Dubai’s largest bank, Emirates NBD aims to eliminate cheque related fraud by introducing a blockchain project. ‘Cheque Chain’ is the first project to successfully go live, with the sole aim being to reduce, and eventually completely eliminate cheque related fraud.
A pilot was carried out last year, which was overseen by Emirates NBD Future Lab, and it proved to be very successful, so much so, that the bank is now planning to roll out the security-enhancing technology for all customers across the UAE. The project aims to integrate blockchain technology into specific issued cheques in order to strengthen their authenticity. As well as this, they will also significantly enhance standards across the UAE banking sector.
So, how will this project work? The Cheque Chain will enable a unique Quick Response (QR) code, which will be printed on every leaf of newly issued cheque books. This will register the cheque on the banks blockchain platform, which will ensure that once the cheques are received and cleared, the bank staff can then validate the cheque’s authenticity and have access to the source.
When discussing the new project, Abdulla Qassum, the group chief operating officer of Dubai’s bank, Emirates NBD said;
“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 nationwide, 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.”
In the first month alone, the bank has registered nearly one million leafs using blockchain. They are now exploring the possibility of developing this further, by opening the blockchain platform to collaborate with other UAE financial institutions.