Mobile Commerce Insider Featured Article

May 22, 2014

Financial Institutions Aren't Scared of the Risks Behind Remote Deposits

Sometimes bank hours just don't work within our own schedules, and sometimes we just don't have enough time to wait in a long line to deposit a check. Wouldn't it be easier if we could just snap a picture of our checks, and have it deposited anytime, anywhere? In 2004, the United States passed the Check 21 Act, allowing financial institutions to implement this exact thing. Since then, financial institutions across the country have been releasing their own remote deposit systems.

Some people, especially the financial institutions themselves, may be a bit scared by remote deposit capturing though. There could be quite a few risks associated with this new form of deposits. Criminals can take advantage of remote depositing to commit fraud, doubling deposits by taking a picture to make a deposit and then immediately depositing it in person.

RemoteDepositCapture.com, a remote deposit news source, has found that the risks don't seem to be enough to prevent financial institutions from adopting remote deposit capture. In an industry first, the company conducted a survey designed to measure the perception, usage and experience of 250 financial institutions, ranging from credit unions and community banks to the largest financial institutions.

The survey revealed that financial institutions are not letting the risks stop them. 63 percent of those surveyed already use a form of remote depositing, while 33 percent plan to implement one in the next 12 months. 62 percent of those who offer the service also state they have plans to expand the service to different segments. Showing just how confident they are in remote depositing, 90 percent said that they believe the benefits outweigh the risks.

“The mobile RDC industry has truly reached a tipping point," said John Leekley, CEO of RemoteDepositCapture.com. "By 2016, the majority of financial institutions in the United States and Canada will offer mobile RDC and it will be critically important that they understand the risks and rewards of mobile RDC, how to best manage risk, and to be able to benchmark themselves against the broader industry in terms of pricing, functionality and more."

Regarding the actual risks, the survey also showed that there might not be much to fear at all. Among those using remote deposit, 80 percent reported they had no losses. These financial institutions, of course, must be careful to prevent fraud. Only 61 percent of those using remote depositing reported having a customized approach to setting limits. 28 percent said they offer same day deposits, a policy that carries quite a bit of risk, 51 percent offer next-day, and 16 percent have a safe two-day policy.


The results of the survey are being offered for free as part of a webinar, which comes with a free report, sponsored by Mitek, a technology company that works in the field of mobile imaging for financial transactions. The webinar will be open on May 22, at 1 p.m. 




Edited by Alisen Downey




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