Selling Remote Deposit Capture to Healthcare Providers

by Bob Meara, January 14, 2008

Abstract

New York, NY, USA January 14, 2008

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, , 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.

Members of Celent's Healthcare Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

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].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

New York, NY, USA January 14, 2008

 

Executive Summary 03
Introduction: The Ideal RDC Client 05
Healthcare Provider Market Overview 08
  Healthcare Payments 10
  Provider RDC Opportunity:  Humble Beginnings 15
Winning with RDC in Healthcare 18
  A Product Provider Strategy 19
  Positioning Approaches 22
Conclusions 24
 
 

 

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