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Change in cheque clearance

‘Your cheque is in the..’image processor’

Cheque imaging is changing processing systems

Cheque imaging is transforming the clearance system and by the end of this year all paper cheques will be cleared via image only.

The Cheque and Credit Clearing Company revolutionised the centuries old cheque clearing process when it launched the Image Clearing System (ICS) on 30 October last year.

It provided banks and building societies with the option of providing their customers with a more convenient way to deposit cheques without needing to visit a branch, and speeding up the time it takes for cheques to clear. 

CYBG, owner of Clydesdale and Yorkshire Banks, was one of the first to use the new feature via its mobile banking offer.

It was launched on the B app in November and the capability has since been added to the group’s banking apps. The service offers enhanced functionality and the convenience of depositing cheques, up to £500, in a few simple steps to more than one million registered users. 

The new system is running in parallel with the paper system until the second half of 2018 when all cheques will be cleared via image only. At CYBG, it is currently responsible for 25% of all daily image clearing traffic across the whole industry, which is 10 times more than the 2.35% of the paper items the bank is processing. CYBG is aiming to stop paper clearing by July this year. 

Mark Curran, director of payments and open banking at CYBG, said: “Quick mobile cheque clearing is an excellent example of how we are making our customers’ lives easier – offering functionality that is smart, secure and simple to use.

“Cheques have been embedded in our society for more than 350 years, but advances in technology have given the product a new lease of life.

“Feedback from our customers has been extremely positive, with people commenting on the ease of use and the benefit of being able to deposit a cheque whenever is convenient for them.

“We are pleased to be leading the way in our industry and our volumes for image clearing are increasing daily, which is extremely encouraging.”

The app uses the latest security techniques, including industry-standard encryption, multiple firewalls and a real-time intrusion detection system that looks out for security breaches.

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