State of Remote Deposit Capture: All About Mobile

by Bob Meara, January 10, 2014
Industry Trends
North America

Abstract

With the explosion of mobile RDC demand, banks are seeing a shift in where RDC losses are occurring – from commercial and small business to consumer channels.

Not surprisingly, alongside 10% growth in the number of check scanners deployed for commercial RDC over the past year has been a tripling in the number of financial institutions offering mobile RDC to consumers and small businesses, according to the report, State of Remote Deposit Capture: All About Mobile. Celent expects continued growth of deployed scanners to commercial locations over the next three years, but the real growth will be with mobile RDC. However, there has also been a small but increasing level of losses that is directly attributable to RDC. These losses appear to be steady among commercial accounts, but growing among retail banking accounts.

Risk and compliance dominated commercial RDC activities over the past several years. Now, that activity is taking place in the retail bank as a result of mobile RDC.

“Risk and compliance were banks’ top commercial RDC priorities for several years,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “With FFIEC compliance projects largely completed, priorities have shifted back to growing the business.

Now, it’s the retail banks' turn at managing RDC risk, and it takes a whole new set of tools.

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

1

Introduction: A Replacement Market Emerges

4

RDC Risk and Compliance

7

 

Deposit Risk and RDC Loss

8

 

Consumer RDC Considerations

11

 

Risk Management Tools

14

Commercial Remote Deposit Capture

20

 

Financial Institution Adoption

20

 

Client Adoption

25

 

Solution Evolution

30

 

Outlook

31

Small Business RDC

33

 

Small Business RDC Solutions

36

 

Adoption Outlook

40

Consumer RDC

45

 

Consumer Desktop

45

 

Mobile RDC

48

Conclusions

55

Survey Methodology

57

Leveraging Celent’s Expertise

59

 

Support for Financial Institutions

59

 

Support for Vendors

59

Related Celent Research

60

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