Introduction to Beneficiary Services Functionality

UK banks can use the Current Account Switch Service (CASS) to move customer current accounts from one UK financial institution to another. Once this is done the UK payment clearing system to be clear, will reroute the credit transfers still addressed to the old account to the new account automatically for a certain period of time. However, by doing this, the originating institution is informed by a redirection notification and supposed to update their beneficiary details.

For exemple a bank is originating the credit transfers via faster payments using a service provider. If a beneficiary has switched his account, the faster payments clearing system makes sure that the new account will be credited. The clearing will send a redirection notification to the service provider, who will forward this to the bank. The bank is supposed to update the beneficiary details in their core banking system to ensure that the new beneficiary details are used for the next payment.

This functionality will help the banks to be able to update the new beneficiary details of the customer as per direction from clearing to enable the payments to be routed to the newly updated beneficiary account.

This document briefly explains how the beneficiary details update of customer is handled in the Temenos Transact once the FPS redirect file is received.

Click here to understand the terms and abbreviations used in this functionality.