MT. PROSPECT, Ill., and GLENVIEW, Ill. (8/12/13)--A new survey reveals some disconnects between how financial institutions and depositors view electronic deposit and remote deposit capture (RDC) offerings. A key finding: business accounts are slower to adopt RDC than banks and credit unions expected.
The survey, "Check Imaging, RDC and ICLs: Depositor and Bank Experiences and Viewpoints," was conducted by Mt. Prospect, Ill.-based Cummins Allison, a provider of currency, coin and check handling solutions, and Branmark Strategy Group, a marketing firm in Glenview, Ill. (Wireless News Aug. 9).
Seventy-five percent of financial institutions surveyed offer RDC to commercial/business accounts, said the survey report, but two-thirds of them have less than 5% of commercial accounts using the service. Despite the slow adoption, most depositors surveyed said they would be interested in a service that allowed them to scan and transmit check images to their financial institution.
One of the most surprising disconnects, said Matthew Gniech, product manager of check imaging at Cummins Allison, was that more than half of the financial institutions surveyed believed they were marketing RDC services to commercial accounts, while depositors said the No. 1 reason they don't use electronic deposits was because they were unaware their financial institution offered the service. "Clearly, awareness is still a barrier to commercial RDC adoption," Gniech said.
The study suggested that financial institutions understand the benefits to offering RDC to their commercial customers: 44% said they offer it to stay competitive, 24% said RDC helps them attract new commercial accounts, and 11% said RDC helps lower operational costs.
However, 45% of depositors said that time savings when preparing deposits is the overwhelming benefit of electronic deposits. Also 16% said they saved on fees by not depositing paper checks; and 13% said they saved time by not visiting the credit union or bank to make the deposit. Others noted electronic deposits extended deposit deadlines andgave quicker access to funds than do conventional deposits.
Half of the depositors using RDC believe the service--especially scanner performance--could be better, and two-thirds said they would be more productive if the scanner were faster and more reliable. Many of the depositors said their check scanners are provided by their credit union or bank. The financial institutions revealed that their commercial depositors often request more accurate and faster check scanning equipment.