12/13/2017

RDC Hits Maturity…Or Has It?

Mehul Patel December 13th, 2017

Analysts predict 10% annual growth in desktop RDC and staggering $768 million mRDC revenue opportunity

Maturity. Eventually, it sneaks up on all of us, whether we calculate that milestone by age, state-of-mind, or simply lessons learned. Trading the bachelor sports car for a family minivan, for instance, or becoming the mentor instead of the mentee.

When it comes to payments, Americans still cling to checks, despite that payment method being well along the maturity curve, and the emergence of sleeker, faster electronic options. According to the most recent Federal Reserve payments study, U.S. businesses and consumers made more than 17 billion check payments—totaling over $26 trillion—in a single year.¹ And while that’s a 4% decline from check levels in 2012, it’s still a significant volume of checks.¹

Shifting attitudes

Remember holding that first hard-earned paycheck in your hand, then racing to your  bank or credit union to cash it? Or the eager anticipation of childhood birthdays, waiting by the mailbox for a card and check from Grandma?

Today, our attitudes toward receiving a check have matured as well. In an age where cars can pilot themselves, movies stream instantly, and you can order dinner with a simple “Hey, Alexa—,” the process of driving to the local branch to deposit a physical check can seem more of a burden than a delight.

So it’s easily apparent why businesses and consumers alike have embraced the convenience of RDC technology. Financial institutions have deployed over 1.5 million desktop scanners, and mobile deposit applications (mRDC) have proliferated.² Being able to snap an image of a check and complete your deposit—without ever leaving your home or office—has become essential functionality.

Growth projected for desktop and mRDC

For some, mainstream acceptance signifies the RDC market entering maturity. Yet just as checks show no sign of demise, significant opportunities for growth remain. Here are four strategies your financial institution can leverage to continue to grow your RDC revenue.

Boost deposit volumes: A fast and simple way to grow revenue, according to industry analysts, is to ease eligibility requirements and boost deposit limits. This enables more customers to take advantage of RDC’s power, without adding significant new risk factors. Despite skyrocketing adoption rates, RDC fraud losses remain minimal. From 2012 to 2017, less than 3% of financial institutions reported greater than expected RDC losses.²

Target your SMB customers: RDC opens the door to the small and medium-sized (SMB) business market, an underserved segment that values services that save time and money. Financial institutions can add a completely new revenue stream by converting these valuable customers from low-value branch deposits to mRDC—and then introduce these customers to additional services. For mRDC alone, analysts estimate a $768 million mRDC revenue opportunity exists among a potential 4 million untapped SMB customers.² Another reason mRDC resonates with SMBs? Next-generation business owners. For Millennials and Gen X, smart phones and payments go hand-in-hand. It’s no surprise that in a recent survey, over 70% of SMBs would pay for a product that eliminates the need to deposit checks at the branch.³

Offer features tailored to businesses: Business users will pay more for a mobile offering that meets their specific needs. That means doing more than repackaging a consumer mRDC service. Financial institutions who differentiate with the latest RDC capabilities can attract and retain more long-term customers. These features include a mobile solution that can deposit multiple checks in one session, capture remittances in addition to checks, automatically update customer AR systems, or integrate with lockbox workflows.

Even as mRDC grows, so do deployments for desktop scanners. Financial institutions that offer mobile, lockbox and desktop RDC through a single platform can maximize commercial sales. Analysts predict continued 10% annual growth in desktop RDC revenue.² Larger businesses appreciate the efficiency of multiple capture points; SMBs can start small with mRDC and easily graduate to desktop or lockbox capabilities.

Win with proactive outreach

The right RDC offerings can differentiate your financial institution, and help you attract and retain valued customers. However, it will be those that take a proactive approach that realize the most revenue. Two-thirds of financial institutions believe sales and marketing efforts, particularly to SMB customers, will be a factor in achieving new growth.²

Financial institutions that fine-tune their marketing with a multichannel strategy that accommodates various customer preferences will find the process well worth the effort.

An even smarter approach? Team up with an RDC provider that provides lead generation and marketing support. Working together, you can shorten your time to revenue—without burdening your internal resources.

It is possible to capture new value with RDC. This new infographic highlights two more ways your financial institution to expand your RDC footprint.


¹The Federal Reserve Payments Study, 2016

²Celent, “State of Remote Deposit Capture 2017: The Final Stretch,” March 2017

³Aite Group, “Unlocking the Revenue Potential of Business Mobile Capture,” September 2017

This content is accurate at the time of publication and may not be updated.