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INSIGHT: Transaction Banking


The Extinction of Paper Cheques

Tags

  • Australia
  • Financial Institutions
  • Transaction Banking

FOREWORD

LIKE THE DODO AND THE DINOSAUR, CHEQUES IN AUSTRALIA ARE SET TO DIE OUT. THEY ARE NO LONGER AN EFFECTIVE WORKING CAPITAL STRATEGY.

Today, consumers expect online and mobile solutions to meet their transactional needs, while businesses are increasingly reliant on paperless processes. So it’s surprising that cheques are still relied upon.  

The statistics are compelling. In Australia, monthly cheque volumes have dropped over 70% between 2002 and 2014 and continue to decline at an alarming rate year on year. This is due to the availability of a range of electronic payment alternatives.

With the continued decline of cheques in Australia, the Australian Payments Council, recognising the need to offer future sustainable payment options with a transition path for cheques, has established an industry working group to prepare a payments roadmap. ANZ is part of this working group which aims to deliver this roadmap by 2018.

KEY TAKEAWAYS

  • In Australia, monthly cheque volumes have dropped over 70% between 2002 and 2014.
  • Adoption of new digital payment options will differentiate the efficient from the more inefficient cheque utilising companies.
  • It is only a matter of time before paper cheques are obsolete and are replaced by electronic payment options.
  • Cheques are prone to fraud and are difficult to manage, track and reconcile. 

INCREASING SOPHISTICATION OF DIGITAL PAYMENT ALTERNATIVES

With the planned introduction of the New Payments Platform, there will be a new faster, flexible and more convenient 24 x 7 electronic payment service to make and receive payments in Australia.

This should be seen as an opportunity to review your business and prepare for the rapid growth of digital economies. ANZ can work with you to minimise any impact and support the development of tailored digital payment strategies to meet your requirements.

 

WORKING WITH ANZ

ANZ understands that your company may still use cheques due to the limited options to attach additional payment reference and invoice data, or simply because cheques have been a tried and tested payment method.

Resources involved in the day to day production and distribution of cheques could be better utilised across your business to focus on value added activities. Activities that could drive revenue to your bottom line, providing efficiencies and cost savings to your business.

Let us work with you to devise a strategy that reduces your reliance on cheques and help you understand the mix of payment types used by your business. In doing so, we can further identify opportunities to improve your cash flow. We can then seamlessly migrate you and your clients to any identified alternate electronic payments.

 

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