New York, NY, USA
January 14, 2008Selling Remote
Deposit Capture to Healthcare Providers
Report Published by Celent
Remote deposit capture is a green field
opportunity among healthcare providers. Barely a third of providers are
even aware of RDC. Despite the manifest opportunity, most banks are slow
to act, running the risk of losing market share to nimble and aggressive
independent selling organizations.
The US healthcare market is a big one, with over a
half million points of service. The provider landscape is dominated by
small businesses: 90% have fewer than 20 employees. These businesses have
below general market awareness of remote deposit capture and above general
market interest in the product—a made-to-order opportunity for financial
institutions willing to make an investment in the market segment. In a new
report, Selling Remote Deposit Capture to Healthcare Providers,
Celent examines the US healthcare provider market, highlighting its strong
RDC affinity.
RDC has been the most rapidly adopted technology in
the history of the US financial services industry. But you wouldn’t know
that given RDC’s low current adoption among providers. Less than 10% of
providers currently use RDC, and barely a third (35%) are even aware of
the service. The opportunity for RDC adoption is manifest. In two separate
surveys conducted in the second half of 2007, providers expressed
significant interest in RDC (36%). Analysis of the broader survey results
suggests that a primary reason for low RDC adoption is low awareness, not
disinterest in the solution. For most of RDC’s short history, deployers
have been focused on middle market and large corporate clients as a first
priority. In contrast, small businesses have received comparatively minor
and recent effort. This appears to be the story for healthcare providers
as well.
Source: Celent survey of
hospitals, April, n=220, small businesses June 2007, n=330, and Dec 2007,
n=240
“Green field opportunities don’t
come around very often, and RDC among healthcare providers is a big one,”
says Bob Meara, author of the report
and senior analyst with Celent’s banking group. “Providers receive a
higher number of check payments than comparably sized businesses, make
more trips to deposit items, and show low current adoption of RDC: a
trifecta RDC opportunity.”
The report begins with a discussion of
prospect attributes favorable to RDC adoption followed by an overview of
the US healthcare provider market, highlighting its strong RDC affinity.
The report then outlines product and positioning approaches associated
with success among banks already targeting providers.
This 26-page report contains 12 figures
and five tables. It borrows from previous surveys of healthcare providers:
one conducted in June 2007 as part of the Metavante Payment Progress Index
- Healthcare Edition, and two surveys among small providers conducted in
June and December as part of a larger effort to understand remote deposit
capture adoption among small businesses.
A table
of contents is available online.
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