State of Remote Deposit Capture 2017: The Final Stretch

by Bob Meara, March 20, 2017
Industry Trends
North America

Abstract

More than 2,600 US financial institutions went live with mobile deposit in the last two years, leading to an estimated 80 million retail users.

Celent has released a new report titled State of Remote Deposit Capture 2017: The Final Stretch. The report was written by Bob Meara, a Senior Analyst with Celent’s Banking practice.

Institutions are wise to offer business mobile deposit, but the expedient path chosen by most banks will likely disappoint. The majority of institutions offering business mobile deposit merely offer a “consumer” solution with higher deposit limits. More capable and appropriate products are available from many vendors, but banks have been slow to embrace them.

The ability of remote deposit capture (RDC) to extract, validate, and manage payments information (payment stubs, invoices, etc.) remains unappreciated. A small minority of banks offer these capabilities, either stand-alone or in concert with lockbox offerings. Those that do are primarily large banks. Despite the well-founded enthusiasm around mobile, boring old commercial desktop RDC deployments continue to grow at a double-digit pace in many banks.

“A surprisingly large opportunity remains for boring old commercial desktop RDC after all these years. Most banks have roughly 10% annual revenue growth in their sights over the short term,” Meara said.

“A more interesting opportunity is with small business, but banks won’t realize the opportunity unless they up their product game,” he added.

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

Executive Summary

1

 

Key Research Questions

1

A Historical Perspective

4

Distributed Image Capture Environments

7

RDC Risk and Compliance: Steady as She Goes

10

 

Deposit Risk and RDC Loss

10

 

Retail RDC: Approaching Sanity

14

 

Risk Management Tools

21

Commercial Remote Deposit Capture

21

 

Financial Institution Adoption

21

 

Client Utilization

26

 

Outlook

28

Retail RDC

30

 

Small Business RDC Utilization

30

 

Financial Institution Adoption

31

 

Outlook

34

Solution Landscape

36

 

Solution Evolution

36

 

Vendor Landscape

37

Recommendations

42

Survey Methodology

44

Appendix: Solution Adoption Detail

46

 

Commercial Products

46

 

Retail Products

48

Leveraging Celent’s Expertise

50

 

Support for Financial Institutions

50

 

Support for Vendors

50

Related Celent Research

51

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