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Customer Experience Drives mRDC Adoption

Wednesday, September 28, 2016 ( / Dale Laszig)

What drives mobile RDC adoption and how can financial institutions amplify adoption? Research conducted by the consultancy Futurion reveals a direct correlation between consumer experience and mobile deposit patterns. And many financial institutions aren’t making the grade when it comes to good customer experience, according to Futurion CEO Jim Van Dyke.
Van Dyke cited a 41% adoption rate for mRDC among active online bankers, but noted that 53% of those customers only recently began using the service. “In practical terms, this means that only about 20 percent of bank customers are regular users of mobile deposit,” he said in an interview.
The research, detailed in Mobile Deposit Benchmarking Study: Let Data Drive Breakthrough Success, was sponsored by Mitek and released at the RDC Summit 2016. It examines 15 top U.S. financial institutions on their varying approaches to customer experience, digital products and business models. The study found that those with the best customer experience ranked highest in mobile deposit adoption, activity levels, and growth.
Presenting the results of his research at the RDC Summit Van Dyke positioned high-frequency adoption as the end game for mRDC. “Banks need more than just a great product to compete; customer experience is key to improving mobile deposit adoption,” he insisted.
Criteria, Methodology
Van Dyke said he could predict the mobile deposit adoption rate at any financial institution based on its mobile app. And he warned that consumers who encounter problems the first time they use a mobile app (e.g.: deposit limits, or lengthy paper retention requirements) will generally not return. “These policies can create apprehension and distrust for users who think it’s not safe to use [mobile deposit] because they aren’t able to tear up the check immediately after deposit,” the report noted.
FI mRDC programs studied were evaluated according to 12 usability factors:
  1. Efficiency of Use
  2. Clear Terminology
  3. Match User Expectations
  4. Consistency & Standards
  5. Hierarchy & Context
  6. Errors & Prevention
  7. Auto Capture & Flow
  8. Item Processing
  9. Real Time Updates
  10. Deposit Limits
  11. Free Service
  12. Time to Hold Physical Check
“The methodology we used was exhaustive, rating each bank on a 1-to-5 scale and we found that customer experience and consumer behavior are strongly correlated,” Van Dyke stated. Each financial institution was additionally assessed according to 56 criteria to determine its effectiveness in shifting bank customers to higher-profit, digital banking relationships.
The study focused on large, multi-channel institutions with ATMs, branch networks and high online banking adoption rates. A supplemental report examined mobile deposit adoption across a broader, more diversified group of large and small banks and credit unions.
What the Research Examined
Comrade, a digital agency focused on customer engagement, provided real-time access to live accounts at the 15 FIs in the study. Javelin Strategy & Research provided data from studies undertaken in 2013 and 2016 that measured consumer mRDC adoption and usage patterns. Generous samplings for both periods provided sufficient data for evaluating customer adoption and behavior patterns at all 15 banks, Van Dyke explained.
Customers were asked when they had last used mobile deposit, to identify active and inactive users. Respondents provided insights into customer experiences at each bank as well as policy practices that influenced their behavior, adoption and usage. 
Which Banks Made the Grade?
Capital One took top honors in the benchmarking study, dominating all ranking categories to achieve the highest measures of customer adoption. Capital One’s consistently high performance in numerous categories, from Matching User Expectations to Consistency and Standards, made it “the penultimate role model,” according to the study, which praised the bank for “staying focused on non-access sources of revenue and excelling in risk mitigation.”
Van Dyke in his presentation called the Capital One mRDC program “a fast-flowing easy river to be on, exactly what we’d expect from Cap One.”
Other top honorees included runner-up BBVA Compass Bank, which Van Dyke described as “far above its asset class,” and third-place Bank of America, followed by Fifth Third Bank and Wells Fargo.
Looking at the industry overall, Van Dyke observed that “regionals are catching up to giants. Credit unions are catching up almost as quickly and community banks are getting left behind,” he warned.
Van Dyke urged FIs to use the study findings “as a GPS [to determine] who you are, your footprint, what you’re seeing and how to improve profitability through increased use of mobile check deposit.”

The Mobile Deposit Benchmarking Study: Let Data Drive Breakthrough Success webinar is available for viewing. Click here for details.

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