State of Remote Deposit Capture 2011: Signs of a Maturing Market

by Bob Meara, November 7, 2011
Industry Trends
North America

Abstract

After six years of meteoric growth, commercial RDC is showing signs of a maturing market, with industrywide client base growth of just 10%.

Mobile RDC has taken center stage in the minds of financial institutions and vendors, consuming the bulk of industry activity over the past year, leaving commercial RDC feeling neglected. The result has been a modest industrywide gain of 65,000 RDC clients, or 10%, according to a new Celent report, State of Remote Deposit Capture 2011: Signs of a Maturing Market. Adoption of RDC solutions was slower still, just over 200 financial institutions in the past year (a 3% gain), which is to be expected for a market reaching maturity. Celent estimates that 75% of US banks and 50% of US financial institutions offer one or more commercial RDC solutions.

“With the low hanging fruit already picked, new client RDC sales have been more difficult,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The business case for RDC among commercial clients has been hammered by the low interest rates that simultaneously produced a de facto price increase through sharply lower earnings credit.” A secondary factor, according to Celent, has been the buzz around mobile RDC which, although primarily viewed as a retail banking product, has consumed Treasury Management resources in many banks.

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

RDC Risk and Compliance

8

 

Risk Management Tools

11

Commercial Remote Deposit Capture

16

 

Financial Institution Adoption

16

 

Client Adoption

25

 

RDC Solution Provider Landscape

32

 

Solution Evolution

36

 

Outlook

38

Small Business RDC

42

 

Small Business RDC Solutions

45

 

Adoption Outlook

50

Cash Vault Capture

55

 

State of Adoption

56

 

Outlook

58

Conclusions

60

Survey Methodology

61

Leveraging Celent’s Expertise

63

 

Analyst Access

63

 

Support for Banks

63

 

Support for Vendors

63

Related Celent Research

65

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