Imaging in the Retail Channel 2009: Retail Remote Deposit Comes of Age

by Bob Meara, October 12, 2009
Industry Trends
North America

Abstract

Branch image capture adoption continues unabated despite the financial crisis. Over 3,400 new implementations occurring in the past year alone will result in an estimated 12,780 branch image capture financial institutions through 2009. The number of US financial institutions offering RDC to consumers and micro businesses numbers over 100.

Once shunned for fear of image quality and fraud issues, retail RDC may be adopted by as many as 250 US financial institutions by year’s end, serving over half a million users. Unlike previous RDC approaches, which required financial institutions to purchase and deploy specialized check scanners, retail RDC uses flatbed or multi-function scanners users already have, significantly reducing solution cost.

Fueled by accelerating image exchange adoption and the increasing cost of processing paper checks, branch capture solutions have now been installed or are being installed at 78% of US financial institutions. As traditional paper check processing infrastructures are dismantled, distributed capture models will become a practical necessity among the remaining financial institutions.

According to a new report, Imaging in the Retail Channel 2009: Retail RDC Comes of Age, Celent expects a 95% adoption rate of branch and/or teller capture solutions, across some or all branches, within the next three years. Image ATM adoption will be far more measured by comparison. For most financial institutions, the ATM channel will be the last domino to fall in their image migration.

"Retail RDC, with its use of TWAIN compatible scanners has come of age over the past year," says Bob Meara, senior analyst with Celent's Banking Group and author of the report. "A short while ago, most financial institutions shunned this approach, citing compliance and risk fears. But as the number of successful implementations grow, attitudes toward retail RDC have changed."

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Check Processing: Paper Becomes the Exception

7

Branch Image Capture

9

 

State of Adoption

11

 

Solution Provider Landscape

21

 

Outlook

24

Case Study: Sterling Savings Bank

29

 

History and Legacy Systems

30

 

Environment

31

 

Branch Capture Pilot

32

 

Teller Capture Value Streaming

34

 

Teller Capture Pilot and Rollout

35

 

Results

37

Image ATM

39

 

State of Adoption

40

 

Outlook

41

Consumer and Small Business Capture

43

 

Solution Provider Landscape

44

 

State of Adoption

46

 

Outlook

50

Capture Devices

52

 

Lower-Cost Devices for Small Business

56

 

Software Compatibility

56

Conclusions

59

Survey Methodology

61

 

Survey Instrument and Analytics

61

 

Survey Respondent Demographics

62

Leveraging Celent’s Expertise

64

 

Analyst Access

64

 

Support for Banks

64

 

Support for Vendors

65

Related Celent Research

66

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