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…