Consumers support Remote Deposit Capture, but are banks ready?

By Features

Mobile remote deposit capture (RDC) is in high demand, but are financial institutions ready?

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The benefits for financial institutions are considerable--lower processing costs, increase in fee revenue by charging for making mobile deposits, and customer retention and growth.

Consumers evidently find RDC attractive as well, according to a Javelin Strategy & Research report issued May 24. Javelin's research found that one in four consumers and one in two mobile bankers want to skip brick-and-mortar branches and ATMs and use their mobile devices to deposit checks into their checking and savings accounts.

Which banks are RDC-ready?

Javelin's report "2011 Mobile Remote Deposit Capture" found that only three of the 10 largest financial institutions in the U.S.--JPMorgan Chase, PNC and U.S. Bank--currently offer mobile RDC service.

Considering consumer demand, that leaves a large gap in the market, finds the study, which uses information from surveys of more than 13,000 consumers and interviews with 25 bankers, analyzes consumer demand and current bank services offered and explores the effects of mobile RDC services.

The report found that more than half of surveyed financial institutions plan to launch mobile RDC within the next 12 months.

"Mobile RDC is the latest gold rush opportunity for first-mover FIs to grab market share," said Mark Schwanhausser, Javelin, in a press release. "FIs can use mobile RDC to lure consumers away from competitors. Similarly, FIs can use mobile RDC as a customer retention and growth strategy."

Addressing security concerns

One of the biggest barriers financial institutions face in implementing RDC is the perception of potential fraud. Almost one-third of financial institutions polled in the report said that their adoption of RDC is being held up by security concerns. Javelin's paper includes suggestions for banks to help prevent fraud.

According to Javelin, emerging technologies such as RDC are a critical peice of the mobile wallet puzzle, and financial instutions and consumers will slowly move toward mobile payments through services like RDC.

The original article can be found at SavingsAccounts.com:
Consumers support Remote Deposit Capture, but are banks ready?

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