‘Cheque imaging’ is set to be introduced in the UK in a government bid to speed up clearing times, it has been announced.

The Treasury said that cheques were “still a crucial part of the British payments landscape” – particularly for small businesses – and that modernising legislation would enable banks to use new technology to deliver better services for customers.

While people will still be able to deposit cheques at branches, cash machines, Post Offices or by post, under the new plans banks will also be able to offer the option of paying in cheques via smartphone, tablets or other devices.

Barclays is the first UK bank to pilot cheque imaging, allowing customers to photograph and pay in cheques through their iPhone banking app, with funds instantly available.

Steven Roberts, Barclays’ director for transformation, said that he welcomed the government’s latest announcement. “This is an opportunity to move cheques into the 21st century, to reduce costs and make banking easier and more convenient for customers,” he explained.

“We look forward to working closely with other banks, industry groups and the Treasury to make this a universal nationwide service as quickly as possible, so that all customers with a cheque to deposit can do so through their phone, tablet, branch or self-service device, regardless of who they bank with.”

Other proposals outlined in the Small Business, Enterprise and Employment Bill intend to make it easier for SMEs to seek loans from a lender other than their bank. The government wants to open up access to the credit data that major banks hold on their SME customers to challenger banks and alternative finance providers.

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