As smartphone adoption continues to soar, people are becoming more comfortable using their mobile devices for a wider range of functions. However, one application that may not yet be ready for prime time is mobile check deposits.
According to a recent Javelin Strategy & Research report, one in four surveyed consumers indicated they would prefer to use remote device capture to deposit checks rather than ATMs. Additionally, half of mobile bankers said they want to see more mobile RDC.
"Mobile RDC offers revenue and cost-cutting opportunities," said Mary Monahan, managing partner and research director at Javelin. "[Financial institutions] can position mobile RDC as a premium service that provides value to customers and charge customers fees for making mobile deposits. It’s a win all around for consumers and [financial institutions]."
However, according to the report, only three of the 10 major financial institutions currently offer mobile RDC to their customers, and only half will introduce the capability in the next 12 months.
This hesitancy may suggest concerns with the data security and privacy of mobile RDC. According to Javelin's report, a third of financial institutions cite security as a major obstacle of mobile RDC adoption.
While mobile RDC would enable banks to reduce check-processing costs and certainly save customers a great deal of time, the fact that financial institutions are under greater scrutiny than most companies to protect customer information necessitates the utmost security with any new service. Otherwise, the organization could face significant fines or other sanctions.
Interestingly, Javelin published its report days prior to the announcement of the launch of the Google Wallet, a mobile app that utilizes near-field communication to enable smartphone owners to use their device as a credit card. The app is currently being field tested, and Google said its capabilities will eventually expand, which could mean RDC is on its way.