Currently used by larger credit unions which can more easily gain sponsorship by a receiving bank, small to medium-sized providers face significant affordability and access difficulties around collecting Direct Debits. Today’s launch by incuto removes the need to apply for their own unique Service User Number (SUN) or gain sponsorship from a receiving bank.

Cost has also been a prohibitive factor for many credit unions considering Direct Debits. Via the incuto platform, affordable finance providers will now have the option to use Direct Debits with one simple, low cost per transaction and no set-up fee.

Commenting on the launch, incuto CEO Andrew Rabbitt says: “By becoming an accredited Facilities Manager for our credit union partners, we can both simplify the process and reduce the cost of Direct Debits. Today’s launch aligns perfectly with our strategy to aggregate services for all credit unions, no matter their size, and to enhance and automate what they can offer Members.

“Credit unions can onboard Direct Debits very quickly and, as with our other aggregated services, there is a fixed price per payment and no minimum volumes,” Andrew continues.

Direct Debits also reduce the burden on credit union Members to set up standing orders for loan repayments, and take responsibility for either changing or stopping payments should their loan amount change. Using incuto, credit unions can dynamically stop or change payment amounts, reducing the administrative burden of chasing missed payments and protecting Members from overpayment.

“By launching Direct Debits, we are adding to a growing list of opportunities on offer through our platform,” says Andrew. “We know smaller credit unions haven’t been able to collect Direct Debits for many reasons, so we decided to take on the role of Facilities Manager and make this possible for them.

“In addition to undertaking all of the regulatory set up, we’re providing access to approved templates for communications around payment set up and a first payment notification, as well as automatic updates if a payment amount is changed,” Andrew continues. “Additionally, set-up can be completed online or by phone, so credit unions do not need to go through the process of exchanging paper forms between the Member and the sponsoring bank. This makes the process quicker and easier when initiating a loan.”

incuto was founded on the basis that everyone deserves access to fair and affordable finance. It is an end-to-end solution with no barriers to entry, enabling credit unions and community banks to connect quickly and have access to key services including TransUnion, Experian and ClearBank with no licence or support fees, no minimum volumes and no tie-ins.