Al Etihad Credit Agency (AELC) launched ChequeScorea mobile application that allows businesses and individuals to instantly know the likelihood that a check issued through a bank based in the United Arab Emirates will be unpaid.
Available on iOS and Android devices, ChequeScore allows users to scan a check, upload a check image, or manually enter check data. Upon completing the purchase process, the user will immediately see the check score – a score ranging from 1-99% indicating the likelihood of a check bouncing over the next nine months. The score is also color-coded, with the low probability of bouncing colored in green, the medium probability of bouncing in amber, and the high probability of bouncing represented in red. The check score is calculated using the Issuer’s Credit Score, another product provided by the AECB, along with check issuance and clearing history, on-time payment habits and other factors considered that support the predictive nature of this score.
According to the UAE Central Bank’s Image Check Clearing System (ICCS), 21 million checks were issued in the UAE in 2021, with an average value of AED 51,000 per check, with a total value of AED 41.6 billion dishonored due to NSF checks from individuals and businesses. ChequeScore, in effect, will serve to reduce the number of bounced checks and incentivize financial responsibility, as this previous element of criminalization has been removed.
“ChequeScore will help reduce the number of NSF checks in the UAE,” said Marwan Ahmed Lutfi, CEO of the AELC. “Last year, bouncing a check was a criminal offence; however, with the new law decriminalizing this earlier this year, it has become imperative for businesses and individuals in the UAE to assess the risks associated with the checks they have on hand. CheckScore solves this uncertainty, and not only is the app intuitive, but also fast, as it will show the likelihood of a check bouncing within moments.
While CheckScore is now available to the public, the app has undergone months of rigorous trial testing before launch to ensure a smooth and hassle-free customer experience. During the trial period, more than 11,000 checks with a total value of AED 788 million were scanned through the app.