Hawai'i banks next year will begin moving to a new method of processing and clearing checks already in place at many Mainland financial institutions, including the Federal Reserve Bank.

The Electronic Check Image Exchange is intended to streamline check processing without having customers change the way they write checks, according to the Hawaii Bankers Association.

The move is a result of the Check Clearing for the 21st Century Act, which became law in October 2004. The law, which affects financial institutions across the country, enables banks to electronically exchange digital images of checks, thereby eliminating the need to physically transport paper checks.

"Check image exchange will eliminate reliance on air and ground transportation, increase security, and improve service for customers and our state," said Gary Fujitani, executive director of the Hawaii Bankers Association.