SANTO DOMINGO- The volume of checks cashed in the Dominican banking system was reduced by more than half in 2023 compared to 2014, a trend that the Association of Multiple Banks of the Dominican Republic (ABA) attributed to the digitization and modernization of the Payment System, which has allowed personal and business clients to migrate to transactions through different electronic channels.
In that order, the ABA detailed that the volume of checks paid through multiple banks operating nationwide has decreased by 50%, going from 35.8 million checks in 2014 to 17.9 million at the end of 2023, according to statistics from the Central Bank.
The banking association explained that the behavior recorded in the 2014-2023 period is due to the fact that a large volume of these banking operations are carried out in real time, through computers and mobile devices, which contributes to greater speed and security in these processes.
The ABA explained that, during the past year, 70.8% of checks were cashed directly at the teller window of the multiple banks where the account was drawn, 29.1% through the Central Bank's Check Clearing System and 0.1% through mobile devices with the facilities provided by the entities for those purposes.
Values traded and their relationship to GDP
Regarding the value of transactions, the ABA highlighted that during the period 2014-2023 there was a 20% decrease, equivalent to RD$561,082 million. In other words, the amount involved in these transactions fell from RD$2,785,876 million (2.78 trillion) in 2014 to RD$2,224,793 million (2.24 trillion) in 2023, it explained.
Regarding the Gross Domestic Product, the value of checks paid in 2023 represents 32.6% of it, showing a reduction of 65.7% compared to 2014, when this indicator represented 95.2%, the ABA pointed out in a press document.
"Although checks are still used, their trend over the last decade shows how they will disappear as a means of payment in the future, which is explained by the progressive migration of operations to payments through digital channels," the ABA stated in an analysis by its Technical Directorate.
Given this reality, the ABA highlighted the robustness of the Payment System, the innovations made by the banking system, and the initiatives it promotes as an association, in order to keep the sector at the forefront of financial matters, in accordance with the requirements of the national and international market, to respond efficiently to the needs of clients.
