Cheques to be paid in via smartphones

 
woman photographs cheque Account holders in the US can already pay in cheques via mobile phones

Related Stories

Plans have been announced to allow bank customers to pay cheques into their account by taking photos on their smartphones.

Rather than go to the bank in person, customers will be able to photograph the cheque, and send it electronically.

The government is to launch a consultation on the idea, with a view to making the necessary legal changes.

The technology will also allow cheques to be cleared in two days, rather than the six it takes at the moment.

Banks say the new transfer method will be more convenient, and more secure.

"Moving into a virtual world will actually create a more secure customer experience than the paper experience today," said Antony Jenkins, the chief executive of Barclays.

Such photos would not be stored on the phone itself, so there should be no security risk if a phone was stolen.

Start Quote

antony jenkins

I think people are going into branches less and less, particularly as a result of mobile banking”

End Quote Antony Jenkins Chief executive, Barclays

Similar technology was introduced in the United States nine years ago, following the attack on the World Trade Centre.

A new law known as Check 21 was passed, to enable banks to process cheques electronically, rather than having to transport paper versions across the country.

Cheques

The government believes a change in the law in the UK would also promote the continuing use of cheques.

The UK Payments Council was originally planning to abolish all cheque payments by 2018, but was forced to change its mind after public opposition.

"We want to see more innovation so that customers see the benefits of new technologies," said Sajid Javid, the financial secretary to the Treasury.

"We want cheques to have a crucial role in the ongoing success of the UK," he added.

In 2012, 10% of all payments by individuals were made by cheque, and 25% of payments by businesses.

The industry says most younger account-holders already use electronic systems of payment, and rarely use cheques.

However all customers will still be able to pay in cheques by posting them to their bank, or by visiting their bank directly.

phone and cheque Greater use of banking technology is hastening branch closures
Branch closures

Barclays is planning to launch a pilot programme for paying in cheques via phone from April 2014.

It hopes to launch a service for all its customers later in the year.

But the new technology is likely to raise further questions about the size of the branch network, as customers turn to banking via PCs and mobiles.

Last month Barclays announced 1700 further job losses in its High Street branches, as a direct result of mobile technology.

In the year to July 2013 it closed 37 branches, and it has hinted at more closures to come.

"I think people are going into branches less and less, particularly as a result of mobile banking, and that's going to accelerate the process," Antony Jenkins told the BBC.

The bank is in the process of moving eight of its branches into stores operated by Asda.

A spokesman said customers would always be able to pay their cheques in at a branch if they wanted to.

 

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    +1

    Comment number 366.

    This sounds like "mobile deposit" which we have had here in the states for quite a while. I live 15 miles or just over 24 kilometers from my bank. I use mobile deposit on my phone regularly. It takes a day for deposits to clear into my account. I have never had a problem. This has been a secure and very convenient method.of dealing with paper checks. . . so far.

  • rate this
    +4

    Comment number 360.

    A simple point. Mobile phones do not work reliably here. Certainly not in my house. I live in a very rural area, but we are fortunate in that a bank has a branch in the next village: a mile away. If it closes because of this new idea, we must make a round trip of 20 miles to pay cheques in. Is this progress or service? It's not convenience!

  • rate this
    +11

    Comment number 301.

    Having been the subject of fraud with the "safe secure" chip and pin the more that technology takes over from actually being present when paying for goods the more chance there is for fraud to take place, those that commit this crime always seem to be one step ahead of security.

  • rate this
    +6

    Comment number 293.

    This sounds like a big fraud risk. I hope customers have the choice to opt out of their accounts being debited this way.

  • rate this
    +4

    Comment number 261.

    I'm housebound so on the face of it this would be helpful as it would save having to wait to ask my carer to pop a cheque in the post for me. But I doubt I'll be able to afford to keep my smart phone when the contact is up since I lost my job due to my disablities. And I would worry about security, particularly since as we all know (how many more examples do we need) we can't trust banks.

 

Comments 5 of 14

 

More Business stories

RSS

BBC Business Live

  1.  
    BP PROFITS Breaking News
    British Petroleum sign

    BP has reported profits (second-quarter replacement cost profit - which strips out the effect of oil price movements) of $3.2bn, compared with $2,4bn a year earlier.

     
  2.  
    BIG CHEESE 07:13: BBC Breakfast
    Cheese

    The biggest event in the global cheese calendar starts today in Nantwich in Cheshire. Steph McGovern is at the International Cheese Fair for Breakfast along with the 4,500 cheeses there. Andrew Loftus, agriculture manager for Morrison's supermarkets says: "Customers need a big variety, the block cheese, the cheddars, but we also have our own range that we cut and grate in our factories."

     
  3.  
    BANKING ETHICS 07:03: Radio 5 live

    Control Risks' Charles Hecker on Wake Up to Money pulls together the two big topics of the morning - Russia and banking ethics. He says it's the ethics that attract them: "There is a reason why the British banking sector is by a mile the preferred destination for Russian financial transactions. It's seen as transparent and liquid market that is well regulated and is seen as clean." And they also like the flight time and the restaurants, he says.

     
  4.  
    UBS RESULTS 06:53:
    The logo of Swiss bank UBS

    Swiss bank UBS reports second quarter net profit of 792m Swiss francs (£516m), up from 690m francs last time. Results were whacked last year by a $885m settlement with the US housing regulator over the mis-selling of mortgage-backed bonds. The bank has still had to set aside 254m euros (£165.4m) this year, mainly to settle legal claims that it helped wealthy Germans to dodge taxes.

     
  5.  
    RUSSIAN SANCTIONS 06:41: BBC Radio 4

    In case you were wondering why sanctions were back on the news menu, last week, European leaders agreed there should be tougher sanctions on Russia after Ukrainian separatists brought down Malaysia Airlines MH17. This week they decide what sanctions should be applied and against whom or what.

     
  6.  
    BANKING ETHICS 06:31: Radio 5 live
    Triumph of Virtue and Nobility

    Would getting bankers to swear an oath promising good behaviour work? That's a suggestion by one think tank, ResPublica. It wants to introduce "Virtuous Banking". But the chairman of the Banking Standards Review Council, Sir Richard Lambert, tells Wake Up to Money an oath won't help to bring that about.

     
  7.  
    GAS GUZZLER 06:21:
    Mayor of London Boris Johnson

    London mayor Boris Johnson wants the drivers of diesel cars to pay an extra £10 - on top of the congestion charge it should be noted - for the pleasure of driving into the centre of the capital according to a report in the Daily Mail today. Other cities are also considering introducing low-emission zones to crack down on diesel fumes. These cars were once encouraged as being less polluting...

     
  8.  
    RUSSIAN SANCTIONS 06:08: Radio 5 live

    More from Charles Hecker. He tells Wake Up to Money: "I don't think anybody is that keen on sanctions that are going to impact on their own economic sectors." Part of the problem with European sanctions against Russia is the French have defence deals with Russia, there is a substantial amount of Russia money in the UK's financial services sector and Germany has energy deals with Russia, he adds

     
  9.  
    RUSSIAN SANCTIONS 06:01: Radio 5 live

    Charles Hecker of consultancy Control Risks tells Wake Up to Money targeted sanctions, whether against sectors of the Russian economy or against individuals, would have a potential impact and suggests the Russian economy is already teetering on the edge of recession. But he adds both Cuba and Iran have been subject to far more stringent sanctions and that further sanctions against Russia are unlikely to change the country's behaviour.

     
  10.  
    06:00: Rebecca Marston Business reporter, BBC News

    Yes, we're back. And we're here: bizlive@bbc.co.uk @bbcbusiness - should you wish to get in touch.

     
  11.  
    06.00: Matthew West Business Reporter

    Morning everyone. Yesterday afternoon we had a £218m fine for Lloyds for its part in the 2012 Libor scandal, while the think-tank ResPublica has suggested this morning bankers should take an oath - a bit like doctors - to fulfil their "proper moral and economic purpose". We also have second quarter trading updates from BP and Next this morning, plus more on Russian sanctions.

     

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.