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The Green Sheet

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Mobile Deposit Report finds correlation between positive customer experience and adoption.

Thursday, September 15, 2016 (RemoteDepositCapture.com / RemoteDepositCapture.com)

Results of the 2016 Mobile Deposit Benchmark Report presented at the RDC Summit 2016
Mobile remote deposit capture has been a modest success with consumers. Yet 6 out of 10 online consumers in the U.S. have yet to deposit a single check utilizing their smart phones. For any significant increases in adoption to occur, financial institutions need to reassess policies and procedures that are keeping customers away.
 
This is a key takeaway from a benchmark study, 2016 Mobile Deposit Benchmark Report: Customer Experience Rankings for the Top 15 Banks. Key findings are being presented today by Mitek at the RDC Summit 2016, in Orlando.
 
“Banks are creating the biggest hurdles to consumer adoption of mobile deposit,” Jim Van Dyke, CEO of Futurion, the research consultancy that conducted the study for Mitek, said in an interview last week. “For the most part, mobile deposit is not friendly in how it works, policies around hold times, and fees.”
 
It is generally agreed that consumers today are more empowered than ever. They expect banks and credit unions to provide what Van Dyke refers to as an optimal customer experience (CX), which includes being able to access when, how and where they want. Yet, no one has ever quantified the correlation between CX and product/service adoption. So Van Dyke, who previously founded and led Javelin Research & Strategy, set out to test the hypothesis that good customer experiences with mRDC increases rates of adoption and frequency of use.
 
To test the hypothesis, Van Dyke developed a mathematical formula using 50 different categories of customer expectations and experiences to determine customer satisfaction quotients (CX) at 15 large banks. The CX in effect denotes customer friendliness of a FI’s mRDC offering. What he discovered was that nearly three-quarters (72%) of a typical financial institution’s mRDC adoption and usage can be predicted by the strength of its CX. “I was really struck by the correlation,” Van Dyke said in discussing his findings. “I’ve never seen anything this strong.”
 
When viewed individually, CX scores related to consistency & standards, and real-time status updates, had the strongest average metrics, Van Dyke noted in his report. “Conversely, Error and Prevention is the lowest performing category across banks,” the report stated.
 
Among banks analyzed, Capital One got the highest marks for mRDC adoption, frequency of use and growth. BB&T and Regions ranked 14th and 15th respectively. “There are dramatic disparities [in customer satisfaction and growth] between the lowest and highest rated banks,” said Van Dyke.
 
BB&T and Regions also are the only 2 banks in the sample that charge for mobile deposit, but Van Dyke insisted this did not factor into the rankings any more than other factors, such as deposit limits, ease of use, and requirements that original checks be retained for long periods (e.g.: 30 days). “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,” he wrote. “For an app with such essential utility as [mobile deposit], you just can’t market your way around a second-rate customer experience.”
 
Banks and credit unions can drive more mRDC customers and keep them coming back by focusing on 4 specific areas of the mRDC customer experience. They are:
 
  1. Deposit error prevention and item processing;
  2. Fees, deposit limits, and physical check retention;
  3. Clear terminology; and
  4. Efficiency of use.
 
The Rankings
The benchmarking study focuses on the customer friendliness and adoption patterns at 14 large banks and one large credit union. Information came from live account activity at those FIs, as well as surveys of customers, and Javelin’s research on consumer online adoption and usage.
 
Here’s how the 15 banks stacked up in terms of their CX measures:
 
  1. Capital One
  2. BBVA Compass
  3. Bank of America
  4. Fifth Third
  5. Wells Fargo
  6. Chase
  7. SunTrust
  8. Santander
  9. PNC
  10. U.S. Bank
  11. Citibank
  12. Navy Federal Credit Union
  13. Citizens Bank
  14. BB&T
  15. Regions


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