The Bankwatch

Tracking the consumer evolution of financial services

‘UK banks set to vote on abolition of cheques’ | Finextra

A headline like that is music to my ears. The fact that Banks in UK, Canada and European countries (less so US) are still spending enormous sums on a set of fixed cost infrastructure designed to manage volumes in cheques that are orders of magnitude larger.

The ultimate irony here is that it is the government considering this move. As the largest shareholder in Banks, perhaps this is the responsible thing for them to do, to enhance their investment. Indeed it is hard to imagine any one bank having the gumption to eliminate cheques.

UK banks set to vote on abolition of cheques | Finextra

The UK’s major banks are set to vote next month on whether to stop clearing cheques as consumers increasingly turn to cards and electronic transfers.

Written by Colin Henderson

November 23, 2009 at 23:22

Posted in Uncategorized

2 Responses

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  1. I don’t know about the cost structure of chqs, but logic tells me that chqs are going the way of snail mail. It takes me forever to get a chq off compared to online payment. Write the chq, get an envelope, find a stamp, get the address and then carry the chq around in my purse for a week while I try to remember to get to a mailbox. See? No wonder I’m always late paying my Macy’s account:)

    deborah nixon

    November 27, 2009 at 18:18

  2. @Deborah … indeed the cost structure on the bank side is similar, yet worse in the sense that the invested infrastructure is being used for less and less cheques.

    Colin Henderson

    November 27, 2009 at 18:57

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