Imaging in the Retail Channel 2010: A Second Wind for Teller Capture

by Bob Meara, October 28, 2010
Industry Trends
North America

Abstract

Branch image capture adoption continues unabated. The estimated 2,300 implementations that occurred in the past year alone will bring the total to more than 12,000 branch image capture financial institutions. Image (aka intelligent deposit) ATMs now represent 40% of deposit-taking ATMs.

Fueled by near ubiquitous image exchange adoption and the increasing cost of processing paper checks, branch capture solutions have been installed or are being installed at 80% of US financial institutions. As traditional paper check processing infrastructures are dismantled, distributed capture models will become a practical necessity among the remaining institutions.

According to a new report, Imaging in the Retail Channel 2010: A Second Wind for Teller Capture, Celent expects a 95% adoption rate of branch and/or teller capture solutions within the next two 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.

“Teller capture is getting a second wind,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “Most FIs hurried branch capture projects along, chasing transportation cost savings as the Federal Reserve closed check processing facilities. Now, a small but growing number of FIs are taking a second look at how imaging at the teller line can further reduce costs and improve the customer experience.”

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 subsidiary 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

Branch Banking: Paper Becomes the Exception

6

Branch Image Capture

9

 

State of Adoption

12

 

Solution Provider Landscape

22

 

Outlook

26

Image ATM

30

 

State of Adoption

32

 

Outlook

34

Capture Devices

37

 

Lower Cost Devices for Small Business

41

 

Software Compatibility

42

Conclusions

44

Research Methodology

46

Leveraging Celent’s Expertise

48

 

Analyst Access

48

 

Support for Banks

48

 

Support for Vendors

49

Related Celent Research

50

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