British challenger bank Monzo has postponed its plans to join the nation’s cheque image clearing system.
Instead, the bank now intends to focus on its business banking activities.
Go deeper with GlobalData
According to the bank, various factors were considered in this regard.
Among them are how many customers will be benefitted by the service and whether it will let customers do something new.
In saying so, Monzo cited that only less than 0.1% of its customers have ever deposited a cheque.
This, according to the bank, makes it more feasible to spend effort on things that are more significant for its customers.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe bank also assessed whether the move was the right thing to do in order to have the biggest impact.
However, Monzo ensured that the plan is not completely off the radar and will be visited later.
This will be done after accumulating more data and re-evaluating the impact of the project.
The bank did not offer precise timeline on the re-assessment.
Monzo payment scheme manager James Berry said: “We’re still disappointed that we’re not going to deliver something we said that we would.
“But even though we’re not joining the Image Clearing System directly, you’ll still benefit from the quicker cheque clearing times that’ll come into effect soon.
“From Q3 2019, instead of waiting 5-6 days for us to credit your account, we’ll be able to do it within 2 working days.”
The latest news comes shortly after Monzo’s partnership with OakNorth to launch interest paying savings accounts.
