March 16, 2010

Letting customers scan their own checks for deposit (a.k.a. remote deposit capture) is an idea whose time appears to have arrived. There are more than 100 million camera phone users around the world, according to Celent, and there were six million mobile banking users in 2008 and 42 million are expected by 2012, according to TowerGroup.

For banks interested in offering remote deposit capture to customers, letting them deposit checks via cell phone, TWAIN scanner or multifunction device, but not ready to make a big financial commitment to the idea, J&B Software today is rolling out a software-as-a-service version of its RDC software.

"Saas lets you say, I don't know if this will be a big hit," says Mike Packer, business development at J&B Software, who spoke to Bank Systems & Technology last night. "It lets banks put their toe in the water."

The software lets customers deposit checks any time they want; J&B staff are available in a call center 24/7 to validate checks around the clock. Banks that do offer remote deposit capture have found that they get a flood of deposits from small business owners after hours, especially around 10:00 p.m., Packer says.

The software provides character and legal amount recognition developed by Mitek Systems. It provides workflow, risk management and Check 21 clearing. For security purposes, an audit trail of where, when and how each check was captured is logged. No data or images are stored on the smartphone, and all communication is 128-bit encrypted. Business rules, such as exception management and fraud monitoring, can be customized.

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