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Keeping a welfare state like Norway running efficiently is about more than principles and policies. While these dictate the nature of welfare payments – i.e. who receives support and how much – it’s technology that handles the actual transactions. When people try to game the system or payments otherwise fall into the wrong hands, technology keeps things on track.
The Norwegian Tax Administration (Skatteetaten) uses two specialist systems from Banqsoft for managing claims on behalf of the Norwegian Labour and Welfare Administration (NAV).
One system is used to collect illegally claimed benefits, and the other system is used to collect, distribute and keep track of child-support payments. Norway’s child-support system emphasizes the financial responsibility of both parents, so non-custodial parents – or those with limited custody – are required to contribute a specified amount each month to their child’s upbringing.
Maj-Renée Holdal, Banqsoft Test Engineer
“I'm very proud and humbled for us to be trusted with this work that’s so critical to Norwegian society,” says Banqsoft Test Engineer Maj-Renée Holdal.
“All child-support payments specified by Norway’s Labour and Welfare Administration go through our system, so if something goes wrong then it’s the child who will ultimately be affected,” says Holdal. “The other part of the system handles payments that for one reason or another ended up in the wrong hands. That’s society’s money. It needs to be collected so it can be given to the people who rightfully need it.”
“These systems, which handle millions of transactions each year, are so important to Norwegian society that we need to be on our toes at all times to deliver top quality code,” she says. “Fortunately there is great cooperation between us and the customer – we are always on the same side when solving any problems.”
If something goes wrong then it’s the child who will ultimately be affected.
A dedicated team for a special role
Banqsoft has been serving the Norwegian Tax Administration since 2005. Today the company has a five-person team dedicated to the customer. The system is built on the same core as Banqsoft’s other solutions, but it’s heavily customized and is managed according to a unique set of agreements.
Visibility into the development roadmap is approximately 18 months, so Banqsoft can prepare and adjust its capacity as needed. This long-term view is completed by ad hoc daily stand-ups that bring Banqsoft and the customer together with Norway’s welfare-payments organization whenever an issue needs addressing.
Erik Sekkelsten, Banqsoft Team Lead
Erik Sekkelsten is the Banqsoft Team Lead and main contact towards the Norwegian Tax Administration. He explains how the intricacies of the payment system require flawless operation.
“In child-support arrangements, one of the parents is obliged to pay out a set amount by a certain date every month. But when these payments are not made on time, the state steps in and pays an advance to the creditor. Our system needs to keep track of these advances and the balance owed by the debtor,” says Sekkelsten.
“We essentially need to make sure that the child gets exactly the right amount of money they are entitled to, as any over or under payments can cause distress and complexity,” he says.
What we deliver to the tax administration is so important that a critical error means very serious sanctions for Banqsoft. Our special development teams thus test all bug fixes and changes to an extremely high level.
Strict protocols for system reliability
Banqsoft manages the solution by maintaining a three-part ledger between the state, the payer (debtor) and the beneficiary (creditor). New data on debtors and creditors – including any changes to existing payment arrangements – is received monthly from the Norwegian Labour and Welfare Administration. The data is also updated with inflation multipliers once a year.With so much riding on the system always functioning perfectly – and new data needing to be translated correctly – the parties have agreed to some strict rules for Banqsoft. Critical errors need to be acknowledged within 30 minutes. Any new code must be delivered within four hours.
“What we deliver to the tax administration is so important that a critical error means very serious sanctions for Banqsoft. Our special development teams thus test all bug fixes and changes to an extremely high level,” says Sekkelsten.
“I’m happy to say that when we have had critical errors, we have always handled them well. Thanks to the close cooperation between the teams and the reliability of Banqsoft’s system, we’re able to ensure that this vital role for society is always fulfilled,” he says.