Smartphone Check Image Capture Gains Momentum as Bank of America and Capital One Join the Big-Bank Lineup

by Mercator Advisory Group 0

Mercator has projected that the next big thing in online and mobile banking is consumer check image capture using either smartphones or PC printer/scanners. This service was first introduced by branchless USAA and followed by other innovators including Chase last fall. Five of the top 10 retail banks have now jumped on the band wagon:

Mitek Systems Inc. said Bank of America Corp. and Capital One Financial Corp. joined the roster of big-bank clients for its mobile check deposit technology in its fiscal second quarter. Mitek announced in February that last year it had enrolled JPMorgan Chase & Co. as a direct client. JPMorgan Chase had previously been using internally developed software to offer mobile check deposit to its clients.

Mitek and its distributors signed 26 new banks for the service in its second fiscal quarter, which ended March 31. That brought the number of financial institutions using it to 40. Five of the top 10 U.S. banks are using Mitek’s technology, DeBello said. In addition to JPMorgan Chase, B of A and Capital One, U.S. Bancorp of Minneapolis also uses the software through its relationship with the vendor Fidelity National Information Services Inc., DeBello said. He would not name the fifth bank.

While banks are concerned about fraud issues associated with using smartphones or home scanners, the convenience of making a check deposit at any time will be attractive for many consumers who don’t have time to get to a branch. The rapid adoption of consumer check image capture will be one more reason why branches will move from transaction centers to sales and service centers in the next decade.

USAA graphic
For more information read the article in American Banker (a subscription may be necessary):

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