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The Green Sheet

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A Pulse on the Market

Monday, January 16, 2017 ( / Patti Murphy)

Remote deposit capture is driving innovations in banking and cash management that seemed unimaginable just a decade ago.
“RDC is fueling fundamental and transformative changes in the way consumers and businesses conduct banking in America,” said John Leekley, Founder and CEO of “These changes extend well beyond check truncation, and are fostering new approaches to risk management, customer service and market segmentation.”
Leekley detailed these changes and the opportunities they present in a recent webinar, Pulse on the Market. Drawing on proprietary research, analysis and insights from the RDC Summit, and ongoing dialogues with leading industry players, Leekley depicted a market brimming with opportunities. Polls conducted by suggest the market is poised to grow by 300% or more, he revealed.
Much of the growth will be driven by mobile technologies. In fact, more than 60% of banks and credit unions now offer mRDC to millions of consumers and businesses. “As impressive as that seems it also tells us there are millions of potential end users to reach,” Leekley said.
Small businesses represent a huge market opportunity. “With estimated adoption among small business at just 36%, this market is ripe for the taking,” Leekley said. “We’re seeing significant focus from solution providers and financial institutions on delivering the kind of functionality and capabilities small businesses are looking for.” Many of these are mobile and include the ability to capture multiple checks and associated documents in a single transaction, cross-channel duplicate detection, additional field entry, reporting dashboards, and systems integration. “These capabilities are quickly becoming table stakes in the small business market,” Leekley added.
FIs are looking to expand mRDC offerings, both in existing and new market segments, going forward, Leekley said. They are being supported by manufacturers, solution providers and bank-neutral third parties such as Early Warning, which operates a shared national data base of high-risk accounts and activities across channels.
The Latest in Risk Management
RDC grew from a desire to expedite check clearing and reduce costs, and its success in doing so cannot be disputed. This year, alone, Mitek predicts the technology will deliver more than $1 billion in savings through reduced operational costs for financial institutions.
Over time, however, RDC has developed into a platform for automating payments and managing risks across enterprises. “RDC is an information-rich solution that touches many silos within financial institutions,” Leekley noted. “Banks and credit unions offering RDC, particularly mobile RDC, are getting really good at managing risks, making adjustments in policies and procedures in real time when necessary, and improving overall customer service in the process.”
The proof is in the numbers. Industry surveys conducted by reveal that the vast majority of FIs (92%) believe the benefits of mRDC outweigh any costs and risks. Over half of those surveyed last year (53%) said the benefits far outweigh costs and risks. “Experience counts for a lot,” Leekley said. “The longer an FI has been offering mobile deposit, the more likely it is to feel the benefits far outweigh the risks and costs.” Among those surveyed FIs currently offering mRDC, for example, 95% said the benefits outweigh and 61% said the benefits far outweigh the costs and risks. – the only information and services firm devoted exclusively to RDC and payments – regularly polls visitors on issues related to RDC. One trend that has clearly emerged from the polls is that the RDC value proposition is growing continuously. Sixty-seven percent of those polled in 2016 put a value of up to $1.00 per transaction on RDC, 29% put the value at between $1.01 and $5.00 per transaction.
The polls also point to significant opportunities for leveraging additional capabilities and functionalities that will further advances being made with RDC. These include:
  • New and improved risk management tools that can be leveraged in real time to support payment verification and guarantee, as well as identifying duplicate deposits. “Banks and credit unions are becoming better attuned to the role funds availability plays with different customer segments,” Leekley said.
  • Leveraging RDC as a multi-payment type receivables platform. “RDC is changing the landscape in cash management,” he explained.
  • Better integration, with corporate accounting, as well as with FI compliance and monitoring systems (e.g.: anti-money laundering and OFAC). “The risk of non-compliance with federal regulatory guidelines has emerged as one of the biggest issues facing FIs as they implement and grow RDC,” Leekley added.
The Pulse on the Market webinar is available for viewing on-demand. Click here to access it.

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