3.3 A DIRECT-DEPOSIT SYSTEM APPEARS ATTAINABLE 



The survey of power-of-attorney beneficiaries illustrates that a few SSI 

 beneficiaries will probably request direct deposit. The survey of general 

 beneficiaries illustrates that 9% expressed interest in having their payments 

 sent directly to a financial organization for deposit to their accounts. 

 The survey of newly entitled beneficiaries illustrates an interest of 15%. 

 Applying these percentages to the total beneficiary population results 

 in a potential base of about 3 million beneficiaries who might use a direct- 

 deposit system. The surveys also show that 79% of the general beneficiaries 

 and 72% of the newly entitled beneficiaries have accounts with financial 

 organizations. These account holders are looked upon by the financial 

 organizations as the potential market for direct deposit. Although financial 

 organizations are the marketers of direct deposit, it is recommended that 

 the Government supplement their efforts by explaining the benefits of 

 direct deposit to beneficiaries. 



The inauguration of a program to make payment in favor of financial 

 organizations requires extensive system coordination between SSA, Treasury, 

 FRB, and the financial organization community to develop compatible system 

 interfaces. It is recommended that such system coordination begin as soon 

 as possible, with consideration of the ultimate goal of developing an 

 Electronic Funds Transfer System. 



Figure 3.3 summarizes the recommendations and enumerates some areas in which 

 procedural and or system modifications will be required. 



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