NEW
YORK, April 26, 2022 /PRNewswire/ -- BNY Mellon
— one of the largest check processors in the U.S. — is leading
efforts to reduce check-based payments as sustainability goals and
environmental concerns take root across the globe. To support U.S.
clients' transition from paper to electronic transactions, the bank
is leveraging a series of digital innovations and financial
benefits.
These initiatives include the exploration of carbon-tracking
tools that could show clients the true environmental cost of their
paper payments, as well as price discounts on certain digital
payment solutions and waivers of some upfront implementation fees
for select clients that commit to the digital journey.
With roughly 2.3 billion checks written annually by customers of
U.S. corporations paying their bills, equivalent to about 455,000
trees, there is an opportunity to make an impact. Checks are not
just environmentally unfriendly; they may also come with potential
mail delays. By comparison, digital payment channels provide a host
of efficiencies, including reduced risks of fraud, faster access to
liquidity in a rising interest-rate environment and an improved
client experience.
Clients have already reduced the amount of checks they send to
BNY Mellon for processing by 3% in 2020 and by 8.5% from 2019
levels, with those check volumes falling to 291 million last
year.
"Alternatives to checks are readily available – and have been
for a long time," says Eric
Boughner, Chairman of BNY Mellon Pennsylvania. "While we
will continue to support checks, we are now – more than ever –
focused on offering new and enhanced solutions that can help drive
the paper-to-digital journey for our clients, as well as supporting
them in their wider sustainability efforts."
The shift comes as global regulators and policymakers are
increasingly issuing guidance on a potential framework for
mandatory reporting of climate risk. Moving from paper to
electronic payments is a straightforward step toward those
sustainability goals, but the business reasons for displacing
checks are just as clear as the environmental ones.
"Recent innovations in digital payments are shining a brighter
light on the inefficiencies of check processing," says Carl Slabicki, BNY Mellon's Co-Head of Global
Payments. "The business reasons, coupled with the environmental
impact, make embracing electronic payments a clear imperative and
we are leading the way with tools and incentives to make that
happen."
The moves are part of the bank's wider digital strategy in its
Treasury Services unit. Recently, the company launched a
first-of-a-kind, real-time electronic bill and payment
solution enabling U.S. businesses to present digital bills to
their consumer clients in real-time and receive instant payments
via the consumers' preferred online and mobile banking
channels.
ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment and wealth management and investment
services in 35 countries. As of March 31,
2022, BNY Mellon had $45.5 trillion in assets under custody
and/or administration, and $2.3 trillion in assets under management.
BNY Mellon can act as a single point of contact for clients looking
to create, trade, hold, manage, service, distribute or restructure
investments. BNY Mellon is the corporate brand of The Bank of New
York Mellon Corporation (NYSE: BK). Additional information is
available on www.bnymellon.com. Follow us on Twitter @BNYMellon or
visit our newsroom at www.bnymellon.com/newsroom for the
latest company news.
Media Contacts:
Nina Truman
BNY Mellon
nina.truman@bnymellon.com
+1 646 541 6713
Tony Sicoli
BNY Mellon
anthony.sicoli@bnymellon.com
+1 201 413 3198
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SOURCE The Bank of New York Mellon Corporation