Tap. Snap. Deposit.

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. 12806_MobileDeposit_LndgPgGrfx_nobar_11-29-12

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.mobiledepositpic1 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.

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4 Responses to Tap. Snap. Deposit.

  1. koliver2015 says:

    I love the concept of mobile deposits! I think it’s an extremely beneficial tool for people whose work schedules do not allow them to make it to the bank in time and just for convenience. I think the mobile banking trend is a smart move for all banks and financial institutions to dip into.

  2. dmalone23 says:

    This was a very informational and well written article.I feel that mobile deposits is an extremely beneficial tool for the everyday business person. Everyone is looking for convenience especially when it comes to banking and to say that it is completely safe makes this a very useful tool for any person.

  3. jstokesie says:

    Mobile banking does seem like a good idea, especially for your reasons mentioned (people can’t make it during the hours, people always glued to their phones, etc). Mobile banking still seems really risky, but it’s interesting to see that 90% have no losses! Of course there will always be people who try to cheat the system, but that number is a lot fewer than I expected.

  4. nicoleb2014 says:

    I think mobile banking really is a convenient and smart tool that they have available. However, it does seem quite risky. My mom is really into mobile banking because it just works better with her schedule and she loves it!

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