Emirates NBD has successfully integrated blockchain technology into bank-issued cheques, in a bid to significantly reduce cheque fraud.
Becoming the first bank in the region to do so, Emirates NBD has gone live with ‘Cheque Chain’, harmonising blockchain technology into cheques to strengthen authentication.
The Cheque Chain platform prints a unique QR code on every leaf of a newly issued chequebook. The code then registers each individual cheque on Emirates blockchain platform, thus ensuring that once the cheque has been cleared under the bank’s ICCS technology, staff can securely validate the authenticity of the cheque.
The code also enables bank staff to have full access to the cheque’s source at all times. By harnessing blockchain, it will become considerably harder to forge cheques.
Abdulla Qassem, group chief operating officer at Emirates NBD, stated: “Aligned to the Dubai Blockchain Strategy launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Emirates NBD is committed to exploring commercial uses for this innovative technology.
“After a successful pilot phase, we are pleased to roll out Cheque Chain to our customers nation-wide, becoming the first bank in the region to offer this service. This initiative will significantly strengthen our risk and security management processes, particularly through the reduction of cheque fraud.”
The bank is now rolling out the platform across the UAE following a successful pilot that was overseen by Emirates NBD Future Lab. Emirates is also considering opening up its blockchain system to other financial institutions across the UAE for future collaborations.
In its first month, the bank registered close to one million leafs using blockchain.