By : Andrew Short
July 07, 2015 08:32 AM
Returning to the payments industry after a stint in mobility, I can’t help but get excited about the convergence of these two spaces. While much of the publicity these days is tied up around the likes of Apple and Google making it easier to pay at retailers, banks are actively converging mobility with deposits to make it easier to grow your bank balance. In fact, mobile remote deposit capture (mRDC) is growing as consumers shift their banking habits, according to a new study from Celent.
While most distributed capture methods, such as branch capture, image ATM and merchant capture have “plateaued,” mRDC is different even with overall check use waning, RDC in general will account for a third of retail bank deposits this year and as much as half by 2016.
As a consumer I find mRDC technology incredibly convenient and very easy to use. Between my phone, my branch or an ATM, I can transact from just about anywhere. With so many smartphones and tablets in the hands of consumers and businesses alike, the results of this study resonated across the board for me.
“As check usage continues to decline, mobile RDC will become increasingly relevant — not just for mobile use cases, but more broadly,” explained Bob Meara, senior analyst with Celent’s Banking practice and the author of the report. “Mobile RDC is becoming the new scanner, with banks racing to offer mRDC to small business and commercial clients.” He predicts mobile RDC will have a “profound” effect on the branch channel, chiming in with another report that shows how consumers are increasingly using technology as part of their bank branch experience.
For me personally, I not only expect to be able to transact with my bank from a mobile device, but I expect that it is an extension of my overall banking experience bridging both the physical and digital world. Why shouldn’t I be able to initiate a deposit from my mobile device from any remote location and if required get support or help either as part of that experience? In addition to my branch and PC, I am always online and always connected to my bank wherever I am. It looks to be part of the wider shift in banking: from online to mobile. Mercator Advisory Group found 86 percent of US adults manage their accounts electronically, with 79 percent making transactions electronically, but fewer are doing so with a computer. Instead mobile devices are picking up the slack.
Similarly, more consumers are paying bills, depositing checks and transferring funds electronically. Again, though, fewer are doing so with a computer as mobile use grows.
The survey authors note how consumers are beginning to “rely more heavily on online banking as their digital ‘branch’ or banking source for managing their accounts and for customer service.” Whether it’s depositing a check or checking a balance, mobile devices are increasingly the go-to channel for consumers. How banks incorporate that into their wider retail banking and branch strategies will be crucial.
It’s very exciting to be working for a company like NCR dedicated to helping banks bridge the physical and digital channels into a seamless experience for their retail banking customers. I look forward to sharing more as we work with banks around the world to remove roadblocks, define new and innovative customer experiences, and deliver exciting enterprise software products from mRDC to Assisted Service solutions. I hope you’ll join me in sharing your thoughts, challenges and opportunities as we move forward on this journey.