Electronic Clearing Service (ECS) ECS is an electronic mode of funds transfer from one bank account to another bank account using the services of clearing house. This mode of remittance is normally used for Bulk transfers from one account to many accounts or viceversa. This can be used both for making payments like distribution of dividend, Interest, Salary, Pension, etc. by Institutions or for collection of amounts for the purposes such as payments to utility companies like telephone, electricity, water charges or for loan installments of financial institutions / banks or regular investments of persons. There are two types of ECS called ECS (Credit) or ECS (Debit).
ECS (Credit) is used for affording credit to large number of beneficiaries by raising a single debit to an account, such as dividend, Interest, salary payments. ECS (Debit) is used for raising debits to a number of accounts of consumers / account holders for crediting a particular institution: e.g. telephone / electricity utilities. ECS facility is available presently in 68 major centers across India. Advantages to the ultimate beneficiary: • • • • The end beneficiary need not make frequent visits to his bank for depositing the physical paper instruments. He does not run the risk of loss of instrument and fraudulent encashment. The delay in realization of proceeds after receipt of paper instrument if avoided. Trouble free – Eliminates the need to go to the collection centers / banks by the customers and no need not track down payments by last dates. Peace of mind – customers also need not track down payments by the last date. The ECS users would monitor the debits.
As per the Case ‘Alpen Bank: Launching Credit Card in Romania”, the following explains strategy on Segment, Target, and Position. This Analysis also has attached Excel sheet with numbers to support this strategy. Alpen Bank has been very successful in Romania building a profitable business for the wealthy – over 200,000 customers in a country with 7.7 million households. As per Exhibit 5 and Table ...