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October 2003When Will Banks Get On Board for Check Imaging?

That's a good question. Talks with industry leaders indicate significant uncertainty as to when, but not to whether. The crux of the problem revolves around the need and cost (still a lot of uncertainty here as well) to print substitute checks. If all banks magically went to imaging one night this would be a non-issue, since very few substitute checks would need to be printed. On the other hand early adopters will need to make an investment in the capacity to print substitute checks. Over time as imaging is accepted this capacity will be less and less needed.

How much capacity a bank needs depends on the behavior of other banks; and the extent to which it returns checks to its own customers. Before joining the inter-bank image bandwagon a bank will want to move as many of its customers as possible to image or truncated statements. If other banks are good corporate citizens, before they convert a paper check to an image they will try to determine if the paying bank and all banks involved in clearing that check are image ready. If they aren't, converting to an image will cause some bank down stream to have to reconvert it and bear the cost of printing a substitute check. Early on operating paper and image clearing paths in parallel may make sense, but at some point it won't. Then images will have to be reconverted for the few remaining paper only banks, which raises the question who then should pay. Today the cost of clearing is paid by the collecting bank. Will this change?

There is a lot a bank needs to consider before making a decision including whether to be proactive or reactive, image checks in branches, ATMs, or even at customer locations. The decision is complicated by: still evolving regulations, cost uncertainty, and uncertainty about partner behavior and pricing.



RESEARCH

March 2011
Small and Home Busines Check Deposit Practices 2010-11 Survey Results


October 2007
Small Business RDC Survey Results


ARTICLES




2012
Some Small and Home Businesses Willing to Pay Large Premium for RDC

Small and Home Businesses Are Not All the Same – An RDC View

2011
Lighthouse Consulting Group, LLC Granted Patent for CheckFaxRDC Application

2010 Survey of Small and Home Business Check Deposit Practices Now Closed

2010
LCG Sets Up LinkedIn Small and Home Business Depositor Group

CheckFaxRDC Compared to Other Remote Deposit Capture Solutions

2009
Looking Beyond the Averages When Offering RDC to Small and Home Businesses


2008
Oil Prices, Credit Crises - Alternate Routes to Remote Deposit Capture Growth


What will the role of branches be in 2015?

Remote Deposit Capture Creates Market Segmentation Opportunities


2006
Fax Machines - Check Scanners
Small Business Already Have


2005
Small Business - A Remote Capture Opportunity

Remote Check Image Capture -  Business Case Behind the Marketing Opportunity

2004
Check 21 a Marketing Opportunity!


2003
Check 21 Act Passes Congress - Opportunities and Concerns


When Will Banks Get On
Board for Check Imaging?


Customer Relationship Management - Why Expectations Go Unmet


Recover from a Disaster or Risk Customer Attrition


Internet Attacks May Be the Least of Your Worries!

Losing the Paper Chase


2002
Fewer Checks to Be Written and Even Fewer to Be Posted

Depositing Checks from Your Office
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