Commercial RDC – Clear Benefits, Slow Adoption

A new survey, "Check Imaging, RDC and ICLs: Depositor and Bank Experiences and Viewpoints" conducted by Cummins Allison, uncovered some surprising differences in how banks and their commercial customers perceive the benefits of electronic deposit and RDC (Remote Deposit Capture). The survey suggests there is an opportunity for banks to increase market adoption of RDC by better understanding and delivering on the requirements that matter most to their customers.

Given competitive pressures and clear revenue opportunities, it is not surprising that 75% of bank respondents indicated that they offer RDC to commercial accounts. However, depositor adoption is low at banks offering RDC, with less than 5% of commercial accounts using the service. Interestingly, when asked the number one reason that they do not use electronic deposit services, depositors responded that they were unaware their financial institution offered the service. Herein lies one of the most surprising disconnects: over half of the banks surveyed feel they actively market RDC to commercial accounts.

The ineffectiveness of bank RDC marketing might be due to an erroneous belief that the primary benefit of RDC to commercial customers is time saved by not having to travel to make a deposit. This is not, however, what the depositors reveal in the survey as the primary benefits:

  • Time saved when preparing deposits (45%)
  • Cost savings by not depositing paper checks (16%)
  • Time saved from not having to go to the bank (13%)
  • Extended deposit deadlines
  • Quicker access to funds

To reconcile the awareness gap, FIs must ensure they are effectively marketing RDC to their commercial accounts by promoting the benefits that matter most to them.