Raqmiyat, a leading UAE-based Systems Integration firm, has announced that HSBC has recently implemented an innovative electronic cheque clearing system, which was implemented based on technology and software provided by US-based Unisys and UK-based Aperta. More than 30 banks in the UAE have also signed with Raqmiyat to implement the ICCS-Connect solution to facilitate the Image Cheque Clearing System (ICCS), which has been mandated by the Central Bank to bring about changes in the way cheques will be processed in the country and in response to strong demand by banks in the Gulf region for more reliable payments solutions.
Raqmiyat’s positive growth outlook has been spurred by growing IT investments and spending in the financial services industry, which, according to market intelligence firm IDC, had a total IT expenditure of USD 1.3 bln in 2006 and will continue to grow by 12 to 15% per annum.
The ICCS will use the cheque image instead of the physical cheque itself for clearing of the cheque, the physical item is retained at the presenting bank and it’s the images and data that are subsequently moved through various steps in the cheque-clearing cycle. Transactions are then settled on the basis of images and electronic data.
“The new system will streamline the cheque clearing process, giving customers faster access to their money. It will also improve system reliance by reducing reliance on transportation networks and will help fast track the delivery of customer services,” said Tapas Roy, CEO, Raqmiyat.
“Regional spending has been growing and this presents an excellent opportunity for growth. As part of our program to take advantage of the burgeoning market, we have developed a new solution that offers a host of short-term and long-term benefits for banks and customers. Banks will particularly benefit with substantial cost savings as expenses incurred in archiving, storing and transporting documents can be drastically reduced,” added Roy.
Retail lending, compliance to international standards (BASEL II), local initiatives mandated by monetary agencies and the various institutions’ desire to offer better customer experience at all touch points have boosted spending on financial technology in the
One of the significant advantages of the ICCS, which is known as the Cheque Truncation System (CTS) in various other geographies, is its ability to substantially reduce time to clear cheques, allowing banks to improve customer satisfaction and increase operational efficiency by cutting down on overheads in physical clearing. Additionally, the ICCS offers better reconciliation and fraud prevention. Aside from the Gulf region, other countries that have introduced the CTS into their banking industry are the
“At least 30 banks have contracted with us for the ICCS, which represents about 80% of UAE banks that will be installing the new system. We are also working with the UAE Central Bank as the main ICCS vendor,” concluded
