Check modernization and the digital transformation of banking: Integrating data, technology and innovation for a secure future

The digital transformation of banking has led to the modernization of traditional payment systems, with check processing being a critical component of this evolution. This review explores the integration of emerging technologies such as blockchain, artificial intelligence (AI), and machine learning into the check payment system, providing a comprehensive framework for modernizing checks in the digital age. The proposed Data-Integrated Digital Check Modernization Framework (DIDC-MF) combines transactional, customer, regulatory, and technological data to enhance the speed, security, and efficiency of check processing. The review compares existing models, such as traditional check processing and blockchain-based payment systems, demonstrating that the DIDC-MF significantly improves upon them in terms of predictive performance, fraud detection, and transaction processing times. Implications for practitioners and policymakers are discussed, including recommendations for investment in technology infrastructure, prioritizing cybersecurity, and developing clear regulatory guidelines for emerging technologies. Finally, the review suggests areas for future research, including AI in fraud detection, cross-border check processing, and the long-term impacts of digital check adoption. This review provides valuable insights for researchers, decision-makers, and industry professionals seeking to understand the latest advancements in digital banking and offers a roadmap for creating more efficient and secure check payment systems.