The Opportunity: The Growth of Mobile Check Deposits

In rapidly increasing numbers, people use their phones for more than conversation: They use them to access websites, send email and text messages, and more. Smartphone users (i.e., owners of Blackberrys, iPhones, and Android phones) make up the segment that is the fastest growing.

A phone is considered a smartphone if it allows third-party developers to create and install software other than what the phone manufacturer or network carrier provided. The explosive growth of such third-party applications is a current phenomenon, with the Apple Store currently hosting around 200,000 applications, and other platforms making great advances in an effort to remain competitive.

Smartphones are even replacing desktop and laptop computers for many people, especially while traveling or just away from home or office. As a result, behaviors are changing and consumer expectations are increasingly moving in the direction of having their information at their fingertips anytime.

As of early 2010, one-quarter of all phones are smartphones, and that ratio is expected to double by 2014. In absolute numbers: There are 45 million U.S. smartphone users today, increasing to 114 million by 2014. Many customers use mobile banking regularly, even daily, and almost half of current smartphone users say they are "interested" or "very interested" in using Mobile RDC, according to research published by Javelin Strategy & Research.

Given these numbers and trends, banks are offering new mobile services to their customers. Those services will help them retain customers by offering increased convenience and better service at lower cost.

According to a recent report by Javelin Strategy & Research, "one in four consumers desire mobile remote deposit capture," and "the business case for mobile remote deposit capture is much stronger for the small business market." The report goes on to cite high desire for this service amongst self-employed and small business owners, and iPhone, mobile banking, and smartphone users. And since the bulk of business transactions are made by check, mobile deposit is extremely attractive to businesses. This is why Mobile RDC will soon be added to the mobile banking offerings of most banks, regardless of size, and within a few years will be a standard offering no bank wishing to stay competitive can be without.

This is an excerpt from "The Gold Standard for Mobile Check Deposit," a white paper available from Mitek Systems. Click here to download the entire white paper.