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Sustaining growth in 2012Annual Review
1 Bacs annual review 2012Bacs, the not-for-profit, membership-based industrybody, is owned by 16 of the leading banks and b...
Bacs annual review 2012 2ForewordWelcome to our review of 2012 – theyear was certainly a very busy one forthe team at Bacs...
3 Bacs annual review 2012Our membersBacs is owned by leading banks and building societies in the UK, Europe and theUnited ...
Bacs annual review 2012 4Bacs and the UK payments industry• The UK Cards Association (UKCA) is the leading trade organisat...
5 Bacs annual review 20122012 saw Direct Debit volumes increase by 3.2 per centover 2011, reaching almost 3.43 billion tra...
Bacs annual review 2012 6The payments landscape has movedfaster over the past decade or so thanit had previously for centu...
7 Bacs annual review 2012We touch the lives of millions of UK individuals andthousands of businesses, through our Direct D...
Bacs annual review 2012 8Delivering against our strategic goalsOur small but very busy team isinvolved in a raft of activi...
9 Bacs annual review 2012Stakeholder requirementsHMRC – RTIChanges to the PAYE system were pilotedin 2012 as the first sta...
Bacs annual review 2012 10Volume generationOur dedicated marketing and volumegeneration team continued to work with corest...
11 Bacs annual review 2012Industry relationsAffiliatesDuring 2012, the Bacs Affiliates InterestGroup took on a new name as ite...
Bacs annual review 2012 12Bacs Approved SoftwareSuppliersThe Bacs approved software programmehelps solution suppliers work...
13 Bacs annual review 2012Cash ISA Transfer ServiceThe new automated Cash ISA TransferService was launched on 22 Octoberas...
Bacs annual review 2012 14During 2012, Bacs strengthenedits environmental commitment bybecoming a carbon neutral company.W...
Bacs and Bacstel-IP are registered trademarks of Bacs Payment Schemes Limited.The ownership of all other marks are hereby ...
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Bacs Annual Review 2012

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Sustaining growth in 2012
Annual Review

Bacs, the not-for-profit, membership-based industry body, is owned by 16 of the leading banks and building societies in the UK, Europe and US. Responsible for the Schemes behind the clearing and settlement of automated payments in the UK including Direct Debit and Bacs Direct Credit, Bacs has been maintaining the integrity of payment related services for 44 years.

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Transcript of "Bacs Annual Review 2012"

  1. 1. Sustaining growth in 2012Annual Review
  2. 2. 1 Bacs annual review 2012Bacs, the not-for-profit, membership-based industrybody, is owned by 16 of the leading banks and buildingsocieties in the UK, Europe and US. Responsible forthe Schemes behind the clearing and settlement ofautomated payments in the UK including Direct Debitand Bacs Direct Credit, Bacs has been maintaining theintegrity of payment related services for 44 years.
  3. 3. Bacs annual review 2012 2ForewordWelcome to our review of 2012 – theyear was certainly a very busy one forthe team at Bacs, and we’re pleased toshare with you some of the highlights.As ever, we’ll be focusing on key piecesof work rather than taking you throughall of our “business as usual” activity.The economic and financial sectorchallenges continued although I’m happyto report that Bacs has enjoyed anothersuccessful year.We broke another processing record at theend of 2012, reaching more than 97 milliontransactions in a single day, saw a level ofgrowth in Direct Debit volumes that wehaven’t experienced in the last five years – anannual increase of 3.2 per cent is very healthy– and we have been engaged with the widerindustry in some very high profile projectswhich sit outside our normal business.While the Bacs Direct Credit side of ourbusiness did fall very slightly, this wassomething which had been anticipated dueto the migration of Standing Orders to theFaster Payments Scheme. In any case, theincrease in Direct Debit volumes almostcompletely compensated for that. It seems,despite all of the new and varied paymentoptions now on offer to consumers andbusinesses, Direct Debit is as relevant asever, with a big role to play.In addition, we were briefed by the BBA,BSA and TISA to deliver a Cash ISA TransferService, which we launched successfully inOctober, and we have been heavily involvedin development of the new AccountSwitching Service, scheduled for launch inSeptember 2013. We also continued to workwith HMRC on the very high profile RealTime Information initiative. We weatheredthe challenges of the Olympics extremelywell, despite the Games being held in ourown backyard – it gave us an opportunityto put our remote working systems to thetest, and they operated perfectly. And we’realso very proud that we raised £135,000for a range of charities with our Big Breakcampaign, which brought in over 2m newtransactions a year with a lifetime value ofjust under £10m to the participating billers.In addition, we are very proud to announcethat, in 2012, we became a carbon neutralcompany, something we intend to build onstill further in 2013.All in all, it’s been an exciting year, and theteam has worked extremely hard to delivera wide range of projects on top of ournormal day-to-day business running the twoSchemes. I am extremely proud of all of theirachievements. There is, of course, lots tocome in 2013 and I look forward to sharingmore with you then.Michael ChambersManaging Director
  4. 4. 3 Bacs annual review 2012Our membersBacs is owned by leading banks and building societies in the UK, Europe and theUnited States of America, with current membership standing at 16. The range andnational origins of our members reflects the now diverse financial landscape inthe UK’s banking sector.As a company which has stood the test of time, with more than four decades as an integralpart of the nation’s critical financial infrastructure, Bacs has long recognised the importanceof keeping pace with the ongoing evolution of the high profile financial sector. As such, thecompany remains keen to welcome new members which meet membership criteria.Our BoardOur board is made up of representatives of our member banks and, in 2012,the board comprised:Managing Director:Michael ChambersBacs Payment Schemes LtdChair:To be announcedDeputy Chair:Mike RobertsNationwideDirectors:Joe McKnightAllied Irish BankMatthew HuntBank of EnglandJon MaltmanBarclays BankAnupam SinhaCitibank NADave SandersCo-operative BankAndy McCombDanske BankMartin ClarkHSBCAnne TrollandLloyds Banking GroupDouglas BelmoreClydesdale Bank PlcMike RobertsNationwideDavid GreigRoyal Bank of ScotlandRobert WhiteSantanderGordon SoutarVirgin MoneyOur committees:Four main committees report in toBacs’ board. These are:Rules and GovernanceAudit and RiskOperations and ComplianceDevelopment CommitteeThere is a specialist Security Committeewhich reports to Audit & Risk and we alsohave a specialist Affiliates Interest Group.Our members have a number of roles and responsibilities – they all:• Settle at the Bank of England• Underwrite the Direct Debit Guarantee• Guarantee Bacs (Bacs Payment Schemes Limited is a company limited by guarantee)• Fund Bacs• Underwrite all risks incurred via Bacs• Direct Bacs and determine its plans• Use Bacs to support their customer propositions.Membership details are available on the Bacs website:www.bacs.co.uk/Bacs/Corporate/JoinBacs/Pages/BacsMember2012 members• Allied Irish Bank• Bank of England• Barclays Bank• Citibank NA• Coutts Co• Clydesdale Bank Plc• Danske Bank• HBOS (Halifax and Bank of Scotland)• HSBC Bank plc• Lloyds TSB Bank• Nationwide Building Society• NatWest• Santander• The Co-operative Bank• The Royal Bank of Scotland• Virgin MoneyN.B. Coutts, NatWest and The RoyalBank of Scotland are all part of TheRoyal Group. Lloyds and HBoS are partof Lloyds Banking Group.
  5. 5. Bacs annual review 2012 4Bacs and the UK payments industry• The UK Cards Association (UKCA) is the leading trade organisation for the cards payment industry in the UK• Its membership includes all major credit, debit and charge card issuers, and merchant acquiring banks• UKCA contributes to the development of legislative and regulatory frameworks, and industry best practice and standards;safeguards the integrity of card payments; and co-ordinates relevant industry-wide initiativesThe Payments Council was established in March 2007 to ensure that UK Payments systems and services meet the needsof users, payments service providers and the wider economy. The Payments Council works closely with a number of contractedschemes for the benefit of the UK payments industry• Bacs is the not-for-profit, membership based, industry body responsible for managing Direct Debit and Bacs Direct Credit• Bacs is owned by 16 of the leading banks and building societies in the UK, Europe and the US• In 2012 over 5.66 billion UK payments were made through Bacs with a total value of £4.15 trillion• A new record was also set in 2012, with 97.6 million items processed in a single day with a value of £23 billion.• Faster Payments was launched under the auspices of CHAPS Co on 27 May 2008, and Faster Payments Scheme Limited was formallyincorporated on 24 August 2011• Faster Payments has 10 members; the service enables immediate internet and phone payments 24 hours a day and also processesstanding orders• Since the service launched more than one billion transactions have been processed to a value of £462bn• CHAPS Co processes and settles systemically important and time-dependent payments through its CHAPS Sterlingpayment scheme• CHAPS membership is made up of 19 leading banks and building societies in the UK, Europe and the US• A CHAPS payment is an electronic bank-to-bank same-day value payment made within the UK in sterling, generally usedfor high-value interbank transactions• The Cheque and Credit Clearing Company (CCCC) is a membership-based industry body with 11 settlement members. It managesthe cheque clearing system in Great Britain• Members of CCCC are individually responsible for processing cheques to the accounts of their customers• The CCCC also processes bankers’ drafts, building society cheques, postal orders, warrants and Government payable orders.This includes management of the systems for clearing paper bank giro credits and euro-denominated chequesBacs is an integral part of the wider industry supporting UK payments of all types.• LINK cash withdrawals can exceed £10 billion per month in value and at its busiest, LINK processes over 1 million transactions an hour.• The number of cash machines in the UK has grown from 36,000 in 2001 to around 65,500 today.• The number of free-to-use ATMs is at an all-time high of over 42,500.
  6. 6. 5 Bacs annual review 20122012 saw Direct Debit volumes increase by 3.2 per centover 2011, reaching almost 3.43 billion transactions.
  7. 7. Bacs annual review 2012 6The payments landscape has movedfaster over the past decade or so thanit had previously for centuries – internetbanking, Faster Payments, contactlesscards, mobile wallets and apps are allrelatively new arrivals when it comes topayment options.But, while all of this high profile innovationhas been taking place, Direct Debit –introduced more than 40 years ago – hascontinued to perform efficiently and securelyin the background.Direct Debit was the very first automateddigital payment option available to UK billpayers and billing companies. Today, it ismore relevant, more popular and moreconvenient than ever before, as evidenced byits continued growth – 2012 saw Direct Debitvolumes increase by 3.2 per cent over 2011,reaching almost 3.43 billion transactions.Three quarters of the UK adult populationhave at least one Direct Debit commitment;most are for regular bills – in fact, researchshows that 72 per cent of household billsare paid by Direct Debit. And it’s the waymost consumers want to pay; 64 per centof people prefer to pay most bills by DirectDebit while 39 per cent would like to pay allof their bills this way.By contrast, Bacs Direct Credit volumes havefallen slightly but this was not unexpected,as Standing Orders moved under the remitof Faster Payments.All in all, we saw more than 5.66 billion UKpayments made through the Bacs systemin 2012, and we broke yet another record inNovember when an impressive 97.6 millionitems were processed on a single day –that’s an increase of almost six million overthe record set previously, in 2011, for 91.9million items.Performance overview3.43 billionnumber of Direct Debitsin 201297.6 millionrecord number of payments processedin a single day in 2012: 97.6 million;value £23 bn£3.5 billionconservative annual cost saving estimatefor UK business using Direct Debit overpaper-based collection methods64%of people prefer to pay most bills byDirect Debit while 39 per cent wouldlike to pay all of their bills this way.Bacs is on track to process its 100 billionthtransaction during 2013 – that’s the totalnumber of debits and credits applied to UK bankaccounts via Bacs since its inception in 1968
  8. 8. 7 Bacs annual review 2012We touch the lives of millions of UK individuals andthousands of businesses, through our Direct Debit andBacs Direct Credit products
  9. 9. Bacs annual review 2012 8Delivering against our strategic goalsOur small but very busy team isinvolved in a raft of activities, farbroader than most may suspect.Our stakeholders are many, rangingfrom bill payers to billers, banks,businesses, financial bodiesand government.We touch the lives of millions of UKindividuals and thousands of businesses,through our Direct Debit andBacs Direct Credit products – not manybrands can be confident that at least threequarters of the adult population will useone of their products. But, in addition tomanaging our popular and wide-reachingSchemes, we are also involved in a numberof high profile industry initiatives. Here,we’ve outlined for you just some of thework carried out in 2012.Quality assuranceThe demanding Service Level Agreements(SLAs) we have in place with ourinfrastructure provider, VocaLink, were allmet at the highest of levels in 2012. Similarlythe banks’ Trust Provider performance alsoreached a near-perfect performance againstits SLAs. We continue to monitor to ensurethese levels are maintained to provide anexemplary service to all of our users.London 2012With Bacs’ head office close to the OlympicPark, it was important to consider thepotential impact of the Games on ourbusiness practices and our people. Weworked with our infrastructure providerto assess our existing robust processesand emergency planning against possibleissues arising because of the Olympics,and put into place fully tested alternativeremote working options for our team toensure business continued to run smoothlyduring that period. We were also involvedin the Payments Council-led cross-industryOlympics Communications Group.Operational excellence
  10. 10. 9 Bacs annual review 2012Stakeholder requirementsHMRC – RTIChanges to the PAYE system were pilotedin 2012 as the first stage of HMRC’s RealTime Information (RTI) programme – aimedat realising efficiencies in tax assessment andcollection, and in ensuring the correct levelof Universal Credit – was implemented.As the new system involves tax informationbeing cross-matched with salary and wagepayments, the bulk of which are paymentsmade through Bacs Direct Credit, we havebeen closely involved in the work throughoutthe piece. At all times, we have remainedsteadfast in our determination to protect theintegrity of our system, and the quality ofservice experienced by our users, a positionwhich has been fully supported by HMRC.The current RTI solution in the pilot scheme,while Bacs-specific, has a minimal impacton the Scheme. The payment file simplycarries a code enabling HMRC to match thepayment with tax information sent throughexisting Government channels. The longerterm strategic solution has not yet beenannounced but we understand this willbe scheme agnostic to ensure all relevantpayment methods can accommodate theHMRC requirement.Account switchingWith the new account switching servicelaunching in September 2013, Bacs continuedto work closely with the Payments Counciland member banks on the developmentand implementation of the programmethroughout 2012. Areas led by Bacs includedwork on delivering an enhanced messagingservice and a central payment redirectionfacility, managing stakeholder improvements,and development of governance and access/membership criteria.The programme aims to deliver a clearercustomer proposition, consistency of serviceand a guaranteed timeline for anyoneswitching accounts.We look forward to bringing you more onthis in next year’s report, when Bacs will havetaken on responsibility for the live service.£20 million value cap2012 saw the introduction of a value cap toprevent payments of more than £20 millionbeing submitted for processing throughthe Bacs system. With the system designedto process a high volume of payments ofrelatively low value, members of the Schemesand our overseer, the Bank of England,agreed that high value payments should beprocessed via CHAPS rather than Bacs.The cap was introduced in May, and banksworked with affected customers to ensuresystems were in place to migrate current andfuture transactions in excess of £20 millionto the CHAPS system. The final stage wasimplemented on 22 October 2012 where weset up system validation to enforce the rulechange – this means that any customer gradetransaction above £20 million is now rejectedautomatically with advice to the submitter sothey can arrange for the payment to be madevia another method.Impact on our service users is minimal as,out of the 5.5 billion payments processed byBacs each year, only around 2,000 are above£20 million in value.CPSS/IOSCO principlesThe Committee on Payment and SettlementSystems (CPSS) and the InternationalOrganization of Securities Commissions(IOSCO) published new principles for FinancialMarket Infrastructures (FMIs) in early 2012.The latest principles built upon those alreadyin place, against which we already had agood level of compliance.Northern IrelandJust under 1,000 businesses from all sectorswere invited to a free breakfast briefingin Belfast, held in conjunction with Bacs’Member banks based in the Province, wherethe latest Bacs developments were shared.Over breakfast in the iconic newly openedTitanic Belfast on the slipways where RMSTitanic was built, we provided an outline ofkey industry projects and how they impactservice users. This included HMRC RTI, theintroduction of value caps and AccountSwitching as well as talking about bestpractice in the day to day running of aBacs process.We also gave an overview of the Direct Debitconsumer marketplace in Northern Ireland,and the tools and support, which are freelyavailable to help service users take advantageof Direct Debits.
  11. 11. Bacs annual review 2012 10Volume generationOur dedicated marketing and volumegeneration team continued to work with corestakeholders looking to make more use ofDirect Debit payments within their business.Typically, a biller can make a saving ofapproximately £10 per year for every customerwho switches to monthly automated paymentfrom a paper-based payment, which providesa very strong business case for increasingDirect Debit adoption. The team provides freeof charge consultancy to major service users,guiding marketing activities and generatingbespoke materials to enhance Direct Debitadoption. They provide advice on audiencesmost likely to be open to switching toDirect Debit, drawn from our extensivemarket research programme. There is alsoa library of resources available to smallerbillers within our website’s Marketing Centreof Excellence.Collective marketingDrawing on the success of our 2011 collectivemarketing initiatives, we carried out threecollective marketing initiatives in 2012. TheLondon Campaign built on previous workwith local authorities in the capital, severalwater companies joined forces for our secondcampaign in their sector while The Big Breakbrought together billers across the countryfrom different sectors. All were developedwith the clear objective of upliftingDirect Debit volumes.The Big Break campaign brought together29 supporters across energy, water, localauthority, insurance and housing sectors.The campaign was the driver behind overtwo million new transactions per year with alifetime value of £9.89 million to participatingbillers. In addition, we raised more than£135,000 for charities across the country. Thecampaign also enabled us to strengthen linkswith one of our key national media titles, withpositive coverage and messaging appearingmonthly. The total PR reach was 185 million,equating to every UK adult having beenexposed to the campaign via the media threeto four times over the course of the year.Seventeen London local authorities tookpart in the 2012 London Campaign, whichsaw just short of a million people mailedand an increase of between 1.3 per cent and9.5 per cent in Direct Debit uptake amongthe participating LAs. Almost 380,000 newtransactions per annum were generated,equating to a cost saving of £362,000 acrossall the councils involved. The initiative alsonetted positive PR coverage for Direct Debitin the capital, with more than 56 articlesappearing throughout the campaign.We also developed a campaign specificallyfor the water sector, with three watercompanies taking part. The campaign did notcomplete until the very end of 2012, so resultswere not available at the time of writing butinitial reports from the participants werevery positive.iPhone and Android AppsOur free iPhone app, the Direct Debit ControlCentre, which launched in 2011, has proveda resounding success – the app works byprogramming reminders of when a billpayment is due to go out, allowing users tokeep track of their Direct Debits. To date, it’sbeen downloaded over 28,000 times.Building on that success, an Android versionwas developed in 2012 to extend availabilityto a wider section of the bill-payingpopulation. The app launched at the endof 2012, so we look forward to reportingon its success in next year’s corporate report.Bacs Family FinanceTrackerOur regular consumer research continuedacross 2012 with the Bacs Family FinanceTracker providing valuable insight intoUK payment habits. The survey has beenquoted in high profile publications, includingthe money pages of national newspapersand websites. In addition, the volumegeneration team shares the informationwith key billers to help them understandmore about attitudes to bills, Direct Debitand payments generally.Help CentreThe Direct Debit Help Centre is still proving auseful online resource as a first port of call forconsumers with any questions about DirectDebit or who are looking for assistance.The pages contain advice on setting upor cancelling Direct Debits, as well asinformation on the Guarantee; there are alsotemplate letters for customers to use shouldthey experience a problem or if they wantto cancel a Direct Debit, and these weredownloaded almost 7,000 times in 2012.new transactions per annum generatedby Big Break campaign2.06mnumber of downloads of our freeiPhone app since launch28,000+help centre downloads during 20127,000
  12. 12. 11 Bacs annual review 2012Industry relationsAffiliatesDuring 2012, the Bacs Affiliates InterestGroup took on a new name as itextended its scope to cover the widerpayments industry – the new ElectronicPayment Affiliates Interest Group nowalso includes both CHAPS and FasterPayments, as well as Bacs.The group will continue to consult onareas such as regulatory change, productdevelopment and Scheme initiatives – andwe have welcomed the opportunity to nowbe able to provide a broader view across thewider electronic payments environment.We ended 2012 with 45 organisations in theAffiliates Interest Group ranging from agencybanks and financial institutions, service users,Bacs approved software suppliers and Bacsapproved bureaux. It’s important for us toensure these members feel they are gettingvalue out of the Group and, as such, weasked them to complete a satisfaction surveyin 2012 – we’re pleased to report that 100per cent of the respondents said they weresatisfied with the current forum.Affiliates benefits include:• Receiving information and updates aboutBacs’ products and, where appropriate,the wider payments market• Having an opportunity to input intotopical debates• Receiving advance details and havingthe chance to influence and discussthe impacts of Scheme developments,innovations and new products• Networking with other stakeholders inthe Bacs process• Seeking ways to improve the Bacsproposition through Straight ThroughPayments (STP), efficiency/quality andvolume penetration• Receiving briefings on forthcomingregulatory change• Receiving and debating research findings• Having access to press releases and Bacsmarketing team collateral/resources
  13. 13. Bacs annual review 2012 12Bacs Approved SoftwareSuppliersThe Bacs approved software programmehelps solution suppliers work to a setof business and technical standards toassist development of the software whichinterfaces with Bacstel-IP – any supplierdeveloping, promoting and maintainingBacstel-IP software packages is requiredto become a Bacs ApprovedSoftware Supplier.All software packages produced by BacsApproved Software Suppliers undergomandatory testing by Bacs, with staff requiredto undertake appropriate training coveringBacs and Bacstel-IP. Solution supplierssuccessfully achieving approval – currentlythere are 19 – can display the Bacs ApprovedSoftware Supplier logo.Bacs Approved BureauxServiceThere are more than 760 bureaux includedwithin the Bacs Approved Bureaux Service(BABS) which, together, accounted for over700 million transactions in 2012 with acombined value of almost £800 billion. Thebureaux enable thousands of businesses toaccess both Bacs Schemes, and span theUK and beyond, and yet more are applyingto join BABS – there were more than 50new applicants in 2012. It falls to the BABSinspection team to ensure each bureaucontinues to meet all Bacs’ requirements,with the inspectors carrying out just shortof 300 visits across the year.Bacs TrainingAccreditation SchemeOur Bacs Training Accreditation Scheme(BTAS) enables providers of Bacs-relatedtraining to apply to have their coursesaccredited, ensuring course content is up-to-date and relevant to user needs. To date,there are four companies offering BTAScourses, assisting billers in gaining businessbenefits, generating lasting improvements infinancial performance, and investing in andmotivating staff.Cross industry workingOur role in a number of high profile initiativeshas involved working closely with otherpayments industry organisations, both inleading and supporting roles.We were – and still are – active in thevarious workstreams which are part of theAccount Switching programme, which willbe delivered in September 2013; we workedwith the BBA, BSA and TISA on the Cash ISATransfer Service, introduced in October; andwe were also wrapped in to the industry’sOlympic Communications Group, which wasset up to ensure clarity and consistency ofmessaging around any impact of the London2012 Games.BABS inspection reviewThe procedure is based broadly on BritishStandard BS7799Areas of inspection include:1. Organisation and rules2. Financial Information3. Commercial Arrangements4. Professional Services5. Physical Security6. Computer Facilities and Networks7. Logical Access Control8. Computer Operations9. Business Continuity10. Application and Systems Support11. Customer Data Controls12. Production of Bacs Data13. Bacstel-IP Transmission Controls14. Hardware Security Module (HSM) Option15. Verification of Bacs ProcessingFurther inspections are undertaken atthree yearly intervals, or when majororganisational changes occur and followthe same format.Bacs Guideline “The InspectionProcess” is available at www.bacs.co.ukto download.
  14. 14. 13 Bacs annual review 2012Cash ISA Transfer ServiceThe new automated Cash ISA TransferService was launched on 22 Octoberas part of a phased introduction, with20 members in place from day one. Allproviders scheduled to offer the newservice between launch and 31 January2013 were on target to do so at the timeof writing this report.The new service will enable an increase in thequality and ease of transfer compared to theexisting Cash ISA transfer process, reducingpaper flow and increasing efficiency.The Bacs team was tasked by the CashISA industry bodies – the British Bankers’Association, the Building Societies Associationand the Tax Incentivised Savings Association– to lead on delivering the businessrequirements behind an exchange of databetween cash ISA providers.This substantial piece of work involvedmultiple parties, and we are pleased to reporton its successful delivery.Scheme management
  15. 15. Bacs annual review 2012 14During 2012, Bacs strengthenedits environmental commitment bybecoming a carbon neutral company.We achieved this in conjunction withleading carbon management andsustainability organisation, CarbonFootprint Ltd.The project involved us undertaking anassessment of the carbon emissions thatresulted from the energy consumption of Bacsprocessing (by our infrastructure provider)and all business transport activities associatedwith Bacs as an organisation for the year 2011.In order to achieve ‘carbon neutrality’ as anorganisation, we undertook a subsequentcarbon offset programme through VerifiedCarbon Standard (VCS) projects.The VCS project chosen for this offset isa Biomass Power Generation Project inSri Lanka. This aims to provide a solution forthe severe power shortage in the countrythrough generating power using sustainablebiomass sources instead of fossil fuels.Additionally, Bacs has demonstrated itscommitment to the UK environment byoffsetting a portion of its energy consumptionwith the planting of more than 400 new treesin the UK. This programme forms part of anoverall carbon reduction management plan,whereby processes and technological changesare reviewed and behavioural changes areintroduced through communication, trainingand awareness. We are proud to be a carbonneutral organisation.We remain committed to our corporate socialresponsibility, and our charter outlines ourpromise to contribute to a better society,demonstrating how we are integratingenvironmental and social concerns into ourbusiness strategies and operations. Ourcharter can be found on our website:www.bacs.co.uk/csrThe Big BreakIn 2012, we ran another collective marketingcampaign linked with generating donationsto charity as part of our CSR programme.Building on our success in 2011, The Big Breaktied increasing Direct Debit adoption withraising funds for charity – and 15 charitiesbenefited as a result. In total, we’ve raisedalmost £300,000 in the last two years andwe plan to develop this still further in 2013,generating even more donations and drivingvolumes at the same time.Corporate Social ResponsibilityStaff retention anddevelopmentEvery year we participate in the UKPayments Administration (UKPA) ‘BestCompanies Survey’ which looks at thetop places to work according to stafffeedback. Despite our excellent scoresfor 2011, we committed to establishinga plan to achieve better results – andwe’re pleased to report on our success.The results released in the closing stagesof 2012 show that we have continued toimprove in every single area.Key highlightsBacs (equivalent) Best Company rating: 2*and on the cusp of the highest rating of 3*·Bacs scores have risen on each of theeight factors considered by the surveycomparing favourably with the alreadyexcellent Bacs result released in 2011.We aim to better this still further for ourteam for next year - given that Bacs is onthe cusp of the highest (3*) rating fromthe Best Companies Survey our plan willbe to achieve this highest accolade.
  16. 16. Bacs and Bacstel-IP are registered trademarks of Bacs Payment Schemes Limited.The ownership of all other marks are hereby acknowledged. ©Bacs Payment Schemes Limited 2013.All rights reserved.This report is printed on paper sourced from sustainable resources that are elemental chlorine free (ECF)Contact information2 Thomas More SquareLondonE1W 1YN0203 217 8379Bacs service desk:0870 165 0018servicedesk@bacsservices.co.ukOur websitesCorporate: bacs.co.ukConsumer: directdebit.co.ukB2B: paymedirect.co.uk

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