Mobile deposit is an award winning solution that has been licensed by more than 1,400 financial institutions including all 10 of the top 10 retail banks in the United States. With the growing trend of doing everything on a mobile device its only natural that depositing checks using a mobile device become the next trend. With that said customers place a high value on convenience and that makes Mobile Deposit an important feature in addition to the well established online banking feature.
What exactly is mobile deposit? “Mobile Check Deposit” is an application that allows you to take pictures of checks with your smartphone or tablet and deposit the funds into your bank accounts. It really is as simple as tap, snap, deposit.
So what can mobile deposit do for banks and their customers? It can and grow revenue and acquire new customers. The growth in revenue can be attributed to the fee that is associated to the actual mobile deposit. As of right now most banks don’t charge a fee, but if they do it is a small fee. Mobile deposit appeals mostly to the Millennial generation. The Millennial generation seems to be glued to their mobile devices and already use mobile banking so why not make banking even more convenient for them by adding mobile deposit. This doesn’t mean that other generations aren’t drawn to this new feature. This feature is also convenient to someone that works during banking hours and can’t make it to the bank before it closes, as well as people that flat out can’t make it to the bank. Banks that offer the mobile deposit will then see an increase in business because this feature appeals to so many people.
This leads to the next question. Is mobile deposit risky? Well according to the article Mobile Check Deposit Boom Brings Risks , fraudsters have largely left mobile RDC alone. One of the reasons for the lack of fraud is the lack of a big payoff because banks often set limits as $3,000 or less. Celent’s 2012 data shows that 90% of RDC deploying banks reported zero losses. Still people are finding ways to commit crime through mobile deposit. One of the examples is “double depositing.” This occurs when a customer deposits the check through mobile deposit as well as at the physical bank. To help decrease the risk, it is important to have risk management, as well as knowing your customer and establishing appropriate risk policies with limits.
I believe that mobile deposit is a great concept and feature for banks to adopt. Even with it’s pros and cons, that with the appropriate risk policies, mobile deposit will ultimately benefit banks as well as its customers.