Remote Deposit Magic Remains Elusive

Download PDF – Read Full Report – Despite Growing Demand, New Survey Shows Low Utilization of Remote Deposit Capture Solutions –

MINNEAPOLIS, MN – Despite rapidly growing demand for remote deposit capture (RDC) and mobile banking solutions among businesses and consumers, many financial institutions have yet to deliver the right combination of products to satisfy their customers, according to a new study prepared by Cachet Financial Solutions.

Data compiled from the four‐month study of 150 financial institutions nationwide show that as many as half of the survey respondents have yet to offer any RDC solutions to either business or retail customers. And the ones that do offer RDC report low utilization among their customers. Data was collected anonymously at Cachet’ Website as well as at several national financial services tradeshows.

Two‐thirds of respondents that offer RDC reported less than 5% of their business customers currently utilize RDC. Similarly, a November 2010 Celent study showed that financial institutions had only 15% to 19% client adoption of RDC services –this despite recent reports showing more Americans are using mobile devices to access bank and brokerage accounts than ever before.

“There seems to be a disconnect between what the public wants in terms of RDC and what is offered at this time,” says Tom Grady, Senior Marketing Director for The BrandBank, a Minneapolis consulting firm which compiled and analyzed the data. “Nearly every study out there shows that mobile deposit and RDC are the hottest things in banking right now, but when you see utilization rates this low something doesn’t add up.”

Industry experts point to changing regulations and a challenging economic environment as possible reasons for low utilization. But according to Cachet’s Jeffrey Mack, Chairman and CEO, other factors have hindered adoption rates, including the lack of marketing, training and enthusiasm within financial institutions. Mack also believes financial institutions haven’t promoted RDC’s true value to their customers, such as saving time and money.

“It’s pretty clear that RDC Version 1.0 was not the smash hit financial institutions were expecting,” he says. “They are not technology companies. Providing these types of tech solutions in a highly regulated environment is not easy. More and more are finding they need help from RDC experts to really provide a quality solution that their customers will use.”

John Leekley, CEO and Founder of, says that most financial institutions today realize that RDC and mobile banking solutions are here to stay. The challenge for them is to provide a costeffective, secure solution that meets the industry’s regulatory standards. In fact, survey respondents listed security/fraud and compliance as their top concerns when it comes to RDC.

“Technology is moving very quickly in this industry and the consumers are requesting it just as fast as it can be deployed,” says Leekley. “Financial institutions want to fulfill that demand but they have to be extremely mindful of the security and compliance issues that go along with providing these solutions. It’s a very interesting time to be in banking.”

Nonetheless, more than 75% of survey respondents reported offering RDC today or will offer RDC in some form within the next 12 months. According to Cachet’s Mack, financial institutions have an opportunity to get RDC Version 2.0 right.

“The good news is that the RDC technology and risk management solutions available today are much more sophisticated and secure than what was offered even two years ago,” he says. “Our message to them is, ‘It’s not too late to get it right’, but time is of the essence. If you’re not satisfying your customers’ demands, you can be sure your competitors will.”


About Cachet Financial Solutions

Cachet Financial Solutions is a leading provider of commercial and consumer remote deposit capture (RDC) solutions for financial institutions and their customers. RDC Select™, our fully integrated, customized solution, is a unique platform that eliminates the need for financial institutions to build and manage their own RDC business. Our industry leading software platform, developed to run on both Windows and Mac operation systems, has been designed to simplify the process for delivering, implementing and servicing RDC. Cachet’s sophisticated marketing strategy and professional sales training program ensures our customers are successful with their RDC initiatives. Let us help you unleash the power of RDC. For more information call 877.318.4449.

©2012 Cachet Financial Solutions