By: Joe Gillen
Online banking was the first large-scale service that enabled banks and credit unions to lower their operating costs while boosting customer satisfaction. Customers could lower the amount of fees they incurred through paper-based services, and banks could process transactions more quickly and save on mailing, processing, printing and associated costs. In addition, most customers enjoy being able to access their account 24/7 and complete key transactions with the swipe of a key. However, there is one service that online banking cannot provide - remote check deposit - and mobile capabilities have filled this void.
Remote deposit capture has become the bread and butter of mobile banking, namely because it's the one feature not offered via online portals that can help boost acquisition, retention and satisfaction, while at the same time saving banks money. Citing data from a 2012 Javelin study, Bank Systems and Technology magazine reports that mobile check deposits can cost banks as little as four cents per check, while traditional branch-based deposits cost between 75 cents and three dollars per deposit.
The convenience afforded by the app ensures that consumers can deposit checks at their convenience and avoid overdrawing accounts if they can't get to the bank before it closes. Several customer satisfaction research studies show fees are a common factor in consumers' decisions to choose, remain with or switch banks, and the ability to deposit checks remotely greatly helps consumers eliminate fees that may otherwise be assessed.
Remote check deposit helps build new relationships, cater to existing ones
The Bank Systems and Technology article also highlighted the relationship-building merits and cost savings of remote check deposit apps, noting that they help banks and credit unions prevent the "fragmentation" of customer relationships. Not only might remote check deposit offerings attract retail customers, but may also advance one day to reach out to business banking clients. In today's economic atmosphere, business clients are not only seeking out institutions that provide them with financing opportunities and access to credit, but also those that afford clients more flexibility in managing their company finances.
Remote capture capabilities may also appeal greatly to one group that banks and credit unions of all sizes are trying to reach: underbanked individuals. Remote check capture provides the convenience and cost-effectiveness that non-banks and lending alternatives do not. In addition, most bank and credit unions do not charge for their mobile capabilities, as opposed to the heavy fees often levied by checking cashing services.