Lloyds Bank launches digital cheque payment pilot – Telegraph.co.uk
The rest of the sector is also looking at the new technology, in the hope of launching an industry-wide mobile imaging system in July 2016.
It is the last part of the retail payments landscape to be shaken up by the mobile phone revolution. Mobile apps are now the most popular way for customers to check their bank balances, British Bankers’ Association figures showed yesterday, even eclipsing the number looking at their funds through their bank’s website.
Currently banks take a photo of each cheque paid in by customers, but still transfer the physical paper form each day from the branch to a central clearing system, requiring a fleet of vans to cross the country. A change in regulations means they will no longer be required to send the paper document.
Lloyds follows in Barclays’ footsteps in launching mobile cheque payments
The digital system will cut banks’ costs and save customers’ time. It is also increasingly important as banks close down branches, and removing the requirement to pay in cheques on site means fewer customers will need to visit their bank branch in person.
The technological development comes after the industry backed down in 2011 on plans to eliminate cheques altogether, following protests from groups including charities who rely on the traditional payment system.