Convenient banking no longer requires you visit a branch. With nearly a quarter of all banking deposits now done remotely with Remote Deposit Capture (RDC), customers can deposit checks from the convenience of their own homes.
This trend is growing by a staggering 10 percent, while in-bank visits are dropping by the same margin. Our unwavering reliance on our Smart Phones allows for a more convenient method of banking that will be more cost efficient for banks in the long run.
The average cost of a Mobile Deposit Capture is $0.10, compared to $4.25 for an in-person visit. For a bank, this can amount to $50 in annual savings per customer, and over $1.5 Billion in industry savings.
Remote Deposit Capture works by having a user snap a picture of both sides of the check, easily and conveniently through a mobile banking app. The ease of use allows for a quick and seamless transaction on any major mobile operating system.
In August 2009, the San Antonio-based Insurance and Financial Services Institution USAA, which primarily serves military personnel, was the first to unveil mobile deposit with their “Deposit@Mobile” feature on their iPhone App. USAA Bank cited the program as a significant convenience for a large majority of its military clients who are deployed across the country and may not have access to a local branch.
As of 2013, the “Big 4” of American banking all offer some sort of mobile check deposit. Regional banks have also started to unveil similar services. The primary theme in marketing this new trend has been the convenience, ease and accessibility of the programs. Anyone with a smart phone can enlist and deposit from anywhere. Dedham Institution for Savings, a mutually owned financial institution with over a billion dollars in assets and over 180 years of experience, markets their program with “Tap. Snap. Deposit. Now you can deposit checks from anywhere with mobile deposit”. Citibank offers a similar slogan with “Sign, Snap, Submit. Deposit Checks from anywhere with the Citi Mobile app.” This trend is present throughout the industry, as ease of use and convenience are the main drivers in promoting Remote Deposit Capture.
Similar to other banking industry changes, smaller banks will follow suit of the “Big 4” and offer this service, creating an industry standard. As the trend grows, in-branch deposits might continue to see a sharp decline in favor of mobile remote deposits. Much like ATM withdrawals, mobile deposits may become the favored method of banking.