Remote Deposit Capture: Potentially Profit-Building Technology Summary

Remote Deposit Capture: Potentially Profit-Building Technology Summary of Case Blue Bank is considering implementing remote deposit capture. Remote deposit capture is a technology-based solution that allows banking customers to scan checks and upload the scanned images for deposit. The system will save businesses time, money, and trouble by facilitating the check deposit system. Customers would be paying for the new service, which requires the use of proprietary scanning equipment as well as necessary software for processing.

The bank is ready to make the investment into the remote deposit capture system, with the ultimate goal of reaping profits and gaining new clients because of the value-added service. Issues that need to be addressed before Blue Bank implements its remote deposit capture service include cost, marketing the service, and security. Statement of the Problem A cost-benefit analysis is necessary before Blue Bank proceeds.

Blue Bank has no hard figures to back up their investment, and does not even know how much it would have to charge clients to use the service. Until Blue Bank investigates various suppliers and assesses total investment costs, the company will not know how to proceed with remote deposit capture. Moreover, the investment would require a Website upgrade, boosted security features, and the training of personnel in how to use the remote deposit capture system.

Blue Bank has yet to analyze each of these issues, to determine how much to budget for the investment. Blue Bank has not identified its target market, or come up with a plan for marketing remote deposit capture. Clients will want to ensure the security of the scanned data before using remote deposit capture. Proposing a Solution First, Blue Bank must come up with figures that support the decision to invest in remote deposit capture.

The cost of hardware, software, Website upgrades, security systems, and maintenance must be taken into account. Additional costs such as marketing and personnel training are also crucial when performing a cost-benefit analysis. The target market also needs to be addressed. It is advised that Blue Bank market remote deposit capture to businesses rather than to individual banking customers. Individual banking customers are less likely to purchase the scanning equipment, and generally have fewer checks to deposit. Businesses, on the other hand, would benefit tremendously from remote deposit capture.

Remote deposit capture will save time and the cost of physically delivering deposits to the bank. As the FDIC (2009) points out, "Most RDC customers are merchants who want to reduce the costs of transporting paper checks to their financial institution and gain faster access to their funds." The type of businesses most likely to use remote deposit capture are doctors and lawyers, because checks are commonly used as a means of payment (FDIC 2009). Blue Bank should analyze its target market to come up with a feasible marketing plan.

Moreover, Blue Bank should investigate resources like the RemoteDepositCapture.com Website, which present a wide range of suppliers. Blue Bank also needs to assess its unique needs, including the size of its client base, the size of its staff, and the feasibility of integrating remote deposit capture with its current Website. The current Website must be integrated with the remote deposit capture, but still allow the remote deposit capture portal to be hosted on a secure server with separate login access for customers.

Blue Bank is advised to create a special task force that will first investigate the costs of the investment, and then a distinct project development team that will oversee the implementation of the new technology. The information technology team must be a part of the project, which will transform the Blue Bank Website system and its security systems. Learning Application It is difficult to create new products and services in the banking industry, one that typically does not depend on innovation to stimulate growth.

However, new technology does present the banking industry with innovative means of generating profits. Remote deposit capture is a promising new technology that helps connect clients to their banks using their mobile devices. Although not as revolutionary as ATMs, remote deposit capture does provide value-added services and new ways of conducting personal and business transactions. Butcher (2011) describes remote deposit capture as the "tipping.