State of Remote Deposit Capture 2009: New Markets, New Models

by Bob Meara, October 5, 2009
Industry Trends
North America

Abstract

The financial crisis, a poor economy, and the FFIEC guidance on RDC risk have conspired to dampen the growth of remote deposit capture. Despite all these factors, 3,600 financial institutions have adopted new solutions, serving over 130,000 additional clients in the past year.

Last year, the remote deposit capture sprint to market became a marathon. The events of the past year turned the marathon into a triathlon. Capital budgets evaporated, delaying product initiatives. The poor business climate lowered RDC sales rates (along with almost all financial services products), as clients tightened their belts. Worse, the long anticipated FFIEC guidance on RDC risk, published in January 2009, caused a flurry of compliance activity, further hampering banks’ progress in this underdeveloped market.

Over 3,600 new implementations will result in an estimated 10,400 RDC-deploying financial institutions through 2009, according to the Celent report State of Remote Deposit Capture 2009: New Markets, New Models. The resulting client adoption, however, fell short of expectations, resulting in an estimated 505,250 users/scanners by year-end 2009, a growth of 35% year over year.

"The exciting thing about RDC this past year has been its continual evolution," says Bob Meara, senior analyst with Celent's Banking Group and author of the report. "New markets and new delivery models have quickly emerged. Multiple bank-neutral solutions are gaining traction as a growing number of financial institutions target consumers and small businesses for RDC using TWAIN compatible scanning methods rather than deploying specialized check scanners."

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 subsidiary 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

Executive Summary

3

Check Image Processing: Paper Becomes the Exception

7

Commercial Remote Deposit Capture

9

 

Financial Institution Adoption

9

 

Financial Institution Client Adoption

14

 

Emerging Channels

17

 

RDC Provider Landscape

22

 

Solution Evolution

26

 

RDC Risk

28

 

Outlook

31

Consumer and Small Business Capture

35

 

Solution Provider Landscape

36

 

State of Adoption

38

 

Outlook

41

Cash Vault Capture

44

 

State of Adoption

45

 

Outlook

47

Capture Devices

48

 

Low-Cost Devices for Small Business

51

 

Software Compatibility

52

Conclusions

55

Survey Methodology

56

Leveraging Celent’s Expertise

59

Related Celent Research

61

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