More than 41 thousand Santander Argentina e-cheques were issued in May, for a total amount of over 21,400 million pesos. This digital tool is growing exponentially in the current situation, against the backdrop of health measures to prevent covid-19.
Key advantages include the possibility of fully digital management of the cheques, longer hours for deposits, unlimited endorsements, no possibility of theft or loss, and virtually no formal rejections due to errors in preparation.
Santander Argentina offers its customers digital solutions related to e-cheques so they can manage their payment, collection and discounting products from their accounts online through Online Banking.
Buenos Aires, 3 June 2020
More than 41 thousand Santander Argentina e-cheques were issued in May, for a total amount of over 21,400 million pesos. The number of e-cheques issued has increased 14-fold since March, when health measures were imposed to stop the spread of covid-19. The total volume of e-cheques in pesos grew by 20 times in the same period, while the average amount per cheque quadrupled.
e-cheques (or electronic cheques) are cheques that are issued electronically. They are subject to the law on cheques and have enforceable title like a physical cheque. They are fully digital documents, as they are issued, received, endorsed, stored and deposited from each bank's home banking. In the current situation, against the backdrop of health measures to prevent covid-19, this new, modern digital tool has grown exponentially in recent months, driving a cultural change.
Any bank customer with a current account, whether a natural or legal person, can issue an e-cheque. As with physical cheques, financial institutions have controls to ensure secure and transparent transactions. The purpose of this instrument is to offer customers certainty and fully digital transaction information. COELSA, the electronic clearing house, acts as clearing house and data repository for all financial institutions.
e-cheques can be endorsed, but unlike paper cheques, they can be endorsed many times, making it a useful instrument for customers because of this flexibility.
Santander has been marketing this supplier-payment solution with e-cheques since April, enabling customers to make mass payments by uploading a file. It also began discounting e-cheques for SMEs with payroll accounts and general customers for e-cheques with up to 120 days payment. In May, it added the possibility of using e-cheques to its interactive collection solution. This automates acceptance, deposit and custody of e-cheques, reconciling collections.
Advantages of e-cheques
e-cheques can be deposited up to 30 days after the payment date. Santander also offers a “Custody” service, whereby the bank automatically deposits the amount in the customer's account on the payment date. Like physical cheques, e-cheques can be rejected and are legally enforceable.
About Santander Argentina
Santander Argentina is the largest private bank in Argentina’s financial system in terms of both savings (deposits plus common funds) and lending volume. The entity has 430 traditional branches, 8 social integration branches, 5 digital branches, 3 Work Cafés, more than 3.7 million customers (including 2.2 million digital customers, more than 320,000 MSMEs and 1,300 corporate companies), more than 8,300 employees and operates in 22 provinces and in Buenos Aires. Santander Argentina is developing an extensive responsible banking programme focusing on higher education. It has over 86 collaboration agreements in place with public and private universities in the country.