Consumer vs. business mRDC: What’s the difference?

Mobile remote deposit capture (mRDC) has revolutionized check deposits for millions of consumers and businesses. The convenience of snapping an image of a check with a smartphone or tablet—rather than physically driving to the bank or ATM—creates a value proposition that’s hard to dismiss.

Yet as strong as mRDC adoption has been, many banks and credit unions are leaving money on the table by operating with only a single mRDC tool. Expanding beyond consumer features to an mRDC offering that specifically targets businesses can make a big difference in customer satisfaction, efficiency and bottom-line profits.

SMBs crave simplicity and appreciate smart technologies

Small- and mid-sized businesses (SMBs) are the ideal audience for an mRDC solution that goes beyond basic consumer functionality.

According to industry analysts at Celent, SMBs:

• Visit the branch an average of 2-5 times weekly
• Typically deposit 5 or fewer items at a time
• Find desktop RDC too complicated and expensive

This profile makes them great candidates for a business-focused mRDC tool.

Unfortunately, most financial institutions (FIs) take a “one-size-fits-all” approach to RDC that limits effectiveness. In these situations, “business” mRDC is the same as consumer mRDC functionality, only with higher deposit limits.

Celent estimates just 17 percent of FIs offer basic business functionality in their mRDC application, such as the ability to capture multiple checks in a single deposit; even fewer banks provide the comprehensive receivables features that businesses want.

Right-sized mRDC opens a sizable market opportunity for FIs

Going beyond consumer RDC functionality makes smart business sense. Launching a business-specific mRDC product can help banks and credits union capitalize on a fast-growing and profitable market segment.

Aite-Novarica Group reports that more than 75 percent of SMBs (with revenues $100K to $20M) consider robust mRDC as “important” or “very important” in their banking partner.

A full-featured business mRDC solution is an ideal way for banks to:

• Attract and retain SMB customers
• Charge a price premium for key features
• Nurture and grow these valued accounts to other receivables services
• Differentiate in a crowded marketplace

Moving SMB deposits from paper to digital creates another key advantage for savvy banks and credit unions. It reduces teller volumes by replacing branch traffic with more cost-effective online transactions. Celent estimates that migrating SMB deposits to digital channels can reduce teller transactions by as much as 40 percent.

Must-have features for business mRDC

Today’s leading business mRDC tools should allow customers to:

• Deposit multiple payments in a single transaction
• Capture invoices, remittance items and associated documentation
• Access detailed reporting
• Export data to accounts receivable systems like QuickBooks
• Onboard easily with self-service prompts and intuitive workflows
• Segregate duties and control user access

This critical functionality helps businesses in more ways than eliminating time-consuming trips to the bank. By providing reporting and data integration, business mRDC speeds cash flow, streamlines cash application, improves reconciliation and even strengthens customer service.

Beyond these essentials, a comprehensive risk management infrastructure can add value for business users and FIs. Modern RDC platforms help banks manage compliance, reduce fraud and configure appropriate controls, both on a global level and with custom parameters for individual business clients.

A single RDC provider makes growth seamless

Today, more than 85 percent of business customers are forced to rely on a consumer mRDC solution rather than the business mRDC functionality they need. However, with a more mature and sophisticated market, FIs are realizing it’s time to step up.

Working with a single, trusted receivables provider like Deluxe delivers maximum value. As part of our end-to-end receivables management services, FIs can host consumer mRDC, business mRDC and desktop RDC through a single source.

An all-in-one approach can significantly streamline vendor management for FIs—and create a stronger experience for RDC users. Most importantly, it makes growth seamless, enabling the bank to remain a trusted advisor and valued financial resource across the life of the business.