State of Remote Deposit Capture 2012: A Replacement Market Emerges

by Bob Meara, September 27, 2012
Industry Trends
North America

Abstract

With most US financial institutions now equipped with commercial remote deposit capture capability, a replacement market is emerging with up to 1,800 institutions in play.

Most financial institutions that will adopt remote deposit capture (RDC) solutions for commercial customers already have. The past two years have seen financial institutions’ adoption of commercial RDC solutions grind to a halt. Meanwhile, commercial client adoption continues. The result has been a modest industrywide gain of approximately 150,000 RDC clients, or 16%, according to a new Celent report, State of Remote Deposit Capture 2012: A Replacement Market Emerges. Celent expects continued growth of deployed scanners to commercial locations over the next three years.

Source:  Vendor surveys 2006 to 2012, Celent estimates

With financial institutions now offering RDC to consumers and microbusinesses, multiple lines of business within financial institutions are making purchase decisions.

“There are clear and obvious signs of an emerging replacement market as a result, and it’s larger than we expected,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “Nearly 20% of surveyed institutions have plans or are considering switching RDC vendors, and that number is much higher among larger banks.”

The report begins with an analysis of RDC risk and compliance because it remains of primary importance to financial institutions. It covers financial institution and client adoption of commercial RDC in detail and discusses small business RDC and the vendor landscape. Cash vault capture solution evolution and adoption are then explored, and we conclude with a forecast.

The 59-page report contains 48 figures and 12 tables.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Introduction: A Replacement Market Emerges

5

RDC Risk and Compliance

8

 

Risk Management Tools

11

Commercial Remote Deposit Capture

16

 

Financial Institution Adoption

16

 

Client Adoption

23

 

RDC Solution Provider Landscape

28

 

Solution Evolution

34

 

Outlook

36

Small Business RDC

38

 

Small Business RDC Solutions

42

 

Adoption Outlook

47

Cash Vault Capture

51

 

State of Adoption

52

 

Outlook

54

Conclusions

55

Survey Methodology

56

Leveraging Celent’s Expertise

58

 

Support for Financial Institutions

58

 

Support for Vendors

58

Related Celent Research

59

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