Mobile Remote Deposit Capture: Putting a Price on Convenience

Until mobile RDC becomes more ubiquitous, banks that have rolled out a full-fledged offering hold a competitive advantage. Meanwhile, banks searching for ways to monetize the mobile channel should look closely at the revenue potential of mobile remote deposit capture services -- while they still can.

What's Next for Mobile RDC?

Although banks may not be able to charge for mobile RDC forever, more opportunities to differentiate and possibly produce revenue connected with the technology likely will arise. "In many respects, mobile RDC is the first wave of [mobile] payment-related products," says Chris Jackson, mobile banking product manager at Open Solutions, a Glastonbury, Conn.-based financial services vendor that focuses on community banks and credit unions. "The mobile device is becoming a key tool in the payments arena. But checks are still a part of payments, so users are going to expect mobile capture if they're going to be making or receiving P2P payments."

Even as check volumes decline, banks will find more innovative ways to apply the type of image capture capabilities that mobile RDC leverages, says Celent's Meara. Both Meara and U.S. Bank's Badarinath point to solutions such as those offered by San Diego-based mobile imaging software vendor Mitek Systems. "There's a way to take a picture of a check and enroll with mobile banking because the routing number on the check is tied to the phone you took the picture with, for example," says Badarinath. "And there's a way to take a picture of any bill and enroll in both online banking and mobile bill pay."

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U.S. Bank has made a significant investment in the image capture capabilities of its mobile RDC solution, Badarinath says, and the bank continues to refine it. That allows for a positive customer experience not only with mobile RDC, but also with any future developments in banking-related mobile image capture, he adds. But until that day comes, Badarinath says, U.S. Bank is focusing on evolving the mobile RDC solution. "We expect to see a complete redo of the way the customer does RDC on the phone," he relates. "It's going to be much more visual and intuitive, and it will take fewer steps."

Although most mobile RDC solutions are designed for smartphones, says Open Solutions' Jackson, there soon will be more activity on tablets. "Tablets are going to be the next significant driver in the next year or two," he says. "We'll see more use of mobile RDC in the tablet world, plus new ideas coming out in the tablet world that are inspired by mobile RDC."

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