The 2010 Federal Reserve Payments Study reported that despite growth in remote deposit capture, 87 percent of checks were deposited physically. With an estimated 23 billion checks being written annually, there remain huge cost saving opportunities for financial institutions to convert physical deposits into electronic deposits.
These opportunities are accentuated when a financial institution can drive the deposit to a lower cost channel. TowerGroup reports that the average cost of processing a transaction at a branch is $3.75. When moved to a self-service transaction at an ATM the equivalent cost is $0.60, but the mobile channel is the most cost-effective. Using this channel, the cost is just $0.14.
With such a compelling business case, there is huge momentum among banks to offer a check deposit via mobile phone service to their customers.
Annual surveys of financial institutions carried out by Celent in August 2009 and September 2010 showed that the number of financial institutions planning or considering the adoption of mobile remote deposit capture has doubled (from 26 percent of those surveyed in 2009 to 51 percent just thirteen months later). As more banks roll out the service, Mercatus predicts that check volume migration to mobile RDC could exceed 1.5 billion checks from the branch.
Who will use mobile remote deposit capture? And, what are the issues that financial institutions should consider?
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