The digital cheque scanning service will enable its business customers to pay in cheques from remote locations, using its business banking App
HSBC UK has announced the launch of a new service that allows digital cheque deposits for its business customers.
The bank said that the new initiative will help its customers by avoiding them visit the branch, amid the social distancing measures in place to fight the spread of Covid-19.
HSBC UK said that it has advanced the plans to implement the service, which enables its business customers to pay in cheques from remote locations, using its business banking App.
In addition, more than 1,350 cheques valuing approximately £195,000 ($248,264) have already been deposited digitally through the app since the service launched last week.
The new service will not restrict the customers with daily limit on the number of cheques deposited, but the individual deposit per person is limited to £2,500 in a day (for a period of 24 hours).
According to a survey of business customers, conducted in April and May 2020, 58% users have increased their usage of digital banking platforms during the period, while there has been a 60% decline of footfall in branches.
HSBC UK already offers mobile cheque deposits to retail customers
HSBC UK said that it has already started offering mobile cheque deposits to retail customers and observed a 34% spike since lockdown.
The bank has also witnessed a 66% reduction in cheques paid at branches.
HSBC UK global liquidity and cash management head Tom Wood said: “While some of the lockdown restrictions are now beginning to ease, we know many businesses are still based from home and visiting a branch to deposit a cheque may not be feasible for them.
“We’ve seen a demand from customers for more digital banking tools and this service means they can deposit cheques in just a few taps of their device, from their homes or place of work.”
In May, HSBC UK launched Bounce Back Loans Scheme to support small and medium-sized businesses affected by coronavirus (Covid-19) pandemic.
Under the new scheme, which is supported by 100% Government guarantee, the bank is expected to provide lending of between £2,000 and £50,000.