Economy April 17, 2024 | 4:56 pm

Buy car in DR

Use of checks at banks fell by half in a decade

Santo Domingo.- The Association of Multiple Banks of the Dominican Republic (ABA) announced on Wednesday a significant decline in check transactions within the Dominican banking system between 2014 and 2023. This decrease, exceeding fifty percent, is attributed to the digitization and modernization of payment systems, facilitating a shift towards electronic transactions.

According to data from the Central Bank, the volume of checks processed by multiple banks nationwide plummeted from 35.8 million in 2014 to 17.9 million by the end of 2023.

The ABA explained that this trend is driven by the increasing prevalence of real-time banking transactions conducted via computers and mobile devices. Such methods offer enhanced efficiency and security, prompting more customers to opt for electronic channels.

In the past year, the majority of checks (70.8%) were cashed in-person at bank teller windows, while 29.1% were processed through the Central Bank’s Check Compensation System. Only a marginal 0.1% of transactions were conducted via mobile devices facilitated by banking institutions.

In terms of transaction value, the ABA noted a twenty percent decrease, amounting to RD$561,082 million over the period of 2014-2023. This translates to a reduction from RD$2,785,876 million to RD$2,224,793 million. Moreover, in 2023, checks accounted for 32.6% of the gross domestic product (GDP), marking a sharp decline from 95.2% in 2014.

The ABA emphasized that while checks are still utilized, their diminishing role suggests an eventual disappearance as a payment method. This shift is driven by the ongoing migration towards digital payment channels, as outlined in an analysis by the ABA’s Technical Directorate.

0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments