benefit, because merchants have conflict of interest. Delays in payments for merchants. Disclosure of social status of school children and residents. Usage of cash by pupils is risk for them and concerns their parents. 5

6 Solution Change in approach for administration of benefit From: benefit are transferred to merchants based on their reports To: benefit are transferred to residents based on actual payments 6

7 Innovative solution of benefit administration Entitles the benefit Resident The authorities Pays for a ticket (regular fare) using E-card Done at the same time Holds benefit s funds in the bank account E-card payment transaction data Transport company 7

8 Use case: implementation in Jelgava city Jelgava city delegates SEB bank to issue contactless payment cards with rights for residents to receive grants for usage of public transportation and for taking a meal in the school. Jelgava city defines: list of benefit receivers, benefit calculation scenarios, list of merchants that can accept payment cards for payment. 8

9 Benefits for Jelgava city municipality (1) Significant reduction of cash used by students. Parental control for spending of children. Maintaining confidentiality of social status everyone pays full price while some receive benefit on their bank account. Merchants receive full price for their services/goods to their bank account on the next business day. 9

10 Benefits for Jelgava city municipality (2) Benefits are calculated only according to actual payments and are transferred directly to receiver s bank account. Benefit receiver gets information about full price of services/goods and the amount of benefit. This solution is economically effective because of direct payments within the same bank and use of existing payment infrastructure. Time saving fast service due to direct integration of POS system with cash register. 10

11 Bank Services Award Gold coin 2013 Annual award was granted to JSC SEB bank for the Jelgava city pupils and residents multifunctional, personal contactless card. 11

12 Latvian ICT Award «Platinum Mouse 2013» In the category «E-business solutions and innovations» ICT annual award was granted to SIA Jelgava bus park and AS SEB bank for the Jelgava city pupils and residents multifunctional, personal contactless card. 12

13 Public sector modernization using digital technology Digital by default 13

14 Latvia government decision Rules of the Cabinet of Ministers No.153 The passenger categories, which are eligible for the fares in the route network routes, Riga, 31.March 2015 (prot. No ) The transport service provides should provide the bank cards acceptance from 8 January To use only the bank card for public transport benefits administration from 1 January

15 Liepaja, Salaspils, Jelgava cities residents personal contactless MasterCard cards 15

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