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Mobile users deposit more than $40B in checks via smartphones, tablets: MitekBy
Consumers are embracing mobile devices for the ease and convenience they bring to everyday activities, such as using smartphones and tablets to deposit more than $40 billion into their accounts by snapping a picture of a check, according to Mitek.
More than 12 million mobile users have made a deposit via their devices, pointing to the importance of mobile banking services for financial institutions. Additionally, more than 708 banks and credit unions have signed agreements with Mitek to provide mobile deposits to their customers.
“Mobile deposit, the ability for consumers to quickly and easily deposit checks using their smartphone or tablet cameras has become a must have for banks as consumers increasingly adopt a mobile lifestyle,” said James DeBello, CEO of Mitek, San Diego.
“Analyst data shows that more than 12 million Americans have deposited checks with mobile deposit and we know that number is growing quickly,” he said.
“To put it simply, mobile deposit is not only easy and convenient, it’s fun.”
Meeting customer expectations
Mobile banking services are becoming a must-have for many financial institutions because of the popularity of these services with customers. Bank of America recently reported that customers are depositing more than 100,000 checks each day through their mobile phones.
Given the popularity of mobile banking services with users, banks offering these services are finding this can help them attract customers.
For example, Conestoga Banks reports that mobile deposit can be credited with helping grow its overall customer base, as the bank saw a 10 percent increase in account openings in the first 13 months following its introduction.
Recent research backs up the growing role that mobile check deposit is playing for financial institutions.
Mobile deposit is the No. 1 mobile feature sought by all smartphone and tablet owners who would switch banks for mobile banking, according to AlixPartners, which also reports that 15 percent of all smartphone and tablet owners have already adopted mobile remote deposit capture.
Just the beginning
The growth in mobile banking is just beginning, with mobile deposit projected to expand to 30 percent of smartphone users by 2016, according to the Aite Group.
Additionally, Forrester Research forecasts that the number of U.S. mobile banking users will double in the next five years and reach 108 million by 2017, accounting for 46 percent of U.S. bank account holders.
Given the large demand for mobile check deposit, banks are racing to offer the service. The percentage of the largest financial institutions offering mobile remote deposit capture has almost tripled in the past two years, with 64 percent of the top 25 retail banks offering mobile deposit in 2013, up from 48 percent in 2012 and 22 percent in 2011, according to Javelin Strategy & Research.
In addition to meeting customers’ needs, banking can also be a way for financial institutions to drive cost efficiencies, with Mitek reporting that major banks report saving $3.88 with each mobile check deposit compared to a teller deposit, with banks having saved an estimated $100 million in transactions costs as a result.
Mitek’s patented mobile deposit enables consumers to snap a picture of a check with their smartphone or tablet camera to make a deposit from anywhere, any time.
“Mobile deposit makes something mundane and even inconvenient, a fast and fun process,” Mr. DeBello said. “Consumers overwhelmingly report that they love the ability to deposit a check from anywhere, no need to go to the bank, or even have a computer.
“Javelin also found that banks are racing to release Mobile Deposit because of the shift in customer perception, the technology is actually becoming expected by consumers,” he said. “We absolutely believe that this number will continue to grow as customer demand continues to drive adoption.”
Chantal Tode is associate editor on Mobile Commerce Daily, New York
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