“Corporate remote deposit has been a hot topic in the banking industry for the last few years. Not since the introduction of the ATM has there been so much excitement around a product and such fast adoption of it. Almost three-quarters of the 30 largest U.S. banks offer remote deposit to their small-business customers, while more than 37% of community banks do so. Of small-businesses surveyed, however, 19% use services provided by one of the “top five” banks.”

Here’s a case where cheap technology and broadband come together to provide a better experience for customers, and a way to sell banking services to remote customers who now don’t need to drive to a branch to make deposits. Leaders in direct deposit, such as BNY, were quick to spot the opportunity to get scattered offices of major corporations to deposit directly…and de novo banks have been able to open in cheap office space, put their sales people on the road, and accept deposits from anywhere.

“While banks have much to gain from offering remote deposit service, the greatest benefit continues to be the banks’ ability to better serve customer needs,” says Christine Barry, research director with Aite Group and author of this report. 

Not to mention offering a way to steal customers from the competition. 

Filed under: Corporate Banking