Major UAE Bank Implements Blockchain Tech To Prevent Check Fraud
The National Bank of Dubai is rolling out its ‘Cheque Chain’ system after successful testing, to prevent check-related fraud.
The National Bank of Dubai (NBD), one of the largest banking groups in the Middle East by assets volume, has reportedly become the first bank in the region to successfully implement Blockchain technology in a check-issuance system to prevent fraud, local news outlet Arabian Business reported Saturday, April 21.
According to Arabian Business, the system works by means of printing a unique Quick Response (QR) code on each check and putting the records on Blockchain. The so-called "Cheque Chain" technology is designed to provide higher authenticity of the issued checks, as well as to the security standards across the UAE banking sector.
According to the NBD official statement, the bank has registered around one million checks on Cheque Chain in the first month of the pilot deployment. Following the successful test, NBD is looking for opportunities to roll out the Blockchain-powered banking technology across other UAE financial institutions.
Abdulla Qassem, NBD’s group chief operating officer noted the importance of the innovative technology deployment and highlighted that NBD bank is the first bank that offered such a service in the region.
“Emirates NBD is committed to exploring commercial uses for this innovative technology. After a successful pilot phase, we are pleased to roll out Cheque Chain to our customers nationwide, becoming the first bank in the region to offer this service.”
The UAE, along with major city Dubai, have taken a very positive stance on adopting Blockchain technology. Last week, the Vice President and Prime Minister of the UAE and Ruler of Dubai launched the ‘UAE Blockchain Strategy 2021’, with the goal of becoming a world leader in deployment of the technology.
Meanwhile, Blockchain technology is becoming increasingly popular in the banking sector worldwide April 12 saw the announcement of Bank of America’s patent on a Blockchain-based storage system with automated data authentication, and on March 30, PKO Bank Polski’s partnership with a Blockchain company to provide DLT-based storage and verification system for bank documents.