Get the picture? Mobile imaging technology in the form of services such as remote deposit capture is proving popular with customers--while opening new opportunities for bankers.

• Author: Stewart, Deb
• Position: Cover story

TO ACQUIRE NEW CUSTOMERS AND TO PREVENT ATTRITION OF EXISTING CUSTOMERS, banks today need to offer mobile capabilities. Why? Nearly half of smart-phone users who switched banks in 2012 said that mobile banking was an important factor in their decision--up from 7 percent in 2010, according to an annual survey done by AlixPartners LLP.

"In the marketplace, 8 percent of consumers switch hanks each year," says Teresa Epperson, the company's managing director. "Of that 8 percent, two-thirds are under the age of 35. It is absolutely critical to have competitive mobile capabilities to acquire and to prevent loss of customers."

The rapid adoption of mobile banking services has been well documented--but where is it going next? In this article, we will look at today's remote imaging capabilities, the impact they are having on customer behavior and new capabilities that are on the horizon.

Mobile deposit

"No mobile feature has made as big an impact as quickly as mobile remote deposit capture (RDC). Virtually every bank in the country is currently considering or building mobile RDC functionality," states Peter Wannemacher of Forrester Research referencing a recent paper entitled, "2012 U.S. Mobile Banking Functionality Rankings."

Mitek Systems provides the remote imaging infrastructure for 35 of the top 50 banks and over 1,000 other financial institutions. The companies are supported both directly and through channel partners including Fiserv, NCR and lack Henry Banks using Mitek technology are now transacting over 100,000 mobile deposits daily. Jim DeBello, Mitek CEO, reports transaction growth of more than 25 percent quarter-over-quarter for the past three quarters--with 15 percent of client bank mobile customers now using the service.

"At its simplest level, remote imaging turns a camera into a keyboard. It eliminates the challenges of entering data through a mobile device and creates a superior customer experience, one that is convenient, easy and fun," says DeBello. "Reducing costs is a clear driver. PNC Bank has stated that it saves $3.88 per deposit with a mobile check deposit compared to a deposit at a teller. Imaging ATM [transactions] cost $1 to $1.25 per deposit, a mobile deposit costs 20 cents."

U.S. Bank, Minneapolis, was an early entrant in the mobile deposit market, introducing the feature in 2010. "Our mobile active base has continued to grow, benefiting from features such as mobile deposit and the convenience they provide to...