[This is just one of my series of posts from the NACHA Payments 2008 conference in Las Vegas.]
NetDeposit and the Future of Remote Deposit Capture [NACHA Payments]
After exchanging "small world" stories demonstrating all the ways that Danne Buchanan and I should have crossed paths before this week, we settled into a discussion of the future of remote deposit capture (RDC). By all estimates RDC growth is expected to continue for the foreseeable future, and NetDeposit is one of the industry's superstars, riding the wave of Check21 to offer remote check imaging and presentment solutions to banks of all sizes.
But as the industry matures, how will banks support the increasing number of RDC "seats" (scanners deployed at customer locations in offices across the country)? Banks are not in the business of supporting hardware and providing IT technical support to thousands of customer locations. As more and more banks roll out RDC capabilities and RDC migrates to the consumer market, how will the industry serve this base of customers?
One option is to go the route of credit card merchant acquiring, relying on independent sales organizations to sell to and provide servicing of RDC customers. Banks move one step away from their customers – and cross sell opportunities – but they avoid the headache of serving thousands of RDC seats. This scenario seems highly likely to me (and is already underway).
Another key development in the maturity of RDC will be how it is integrated with other payment channels (web, telephone, ACH debits and credits) in order to provide a holistic payment view to bank customers. Those banks that provide seamless reporting and exception management across silos will retain the most customers. And it's all about customer retention, in the end. After all, that's the big story with RDC – an opportunity to consolidate banking relationships regardless of the bank's footprint of physical branches. Robust product features will be the key differentiator.
For more on the future of remote deposit capture, check out this panel discussion at Bank Systems & Technology featuring Buchanan and three other industry leaders. See also this panel from the TAWPI conference last month.