Remote deposit capture is poised for significant growth in large part because of explosive growth in smart phone adoption. Indeed, smart phones have given RDC a cool factor that surpasses anything we’ve ever before seen in financial services; even ATMs. Yet, despite many banks offering RDC (55% have some type of RDC offering, according to Aite Group) the user base remains small; just 5% of small business customers, for example, Aite reports.
This state of affairs led the editors at ABA Banking Journal to observe in article published in November that “It may be time to get serious about business RDC.” (click here for article)
At Cachet we have met with many financial services companies that are serious about RDC, and that have been seizing upon the opportunities it provides for growing markets, and deposits, especially from business clients. But many are challenged when it comes to marketing. Smaller banks, for example, often lack the internal resources needed to execute aggressive RDC marketing campaigns. Also, unlike other bank products – DDAs and debit cards spring to mind – RDC doesn’t just sell itself. These factors seriously challenge the status quo. They demand aggressive marketing techniques on the part of FIs. They demand thinking outside the box.
We know this from experience, or more precisely the experiences of 160 banks, credit unions and other financial services providers that are expected to be running Cachet’s RDC solutions by the end of Q1 2013.
RDC is pretty much a no-brainer, especially when combined with smart phones. For FIs it’s like having branch offices on every customer’s smart phone screen. Imagine: a bank in Minnesota accepting check deposits from a client who’s on the road making sales calls in Texas. The ability of FIs to interact with customers in this way is not just something that’s within the realm of possibilities. The technology is available right here. And it’s being deployed successfully right now by scores of FIs.
So what’s the “secret sauce” successful FIs are using to make RDC attractive to clients? It’s all in the marketing.
Obviously, as with most marketing endeavors, there is no single playbook for selling RDC. Through conversations with executives at FIs that have successfully deployed RDC, I’ve come to appreciate the diversity of markets and approaches to serving different markets. That’s why I’d like to suggest an industry dialogue on RDC marketing practices.
I’d like to invite banks and credit unions and others that have been marketing RDC, especially to businesses, to discuss their experiences. Where are FIs looking for leads: online, ads, branch referrals? Are there particular vertical markets that respond particularly well or poorly to RDC? How important is staff education to marketing RDC? Is there a dedicated marketing team or person tasked with marketing communications for RDC products and services? How are benchmarks applied and success determined?
If you prefer, submit comments anonymously. We’re just trying to start a serious dialogue about RDC marketing practices. Certainly, the industry could benefit from a public conversation of this type. So, please tell us what you think. What do FIs need to be doing better to get more business clients on board with RDC? And don’t forget to check back often to see what folks are telling us and to join in the conversation.