According to a study by technology research and consulting firm Celent, approximately one-third of the U.S. population will use mobile remote deposit capture (RDC) by 2016. Learn about four trends shaping the future of RDC technology and how they affect your bank or financial institution.
New products hit the market daily. What used to be controlled pilots are products available immediately that focus on new sectors. They’re primarily consumer and small business products, but vendors have been creating commercial mobile RDC solutions, as well. According to Celent’s “State of Remote Deposit Capture 2015: Mobile Is the New Scanner” report, microbusinesses remain underserved because they lack products designed to fit their unique needs. They end up using consumer desktop and mobile RDC products, causing the small business segment to stay least developed. More micro businesses are expected to use RDC in coming years, due to increased marketing, dropping prices, greater eligibility and increasing deposit limits.
Risk and compliance concerns are lowering. Because RDC-related losses are at or below established thresholds, more banks are becoming comfortable having customers deposit digitally. Financial institutions with over $50 billion in assets previously had the greatest incident of loss. Fewer losses resulted from duplicate presentments, yet fraudulent items are on the rise. Although deposit limits help reduce risk, technology is advancing toward better detecting duplicates and deposit analysis.
RDC offerings are moving to common platforms that support scanning multiple checks. Due to the preference for mobile services and the convenience of mobile RDC, there are more mobile check-image-capture users than those using specialized desktop devices.
Reloading Debit Cards
RDC will become the preferred way to reload debit cards. Third-party check guarantee services will be needed, and use of real-time funds as a source of incremental revenue could be involved. Financial institutions will probably stop accepting investments in image ATMs due to the growth in mobile RDC. Vendors will begin consolidating as one-stop-shops as more institutions consolidate applications. Branches could become huge beneficiaries of such technology since mobile RDC done well can become a mass market deposit-gathering method. Most retail banks need this to migrate branch-based transactions to digital channels and free up the branch channel to move into a more current sales and service platform.
Remote Deposit Capture is changing the way your bank or financial institution conducts business. For additional information on this or related topics, reach out to the seasoned staff at CarterWill Search & Flex today!