How are recurring contributions (standing orders) implemented in 4.7?
I think you're asking a very UK-specific question about direct debit. UK has special rules for direct debit that CiviCRM doesn't know anything about. But the iATS Payments payment processor does support the required workflow and the civicrm extension for iATS Payments does have a dedicated payment processor for that purpose, so that might work for you.
There is some information about how to set it up on this page:
https://github.com/iATSPayments/com.iatspayments.civicrm
[2020-06-22 Update: the iATS payments extension has dropped it's UK-specific support code]