Best Practices in Remote Deposit Capture: The Seven Habits of Highly Effective Deployers

by Bob Meara, September 6, 2007


New York, NY, USA September 6, 2007

Best Practices in RDC: The Seven Habits of Highly Effective Deployers

Highly effective deployers of remote deposit capture share habits that span strategic, organizational, and tactical realms, leading to a hundred-fold advantage.

Adoption of remote deposit capture (RDC) solutions among financial institutions has been extremely swift and broad based. With over 4,000 financial institutions expected to have launched RDC products by the end of 2007, RDC represents the most rapidly adopted technology in US financial services history.

But the number of client deployments has been unremarkable by comparison. Based on surveys of RDC vendors, aggregators, and hardware manufacturers in March 2007, cumulative client deployments numbered just 112,000, or a mere 38 client locations per deployer. Differences among banks are stark, with highly effective deployers enjoying a hundred-fold advantage in the number of RDC clients deployed.

Celent approached leading RDC vendors, seeking to understand the disparity between RDC adoption and deployment by examining deployers from financial institutions of all shapes and sizes. The results showed that highly effective deployers shared a number of habits.

"Collectively, the first three habits relate to how institutions embrace RDC and how they deal with it internally. The last four have to do with how deployers take to the market. Said another way, the last four habits are manifestations of the first three and form the deployer's 'public face,'" says Bob Meara, senior analyst and author of the report. "More than any other factor, the first habit separates highly effective deployers from the rest."

The report discusses the seven habits in detail along with the sales, marketing and operational best practices that accompany them. The seven habits are:

1. A robust vision for the RDC opportunity 2. Senior management sponsorship and visibility 3. A realistic risk assessment 4. Significant investment in sales and marketing with clear objectives 5. Involvement of the retail bank at the branch level 6. Specific and incremental sales incentives 7. A sense of urgency

These seven habits define an outlook that has consistently led to successful RDC deployments across financial institutions of all sizes. Conspicuously absent from this list, however, is any mention of highly differentiated or best-in-class products. This is to be expected in a market crossing the chasm. First mover advantage has been huge among the current cadre of RDC-deploying institutions. However, as competition for individual clients increases over time, competitive product and service attributes will become increasingly important.

Also absent from the list is any mention of operational excellence among highly effective deployers. This is a reasonable outcome based on RDC's adolescence as a product. Like product differentiation, operational best practices will increasingly avail competitive advantage for deployers as RDC matures.

The 50-page report contains 15 figures and 19 tables. A table of contents is available online. Four organizations are profiled: Goldleaf Financial Solutions, RCB Bank, West Coast Bank, and Zions Bancorporation. Members of Celent's Wholesale Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact for more information.  

Comparing the Best to the Rest

Market Segment Average RDC Clients Live
Top 10 Highly Effective Deployers 4,200
Rest of US Market 19
US Market Average 38
Source: Celent analysis of vendor data and deployer interviews

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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