Fintech Disruption Hits UK Cheque Processing Industry
Cheque processing company iPSL is closing some of its UK operations and cutting hundreds of jobs because technology has reduced demand.
Images of cheques can now be taken on a smartphone and sent directly to a bank; reducing the need for large operations to complete paper-based services.
According to the Unite union iPSL will cut half of its workforce and reduce its number of processing centres from nine to two in Milton Keynes and Northampton.
National Officer at Unite, Dominic Hook, said: “The tide of digitisation across financial services brings with it huge challenges as organisations have to adapt the way they work. The changing face of cheque processing, with new digital imaging, has brought considerable difficulties for this industry.
“Unite now wants to see iPSL make the necessary investment through new technology to secure as many jobs as is possible.”
iSPL handles around 80% of cheques in the UK each year but technology is causing the use of cheques to decline. Last year 500 million cheques were written in the UK – a year-on-year fall of 13%.
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