Around $4.7 trillion in checks were issued to consumers in the US in 2013. This is a staggering figure—nearly $1 trillion higher than all US card payments combined. In this article we will focus on the zone at the intersection of checks and mobile devices. The Federal Reserve estimated that around 20% of checks paid entered depositary banks as electronic images sent using remote capture devices last year in the US.
Background
Estimates suggest that around that 44 million consumers used mobile capture in 2014, which is up from 20 million in 2013. This is out of around 160 million banked consumers. Remote deposit capture (RDC) is considered to be the most important development by the Federal Reserve in the US. Remote deposit capture refers to the ability to deposit a check into a bank account from a remote location without having to physically deliver it to the bank. This is achieved by scanning a digital image of the check and then transmitting it to the bank, a practice that became legal in the United States in 2004 when the Check Clearing for the 21st Century Act (or Check 21 Act) took effect. Benefits of the service include convenience, better deposit availability, and reduced transportation cost and risk. The service was initially aimed at corporate and large customers.
B2B (Solutions built for banks)
A majority of the banks in the US currently offer RDC services in one form or the other. By the end of 2013, there were more than 1,300 banks offering RDC services, while the number at the end of 2014 reached 2,900. It is estimated that by the end of this year, more than 5,000 of the 7,000 financial institutions in the US will have an RDC solution in place. Likewise, the number of users using remote deposit capture has skyrocketed from less than 1 million in 2010 to more than 40 million in 2014. Companies like Mitek, Fiserv, and iStream provide such RDC solutions to banks and other financial institutions.
1. Fiserv: Source Capture Optimization is a unique approach from Fiserv which allows financial institutions to grow in revenue by providing customers with easier and faster deposit solutions. The various solutions provided by Fiserv under Source Capture Solutions are ATM Source Capture, Branch Source Capture, Central Source Capture, Immediate Funds & Merchant Source Capture, Mobile Source Capture, and Teller Source Capture.
2. Mitek: Mitek provides the remote photo check deposit solution for retail and commercial banking, brokerages, and prepaid card providers. The award-winning solution from Mitek has been licensed by more than 4,000 financial institutions, including the top 10 retail banks in the US.
3. RDM: The solution from RDM currently handles more than 18,000 deposit capture locations and processes over three million items every week. RDM’s mobile remote deposit capture can be used in mobiles, the web, and at points-of-sale.
4. iStream: iStream Deposit is the remote deposit capture solution from iStream. iStream Deposit effectively leverages technology to save time & cost and reduce the probability of human error when it comes to making deposits into your accounts. All that is needed is a PC, an Internet connection, a check scanner, and an RDC application.
5. e-Zest: Mobile RDC application from e-Zest offers banks a competitive advantage, increased customer satisfaction, and improved channel delivery.
6. VSoft: VSoft’s remote deposit capture solution for financial institutions validates, processes, and transmits the check images from all points of presentments like branch tellers, branch back counters, merchant and consumer locations of varying volumes & value, and image-enabled ATMs.
7. TIS (Top Image systems): MobiCHECK from TIS enables banks to offer their users an advanced service that will save them time and provide them with a convenient user experience. MobiCHECK provides a secure solution that integrates into the bank's core systems and deploys recognition algorithms to enable quick and secure deposit of checks via the smartphone.
B2C (business-to-consumer): Apart from B2B, there are few companies like Simple, PayPal, and Ingo Money that provide the RDC solutions directly to customers.
8. Ingo Money: Ingo - The Good Funds Network is also the first mobile remote deposit network for prepaid cards that give consumers access to money in minutes from any type of check from a mobile phone. Consumers can now download a mobile application, enroll with Ingo, load their eligible cards into the wallet and push any approved check to their cards in days for free or in minutes for a fee. One minute, it’s a check; a few minutes later, it can be money on your prepaid card. (They also provide RDS solutions to banks).
9. Simple: Despite being a mobile-first bank (now a part of BBVA), Simple is mostly known for its tech prowess and user interface. Simple came up with its own photo check deposit solution in 2012. In the mobile app, you begin by tapping the check deposit button in the top right corner of the screen, enter how much the check is for, and take photos of the front and back. The photo check deposit provides your account number within the camera image preview. Finally, the details of the deposit are reviewed and submitted for processing. As the check processes, you’ll be able to see when funds are available and how much is left to be released.
10. PayPal: PayPal debuted this service in 2010. Both personal and business checks were accepted in this application. The facility allowed Android and iPhone users to deposit the checks into their PayPal account using the built-in camera and PayPal app. However, the service was discontinued by PayPal in 2014. The company said that nowadays, the number of people making payments through checks is decreasing. The company wants to focus on its main mission of creating a digital economy.
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