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Citi Perspectives for the Public Sector |
2014
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enterprises may see SSCs as an opportunity to
reduce head-count, while job reductions in the
public sector can be more difficult to achieve.
Despite such restrictions, SSCs and electronic
payment solutions offer cities tremendous
opportunities to increase efficiencies, get
money into government accounts faster, and
improve the citizen experience.
Quicker payment for cities, greater
convenience for citizens
New York City also has leveraged digital
technologies for on-the-spot payments, such
as parking violations. The city used to tow cars
with multiple parking violations to a remote
pound. The retrieval process could take violators
12 to 14 hours and required them to pay their
fines at a designated location and then travel to
the pound to pick up their vehicles.
Now, New York City immobilizes illegally parked
cars with wheel clamps, also known as Denver
boots, which have built-in electronic devices
that can be remotely unlocked when the
parking fine is paid. Drivers pay their fines via
credit or debit card by calling a phone number
on the clamp. A return code is sent to their
phones, which releases the clamp, and they
have 48 hours to return the clamp to the city.
While drivers might still be annoyed at having to
pay a fine and return the clamp, they no longer
suffer the inconvenience of being without their
cars for hours and having to travel to a payment
location and pound. For the city, there are no
towing costs, no storage costs at the pound, and
payment is received and immediately credited to
its account electronically.
Strong leadership is crucial
Creating municipal SSCs has its challenges.
Depending on an organization’s size, complexity
and current technology state, planning,
developing and implementing an SSC can
take at least several months. It is important
to be realistic about what can be achieved
and at what pace. It may be desirable to
introduce multiple payment channels for
multiple agencies at once, for example,
but more practical to expand coverage in
phases. Effective project management and
single department ownership, typically by
the department of finance, also are key.
During planning and implementation, regular
communication and coordination across all
agencies and stakeholders that are involved
helps provide for early detection and avoidance
of potential problems.
Equally important is support at the highest
levels. Leadership and a strong vision encourage
multi-agency adoption plus buy-in to the
widespread benefits of the SSC to both individual
departments and the municipality overall.
The bottom line is that authoritative leadership
– preferably at the executive level – helps
promote effective migration to an SSC.
Citi has implemented SSCs for cities and
states across North America, helping them to
improve efficiency, lower costs, and free up
funds for infrastructure investment that drive
economic growth and prosperity. By developing
a digitization vision, local governments can help
ensure that their processes and systems are
fit for the future and meet the expectations of
their citizens.
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New York City’s Department
of Finance goes digital by
implementing a shared
service center to integrate
and standardize the collection
and tracking of $40 billion in
receivables for a network of 33
semi-autonomous agencies.