The word infrastructure conjures up images of roads, trains and buildings for most people. However, a large part of cities’ spending –and consequently their potential savings – relates to the provision of services: therefore an important element of smarter cities is smarter service provision.
In the UK, all local authorities are required to pay a weekly allowance to young people who have been placed in their care when they leave it at the age of 18. Typically, recipients have to visit council offices weekly to collect their allowance in cash, creating potential risks of theft or loss for both council staff and recipients, while also requiring a complex cash management process for the local authority.
The London Borough of Lewisham, an inner-city district serving over 248,000 people, was eager to improve its efficiency and lower costs and decided to target its payments to young people. Having hired Citi, it was decided that young people would receive their allowance securely and conveniently using a prepaid card. Prepaid cards are debit cards that can be topped up and do not allow the user to become overdrawn. As a Visa-branded card they can be used at checkouts, on the internet, by phone or to withdraw cash at ATMs.
The use of prepaid cards ticks most of the important boxes for government authorities in their quest for smarter cities. First, the use of cards saves money: Lewisham’s processing costs are expected to fall by 62%. Secondly, cards save time and reduce risk: prepaid cards are simple to set up and are loaded remotely with the recipient’s payment. Thirdly, cards meet the expectations of users in terms of service provision: in Lewisham’s case young people no longer have to queue up for their stipend and if a card is lost or stolen, it can be easily replaced and any money on it recovered.
