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.
|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.
|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.
|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.