Emirates NBD Announces Launch of Cheque Chain
Leading banking alliance Emirates NBD has announced the launch of Cheque Chain: an initiative to strengthen checks by using blockchain technology to reduce potential fraudulence. At first, Emirates NBD will introduce the pilot throughout its work force, and a consumer launch is planned for “later this year.” According to the release, Cheque Chain is a part of a larger securitization scheme of the Emirates NBD to integrate blockchain technology into existing products and services.
“Cheque Chain will bring an added layer of security to our cheque clearing system, and guarantee that each cheque issued will certainly be verified under the bank's system with its very own unique QR code giving significant enhancement in cheque safety."
Moving forward, all checkbooks will be printed with QR codes, making it difficult to re-create checks. The QR code will register all checks on the bank’s blockchain platform and enable the bank to validate the check’s credibility once they have cleared its Inward Cheque Clearing System.
Cheque Chain utilizes an additional string of 20 random characters concatenated on the MICR (Magnetic Ink Personality Recognition) band of the check, using non-MICR ink. MICR ink is character recognition technology that is widely used throughout the banking industry to simplify the clearing and processing of checks and other documents. According to Abdulla Qassem, Group Chief Operating Officer of Emirates NBD, Cheque Chain aligns with the bank’s agenda to secure its current systems.
“We are delighted to be the first bank in the country to utilise this remarkable new technology to strengthen and upgrade our internal processes. The launch of this initiative is also in line with our commitment to customers to prevent fraud and ensure the security and safety of their transactions at all times.”