What is a financial system? It looks like a straightforward inquiry. However, depending upon where you rest and also your individual viewpoint there can be several various responses.
When I posture this question to participants on my courses I inevitably obtain an answer that deals specifically with a electronic process. In today's lingo the word "system" seems to immediately refer to a computer as well as a computer only.
However a "system" is larger than simply a computer. A "system" is a group or combination of points or parts forming a digital banking complicated or unitary whole. An quickly comprehended example is the postal system that includes things like letters, stamps, parcels, letter boxes, post offices, arranging offices, computers, staffs, postmans, delivery vans, airline companies; just to discuss a few of its components. It is how all this is organised and also made to function that makes it worthwhile of the title "postal system". So, when we speak of a system, we mention something a lot larger and a lot more complicated than the computerized part of that system.
The very same reasoning relates to any other "system" and also "banking systems" are no various.
The cheque clearing system (or check cleaning system to our American relatives) can probably lay claim to the honour of being the earliest banking system in the world. This system, with variants, is utilized to this extremely day in all countries where the cheque still creates a part of the nationwide settlement system.
Today in the twenty very first century, in many nations where the cheque is still being used, the cheque clearing system is a very innovative process using state of the art modern technology, viewers, sorters, scanners, coded cheques, electronic pictures and also lots as well as lots of computing power.
The cheque is basically a modest notepad, an direction to a financial institution to make a payment. The tale of the cheque cleaning system is a tale that deserves informing. It is that tale of a financial system that is now in its third century of operation. It is the tale of a financial system that has actually progressed as well as changed and been enhanced through countless innovations and also modifications. It is a tale of the essential payment tool that has actually assisted grease the wheels of commerce as well as industry.
