From a PaymentsSource article:
It’s as simple as snapping a picture.
And that’s why mobile remote deposit capture is one of the reasons consumers understand the value of mobile banking, Mary Monahan, an executive vice president and research director at Javelin Research, said while speaking here at the Mobile Banking and Commerce Summit. PaymentsSource publisher SourceMedia sponsors the annual event.
Mobile remote deposit capture, in which consumers use the smartphone’s camera to capture an image of a check to commence a deposit–is becoming so popular banks eventually may be able to charge for the product while also saving on overhead costs, Monahan suggested.
Banks typically have avoided charging fees for new mobile and Web-based financial services, choosing to position them as a value-add that drives use of other services. But U.S. Bancorp has decided to charge 50 cents per check deposited via mobile, and other banks such as BB&T Corp. have similar plans.
This demonstrates how mobile remote deposit capture has driven mobile banking growth over the past year, Monahan said. “Consumers are actually amenable to [paying for the service],” she said.
The fees also are matched by overhead reductions, Monahan says. Mobile remote capture check deposits cost as little as 4 cents per check, she said, citing a study Javelin did with USAA. At the same time, it costs between 75 cents to more than $3 across the banking industry to process check deposits via traditional means.
Mobile remote deposit capture, which is identified as a potential “killer app” in a recent Mercator Advisory Group Report entitled “Mobile Banking and Customer Account Strategies,” is clearly on the move. Interest in mobile remote deposit capture is increasing at both financial institutions and with customers. Further growth is assured.
It will be interesting to see what the actual rate of growth will be in the next year or two as both financial institutions and customers have some concerns about fraud and security within and between the various infrastructure levels that support the technology. That being said, mobile remote deposit capture will be a main topic of conversation, as well as a potential differentiator, for some time to come.
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For more information about the Mercator Advisory Group report mentioned above, click here.
