Fed weighs in on RDC


I suggested not too long ago that remote deposit capture was now a standard offering by retail banks.

Banks today decide to not offering such services at their peril. For confirmation, look to the Federal Reserve Bank of Atlanta, which has studied the issue and concluded that "as this product begins to become commoditized, perhaps the biggest risk to financial institutions may be losing customers if they don't offer the product."

One issue all along was the potential for fraud. But "we've seen no evidence in the past year to support an uptick in fraud. However, we have ample evidence demonstrating that the product is becoming mainstream through the mobile channel. With four large financial institutions incorporating RDC with their mobile applications over the summer, eight out of the ten largest depository institutions currently offer the product."

But this doesn't mean that banks should disregard potential fraud risks.

"Know your customer (KYC) is essential with mobile RDC. Financial institutions should prioritize their customers and offer mobile RDC only to their best customers, closely aligning the product offering with customer characteristics," the bank noted.

Logical rules and limits also make sense. The back-end processing technology presents risks that cannot be discounted. But all in all, RDC stands as of one of the great success stories in mobile banking. Just a few years ago, it seemed all too quaint. Smartphone cameras have indeed shaken up the niche.

What do you think will be the best next great mobile app?

For more:
- here's the article

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