For the past twelve years, Panini has been integrally involved with digital check truncation throughout the world. We have been at the forefront of emerging legislation, technology, and processes to facilitate safe and efficient clearing of the paper check.
Today we have over a million check scanners installed, and RDC accounts for a large portion. Still, the best days may be ahead with realization of SMB potential, deployment of device management systems, integration of RDC applications with other paper-reliant processes, and the start of adoption in new truncation markets – such as Italy and Brazil – where both FIs and businesses already clearly understand the benefits and savings provided by remote deposit capture.
In the next few years Panini sees a growing need for management of RDC devices, as FIs are required by compliance regulations to practice solid “Know Your Customer” principles including clear identification of financial transaction origins. We’ve witnessed growing attention and interest towards monitoring software capabilities of geo-locating payment devices and allowing to shut them down in case fraudulent activity is suspected, supporting asset management requirements (inventory and tracking), and preserving the efficiency and productivity of deployed devices over time.
When looking at small and medium businesses in the U.S., whose RDC adoption level has remained relatively low, we feel that the unrealized potential of this huge target segment may signal issues with how RDC services are marketed and sold. As a result, we can expect new entrants to recognize this opportunity and engage in a refreshed attempt at full market penetration. SMBs are significant users of checks, highly sensitive to time-savings and cash flow, and in many industry surveys have they expressed a strong interest for this service. Even with decreasing check volumes, they are likely to increasingly demand affordable yet professional options for regular use, instead of those more suitable for occasional consumer deposits, such as smartphone-based mobile capture.
A portion of these small businesses will be retailers, and in the near future tablets will increasingly serve merchants as virtual POS terminals offering cost savings, efficiency and increased opportunities for customer interaction. Checks are still an important method of payment in several retail segments, and technology that allows the check to be part of this world, either via Check 21 or ACH conversion, must offer improved transaction efficiency and user experience both on the merchant’s and on the client’s side. With a similar setup, checks will be welcome for real-time remote deposit in temporary/variable locations – such as non-profits collecting donations for disasters and fundraising, and with mobile workers – such as agents and brokers collecting investments or insurance at the site of their customers.
Finally, we expect to see growing emphasis on the increased value of RDC in conjunction with other business processes, such as the capture of other types of payment related documents (other than checks) at the accounts receivable desk or, in a customer facing situation, the scanning of ID cards or any full-page documents related to the check-based payments (the healthcare vertical is a good example). For the back office, in parallel, more consistent and straightforward integration with accounting and finance applications, as businesses easily recognize the inefficiency associated with capturing a check twice (once for deposit, again for A/R), and will demand even greater automation and integration than they are currently used to.