Bank of China (Hong Kong) Cheque clearance system
Executive summary
This report analyses the provision of cheque services by Bank of China (Hong Kong) and evaluates the need for providing such a service. Most, if not all, banks provide this service. Nevertheless the report’s aim is to overlook this tradition and give an insight into whether a bank should really be providing this service. The Bank Wide Operation Department is in charge of the bank’s cheque clearing process. A staff member from this department was interviewed regarding the cheque services. The report reviews the current system setup to deal with cheques and forecasts what the future holds for a cheque service providing bank.
Investigation of the current system reveal problems that are encountered in processing cheques such as time delay and administrative complications which bring up the question of continuing the provision of cheque services. Further findings include The Payments Council’s plans to abolish cheques by the year 2018. Nevertheless, the cheque is still favourable to certain groups of consumers who do not have personal bank accounts.
Several recommendations are made to overcome the issues faced when providing the cheque services. There is some truth in the belief that cheques will be used for at least another decade and corporations’ long term decisions usually do not cover very long time periods owing to the rapidly changing nature of the economy. The highly recommended alternative is the prepaid card system. If the bank is successful in implementing this system, to the extent to which it gets as famous as the cheque system, there may be significant improvements to the bank’s performance. Another recommendation is the coding system which is a modification of the cheque system that employs more advanced technology. These recommendations are suggested after predicting what the future may hold for a bank’s cheque service department.
Contents
1 Introduction
The cheque is a document and is used as a method of payment in
This report analyses the provision of cheque services by Bank of China (Hong Kong) and evaluates the need for providing such a service. Most, if not all, banks provide this service. Nevertheless the report’s aim is to overlook this tradition and give an insight into whether a bank should really be providing this service. The Bank Wide Operation Department is in charge of the bank’s cheque clearing process. A staff member from this department was interviewed regarding the cheque services. The report reviews the current system setup to deal with cheques and forecasts what the future holds for a cheque service providing bank.
Investigation of the current system reveal problems that are encountered in processing cheques such as time delay and administrative complications which bring up the question of continuing the provision of cheque services. Further findings include The Payments Council’s plans to abolish cheques by the year 2018. Nevertheless, the cheque is still favourable to certain groups of consumers who do not have personal bank accounts.
Several recommendations are made to overcome the issues faced when providing the cheque services. There is some truth in the belief that cheques will be used for at least another decade and corporations’ long term decisions usually do not cover very long time periods owing to the rapidly changing nature of the economy. The highly recommended alternative is the prepaid card system. If the bank is successful in implementing this system, to the extent to which it gets as famous as the cheque system, there may be significant improvements to the bank’s performance. Another recommendation is the coding system which is a modification of the cheque system that employs more advanced technology. These recommendations are suggested after predicting what the future may hold for a bank’s cheque service department.
Contents
1 Introduction
The cheque is a document and is used as a method of payment in
References: Council, T. P. (2009). 2018 target date set for closure of central cheque clearing, 2013, from http://www.paymentscouncil.org.uk/media_centre/press_releases/-/page/855/ . Key Facts and Figures. (n.d.) Retrieved 28th April, 2013, from http://www.chequeandcredit.co.uk/facts_and_figures/key_facts_and_figures/ . Payment, clearing and settlement systems in Hong Kong. (2011): Hong Kong Monetary Authority. Peachey, K. (2009). Cheques to be phased out in 2018, from http://news.bbc.co.uk/2/hi/8414341.stm Sivy, M. (2012). Why So Many Americans Don 't Have Bank Accounts, Banking, Time. Retrieved from http://business.time.com/2012/11/20/why-so-many-americans-dont-have-bank-accounts/