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Go Green
Go High

i-Cheque
A revolutionary idea to digitise the Bank by replacing the conventional paper
cheque system

i-Cheque is a form of cheque made via the internet, which is designed to perform the same function as a
conventional paper cheque.

Idea Owner: Mozumder Tanver Ahamed, CB-Fraud Risk Management (PW: 1360136)

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 For internal use of Standard Chartered Bank

Background of the idea:

Standard Chartered Bank (SCB) is a Global Organization, which always seeks to improve its service &
growth continuously through the way of innovation and digitization. Along with these, there is an
underpinning to mitigate risk, reduce cost, and be environment friendly. SCB spends a lot of money for
printing pages throughout the year, which is not only costly but also against the environment. Being
specified for this proposal, it is pertinent to say that, SCB provides its customer a Cheque Book after
opening an account/facilitating a Credit Card (CC). Utilizing Cheque book/leaf has many lags,

Costly: Providing Cheque service to the customers involves the cost of printing cheque books,
responsible staffs (i.e., salary), delivery, and maintaining relationship with courier agency.
Risky: SCB has been experienced several times the threat of fraudsters, who utilize the Cheque
of customer to defraud the Bank. Moreover, a risk is associated with properly delivering the
Cheque books to customer.
Impacted TAT: It requires time to process a Cheque leaf, and customers have to wait to get a
new Cheque book after depletion of the previous one.
Impacted Brand Value: As the TAT has impacted, experienced some unscrupulous uses of
Cheque leaf, and on the other hand SCB could not differentiate (to provide Cheque service) itself
from the rivals existed in the Banking industry, all together the Brand Value of the Bank must
have impacted.
Against the Green: SCB contains a crowd of customer with different groups. Providing Cheque
book to all the customers, it requires printing a lot of paper pages, what is strictly against the
environment.

Considering all the constraints mentioned above, it is time to introduce the idea of i-Cheque

The idea of i-Cheque :

i-Cheque is a form of cheque made via the internet, which is designed to perform the same function as
a conventional paper cheque. Because the cheque is in an electronic format, it can be processed in
fewer steps and comply with more security features than a standard paper check. Security features

provided by the proposed i-Cheque includes authorized signatures, encryption, and authentication,

among others.

Because of the many benefits and increased security methods that i-Cheque offer, this method of

payment shall have quickly grown the popularity.

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 For internal use of Standard Chartered Bank

The E2E Processing system of i-Cheque :

Most of the customers of SCB are already enjoying the i-Banking service. During subscription in the i-
Banking system customers are entitling an ID along with password. With the same ID & password,

he/she can use the i-Cheque as well. There will be a model cheque in the web site of the bank, which
is similar to the paper cheque. While the customer will click in the i-cheque option in i-Banking, there will
be same options displayed as like as a paper cheque. (Please refer to Appendix-I for a model i-
cheque)

Customer needs to just write the things what are required i.e., the name of beneficiary & amount of
payment (in number), and select the mode of payment (cash/account). Rest of the information like, date,
amount written in words, and encrypted Cheque number will be self generated by the system. After this,
when customer will click the OK command, a report (containing all the aforesaid information) will go to the
banks server, and queued against his/her account (regular/credit cards). Now the customer has to print
out that page from the net. Of course, there will be a printing option available, till the cheque has been
processed by the bank. Finally customer/beneficiary has to submit the printed copy to the nearest branch
with the authorized signature in the designated fields of the printed cheque. (Please refer Appendix-II
for the processing flowchart of i-Cheque)

In case, the customer, who does not have any printing facility, shall keep the bunch of photocopy of a
reference letter (should be available in the website to download). She/he only needs to write the

beneficiary name along with the A/C# (exactly written in the i-Cheque system) & the encrypted cheque
number generated by the system, and to put the authorized signature. (Please refer to Appendix-III for
model of i-Cheque reference letter)

Reaping the benefits of i-Cheque :

Using i-Cheque conversion to process customers' payments holds many benefits over conventional paper
cheques:

Reduced processing costs: In general, the cost to process an i-Cheque will be substantially less
than that of paper check processing; i-Cheques require less manpower to process and eliminate
incidental costs such as printing cheque books, delivering the cheque books to customer, and
maintaining relationship with courier agency (all are variable cost). With contrast, to migrate in the

i-Cheque system will require the system development cost at once (i.e., fixed cost only),

instead of all the aforesaid variable cost. Upon discussing with a Software consultant found that, it

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 For internal use of Standard Chartered Bank

may require BDT. 150K-200K to develop the system of i-Cheque (Exact quantitative/cost-

benefit analysis is not possible due to lack of information)

Reduced risk of errors & fraud: i-Cheques will be processed using an automated system, which
cuts down the number of people who must handle the cheque, reducing the potential for error and

fraud by the use of real time risk management tool. The threat of being defrauded for i-Cheque

prevail for the following events,

o If a fraudster can hack the website/system/customers account of the BankProbability is
very low.
o While the customer compromise his i-Banking ID & password, and fraudster become
successful to generate a cheque number & print the i-ChequeCustomer shall be solely
responsible for such incident.
o Fraudulently printed i-Cheque (in the 2nd event) submitted to Bank with fishy signature of
the customerStaff who will be involved in processing such i-Cheque without verifying
the customers signature with SigCap (e-CSVS)/Photo+32, shall be responsible from the
Banks side.

Improved TAT: Customer, who will use i-Cheque, will have funds deposited/paid almost twice

as fast as those using the traditional Cheque processing method.

Managing Brand Value: SCB will be a pioneer by taking such initiative in the Banking industry.
Providing the service with different channel (as fast as secured), encouraging paperless system,

and obtaining the patents for i-Cheque will remarkably create image of SCB in the Banking

service sector.

A Green Initiative: i-Cheque is a smart choice for the environment, helping to reduce more

uses of gasoline (i.e., delivering cheque books through vehicles). Reduction in the use of carbon
& paper (for printing paper cheques) is really an exceptional instigation to save the environment
of Earth. In a study by an environmental research team, it was found that, worldwide 3.6 million
tons of greenhouse gas emissions created by transporting paper cheques.

Promoting i-Cheque :

After launching of the i-Cheque system, customers will be gradually migrated to the system. This can be

done by informing customers through sending message/e-mail. The promotional strategy for i-Cheque
could be as same taken for promoting electronic billing system/sending Bank Statement electronically i.e.,
enrollment for e-statement.

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 For internal use of Standard Chartered Bank

Appendix-I

Wellcome to your i-Cheque Book

Pay to: (name of the beneficiary)

Amount (in BDT): (payment figure in number)

From my account: (select account number/CC numbera dropdown box)

o Account Payee
Mode of payment:
o Cash payment to beneficiary/bearer

Generate my i-Cheque

(Command button)

Your i-Cheque has been successfully (Printing commandavailable till

generated. (ok button-to press) processed by the Bank)

Standard Chartered Bank A/C Payee Only (system generated CHQ#-encrypted)

Bangladesh (date in dd/mm/yyyy)

Pay to ______________(name of the beneficiary)__________________________________________or Bearer

The sum of Taka_________(in words)_____________________________
TK. (in number)
<A/C/CC#>

<Name of the accountholder>

<<System generated encrypted numbers>> __________(Please sign above the line)________

<<Endorsement Area-For Bank use>>

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 For internal use of Standard Chartered Bank

Appendix-II

Flowchart of processing i-Cheque :

Customer generated an i-Cheque in the system

Printing the i-Cheque/fill up the i-cheque reference
Step 1: Infront of letter, and put signature duly.
customer's
PC/tablet

Submitting the printed i-Cheque/reference letter to the

teller
Teller ask the security question to the bearer/call back to
Step 2: At the customer, match the signature with the system SigCap
Branch or, Photo+32, and match the encrypted cheque number.

Approve the queued cheque (against customer's

account) in the system, and execute the transaction.
Step 3: Operational Archiving the i-Cheque/print the i-Cheque & attach with
Activities of the the reference letter.
Bank

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 For internal use of Standard Chartered Bank

Appendix-II

i-Cheque Reference Letter

The Manager

___________ Branch

Standard Chartered Bank

Subject: Transaction against my i-Cheque#______________________________

Dear Sir,

I Mr. /Ms. _____________________________ informing you that, an i-Cheque bearing the number
mentioned in subject, has been generated by me dated on ___/___/____. Requesting you to make the
payment of amount mentioned in my i-Cheque to Mr. /Ms. _______________________________ or,
bearer from my A/C# or, CC#_____________________________.

I do hereby declare that, I am giving this payment instruction with my proper acknowledgement.

Sincerely yours,

____(Please sign above the line)_____

*Any informational mismatch with the i-Cheque makes this reference letter void

*Ask the amount to be paid to bearer for security check

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