State of Remote Deposit Capture 2010: Unintended Consequences

by Bob Meara, November 6, 2010
Industry Trends
North America

Abstract

The financial crisis, a poor economy, and the FFIEC Guidance on RDC risk conspired to dampen the growth of remote deposit capture in 2009. However, in 2010, industrywide client base growth is 49%.

The FFIEC Guidance on RDC Risk, published in January 2009, caused a stampede of compliance activity that virtually trampled new product activity for a full year. In 2010, with most of the compliance scare over, client adoption returned to center stage. The result has been impressive: an industrywide gain of 230,000 RDC clients, or 49%, according to the Celent report, State of Remote Deposit Capture 2010: Unintended Consequences. Adoption of RDC solutions was comparatively modest, just under 1,000 financial institutions in the past year (a 14% gain), which is to be expected for a market reaching maturity. Celent estimates that 75% of US banks and 50% of US financial institutions offer one or more commercial RDC solutions.

“With such rapid adoption of RDC, it is probably good that the FFIEC ‘timeout’ occurred,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The unintended consequences of the FFIEC guidance—a virtual lockdown of market-facing RDC activity—appear to be largely behind us now, and significant market opportunity lies ahead.”

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

RDC Risk and Compliance

6

 

Product Risk Management Capability

9

Commercial Remote Deposit Capture

12

 

Financial Institution Adoption

15

 

Client Adoption

21

 

RDC Provider Landscape

28

 

Solution Evolution

33

 

Outlook

35

Small Business RDC

39

 

Small Business RDC Solutions

41

 

Adoption Outlook

46

Cash Vault Capture

49

 

State of Adoption

51

 

Outlook

53

Capture Devices

55

 

Low-Cost Devices for Small Business

59

 

Software Compatibility

60

Conclusions

62

Survey Methodology

63

Leveraging Celent’s Expertise

65

Related Celent Research

67

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