Consumer & Small Business RDC Opportunity & Case Study

Transcription

1 Consumer & Small Business RDC Opportunity & Brought to you by: Presented By: Gary Brand, Fiserv Mike Williams, PenFed Q Moderator: John Leekley, RemoteDepositCapture.com

2 Today s webinar is brought to you by Source Capture Optimization An industry leading, web-based approach to Remote Deposit Capture from any point of check presentment: consumer, small business, merchant, corporate, branch, teller, ATM & mobile. Visit to learn more. Victoria Lant: victoria.lant@fiserv.com Industry-Leading Scanning Solutions From Home, Consumer & Small Business to Corporate and Teller Capture environments, Canon has the scanning solution to ensure success. Visit to learn more. John Burgess: jburgess@cusa.canon.com 2

3 RDC Solutions for the Home and Small Business Flatbed Color Image Scanners Portable Scanner Low Volume Check Scanner CanoScan LiDE 110 MSRP: $59 CanoScan LiDE 210 MSRP: $89 imageformula P 150 MSRP: $295 scans up to 15 ppm imageformula CR 25 MSRP: $795 scans up to 25 dpm Inkjet Multifunction Printers Laser Multifunction Printers PIXMA MP495 MSRP: $79 PIXMA MX350 WIRELESS MSRP: $149 MF4370dn MSRP: $299 copy and print speed up to 23 ppm MF 8350cdn MSRP: $699 copy and color print speed up to 21 ppm MF 5850dn MSRP: $995 copy and print speed up to 30 ppm 3

4 Definition of RDC Discussion Objectives Focus upon Consumer Capture Untapped Opportunities Consumer & Home Small Business Best Practices from the Industry Risk Implementation Benefits : PenFed Opportunity Implementation Results Summary 4

5 RDC is a Payments Platform RDC: Applies to a family of related products & services most often differentiated by location of check capture. Consumer RDC: Already here with 150,000+ Users! Mobile Deposit: Becoming a reality. Remote Deposit Capture The term Remote Deposit Capture refers to the process of electronically capturing check images and data, transmitting that information for deposit and clearing, and truncating the original paper checks. This definition is evolving to include additional payment types, including card payments. RDC is becoming an integrated technology platform increasingly used to process different types of payments and data with the ability to feed that data to systems both internal and external to the organization. Corporate Merchant Consumer Teller Branch Lockbox ATM Correspondent 5

6 What is Consumer Capture? Refers to RDC solutions destined for consumers and/or small/micro businesses Low check volume Occasional usage Not necessarily a service for everyone, but a very important service for some. Consumer Capture describes a solution, not the user. 6

7 What are the Driving Solution Requirements? Low cost Requirements Easy to provision and support Rational Must profitably enable low price points (FREE) Will potentially serve a large number of users Support costs could shipwreck P&L Exceedingly simple user interface Users aren t trained treasury personnel Usage may be occasional TWAIN scanner support Business case may not support the use of specialized scanners and associated warehousing, provisioning, maintenance and support Source: Celent 7

8 75% of Consumers are Interested in Home Deposit (Consumer Capture) 10% 15% 40% Definitely Probably Probably Not No 35% How interested would you be in a service that allowed you to deposit checks into your checking or savings account from the convenience of your home or office over the internet using a stand-alone scanner or multi-function printer with a scanner? Source: Fiserv sponsored consumer research 8

9 Industry Trends in Consumer Capture 100s of FIs in production Predict up to 25% of FIs by end of 2010 Source: State of Remote Deposit Capture, Celent, Oct

10 RDC is a Valuable Service Users are Willing to pay for 10

11 Low Penetration of RDC in Small Business 11

12 Small Businesses Are Ready 12

13 62% of Large Banks in Production or Planning Phase 13

14 Best Practices to Manage and Control Risk Technology Single Sign On MICR line validations Balancing Image Quality Duplicate Detection Deposit Limits Roles and Responsibilities Monitoring and Reporting FI Deposit Review Process Dual Control Approval Process Written Procedures Video Training Manage Turnover Physical Security Know Your Customer Customer Analysis Qualifying Criteria 14

15 Consumer Capture Benefits Financial Institution Benefits Improved customer retention increased market share New revenue stream Reduced processing costs for deposits Increased deposit activity increased use of online resources Ability to serve customers anywhere A single technology platform Expanded deposit windows Fraud mitigation Consumer Benefits Added convenience and time savings Reduced costs, by eliminating trips to the Financial Institution Improved funds availability with expanded deposit windows Complete, online summaries about past deposits with access to check images for reference Green is in! 15

16 Small Business Benefits Financial Institution benefits Improve deposit profile 26 million small businesses to target Improved customer retention Increased market share New revenue stream Reduced processing costs for deposits increased use of online resources Ability to serve customers anywhere Expanded deposit windows Fraud mitigation Small Business benefits Improved cash flow Don t close the business to go to the bank Added convenience and time savings Reduced costs, by eliminating trips to the Financial Institution Improved funds availability with expanded deposit windows Complete, online summaries about past deposits with access to check images for reference Eliminate photocopying checks Green is in! 16

17 Pentagon Federal Credit Union Mike Williams Vice President, Applications Management 17

18 Pentagon Federal Credit Union $14B in assets credit union serving more than a million members in the Armed Forces, Department of Homeland Security, Department of Defense, and defense-related companies. Few branches, many members to serve. Challenge PenFed members already had the ability to declare deposits online, following up with mailed paper checks. PenFed needed to upgrade their online deposits process to include check images. This sped up the online deposit process and reduced fraud. Solution Consumer Source Capture (Deposit Anywhere) implemented in-house with high availability and failover features. Includes real time posting. Live for all members now. 18

19 Solution Justification Member Convenience! 19

20 Best Practices for Implementation Eligibility: Must be member for at least 6 months and based on Member Level Hold which designates whether member is in good standing Accounts eligible for deposit: Checking, Share/Savings, Money Market Daily limits: $5,000 total deposits per day No enrollment is required. If the member is eligible, if ineligible the Deposit Anywhere link will not appear for the members accounts No float, funds are immediately available after deposit If no CAR/LAR the member will be advised to deposit the check through another channel Transaction deposited real time, immediate access to funds No back office Deposit Review required 20

21 Web Banner 21

22 Campaign 22

23 Rapid Growth in Deposit Anywhere Use RDC Deposits RDC Users Mail Deposits Mail Users Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 23

24 RDC Deposit Value Growing Quickly $300, $250, $200, $150, RDC Total$ Mail Total$ $100, $50, $- Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 24

25 Conclusions Adding Consumer Capture (Deposit Anywhere) continues to move members and transaction to the online channel and away from brick and mortar Solution actually reduces risk by allowing the transaction to be processed with the Fed within 24 hours of being posted to the members account Members prefer RDC over mail-in deposits Adoption has been quick with volume and value of deposits growing steadily No fraud issues to date 25

26 Summary RDC is the most rapidly adopted technology / service in the history of financial services. Consumer Capture resembles a perfect storm Demand & perceived value Large potential market Ease & ability to get up and running Majority of FIs implementing over next 18 months Results are impressive Viral adoption rates Minimal errors & adjustments (comparable to branch or mail deposits) The Bottom Line: Consumer Capture is a valued service which provides immediate results. 26

27 Today s webinar is brought to you by Source Capture Optimization An industry leading, web-based approach to Remote Deposit Capture from any point of check presentment: consumer, small business, merchant, corporate, branch, teller, ATM & mobile. Visit to learn more. Victoria Lant: victoria.lant@fiserv.com Industry-Leading Scanning Solutions From Home, Consumer & Small Business to Corporate and Teller Capture environments, Canon has the scanning solution to ensure success. Visit to learn more. John Burgess: jburgess@cusa.canon.com 27

28 Fiserv: For More Information Victoria Lant: PenFed: Mike Williams: Canon: John Burgess: RemoteDepositCapture.com: John Leekley, 28

29 A Unique Perspective RemoteDepositCapture.com is an independent information & services resource for the Payments Industry. We are NOT a reseller, solution provider, etc. We ARE experts in, and an open resource for the industry. We work with the vast majority of leading solution providers, FIs, processors. Thousands of FIs, corporations, businesses and consumers visit the site each month. We were directly involved in the formulation of the guidance and training of over 1,200 Regulators, Examiners & Auditors. Services News & Research RDC Marketplace Solution Provider Directories RDC Overviews White Paper Central FREE Webinars, Community Forums, and more. Contacts: John.Leekley@RemoteDepositCapture.com 29