Sunday 27 September, 2020

Local banks joining forces to make banking easier in Cayman

Local banks continue to work together to offer unified solutions for their clients. The latest of these is Phase 2 of the enhancements to Cayman's Automated Clearing House solutions.

Six banks, Fidelity Bank (Cayman) Limited, Cayman National Bank Ltd, CIBC FirstCaribbean International Bank (Cayman) Limited, RBC Royal Bank (Cayman) Limited, Butterfield Bank and Scotiabank & Trust (Cayman) Limited have partnered to create and offer local Automated Clearing House (ACH) services in the Cayman Islands.  Prism (Cayman) Limited was appointed to manage the Cayman Islands Automated Clearing House (CIACH) network on behalf of the banks.

The first solution offered through this joint venture was a Domestic Transfer product which went live in April 2018. This product allows same day, immediately available electronic payments between the six participating banks here in Cayman.  Following the success of the Domestic Payment product, a second product launch is underway.  A new Cheque Image Exchange product will modernise the local cheque clearing process and support the introduction of reduced hold periods on local interbank cheque clearance.  The Cheque Image Exchange (CIE) project is well advanced with a live launch projected in late 2020.

An Automated Clearing House (ACH) is a payment network that allows the electronic exchange and settlement of cheques, direct transfer payments and payment-related information between participating banks. The electronic data interchange is governed by strict rules and agreements between participating banks and the central ACH Operator which ensure the safe and secure exchange of information. 

The benefits of the Cayman Islands Automated Clearing House (CIACH), since its implementation, have resulted in far-reaching and significant changes to banking in the Cayman Islands through the provision of a fast, highly reliable, secure, cost-effective network for participating banks to exchange payments on behalf of their customers.

As this final phase of the ACH project progresses, customers should review the Cayman Islands Automated Clearing House (CIACH) page on  www.cibankers.org,  discuss with their bankers the required changes to cheque issuance practices and look out for communications from their bankers that will help them to better understand the ACH services.

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