Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


01:30 PM
Danne Buchanan, CEO, NetDeposit (Salt Lake City)
Danne Buchanan, CEO, NetDeposit (Salt Lake City)
Connect Directly

Banks Will Face Competition in the RDC Space

Third parties that can decouple remote deposit capture from the deposit relationship may pose a threat to banks in the payments space.

As remote deposit capture (RDC) matures, more and more banks are beginning to realize its offensive potential. How can banks use RDC as a competitive differentiator, and can it actually drive growth? And what are the technology requirements for a successful RDC strategy?

Danne Buchanan, NetDeposit

Banks with remote deposit capture (RDC) aren't really selling RDC -- they are trying to get prospective customers to move their banking relationship and set up a new deposit relationship.

When banks try to attract new customers, they're selling their bank and not RDC because they require you to open up a new bank account. The consumer or business needs an incentive to move an account to a new institution. But banks face a risk of third parties coming in that don't sell RDC in a way that requires you to move your banking relationship -- they don't care where you bank; they sell purely a payment product.

My sense is those selling payment products alone with strong reporting and strong value propositions and reasonable pricing will be strong competitors and may have an advantage over banks. In the long run, if banks are to really play in this marketplace, they need to decouple their payment products from their deposit relationships and sell payment products that give them a relationship and an entrée with the customer and, in the long run, give them a way to move the relationship.

RDC can absolutely be a growth/revenue generator. But the next phase of RDC will see new entrants, and banks will really have a battle on their hands.

Taylor Vaughan, First Tennessee Bank
First Tennessee Bank Expands Deposits Footprint
First Tennessee Bank launched remote deposit capture in 2003 as a way to expand its deposits beyond its traditional footprint.
Ed Bacheilder, Dove Consulting
Remote Deposit Capture Poised for Explosive Growth
Remote deposit capture (RDC) has the potential to do for business customers what ATMs and debit cards have done for retail customers through self-service and convenient 24/7 access.
Bob Meara, Celent
More Banks Adopting Remote Deposit Capture Solutions
A growing number of financial institutions have embraced remote deposit capture as a viable small and midsize business solution.

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.