Canadian Payments Association signs contract with CGI

Wednesday 16 March 2005 10:47 CET | News

The Canadian Payments Association (CPA) has signed an agreement with CGI Group Inc. (CGI) to develop a key component for its national cheque imaging initiative, which will modernize the clearing process for Canadian cheques.

The contract is valued at approximately $2 million. In the current clearing process, almost five million paper cheques are transported between Canadian financial institutions each business day. The CPA is leading an industry-wide project to improve the efficiency and security of the system using image technology. Under the new process, financial institutions (FIs) that receive cheques on deposit will capture images of the front and back of these items and transmit them to the FIs on which they are drawn, eliminating the need to deliver the paper cheques. CGI has been engaged to develop an Exchange Control System (ECS) that will manage the exchange of cheque images and related data between FIs, validating and routing the files through the network. The ECS will be developed during 2005, facilitating testing between FIs during 2006. The first phase of image-based clearing is targeted for January 2007. The agreement also provides for a partnership between the CPA and CGI to license the ECS for use outside of Canada. The CPA, created by an Act of Parliament in 1980, operates Canadas national clearing and settlement systems; facilitates their interaction with other systems involved in the exchange, clearing and settlement of payments; and facilitates the development of new payment methods and technologies. It promotes the efficiency, safety and soundness of the clearing and settlement systems, taking into account the interest of users. Its current membership comprises virtually all of Canadas bank and non-bank deposit-taking financial institutions. In 2004, the CPAs systems cleared and settled transactions averaging almost $147 billion each business day.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce